Biosimulation MarketSize and Trends

Global Biosimulation Market is expected to reach US$ 5,894.4 Mn by 2030, from US$ 1,901.9 Mn in 2023, exhibiting a CAGR of 17.5% during the forecast period. Modeling and simulation (M&S) in the drug development process is a scientific approach used in crucial drug development decisions. In order to avoid issues in discovery and development of new drug, biosimulation offers a promising tool, along with saving both time, money, and improving the predictability in early stage of drug development. Biosimulation refers to simulation of biological systems.

Global Biosimulation Market- Drivers

Rising R&D expenditure: Rising research and development expenditure in the pharmaceutical and biotechnology industries has been a major factor fueling the growth of the global biosimulation market over the years. As research becomes more complex and expensive, companies are increasingly relying on computational simulation and modelling techniques to optimize their R&D processes and reduce costs. Biosimulation allows researchers to test theoretical hypotheses in silico before committing resources to physical experimentation. This helps in lowering failure rates in drug development and accelerate clinical trials. According to the data published by Organization for Economic Co-Operation and Development (OECD), 2020 global pharmaceutical R&D spending grew from about US$ 160 billion in 2015 to nearly US$ 190 billion in 2020. The top 10 pharmaceutical companies alone spent over US$ 100 billion on R&D in 2020. High costs associated with drug development and stringent regulatory norms have compelled big pharma players to adopt digital technologies like biosimulation earlier in the discovery and preclinical testing phases. This trend is expected to continue as next-generation precision medicines and complex biologics require even higher investments. Overdependence on animal testing is also being reduced due to ethical concerns, providing further impetus to 'in silico' simulation models.
Increasing pharma and biotech funding: Global biosimulation market is witnessing significant growth, owing to rising investments in pharmaceutical and biotech research and development activities. Biosimulation techniques are extensively used in drug discovery and development to gain insights into biological processes and predict the behavior of biological systems. It helps researchers to study the effects of potential drug candidates in silico (using computer simulations) before moving them to expensive and time-consuming wet lab testing and clinical This significantly reduces costs and time involved in new drug development. With billions being invested by governments and companies worldwide into developing novel drugs and therapies, the demand for biosimulation tools and services is steadily increasing. For instance, in 2022, according to the data published by White House Office of Science and Technology Policy, the U.S. government had invested over US$ 6.5 billion in 2021 for Covid-19 therapeutics development through various programs like Operation Warp Speed. Similarly, the U.K. government announced investments of over US$ 1 billion in 2021 for establishing research hubs focusing on advanced therapies, cell and gene therapies, and diseases with unmet needs like cancer. A report by the European Commission mentioned that the EU's funding for healthcare research reached US$ 3.6 billion in 2020, a significant increase from the previous years.
Technological advancements: Technological advancements in the field of biosimulation is one of the major factors augmenting the growth of the global biosimulation market. Biosimulation tools enable to digitally model biological systems right from the molecular to the organ level and run various biological experiments in silico rather than animal and human testing. This significantly reduces the cost and time involved in drug discovery while ensuring safety and efficacy. Advancements in fields like machine learning, artificial intelligence and high performance computing have enabled the development of highly sophisticated computational models that can closely mimic biological functions. For instance, machine learning techniques are being used to improve simulation models by incorporating data from real-world clinical trials and experiments. This helps to make biosimulation models more accurate, specific and personalized over time. Cloud computing infrastructure is also supporting the computational power and data needs of highly complex biosimulation models. This makes advanced modeling accessible for small to medium organizations. Market players are launching upgraded software for biosimulation, and this is expected to drive the global biosimulation market growth over the forecast period. For instance, in 2023, Certara, a manufacturer of biosimulation software, launched version 8.4 of its Phoenix platform, the industry gold standard in pharmacokinetic/ pharmacodynamic (PK/PD) and toxicokinetic modeling and simulation software. Version 8.4 delivers new features driven by customer demand that improve efficiency, quality, and speed. The new software consist of usability enhancements, auditability improvements and compatibility upgrades.
Growing focus on precision medicine: The rise of precision medicine and its focus on tailoring treatment specific to an individual's genetic makeup is a major factor driving the growth of global biosimulation market. Precision medicine helps doctors and researchers to predict more accurately how a particular disease or treatment and may affect a particular person by analyzing biological markers. This requires complex simulations at molecular and cellular level to understand the disease pathways and effects of various treatment options on human Biosimulation tools and technologies are enabling researchers to create highly customized computer models of organs, tissues and entire organisms which can help test thousands of therapies, doses and drug combinations virtually before subjecting them to expensive and time-consuming clinical trials. For example, biosimulation of tumor growth and drug response mechanism at molecular level is helping oncologists to select the most effective drug and dosage for cancer patients based on their individual genetic profile. Some biosimulation tools are also being used to design novel drugs and biologics in a safer and cost-effective manner. According to World Health Organization (WHO), by2023, around 75% of novel therapies under development will use biosimulation tools during research and development.
Reduction in drug development costs: The reduction in drug development costs through use of biosimulation is a major factor driving growth of global biosimulation market. Biosimulation offers pharmaceutical companies opportunities to reduce financial risks in drug development by enabling testing of new drug candidates via computer simulation, before moving to expensive and time-consuming animal and clinical trials. This in silico, or on computer, modeling and simulation allows researchers to test thousands of what-if scenarios to optimize drug molecules for desired responses in the human body, without using live subjects. The cost and time savings from applying biosimulation are substantial. According to U.S. Food and Drug Administration (FDA), on an average, only one in 10,000 drug candidates entering preclinical testing makes it to human testing, showing a huge attrition during development. Similarly, the Tuft Center for the Study of Drug Development pegs the cost of bringing a new drug to market at an average of US$ 2.6 billion. Even a small percentage of cost-cutting and time reduction through biosimulation translates to significant savings.