Biosimulation Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Biosimulation Market Report 2023-2027

The Biosimulation Market size is estimated to grow by USD 3.16 billion at a Compound annual growth rate (CAGR) of 15.06% between 2022 and 2027.  The market is propelled by several key factors. Firstly, there is a notable rise in research funding and grants, enabling advancements in biosimulation technology. Secondly, the increase in merger and acquisition activities in the sector drives innovation and market consolidation. Lastly, market vendors are strategically implementing initiatives to enhance their offerings, further fueling the growth of the market worldwide.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by end-user (pharmaceuticals and biotechnology companies, contract research and organizations, and others), product (software and services), and geography (North America, Europe, Asia, and Rest of World (ROW)). 

By End-User

The pharmaceuticals and biotechnology companies segment is estimated to witness significant growth during the forecast period. Owing to the increased focus of pharmaceutical and biotechnology companies on applications such as high-content screening (HCS) and the use of biosimulation software and services for drug discovery and development are driving the growth of this segment. in the discovery and development of drugs, Biotechnology and pharmaceutical companies are primarily involved to treat complex diseases and are rising in the formation of biosimulation techniques to identify drug targets.

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The pharmaceuticals and biotechnology companies segment was the largest segment and valued at USD 947.80 million in 2017 and continued to grow by 2021. Some Companies in the market, such as Certara, offer a range of services to gain a competitive advantage in the market. For example, the company offers Simcyp consultancy, which includes physiologically based pharmacokinetic (PBPK) modeling and simulation services on all aspects of drug absorption. Moreover, companies such as Novartis use biosimulation software to simulate the physical reaction of patients toward new drugs as it helps to evaluate the potential of new drugs. Hence, the increasing focus of biotechnology and pharmaceutical companies on drug development using biosimulation software and services will contribute to the rapid growth of the market.

Regional Analysis

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North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US in North America generated the largest Biosimulation Market share in 2022. Furthermore, the demand for biosimulation in the US is due to the growing adoption of biosimulation for drug screening by pharmaceutical and biotechnology companies. The pharmaceutical and biotechnology industry is growing rapidly owing to the rising awareness of the complexity of chronic diseases and their high prevalence. Hence, it becomes important for pharmaceutical companies to develop efficient, low-risk drug therapies. This is driving the growth of cell-based research activities involving the use of biosimulation, which increases the success rate of clinical trials by stratifying patients. Owing to these factors, the market in North America is expected to grow during the forecast period.

Market Dynamics and Customer Landscape

The market is witnessing robust growth, driven by factors such as drug relapse cases, resistance, and the urgent need to address diseases like cancer, tuberculosis, and bacterial infections. With the emergence of a new generation of high potency and advanced drugs, including those for diabetes mellitus, proteomic, and genomic technologies are revolutionizing drug discovery. Technological innovations in modeling and simulation (M&S) models have enabled accurate drug identification and human dosing measures. Key players like Rhenovia Pharma and Phoenix Technology Services are leading the charge in providing software solutions and services.

Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

An upsurge in research funding and grants stands as the pivotal catalyst propelling market share expansion. Both public and private entities worldwide are channeling investments into this realm to pioneer therapies targeting intricate diseases. Regulatory bodies like the FDA, NIH, and EU are facilitating research funding allocations to companies and academic institutions, fostering innovation in modeling and simulation. Additionally, the biosimulation landscape witnesses a surge in Contract Research Organizations (CROs) from emerging economies conducting late-stage clinical studies for pharmaceutical firms. This trend is fueled by increased government and investor funding, notably in nations like China. Such financial injections, alongside burgeoning foreign direct investments (FDI) and private equity, are reshaping the market dynamics of emerging nations like India and China. Consequently, robust research funding and grants are poised to underpin the development of novel, minimally side-effect therapies, thereby bolstering the global biosimulation market during the forecast tenure.

Significant Market Trends

Implementation of big data using mathematical models and simulation for drug discovery is the primary trend in the market growth. The pharmaceutical industry is the main part of the healthcare system. Pharma R&D is a laborious process and faces pressure to improve productivity in terms of drug discovery and development. In the past few years, researchers and scientists have used plant and animal compounds to serve as drug candidates, but the expected success rate was less than 1%. However, scientists are now creating target molecules with the help of computers. Predictive modeling is one of the most significant and basic model systems, which help in predicting drug interaction,

Moreover, as the future of medicine is often said to be personalized, the concept of combining big data with computer-based modeling and biosimulation will allow researchers to perform simulations for different biological compounds. Nowadays, companies such as Dassault Systems are using a wide range of databases to create cell-level simulations for various kinds of patients. Therefore, these cutting-edge technologies are set to define the future of drug discovery, and the advent of big data is expected to benefit drug manufacturers in making the process will have a positive impact on the growth of the market in focus during the forecast period.

Major Market Challenge

Misconceptions about computer system validation is the major challenge in the market growth and trends. Individuals make use of computer systems to better understand the PK/PD of investigational drugs during the development process. The failure to perform computer system validation for the software functionality causes a user to fail to discover that a computer system provides inaccurate results. Computer system validation (CSV) is the documented evidence that a computer system generates. For instance, 21 CFR Part 11.

Moreover, nowadays, users do not validate the computer system thinking it would have been previously done by the vendor who provided it. The computer system, interfaces with other computer systems need to be validated by the user before the commencement of the testing process. In addition, users ignore the validation considering that it takes a long time, consumes lots of resources, and is difficult at the same time. Such examples can result in inefficient and ineffective results, which can further cause wrong drug formulations and loss to the other stakeholders. These factors are expected to hinder the growth of the market during the forecast period.

Biosimulation Market Customer Landscape

The market trends and analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Biosimulation Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Allucent: The company offers a modeling and simulation toolkit to make clinical trials more efficient and even be used to potentially avoid certain clinical trials completely under its subsidiary Nuventra Pharma Sciences.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market Companies, including:

• Advanced Chemistry Development Inc.
• Altair Engineering Inc.
• ANSYS Inc.
• Applied BioMath LLC.
• Cellworks Group Inc.
• Certara Inc.
• Chemical Computing Group ULC
• Dassault Systemes SE
• Genedata AG
• INOSIM Software GmbH
• Intelligen Inc.
• LifeTec Group
• Physiomics Plc
• Rosa & Co. LLC
• Schrodinger Inc.
• Simulations Plus Inc.
• Thermo Fisher Scientific Inc.
• Via Science Inc.
• Yokogawa Electric Corp.

Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is witnessing substantial growth driven by various factors. With rising drug relapse cases and drug resistance, especially in critical conditions like cancer, tuberculosis, and bacterial infections, there's a pressing clinical urgency for the development of a new generation of drugs. The advent of high potency and advanced drugs, along with the integration of proteomic and genomic technologies, is reshaping drug discovery and development processes. Key players like Rhenovia Pharma and In Silico Biosciences, Inc., along with government initiatives such as the FDA's critical path initiative report, are driving innovation. Additionally, advancements in AI and machine learning are revolutionizing personalized medicine, while virtual clinical trial tools are optimizing clinical trial design and efficacy assessment.

The market is evolving with the advent of high potency drugs, particularly in addressing complex diseases like diabetes mellitus and neurodegenerative conditions. Technological innovations have led to a significant revenue share divide between product and services segments, with a surge in demand for combination therapies. Players like Phoenix Technology Services are enhancing pharmacogenomics and pharmacogenetics applications. End-use segments, including CROs, regulatory authorities, and academic research institutions, are leveraging modeling and simulation models to ensure drug safety and efficacy. With advancements in AI and ML, precision medicine is becoming a reality, driving R&D decisions and optimizing the drug development process. Subscription and ownership models are reshaping the delivery model landscape, with digital health infrastructure playing a pivotal role in segmental overview and market growth.

Segment Overview

The market analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • Pharmaceuticals and biotechnology companies
  • Contract research and organizations
  • Others

• Product Outlook 
  • Software
  • Services

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia
    • China
    • India
  • ROW
    • Australia
    • Argentina
    • Rest of the world

Biosimulation Market Scope
Report Coverage	Details
Page number	164
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.06%
Market growth 2023-2027	USD 3.16 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	13.86
Regional analysis	North America, Europe, Asia, and Rest of World (ROW)
Performing market contribution	North America at 46%
Key countries	US, Canada, Germany, UK, and China
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Advanced Chemistry Development Inc., Allucent, Altair Engineering Inc., ANSYS Inc., Applied BioMath LLC., Cellworks Group Inc., Certara Inc., Chemical Computing Group ULC, Dassault Systemes SE, Genedata AG, INOSIM Software GmbH, Intelligen Inc., LifeTec Group, Physiomics Plc, Rosa & Co. LLC, Schrodinger Inc., Simulations Plus Inc., Thermo Fisher Scientific Inc., Via Science Inc., and Yokogawa Electric Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our market growth and forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Forecasting Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, Asia, and Rest of World (ROW)
• Thorough analysis of the market’s competitive landscape and detailed information about Companies
• Comprehensive analysis of factors that will challenge the growth of market Companies

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