Computational Biology Market Size, Share & Trends Analysis Report By Application (Cellular & Biological Simulation, Drug Discovery & Disease Modelling), By Service, By End Use, And Segment Forecasts, 2019 - 2026

Industry Insights

The global computational biology market size was valued at USD 2.9 billion in 2018 and is expected to witness a CAGR of 21.5% over the forecast period. Computational biology is the inter-disciplinary applied science that utilizes concepts of basic biology through the use of mathematical, theoretical, and computer simulation models to study biological systems. Factors fueling the market growth are the rise in R&D for drug discovery, demand for predictive models, usage in population based sequencing projects such as human genome project, and government funding.

Computational bio-modeling consists of computer aided biological models to generalize algorithms to accurately visualize simulation to review complexities in biological models in the virtual space. Computational genetics is the sub-field of computational biology in which sequencing of the genomes is carried out to understand homology and internal biological mechanisms. The Human Genome Project was one of the prime examples, in which the whole human genome was sequenced successfully. In neurology, computational biology is used to map complex interlinked pathways to visualize and decipher three-dimensional simulation models of the brain. Computational pharmacology makes use of computer aided visualization tools to simulate advanced drug-drug interactions in the drug designing process.

Growing R&D for drug discovery, demand for predictive models, usage in population based sequencing projects such as human genome project, and government funding are the factors fueling market growth. For instance, in March 2019, Ambrx Inc., a clinical-stage biopharmaceutical company focused in the field of protein therapeutics signed R&D collaboration with BeiGene, Ltd., a commercial stage pharmaceutical company involved in the development of immuno-oncology drugs. Ambrx has proprietary Expanded Genetic Code platform designed to incorporate a non-natural amino acid into protein sequences of both E-coli and Chinese Hamster Ovary (CHO) cells. With this collaboration, both will leverage Ambrx’s drug discovery platforms with the latter’s knowledge expertise and resource pool for the development of clinically advanced biologics drugs.

In January 2018, the German Translational Biodiversity Genomics Excellence Center received a grant of USD 20.0 million for seven years for high quality sequencing of thousands of organisms. Similarly, in October 2016, 23andMe received USD 1.7 million funding from National Institutes of Health's (NIH) National Human Genome Research Institute for the period of one year to create sequencing panels for the African American genomes. Moreover, in 2016, the Ministry of Science, Canada, announced the investment of USD 4.0 million for 16 new computational biology projects. However, the market growth is constrained due to lack of trained professionals.

Application Insights

On the basis of application, the computational biology market is categorized into the cellular and biological simulation, drug discovery and disease modeling, pre-clinical drug development, clinical trials, and human body simulation software. Cellular and biological simulation is further segmented into computational genomics and proteomics, pharmacogenomics, and others. Drug discovery and disease modeling is further segmented into target identification, target validation, lead discovery, and optimization. Pre-clinical development is further segmented as pharmacokinetics and pharmacodynamics. The clinical trials segment is further classified into phase I, II, and III.

Cellular and biological simulation is expected to continue leading with over 34.0% market share by 2026. Computational cell modeling and biological simulation help decipher the biological and physiological functions of cells. Increased unmet medical needs and burgeoning demand for personalized medicine are expected to shape the future growth of this segment. For instance, Hewlett Packard Enterprise’s (HPE), high-performance computing abilities are employed in personalized medicine to improve healthcare delivery and patient diagnosis. In this direction, Dassault Systemes organized the “Living Heart Project” created a 3D simulated model of a human heart.

Drug discovery and disease modelling is anticipated to be the fastest growing segment over the forecast period, owing to investments in novel drug development and rise in instance of failures in clinical trials. At present, the market for drug discovery and disease modelling is at healthy growth phase to improve diagnosis and prognosis. Moreover, preclinical drug development is expected to register the second highest CAGR during the forecast period, owing to rising demand for drugs across the globe.

Services Insights

On the basis of services, the market is bifurcated into in-house and contract services. In 2018, contract services held the largest market share and is expected to continue leading over the forecast period. The segment is projected to hold over 50.0% market share by 2026, attributed to the fact that contract services are less expensive as compared to the in-house services.

Computational biology Contract Research Organizations (CRO) streamline bio-medical research worldwide. These CROs increase the computational capabilities and eliminate considerable waste in the contract research enterprises. With the recent advancements in cloud computing and other IT technologies, contract services are projected to flourish during the study period.

End Use Insights

On the basis of end use, the market is segmented into commercial, academics, and industry. Commercial led the end-use segment in 2018, attributed to the increase in the bioinformatics research, drug designing, and usage in personalized medicine. For instance, in August 2018, the European Union and India’s Department of Biotechnology (DBT) announced the fund of USD 17.2 million towards research and innovation for the development of next-generation influenza virus to protect individuals globally. Such initiatives bring both commercial and government academia on the same platform for the common purpose.

Regional Insights

North America is expected to be a substantial contributor to the global market. Strong government funding for genetic-based studies, rise in public-private partnerships, and industry-academia collaborations are expected to favor the regional growth during the forecast period.

Asia Pacific is anticipated to showcase high growth over the forecast period, due to government-funded population-based studies and foreign investments. For instance, each year, the New South Wales (NSW) provincial government provides funding to the aspirant researchers in genomic medicine research at the Garvan Institute of Medical Research. Moreover, supportive regional government policies and initiatives are expected to propel the regional market in the forthcoming years.

Computational Biology Market Share Insights

Some of the key players are Chemical Computing Group Inc.; Compugen Ltd.; Simulation Plus Inc.; Genedata AG; Certara; Insilico Biotechnology AG; Accelrys; Rhenovia Pharma SAS; Entelos; Nimbus Discovery LLC; and Rhenovia Pharma SAS. Most companies focus on strategic collaborations, agreements, and mergers and acquisitions to maximize their global reach. For instance, in February 2018, Certara acquired BaseCase, a life sciences data visualization company.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2026. For the purpose of this study, Grand View Research has segmented the global computational biology market report on the basis of application, services, end-user, and region:

• Application Outlook (Revenue, USD Million, 2015 - 2026)

  • Cellular & Biological Simulation

    • Computational Genomics

      • Databases

      • Infrastructure/Hardware

      • Software & Services

    • Computational Proteomics

    • Pharmacogenomics

    • Others (Transcriptomics/ Metabolomics)

  • Drug Discovery & Disease Modelling

    • Target Identification

    • Target Validation

    • Lead Discovery

    • Lead Optimization

  • Preclinical Drug Development

    • Pharmacokinetics

    • Pharmacodynamics

  • Clinical Trials

    • Phase I

    • Phase II

    • Phase III

  • Human Body Simulation Software

• Services Outlook (Revenue, USD Million, 2015 - 2026)

  • In-house

  • Contract

• End-Use Outlook (Revenue, USD Million, 2015 - 2026)

  • Academics

  • Industry

  • Commercial

• Regional Outlook (Revenue, USD Million, 2015 - 2026)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Colombia

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE