Computational Biology Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast :2018

The computational biology market is predicted to have a notable growth owing to its wide use by biotechnology and pharmaceutical companies to reduce the incidences of late stage failures of their drugs and thereby curb R&D expenditure. This market involves application of biology and information technology field for drug discovery and drug development. Computational biology also assists in reducing extensive use of human in clinical trials and is therefore useful for pediatric trials, trials on pregnant women and orphan disease research. The computational biology market has witnessed significant growth in the past due to rise in late stage drug failure coupled with its ability to reduce extensive use of humans in clinical trials.

This report provides an in-depth and comprehensive analysis of the computational biology market on the basis of application, tools and by services. This report studies the global market for computational biology through the perspective of cellular modeling and disease modeling. In application segment, the report covers cellular & biological simulation and disease modeling and simulation application or CADD (Computer Aided Drug Design). Cellular & biological simulation market has also been segmented on the basis of computational genomics, computational proteomics, pharmacogenomics and others (transcriptomics/ metabolomics). Disease modeling and simulation segment is categorized into drug discovery and drug development. The market of drug discovery is divided into target identification, target validation, lead discovery and lead optimization. Drug development market is segmented as preclinical, clinical trials and human body simulation software. The market of clinical trials is studies based on phase I, phase II and phase III trials.

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Global Computational Biology Market: Snapshot

The skyrocketing rates of drugs along with the continuously rising rate of failure of drugs in the late stage of clinical trials are prompting pharma players to shift their focus from traditional methods of clinical trials to predictive models. The increasing demand for predictive models is, therefore, providing a significant boost to the growth of the global computational biology market. Moreover, the increasing funding from governments and private organizations for research and development in this field is propelling the market.

On the other hand, the lack of standardization and dearth of skilled labor is limiting the market from realizing its utmost potential. However, the emergence of cloud computing is likely to shape future of the market. The opportunity in the global computational biology market was worth US$1.64 bn in 2015 and is estimated to rise to US$2.93 bn by the end of 2018, progressing at a phenomenal CAGR of 21.3% from 2012 to 2018.

In-house to Remain Most Valuable Service Segment through 2018

Based on tools, database was the leading segment in terms of revenue in 2015. Their demand is likely to remain strong in the forthcoming years owing to the fact that they serve as the ground for modeling and simulation. However, the analysis software and services segment is expected to outperform database by the end of forecast period. The increasing need for cost-effective software that ensures simplified modeling and simulation is contributing to the growth of the segment. The segment is estimated to rise at a noteworthy CAGR of 25.0% during the forecast period.

On the basis of services, the in-house segment will account for the lion’s share throughout the forecast period, expanding at a 22.6% CAGR during the same period. Current trends in the global market indicate that multinational biotech pharma companies are shifting their own research and development setups in countries with cheap manpower cost such as India, China, and Brazil. This coupled with tax benefits offered by the governments of these nations is anticipated to reduce the cost of conducting in-house research. These factors are, therefore, driving the growth of the segment..

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