Biosimulation Market Witnessing Substantial Growth
The market research report on the global biosimulation market predicts the market to grow at a CAGR of 16.54% to reach US$4,673.474 million by 2024, from US$1,865.475 million in 2018. Biosimulation refers to a computer-aided program that simulates the 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.
Increasing expenditure on healthcare research coupled with the growing biotech industry is expected to drive the biosimulation market growth during the forecast period. Moreover, rapid technological advancements, resulting in a rapid rise in the accuracy of these systems is estimated to further inflate the biosimulation market in the years to come. However, the high initial cost in the industry due to the nascent advances in biosimulation combined with a lack of skilled labor force is estimated to hinder the growth of this market in the years to come.
Growing Investments in Pharmaceutical R&D:
The rapidly deteriorating healthcare conditions and development of the increasing prevalence of many common and uncommon diseases have resulted in increased pressure on the research and development of a range of pharmaceuticals to treat them. According to PhRMA (Pharmaceutical Research and Manufacturers of America), R&D spending by the member companies increased from US$48.6 billion in 2011 to US$71.4 billion in 2017. Similarly, as per EFPIA (European Federation of Pharmaceutical Industries and Associations), R&D expenditure is estimated to increase from €17.849 billion in 2000 to US€35.200 billion in 2017. Additionally, governments are also increasing their focus towards pharmaceutical development, which is further resulting in an increased inflow of investments in the industry in the coming years. For example, Governments in the states of Andhra Pradesh and Uttar Pradesh in India announced their intentions to set up pharma parks in these states, resulting in an inflow of investment and technology to Indian pharmaceutical companies.
In addition to this, a growing need for faster and more accurate drug development is also anticipated to push the market further in the coming years. Favorable policies by regulatory authorities and government-funded investments are focusing on the faster development of drugs, thus positively impacting the biosimulation market in the years to come.
Biosimulation Market Analysis By Application:
By application, the global biosimulation market is segmented as drug development, drug discovery, and others. Biosimulation for drug development is estimated to hold a substantial share in the market, owing to the growing need for drug delivery arising from growing cases of chronic diseases. The global burden of these diseases has increased significantly over the past years. According to the National Center for Chronic Disease Prevention and Health Promotion, chronic diseases result in an economic toll of around US$213.8 billion every year and causes US$137.4 billion of loss in productivity due to premature death. In addition to this, rapid investments, deals and developments by key players in this segment is projected to further augment this growth in the years to come. For example, in June 2019, Cellworks Group, Inc., a leading precision medicine and therapy resource index technology provider announced the Cellworks myCare-101 clinical trial, which utilizes AI-informed therapy response biosimulation to interpret Next Generation Sequencing (NGS) and other molecular data to provide reports to oncologists and patients, predicting the efficiency of their cancer therapies. Furthermore, they are also providing their Genomic Biosimulation platform to multiple associations to predict the therapy responses to multiple diseases such as Acute Myeloid Leukemia (AML) and Myelodysplastic Syndrome (MDS) in patients.
In addition to this, the demand for biosimulation for drug discovery is also projected to grow further in the coming years on account of favorable regulatory initiatives promoting drug development. Furthermore, the increasing burden of rare and orphan diseases is also anticipated to further escalate in the years to come. According to the data by National Center for Advancing Translation Sciences (NIH), under the United States Department of Health and Human Services, there are as many as 7,000 different rare diseases, impacting around 25 to 30 million individuals living in the United States.
Biosimulation Market Analysis By Geography:
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