The global computational biology market size is expected to reach USD 13.6 billion by 2026, according to a new report by Grand View Research, Inc. It is anticipated to expand at a CAGR of 21.3 percent during the forecast period. Rise in clinical studies in pharmacokinetics and pharmacogenomics for novel drug delivery and increase in the application of computational biology for bioinformatics R&D programs for the population based sequencing studies are fueling the market growth.
Key suggestions from the report:
- Cellular and biological simulation is expected to expand at the fastest CAGR of over 15.0 percent over the forecast period. The shift in sequencing studies towards further analysis of the nature of various biological proteins as a part of the development of personalized medicine, is projected drive the growth
- Drug discovery and disease modelling applications led the market, accounting for 38.0 percent of the global market in terms of revenue in 2018. The factors responsible for this growth are extensive drug pipelines for the global drug manufacturing firms
- North America was the largest regional market, accounted for more than 45.0 percent of the global revenue in 2018. Increase in research activities for drug discovery processes and innovations in biological computation tools are anticipated to drive the growth
- Asia Pacific is anticipated to witness the fastest of around CAGR of 23.0 percent during the forecast period, due to increasing expenditure in the clinical studies for the pharmaco-kinetics and pharmaco-genomics
- Some of the players operating in the computational biology market include Chemical Computing Group Inc.; Compugen Ltd.; Simulation Plus Inc.; Genedata AG; Certara; Insilico Biotechnology AG; Accelrys; Rhenovia Pharma SAS; Entelos; Nimbus Discovery LLC; and Rhenovia Pharma SAS.
Rising use of computational tools in genomics, epi-genomics, proteomics, and meta-genomics to understand 3D protein structural analysis, protein-protein interactions, and gene sequencing and expression studies coupled with increasing research activities in drug designing and disease modeling is expected to drive the growth. However, lack of skilled resources to operate computational tools is expected to restrain the growth of the computational biology market during the forecast period.
Many pharmaceutical companies are seeking funding from angel investors. For instance, in February 2019, StemoniX Inc., the U.S. based provider of product and services for drug discovery and development, received funding of USD 14.40 million from a group of investors. Brightstone Venture Capital was the major financer and was later joined by Crescent Ridge Partners, Alumni Ventures Group, and Mayo Clinic. Similarly, in the same month, U.S. based Buffalo Niagara Medical Campus received funding of USD 5.0 million to speed up the discovery of new drugs. With this finding, the research institute is planning to procure and install drug discovery research instruments and other drug discovery platforms.