Biosimulation Market Size, Share & Trend Analysis Report By Product (Software, Services), By Application (Drug, Development, Discovery), By End-use, By Region, Vendor Landscape, And Segment Forecasts, 2018 - 2024

Industry Outlook

The global biosimulation market size was estimated at USD 1.20 billion in 2016. It is expected to expand at a noteworthy CAGR of 15.4% over the forecast period. Mounting cases of drug relapse due to acquired drug resistance in diseases such as cancer, tuberculosis, and other bacterial infections are among the key trends stimulating market growth. This is estimated to drive clinical urgency to incorporate biosimulation in initial development of new generation of drugs.

Biosimulation facilitates continued efforts to gain better insights into mechanism of drug resistance as well as to aid identification of therapies with high potency and lower susceptibility to drug resistance. Presence of prolonged therapies, such as in case of diabetes, may result in poor patient adherence to and formation of drug-resistant bacteria strain. This may hinder the overall treatment regime, creating the need for biosimulation.

Moreover, high clinical urgency to develop high potency and advanced drugs are projected to play a pivotal role in the growth of the market. Biosimulation is being increasingly adopted in simulation modeling of diabetes mellitus. It is used in conjunction with proteomic and genomic technologies to develop models for advanced therapeutics.

Technological innovations and periodic upgradation in the software are anticipated to boost the inclination of researchers towards biosimulation. This is likely to provide a significant push to the market. These technological advancements include adoption of microarrays and predictive models such as top-down, bottom-up approaches, hybrid models, and biochemical pathways building models. Other advancements include semantic technologies that support a finite number of elements of biosimulation, which reduces time, cost, and complexity of the overall process.

Product Insights

Software accounted for the dominant share in the market in 2015. The dominant share can be attributed to availability of wide range of application-specific software that suits interests and needs of researchers. For instance, Rhenovia Pharma provides software that specializes in simulation of mechanism of CNS specific drugs. The software is also being increasingly incorporated in applications such as defense, food, aviation and others.

The services segment is poised to witness the highest CAGR during the forecast period. The growth of the segment can be attributed to increasing complex and multi-layered drug development systems, in which biosimulation services may prove to be imperative. The aforementioned is expected to be achieved through formulation of new combination therapies that are more precise in nature. Key players are highly involved in providing an extensive array of services, which simplify the overall biosimulation process. These services result in reduction of overall expenditure and thus, become the preference for clinicians and researchers.

Application Insights

Drug development held the largest share of over 58.0% in 2015. Rising number of government initiatives promoting incorporation of advanced software is contributing to the growth of the segment. For instance, FDA’s 2004 critical path initiative report highlights the importance of this approach for drug development and suggests that it can be incorporated as an efficient predictive tool.

On the other hand, drug discovery is anticipated to post a remarkable CAGR throughout the forecast period. Spiraling adoption of biosimulation in areas such as pharmacogenomics and pharmacogenetics is supplementing the growth of the segment. In addition, growing demand for development of advanced therapeutics in conditions such as pregnancy, for which a large number of drugs cannot be administered, is one of the key growth stimulants for this segment.

End-use Insights

Pharmaceutical & biotechnology companies accounted for a substantial share of over 57.0% in the biosimulation market in 2015. Strong demand for biosimulation in these companies can be attributed to constant efforts of key companies to prolong lifecycles of off-patent drugs and discover drug variants by adopting computer modeling approach. For instance, Rhenovia Pharma Ltd. adopted silico models for the identification of better treatment approaches for bipolar disorders, depression, schizophrenia, and Alzheimer’s disease.

CROs are estimated to progress at a phenomenal CAGR during the forecast period. Rising inclination of companies to reduce the overall expenditure is projected to escalate the growth of the segment. Other benefits primarily include enhanced productivity and a higher focus on core areas of development, which are critical to the growth of a company.

Regional Insights

In 2015, North America was at the forefront of the growth of the market, representing over half of the overall market revenue. Growing number of collaborations by key players for improving drug discovery capabilities is helping the market gain tremendous momentum. Moreover, adoption of in-silico models during enforcement of regulatory policies to ensure high patient safety & treatment standards is further contributing to the share attained by North America.

Asia Pacific is likely to witness exponential growth during the forecast period owing to increasing preference for contract research organizations, rising healthcare IT expenditure, and consistent upgradation in healthcare infrastructure. In addition, burgeoning R&D activities in emerging economies is poised to present the region with significant growth opportunities.

Biosimulation Market Share Insights

Key players in this sector include Dassault Systemes SA; Certara USA, Inc.; Advanced Chemistry Development, Inc.; Schrodinger, Inc.; Genedata AG; and Rhenovia Pharma Ltd. These players deployed competitive sustainability strategies that include product development and geographical presence expansion to gain a greater market share.

Market leaders are highly inclined towards addressing unmet needs and delivering economic value through consistent product upgradations. For instance, in August 2016, Certara USA, Inc. launched a new version of PK/PD Phoenix 7.0 software with improved efficiency and power. This launch was carried out due to high significance and increased incorporation of biosimulation software in drug development.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global biosimulation market report on the basis of product, application, end-use, and region:

• Product Outlook (Revenue, USD Million, 2013 - 2024)

  • Software

  • Services

    • In-house Services

    • Contract Services

• Application Outlook (Revenue, USD Million, 2013 - 2024)

  • Drug Development

  • Drug Discovery

  • Others

• End-use Outlook (Revenue, USD Million, 2013 - 2024)

  • Pharmaceutical & Biotechnology Companies

  • CROs

  • Regulatory Authorities

  • Academic Research Institutions

• Regional Outlook (Revenue, USD Million, 2013 - 2024)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Mexico

    • Brazil

  • MEA

    • South Africa