Computational Biology Market Exhibits 21.30% CAGR as Companies Target Better Clinical Trial Outcomes
The global computational biology market is oligopolistic, led by major players who represented almost 80% of the market in 2011. Key players operating in the market include Simulation plus, Schrödinger, Certara, Compugen, Accelrys, and Entelos. Leading players are acquiring or merging with other companies to enhance their business and grow in the market, states a new report by Transparency Market Research (TMR). Case in point. Schrödinger acquired Synaptic Science and adopted the “Seurat” platform. This has helped Schrödinger to enhance its share in the market. Accelrys merged with Symyx technologies, allowing it to improve the company’s scientific data management, decision support, and analytics.
Description of Computational Biology Market:
Although the global computational biology market is in its nascent stage, there exists high rivalry among existing players. The threat of new entrants is expected to be low as there is a need for capital-intensive infrastructure. Moreover, the lack of validation compels buyers to opt for branded software products, rather than the ones offered by new players.
Significant Funding By Governments Aids Advances in Computational Biology
Government initiatives across Europe, Asia Pacific, and America for the development of genomics and proteomics are expected to drive the global computational biology market. Investments by major IT players such as Infosys and TCS are expected to boost the growth of the computational biology market.
Significant funding by governments is accelerating the growth of the market. For instance, considerable funding has been done by Max-Planck Institute in collaboration with Federal Government of Germany. Similarly, The European Molecular Biology Laboratory’s European Institute (EMBL-EBI) with support by the U.K. government has funded a huge amount for research infrastructure.
There has been extensive research for the storage, retrieval, and integration of the data generated through virtual screening and sequencing. Innovations in the aforementioned areas will enable research on larger sets in much lesser time, and boost the computational biology market’s growth.
Market Players Need to Worry about Lack of Standardization in Computational Biology Tools
A huge amount of data is generated lacking any standardization, which is inhibiting the growth of the computational biology market. It is essential that tools be compatible with each other, enabling them to use the same data effectively. Moreover, the data storage in itself is acting as a major challenge for market players, states TMR. Statistical challenges resulting from the integrated analysis of high through-put biomedical research and genomic data need to be addressed. Mis-annotations owing to constant additions of new genomes into databases are also leading to problems, thus hampering the demand for computational biology tools and services. Shortage of skilled scientists who are well-trained in computers and biology sectors is also acting as a market challenge.
Cloud Computing to Offer Solutions to Data Storage Issues
The data storage issue is posing a huge challenge for the computational biology market. Cloud computing has solutions for this problem by offering scalability and flexibility to match the volume of data generated. Thus, cloud computing will open several opportunities of growth in the market.
Study of Computational Biology – http://bit.ly/2cjphkT
Problems such as the invasive nature of procedures for assessments and risks of futility in drug developments are being perceived as opportunities for the use of modeling and simulation.
By application, the drug discovery segment is expected to grow at a significant pace. North America is the leading segment in the computational biology market. However, countries such as China and India in Asia Pacific are expected to develop a massive opportunity for growth in the computational biology market. According to the report, the global computational biology market will be worth US$2.9 bn 2018.