The global biosimulation market is estimated to grow at a CAGR of 13.55% to reach US$5,680.595 million in 2026 from US$2,333.475 million in 2019.
Biosimulation refers to a computer-aided program that simulates biological processes and systems. It is being used extensively for pharmaceutical drug development to mimic the flow of diseases and then running the designed medicine through the simulation to observe its impact on the disease and the body. The increase in the investment in R&D has been a major reason for the growth in the biosimulation market.
According to WHO, the 2020 report analyses the global health spending by countries around the world from the year 2000 to 2018. According to the report, the global spending on health has increased drastically between 2000 and 2018 and it has reached US$ 8.3 trillion i.e., 10% of the global GDP. The out-of-pocket spending has also increased especially in the low- and middle-income countries, thereby representing a share greater than 40% of the total health spending in 2018.
The pharmaceutical companies segment will account for a significant market share and is anticipated to grow at a substantial rate in the coming years. This is due to the increasing adoption of in silico models for developing new drugs in the areas such as cancer, diabetes, and central nervous system diseases. Companies are investing heavily in R&D activities to prolong the lifecycles of patent-expiring drugs by incorporating a biosimulation approach to develop drug variants. For instance, Rhenovia Pharma Ltd., a biotech company, utilized in silico models to identify better treatment approaches related to bipolar disorders, depression, schizophrenia, and Alzheimer’s disease.
North America to witness significant growth.
The North American region will witness significant growth in the market of biosimulation. The growth in the biotechnology and pharmaceutical industry, increase in the R&D investment by these pharmaceutical and biotechnology companies, and increase in the use of personalized medicines are some of the major factors driving growth in the market. Moreover, the U.S. Food and Drug Administration (FDA) firmly recommends simulation processes in drug development and discovery, thereby boosting growth in the region.
The rise in the demand for the biosimulation market has compelled major players such as Certara and Simulation Plus to focus on enhancing their global presence by adopting inorganic growth strategies.
Impact of COVID.
The market for biosimulation has been growing during the pandemic. Due to an emergency, the market has been driving towards developing drugs to cure this disease that has killed millions of people worldwide. The healthcare industry has therefore continued to grow during these adverse conditions.
The major players in the market of biosimulation are using various strategies to stay ahead of each other, such as new product launches, mergers, and acquisitions. The major companies in the market are Rhenovia Pharma, Accelrys, Certara, Genedata, Leadscope, Compugen, Archimedes, Simulations Plus Inc., Schrodinger Inc., and Insilico Biotechnology. Artificial Intelligence and Machine Learning are extensively being used by these major players to gain better results. Therefore, technological advancements will help grow the biosimulation market further over the forecast period.
|The market size value in 2019||US$2,333.475 million|
|The market size value in 2026||US$5,680.595 million|
|Growth Rate||CAGR of 13.55% from 2019 to 2026|
|Forecast Unit (Value)||USD Million|
|Segments covered||Type, Application, End-User, And Geography|
|Regions covered||North America, South America, Europe, Middle East, and Africa, Asia Pacific|
|Companies covered||Renova Pharma, Accelrys, Certara, Genedata, Leadscope, Compugen, Archimedes, Simulations Plus Inc., Schrodinger Inc., and Insilico Biotechnology.|
|Customization scope||Free report customization with purchase.|
Frequently Asked Questions (FAQs)
Q1. What are the growth prospects for the biosimulation market?
A1. The biosimulation market is estimated to grow at a CAGR of 13.55% during the forecast period.
Q2. What will be the biosimulation market size by 2026?
A2. The global biosimulation market is estimated to reach a market size of US$5,680.595 million by 2026.
Q3. What is the size of the global biosimulation market?
A3. The biosimulation market was valued at US$2,333.475 million in 2019.
Q4. Which region holds the maximum market share in the biosimulation market?
A4. The North American region will witness significant growth in the biosimulation market.
Q5. What factors are anticipated to drive the biosimulation market growth?
A5. The increase in the investment in R&D has been a major reason for the growth in the biosimulation market.