COMPUTATIONAL BIOLOGY MARKET ANALYSIS

The global computational biology market is estimated to be valued at US$ 6.6 billion in 2023 and is expected to exhibit a CAGR of 17.6 % during the forecast period (2023-2030).

Analysts’ views on the global computational biology market:

Increasing new product launches, and strategies like mergers, acquisitions, and collaboration are expected drive the global computational biology market growth over the forecast period. For instance, on June 2, 2021, Indivumed GmbH, a Europe-based biotechnology company announced the launch of nRavelTM, a unique AI discovery platform for oncology and precision medicine. The platform combines IndivuType's deep multi-omics data with elaborate disease models, high-powered automated machine Learning tools, and a comprehensive suite of advanced analytics tools. Together this creates an unparalleled engine for generating new discoveries and insights into cancer biology.

Figure 1. Global Computational Biology Market Share (%), By Type, 2023

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Global Computational Biology Market - Drivers

Increasing clinical trial activities using computational designs

Increasing research and development with the use of computational biology are expected to drive the global computational biology market growth over the forecast period. For instance, on April 13, 2021, Peptilogics, a U.S.-based biotechnology company, announced that by using computational design to discover novel peptide therapeutics, it has successfully completed  Phase 1 clinical trial for its lead compound PLG0206, a potent, broad-spectrum anti-infective used in the treatment of prosthetic joint infections.  Unlike existing antibiotics, PLG0206 directly addresses the biofilm and the persister pathogens that make PJI so difficult to treat and can be administered locally to the infected site, while maintaining a very low resistance profile.

Increasing launches of new technologies in computational biology

Increasing launch of new products in computational biology is expected to drive the global computational biology market growth. For instance, on May 31, 2023, Biognosys AG, a Switzerland-based next-generation proteomics contract research services provider, launched Spectronaut 18 and major scientific and technological advances for its proprietary proteomics research software and services. Spectronaut 18 provides DIA data analysis with unprecedented throughput and efficiency. Software and services like TrueDiscovery accelerates biomarker discovery in oncology and neuroscience, TrueTarget offers high-resolution drug target identification and deconvolution while Bruker ProteoScape a software for computational 4D Proteomics was introduced for the monitoring and optimization of system performance for timsTOF platform.

Figure 2. Global Computational Biology Market Share (%), By Region, 2023

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Global Computational Biology Market - Regional Analysis

Among region, North America is estimated to hold a dominant position in the global computational biology market over the forecast period, owing to increasing clinical trials using computational biology tools of different formulations. For instance, on January 5, 2021, AsclepiX Therapeutics, Inc., U.S.-based biotechnology company, announced that the first patient was given a dose in phase 1/2a CONGO clinical trial to evaluate safety and bioactivity of AXT107 in patients with Diabetic Macular Edema. AXT107 is an investigational drug candidate that inhibits VEGF-A and VEGF-C and activates Tie2. AsclepiX Therapeutics, Inc. used computational biology to identify potent peptide regulators of vascular and cellular homeostatis.

Global Computational Biology Market – Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe, and the World Health Organization declared it a public health emergency on January 30, 2020.

COVID-19 affected the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries, such as China, India, Saudi Arabia, the U.A.E., Egypt, and others, faced problems regarding transportation of drugs from one place to another.

However, the COVID-19 pandemic had positive impact on the global computational biology market, due to increased demand of computational tools for identification of COVID-19 virus genome. For instance, on July 27, 2022, Hewlett Packard Enterprise, a U.S.-based multinational information technology company, announced McMaster University, a Canada-based public research university’s Arthur Lab developed software package for determining COVID-19 variants using HPE Superdome Flex Server to quickly ingest raw genomic data and unlock insights of virus mutation. This HPE solution can monitor variants and supports investigation of COVID-19 infection. It can reduce time to collect and analyze data from 9-10 hours to just an hour.

Global Computational Biology Market Segmentation:

The global computational biology market report is segmented into type, tools, and region.

Based on type, the global computational biology market is segmented into cellular & biological simulation and disease modeling and simulation applications. Out of which, the cellular & biological simulation segment is expected to dominate the market due to increasing launches of newer tools.

Based on tools, the global computational biology market is segmented into content/database, analysis software and services, IT infrastructure (Hardware). Among these, analysis software and services segment is expected to dominate the market over the forecast period due to increasing technological innovations in these softwares in computational biology.

Based on region, the global computational biology market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. Among these, North America is expected to dominate the market over the forecast period due to increasing research and development activities in this segment.

Among all segmentation, the type segment has the highest potential due to increasing funding by the key market players. For instance, on November 22, 2022, Turbine Ltd., U.K. based cell behavior simulation company announced the closing of a US$ 20 million Series A financing round. Mercia Asset Management, U.K. based venture capital fund and MSD Global Health Innovation (GHI), U.K. based corporate healthcare venture capital co-led the financing, joined by Day One Capital, U.K. based Venture capital fund. In conjunction with the financing, MSD GHI Fund and Mercia Asset Management have delegated members to Turbine's new Board.   

Global Computational Biology Market in Cross Sectional Analysis:

Introduction of newer products and technologies in computational biology by key market players in Europe is expected to drive the growth of the type segment in the region. For instance, on April 28, 2022 Genedata, a Switzerland-based bioinformatics company, announced the availability of Genedata Imagence 5.0 to automate its HCS image analysis workflows and to integrate data across its instrument portfolio. Its automatic image analysis increases the number of standard HCS assays run routinely in biopharmaceutical laboratories. This new algorithm gives easy identification of quality issues and reliable results. It also gives robustness and cost effectiveness.

Global Computational Biology Market: Key Developments

On October 14, 2020, Summit Biolabs, a U.S.-based medical laboratory announced a broad strategic collaboration involving the research, development, and commercialization of saliva liquid-biopsy tests for early cancer detection and diagnosis of COVID-19 and other viral contagions with Colorado Center for Personalized Medicine, a U.S.-based biorepository. This collaboration broadened and strengthened Summit Biolabs’ ability to bring saliva liquid-biopsy tests to enable better treatment and improved outcomes for patients.

On June 24, 2020, AsclepiX Therapeutics, Inc., a U.S.-based biotechnology company, announced that it has closed a US$ 35 million Series A financing led by Perceptive Xontogeny Venture Fund. The proceeds from financing will fund Phase 1/2a clinical trials of AXT107, the company’s investigational drug.

On January 20, 2022, Researchers from the University of Illinois at Urbana-Champaign, a U.S.-based research university, developed Graphics Processing Unit (GPU)-accelerated software to simulate a 2-billion-atom cell that metabolizes and shows growth similar that of a living cell in the body. The model uses NVIDIA, a U.S.-based technology company’s product, GPUs to simulate 7,000 genetic information processes over a 20-minute span of the cell cycle.

On November 10, 2020, PerkinElmer Inc., a U.S.-based pharmaceutical products company, announced the release of ChemDraw and ChemOffice+ Cloud  version 20.0, a Research Suite designed to help researchers bring their chemistry to life and quickly turn it into actionable chemical knowledge.

Global Computational Biology Market: Key Trends

Introduction of newer techniques for modeling and simulation

The introduction of newer techniques for modeling and simulation can boost drug discovery and drug development which can ultimately drive the market growth. On April 1, 2021, Dassault Systèmes, a France-based multinational software corporation, launched its BIOVIA ScienceCloud platform. It will help to integrate scientific data and workflows across research and development teams.

Launch of newer platforms for drug discovery by key market players

On July 29, 2021, Thermo Fisher Scientific Inc., U.S. based laboratory equipment supplier launched Thermo Scientific CellInsight CX7 LZR High-content Screening (HCS) platform for drug discovery applications. It is a fast, laser-based, automated cellular imaging, and analysis platform for quantitative microscopy and phenotypic screening. CX7 LZR incorporates both laser-based fluorescence illumination and integrated Nipkow spinning-disc confocal technology for publication quality imaging of a broad range of samples from simple monolayers to thick spheroid samples.

Global Computational Biology Market: Restraints

Lack of standardization of life science data

The lack of standardization of life science data is expected to hamper the global computational biology market growth. For instance, according to an article published by F1000 Research on May 10, 2022, reproducibility crisis is a challenge that needs action. Reasons for this crisis are manifold, among them one is lack of appropriate study design. Lack of proper controls or insufficient documentation are also some of reasons of reproducibility crisis. However, the main reason for reproducibility crisis is the absence of a unifying quality control and assurance framework. High-quality records are essential for the quality and reproducibility of research results and efficient technology transfer. Standards facilitate the alignment of consensus-based best practices, reduce variance, and improve reproducibility in research. There is rise in the need for combination of the available software to build a composite application for current single task tools. As there is lack of global standardization of the methodology, researchers face difficulties with the reproducibility of products.

To counterbalance this restraint, a protocol should be introduced to offer reproducibility in results.

Issues of data storage

The lack of proper management of large amount of data generated is expected to hamper the global computational biology market growth. For instance, according to an article published in Journal Gene reports on December 2020, there is a need to bridge the gap between high-throughput technological development and ability to manage, analyze and integrate the biological data. Expertise in data management is needed to solve this problem. Rapid data accumulation poses challenges in organizing the data as it is diverse and may belong to populations, disease associations, symptoms, therapeutic drugs, and others. Data privacy and security is also necessary to manage in bioinformatics and computational biology.

To counterbalance this restrain, more training to personnel and efficient network should be prepared to manage a large amount of data.

Global Computational Biology Market - Key Players

The major players operating in the global computational biology market include Accelrys, Certara, L.P., Chemical Computing Group Inc., Compugen, Ltd., Entelos, Inc. (Rosa & Co. LLC), Genedata AG, Insilico Biotechnology AG, Leadscope, Inc., Nimbus Discovery LLC, Rhenovia  Pharma SAS, Schrodinger, and Simulation Plus, Inc.

*Definition: Computational biology uses data-analytical and theoretical methods, mathematical modeling, and computational simulation techniques in life sciences. Predictive modeling tools provide vital information for better streamlining of drug development process, thus reducing time and increasing efficiency. The increasing use of bioinformatics tools along with increasing investments in research and development is expected to propel the market growth during the forecast period. Furthermore, increasing patient population suffering from chronic diseases and the increasing adoption of cloud computing for data storage is also anticipated to assist the growth of the market during the forecast period.