Computational Biology Market Expected to Reach $31.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Computational Biology Market," The computational biology market size was valued at $5.5 billion in 2021, and is estimated to reach $31.5 billion by 2031, growing at a CAGR of 19.5% from 2022 to 2031.

Computational bio-modeling uses computer-aided biological models to generalize methods and properly depict simulations in virtual space to review difficulties in biological models. Computational genetics is a branch of computational biology that studies genomic homology and internal biological systems through genome sequencing. One of the most notable examples is the Human Genome Project, which successfully sequenced the whole human genome.

Computational biology is used in neurology to see and comprehend three-dimensional simulation models of the brain by mapping complicated interconnected pathways. In the drug development process, computational pharmacology makes use of computer-aided visualization techniques to simulate advanced drug–drug interactions. Epidemiological studies have serious limits in terms of demonstrating a cause-and-effect relationship, whereas laboratory research is designed to accomplish so.

Factors that drive growth of the computational biology market share include increase in R&D activities for drug discovery, demand for predictive models, usage in population-based sequencing projects such as human genome project, and government funding. For instance, in March 2019, Ambrx Inc., a clinical-stage biopharmaceutical company focused in the field of protein therapeutics, signed R&D collaboration with BeiGene, Ltd., a commercial stage pharmaceutical company involved in the development of immuno-oncology drugs. Ambrx has proprietary Expanded Genetic Code platform designed to incorporate a non-natural amino acid into protein sequences of both E-coli and Chinese Hamster Ovary (CHO) cells. With this collaboration, both will leverage Ambrx’s drug discovery platforms with the latter’s knowledge expertise and resource pool for the development of clinically advanced biologics drugs.

Increase in number of key players to launch various computational biology products and rise in number approvals for computational biology products notably contributed toward the market growth. For instance, in May 2021, Certara, Inc., the world leader in bio-simulation, released new versions of its quantitative systems pharmacology (QSP) simulators for immunogenicity (IG) and immuno-oncology (IO) to aid in the development of biologics and cancer treatments.

Moreover, in March 2021, Compugen Ltd., a clinical-stage cancer immunotherapy company and a leader in predictive target discovery, published a review article titled "Therapeutic Targeting of Checkpoint Receptors within the DNAM-1 Axis," which looks at the biology and therapeutic relevance of the DNAM-1 axis in cancer immunotherapy.

The global computational biology market growth is segmented into application, service, end use, and region. On the basis of application, the market is categorized into cellular & biological simulation, drug discovery & disease modeling, pre-clinical drug development, clinical trials, and human body simulation software.

The cellular & biological simulation is sub-segmented into computer, genomics, computational proteomics, pharmacogenomics, and others. The drug discovery & disease modeling segregated into target identification, target validation, lead discovery, and lead optimization. The pre-clinical drug development segmented into pharmacokinetics and pharmacodynamics. The clinical trials are subcategorized into phase I, phase II, and phase III.

Depending on service, the segment is bifurcated into in-house services and contract. By end use, it is fragmented into academics & research and commercials.

Region wise, the computational biology industry is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

North America accounted for a majority share of the computational biology market share in 2021, and is anticipated to remain dominant during the forecast period. This is attributed due to surge in demand for tools of computational biology in various fields such as genomics, epi-genomics, proteomics, and meta-genomics for better understanding of protein structure & interaction; increase in number of approvals for computational biology products; strong presence of key players; and advancement in healthcare & medical device in the region. however, Asia-Pacific is anticipated to witness lucrative growth, owing to technological advancements in the field of healthcare.

By application segment, the computational biology market is divided into cellular and biological simulation, drug discovery & disease modeling, pre-clinical drug development, clinical trials and human body simulation software. The cellular & biological simulation segment was the highest revenue contributor to the market. Owing to increase in demand of virtual cells open-source software, computer genomics & computational proteomics also many private and commercial cloud platforms work in collaboration with governmental and public entities to provide cellular & biological simulation service are expected to drive the market growth.

The drug discovery & disease modeling segment is estimated to be the largest growing segment during the computational biology market forecast. Owing to increase in number of drug development and rise in awareness regarding target selection by using various methods such as assay and readers, automation and high content screening.   

By services, the contract segment was the highest revenue contributor to the market. This is owing to the fact that contract services are cheap when compared to the in-house services provided worldwide. Contract Research Organization (CRO) pro service providers work with clients to develop a customized plan as per the requirements therefore, act as a driver to boost the growth of the market.

The in-house segment is estimated to be the fastest growing segment. In-house service provides a company with greater control over the execution of in-house tasks, since it is the direct employer-based services also because of the advantages such as cost and time saving.

By end use, the commercial segment was the highest revenue contributor to the market. Due to increasing investment in Research and Development (R&D) in genetic engineering and new drug discovery by public as well as private companies, which contribute in the growing demand for computational biology significantly.

The academics & research segment is fastest growing segment during the forecast period. Owing to increase in drug discovery & disease modeling process for various chronic diseases such as cancer, diabetes, cardiovascular diseases, and respiratory disorders that create demand for this segment also increase in demand for predictive models, usage in population-based sequencing projects such as human genome project, and government funding is contributing in the growth of computational biology market.

Region wise, the computational biology market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America was the largest shareholder in the computational biology market in 2021. Increase in demand of pharmacovigilance for the pre-clinical drug development and to conduct clinical trials, R&D investments, and supportive government initiatives are the major factors and computational biology market trends that drive growth of the market.

LAMEA is estimated to grow fastest during the forecast period. Rise in number of product approval, increase in number of clinical trials procedures, surge in demand for bioinformatics tools & services emphasis of prominent players in enhancing their presence and high demand for advanced computational biology software in the region.

Some of the key players operating in the global computational biology market include Altaris capital partner, Compugen ltd., Certara, Genedata AG, Dassault systems, DNAnexus, Nimbus discovery, Instem, Rosa & co. ltd, and Simulation Plus

KEY FINDINGS OF THE STUDY

• By application type, the cellular & biological simulation services segment was the highest contributor to the market in 2021.
• By services, the contract service was the highest contributor to the market in 2021.
• By end use, the academic & research segment is projected to grow at a significant CAGR of 20.2% from 2022 to 2031.
• By region, North America garnered largest revenue share in 2021, whereas LAMEA is anticipated to grow at the highest CAGR of 23.0% during the review period.