The global biosimulation market accounted for USD 1.04 billion in 2015 and is anticipated to grow at a CAGR of over 15.4% during the forecast period. The market is primarily driven by the increasing prevalence of chronic diseases, rendering gradual drug-resistance and limited efficient treatment options or low potency drugs. The low availability of drugs has resulted in the allocation of funds in the research and development sector of drug discovery and development, which further impels the need for biosimulation. Additionally, a significant contributor to the elevated costs is the high drug attrition rate observed in the later stages of the clinical trials, is presumed to drive the clinical urgency to incorporate the in silico biology offering reduced probability of drug failure by predicting the biological interactions before hand and thus reduces the overall costs. These aforementioned factors are expected to widen the scope for the growth of biosimulation vertical throughout the forecast period from 2016 to 2024.
North America Biosimulation Market Share, by Application, 2014 - 2024 (USD Million)
The emergence of technological innovations, such as the inclusion of microarrays, to perform gene expression analysis, aid in the development of validated mathematical models for biological processes is presumed to provide the market with lucrative growth opportunities in near future. Moreover, consistent technological improvements in the computational power of in silico systems enables the rapid simulation of composite and long experiments with a wide range of metabolic variables up to 400, and provide novel therapeutic approaches. This is anticipated to present the sector with a high growth potential and newer applications on the horizon. These novel solutions are presumed to efficiently improve biomedical research and address the challenges faced during clinical trials thereby optimizing the drug development and discovery process leading to greater market demand over the forecast period.
Biosimulation facilitates the development of new therapies at a faster and cheaper rate, such as virtual clinical trials for a pediatric population base yields valuable data for drug development, while circumventing ethical issues associated with non-virtual pediatric clinical trials. In addition, biosimulation models are being increasingly incorporated in metabolism and diabetic research that have proven to be useful in the identification of insulin secretion mechanism, presumed to aid in expanding the pipeline of automated insulin delivery pumps. These aforementioned factors exemplify the heightened preference of the medical community for in silico models, which is anticipated to further aid the emergence of this vertical in the future.
The software segment held a substantial industry share of over 70.0% in 2015 as a consequence of it being an indispensable part of the biosimulation process. The advent of new in silico software is presumed to open new avenues for personalized medicine and facilitate better patient outcomes by developing improved medication, particularly for the non-responder groups that are unresponsive to certain drugs. Moreover, the flexibility to modify, expand, and validate the drug development process through the use of mathematical software models is the crucial factor driving the preference of healthcare professionals for the in silico biology approach, thus leading to a greater market share.
In 2015, the drug development segment held the largest share of over 58.0% in the application segment. The dominant share is attributed to the relatively high success rate of computer modeling in both, the field of proteomics and genomics. Moreover, the urgency to curb the adverse effects associated with the administration of the current drugs available in the sector, for treatment, is propelling the demand for in silico systems to subsequently develop improved drug molecules. On the other hand, the drug discovery category is anticipated to witness a lucrative CAGR of over 28.0% during the forecast period. This can be attributed to the associated benefits of in silico mathematical models in drug discovery. The benefits include enabling the researchers and healthcare professionals to identify the critical gaps that hinder the drug discovery process thus yielding reduced drug attrition rate.
The pharmaceutical and biotechnology companies held the dominant share of the biosimulation market of over 58.0% in 2015. The substantial share is attributable to the increasing adoption of in silico models to develop new drugs in the following application areas: cancer, diabetes, and central nervous system diseases. These companies are consistently striving to prolong the lifecycles of patent-expiring drugs by incorporating the computer modeling approach to develop drug variants. For instance, Rhenovia Pharma Ltd., a biotechnological company, utilized in silico models to identify better treatment approaches pertaining to bipolar disorders, schizophrenia, depression, and Alzheimer’s disease. These aforementioned factors have resulted in the significant share.
In 2015, North America captured a sizeable share of the regional biosimulation vertical with a share of over 50.0%. The rising number of strategic collaborations directed toward the development of in silico capabilities and enforcement of stringent regulatory policies striving to ensure patient safety & high treatment efficacy standards are anticipated to propel the demand in this region. For instance, the American Diabetes Association (ADA) in collaboration with Entelos, Inc. developed a research forum to develop new therapies for Type 2 Diabetes through the in silico-based drug development process.
The Asia Pacific biosimulation vertical is anticipated to exhibit the fastest CAGR of over 17.0% during the forecast period owing to the increasing presence of CROs, growing healthcare IT spending, and the rapidly evolving healthcare infrastructure. In addition, the growth is attributable to the extensive research and development activities in the emerging economies, such as China and India.
Some of the key players in this sector include Certara USA, Inc., Dassault Systemes SA, Advanced Chemistry Development, Inc., Simulation Plus, Inc., Schrodinger, Inc., Chemical Computing Group, Inc., Entelos, Inc., Physiomics PLC, Genedata AG, and Rhenovia Pharma Ltd. The market is consolidated in nature and the growth is marked by prominent industry players undertaking strategies, such as mergers and acquisitions, geographical expansions, and product launches in order to capture a greater share of this vertical. For instance, in April 2014, Dassault Systems SA acquired Accelrys, Inc., a biosimulation solutions provider, with the aim of expanding their revenue share.
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