The global biosimulation market size was valued at USD 2.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 15.9% from 2021 to 2028. The rising incidence of drug relapse cases due to drug resistance in diseases, including cancer, tuberculosis, and other bacterial infections, is among the key trends stimulating the market growth. This is estimated to drive clinical urgency to incorporate biosimulation in the initial development of a new generation of drugs. The COVID-19 pandemic significantly impacted the healthcare industry including the market for biosimulation. The need to rapidly test and develop COVID-19 vaccine candidates catalyzed the demand for biosimulation software and services.
According to an April 2021 study published in the National Center for Biotechnology Information, known preclinical in vitro and in vivo datasets were used to conduct in-silico modeling using a biosimulation solution- BIOiSIM. The purpose of the study was to accelerate the repurposing and drug development of therapies used for pulmonary hypertension against COVID-19. The surge in similar studies indicated a positive impact on the market driven by the rising demand for accelerated drug development for COVID-19.
For instance, in August 2020, Certara, a key market player, collaborated with several pharmaceutical companies. This collaboration was intended to support the development of a new biosimulation tool to make it easier for developing vaccine candidates across multiple types of patient populations by using virtual patients and trials. It was also intended to provide insights before conducting any real-life studies. This new module was a part of the company’s Quantitative Systems Pharmacology (QSP) platform. In July 2020, the company also introduced the COVID-19 clinical outcomes database for providing updated information on COVID-19 clinical trials results and observational studies, globally.
Moreover, clinical urgency to develop high potency and advanced drugs is projected to play a pivotal role in the growth of the market. Biosimulation is being increasingly adopted in simulation modeling of diseases, such as diabetes mellitus. It is used in conjunction with proteomic and genomic technologies to develop models for advanced therapeutics.
Technological innovations and periodic up-gradation 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 the adoption of microarrays and predictive models. Other advancements include semantic technologies that support a finite number of elements of biosimulation, which reduces the time, cost, and complexity of the overall process.
Market players are actively involved in strategic collaborations to develop new products, gain market share, and strengthen their regional footprint, thus driving the market. In January 2017, Certara launched a Quantitative Systems Pharmacology Consortium. This brought together leading biopharma companies in a pre-competitive environment to work together to develop a Simulator that will predict the immunogenicity of biologics including its impact on efficacy, pharmacokinetics, and safety in diverse patient populations.
The software segment dominated the market with a share of over 65.0% in 2020. This is attributed to the numerous application-specific software available in the market that caters to specific research and development requirements. For instance, RhenoviaPharma provides software that specializes in the simulation of the mechanism of CNS-specific drugs.
The services segment is poised to register the highest CAGR during the forecast period. The growth of the segment can be attributed to increasingly complex and multi-layered drug development systems, in which biosimulation services may prove to be imperative. The aforementioned is expected to be achieved through the formulation of new combination therapies that are more precise in nature.
Key players are involved in providing an extensive array of services, which simplify the overall drug discovery and development processes. In February 2016, Certara launched Phoenix Technology Services, a range of biosimulation services employed to optimize R&D productivity, facilitate data transfer, and develop regulatory submission protocols.
Drug development held the largest share of over 55.0% in 2020. A rising number of government initiatives promoting the incorporation of advanced software is contributing to the growth of the segment. For instance, the FDA’s 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.
Drug discovery is anticipated to register the highest CAGR throughout the forecast period. The growing adoption of biosimulation in areas such as pharmacogenomics and pharmacogenetics is supplementing the growth of the segment. In February 2020, Certara acquired a modeling and simulation technology platform developed for the study of neurodegenerative conditions from In Silico Biosciences, Inc. This aided the company’s quantitative systems pharmacology (QSP) business model in its research focused on neurodegenerative diseases.
Pharmaceutical and biotechnology companies accounted for the largest share of over 50.0% in 2020. Strong demand for biosimulation in these companies can be attributed to the constant efforts of key companies to prolong lifecycles of off-patent drugs and discover drug variants by adopting a computer modeling approach.
The CROs segment is estimated to grow at the fastest rate during the forecast period. The rising inclination of companies to reduce the overall expenditure is projected to escalate the growth of the segment. Other drivers include enhanced productivity and flexibility to focus on core areas of development, which are critical to the growth of a company.
North America held the largest share of over 45.0% in 2020. This growth is attributed to the presence of key players, increasing digitization in healthcare, and the rising prevalence of chronic health issues. Moreover, the adoption of in-silico models during enforcement of regulatory policies to ensure high patient safety and treatment standards is contributing to the share attained by North America.
Asia Pacific is likely to witness exponential growth during the forecast period owing to the rising initiatives by the public and private sectors and consistent up-gradation in healthcare infrastructure. In addition, burgeoning R&D activities in emerging economies are poised to present the region with significant growth opportunities. In November 2020, Certara opened a new office in Shanghai, China. This enabled the company to strengthen its tie-up with customers in the rapidly growing Chinese biopharmaceutical market.
Key players in the market deployed competitive sustainability strategies that include product development and geographical presence expansion to gain a greater market share. Market leaders are also highly inclined towards addressing unmet needs and delivering economic value through consistent product upgrades.
In September 2020, Advanced Chemistry Development released new updates for its Percepta and Spectrus platform applications. This enhanced the company’s product offerings with new features such as NMR and MS functionality for data analysis and 3D optimization in the chromatography lineup. Some prominent players in the global biosimulation market include:
Certara
DassaultSystemes
Advanced Chemistry Development
Simulation Plus
Schrodinger, Inc.
Chemical Computing Group ULC
PhysiomicsPlc
Rosa & Co. LLC
BioSimulation Consulting Inc.
Genedata AG
Instem Group of Companies
PPD, Inc. (Evidera)
Insilico Biotechnology AG
Immunetrics
Report Attribute |
Details |
Market size value in 2021 |
USD 2.43 billion |
Revenue forecast in 2028 |
USD 6.83 billion |
Growth Rate |
CAGR of 15.9% from 2021 to 2028 |
Base year for estimation |
2020 |
Actual estimates/Historical data |
2016 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Revenue in USD million/billion & CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, end use, region |
Regions covered |
North America; Europe; Asia Pacific; Latin America; MEA |
Country Scope |
U.S.; Canada; U.K.; Germany; France; Japan; China; India; Brazil; Mexico; South Africa |
Key companies profiled |
Certara; Dassault Systemes; Advanced Chemistry Development; Simulation Plus; Schrodinger, Inc.; Chemical Computing Group ULC; PhysiomicsPlc; Rosa & Co. LLC; BioSimulation Consulting Inc.; Genedata AG; Instem Group of Companies; PPD, Inc. (Evidera); Insilico Biotechnology AG; Immunetrics |
Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this report, 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, 2016 - 2028)
Software
Services
In-house Services
Contract Services
Application Outlook (Revenue, USD Million, 2016 - 2028)
Drug Development
Drug Discovery
Others
End-use Outlook (Revenue, USD Million, 2016 - 2028)
Pharmaceutical & Biotechnology Companies
CROs
Regulatory Authorities
Academic Research Institutions
Regional Outlook (Revenue, USD Million, 2016 - 2028)
North America
U.S.
Canada
Europe
U.K.
Germany
France
Asia Pacific
Japan
China
India
Latin America
Mexico
Brazil
MEA
South Africa
b. The global biosimulation market size was estimated at USD 2.1 billion in 2020 and is expected to reach USD 2.43 billion in 2021.
b. The global biosimulation market is expected to grow at a compound annual growth rate of 15.9% from 2021 to 2028 to reach USD 6.83 billion by 2028.
b. North America dominated the biosimulation market with a share of 49.92% in 2020. This is attributable to the growing number of collaborations by key players for improving drug discovery capabilities and adopting in-silico models during enforcement of regulatory policies to ensure high patient safety & treatment standards.
b. Some key players operating in the biosimulation market include Dassault Systemes SA; Certara USA, Inc.; Advanced Chemistry Development, Inc.; Schrodinger, Inc.; Genedata AG; and Rhenovia Pharma Ltd.
b. Key factors that are driving the biosimulation market growth include increasing cases of drug relapse due to acquired drug resistance in diseases such as cancer, tuberculosis, and other bacterial infections, high clinical urgency to develop high potency and advanced drugs, and technological innovations and periodic up-gradation in the software.
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