The leading players in the global computational biology market in 2011 collectively held a share of 72% in value. Schrodinger, Accerlys, and Certara – the leading players in 2011 – owned this massive share in the market through pioneering offerings and high level service and product innovations.
According to a research report released by Transparency Market Research, the degree of competitiveness in the global computational biology market is extremely high currently. Despite a market in is early formative stages, owing to the massive upswing in demand for predictive computed modeling, a lot of players have taken notice and are ready to offer their services to relevant end users. There are already a large number of players locked in aggressive competitive strategies in the global computational biology market and the scope of acquisitions and rapid innovation is very high.
The overall threat of new entrants to the global computational biology market is expected to reduce considerably over the coming years. This is mainly due to the very high infrastructure cost associated with establishing oneself in the market, along with the currently low modes of validation of these entrants, which is deterring buyers from approaching them.
The global computational biology market is expected to expand at a whopping CAGR of 21.3% from 2012 to 2018. By the end of 2016, this market is expected to reach a revenue of US$1.99 bn. By the end of 2018, this market is expected to reach US$2.93 bn. In terms of applications of computational biology, although cellular biological simulation had held a greater share in 2010, disease modeling and simulation is expected to overtake it to grab the leading share by 2018. It is expected to be valued at US$1.76 bn by 2018, after being projected at a CAGR of 24.3% from 2012 to 2018.
Drug Development Failures Spur Demand for Computational Biology
“Perhaps the single leading factor driving the global computational biology market is the growing need for it spawned out of failing clinical drug development processes. As of 2011, the average cost of introducing a new drug to the market had reach US$2.5 bn which is still less than what pharma companies are shelling out currently. The chances of loss of investments and eventual bankruptcy of a company rise exponentially for a pharma company if the drug development process fails. As a result, they are looking for modern solutions in the form of predictive modeling that bypasses the traditional and highly expensive methods,” states a TMR analyst.
Drug development processes fail due to compromises on safety or problems in attaining the required efficacy, among other minor issues. Private investors are highly aware of these situations and therefore prefer to opt out of investing in startup drug development firms for the same reason. This has caused many of the players in the pharma industry to look to the global computational biology market for simpler and cost-effective solutions.
Standardization Still Low as Computational Biology Demand Continues to Suffer
The primary restraint acting on the global computational biology market is the gaping lack of standardization in this relatively nascent market. The volumes of data being generated for computational biology processes to handle is already immense and is increasing even further by the day. This, coupled with the lack of a set framework for process handling, has created quite a hurdle for the global computational biology market. This includes the numerous cases of statistical complications created in high-throughput biomedical R&D and the increased chances of misannotations in public genetic sequence databases.
“Another problem faced by the global computational biology market includes the lack of storage space in current medical infrastructure. This provides a great opportunity for cloud service providers to step forward and provide the much-needed storage space. The entirety of cloud computing solutions is largely capable of providing several solutions to some of the key problems that the providers of computational biology currently face,” adds the analyst.
The information presented in this review is based on a Transparency Market Research report, titled, “Computational Biology Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2012 - 2018.”
Key segments of the Global Computational Biology Market
Global Computational Biology Market, by Applications
- Cellular Modelling and Simulation
- Computational Genomics
- Computational Proteomics
- Others (Metabolomics/ Transcriptomics)
- Disease Modelling And Simulation Applications / CADD (Computer Aided Drug Design)
- Drug Discovery
- Target Identification
- Target Validation
- Lead Identification/Discovery
- Lead Optimization
- Drug Development
- Clinical Trials
- Human Body Simulation Software
- Drug Discovery
Global Computational Biology Market, by Tools
- IT Infrastructure (Hardware)
- Analysis Software & Services
Global Computational Biology Market, by Services
- In-House Computational Biology
- External/Contract Computational Biology
Global Computational Biology Market, by Geography
- North America
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