Market Trends of Computational Biology Industry
Industry and Commercials Sub-segment is Expected to hold its Highest Market Share in the End User Segment
The industry and commercials segment is expected to grow during the analysis period. Rising governmental and commercial sector investments in Research and Development (R&D) in genetic engineering and novel medicine development significantly contribute to the rise in demand for computational biology.
As per an update by WHO in May 2021, WHO and the Swiss Confederation signed a Memorandum of Understanding (MoU) to launch the first WHO BioHub Facility as part of the WHO BioHub System; the facility was established in Spiez, Switzerland, and serves as a center for the safe receipt, sequencing, storage, and preparation of biological materials for distribution to other laboratories; and informs risk assessments and supports global preparedness against pathogens.
In addition, in February 2023, Hexagon Bio raised USD 77.3 million in Series B financing. It strengthened its management to advance microbial genome-derived small molecules and expand a novel computational discovery platform. Hexagon's interdisciplinary platform enables broad opportunities across multiple therapeutic areas, including oncology and infectious diseases. Hence, these developments and investments in the segment are expected to fuel the segment's growth over the forecast period. Therefore, this is expected to support the growing demand for computational biology and drive revenue growth.
North America is Expected to Hold a Significant Share of the Market Over the Forecast Period
North America currently holds a significant share of the market for computational biology and is expected to continue its stronghold for a few more years. Factors such as increasing funding and investments and engagement of market players in computational biology are anticipated to fuel the region's studied market growth.
The United States is one of the major countries significantly promoting and supporting computational biology developments through various investments and funding; hence, the market is growing efficiently. For instance, per the National Science Foundation (NSF) Budget Request to Congress for 2022, NSF plans to keep funding computational biology and bioinformatics to address the computational and data-science problems that arise in biotechnology studies. To support the expansion of United States biotechnology innovation, NSF is willing to use investments in data analytics and computation, artificial intelligence (AI) and machine learning, physical infrastructure, and others. Thus, the engagement of government organizations in the investments is expected to drive innovations in the computational biology market and fuel the market's growth.
Additionally, personalized medicine has increased collaborative efforts between medical institutions, governments, and researchers to swiftly develop effective treatments. For instance, in July 2021, Indivumed GmbH launched Travel, a unique AI discovery platform for oncology and precision medicine. The platform combines IndivuType's deep multi-omics data with elaborate disease models, high-powered automated Machine Learning tools, and a comprehensive suite of advanced analytics tools.
In addition, in April 2023, the Icahn School of Medicine at Mount Sinai and Rensselaer Polytechnic Institute opened a research center combining engineering and precision medicine. Researchers of these centers will focus on advancing point-of-care and point-of-use devices and diagnostic tools in drug development, stem cell applications, cellular engineering, and computational neurobiology. These developments are further expected to accelerate the growth of the overall computational biology market in the region.
Therefore, the computational biology market in the region is predicted to witness growth over the forecast period, primarily due to high expenditure on drug development endeavors in the countries across the region.
