Report tips computational biology market to top $4.2B by 2020

With IT playing a bigger and bigger role across the R&D process, market research shop Grand View Research has tipped the computational biology market to achieve a compound annual growth rate (CAGR) of 21.1% over the next six years. And that trajectory will result in the value of the sector topping $4.2 billion by 2020.

Today North America is the dominant market, with Grand View Research estimating the region accounted for more than half of global computational biology revenues in 2013. But, as in many niches of the biopharma industry, Asia Pacific will drive growth over the next six years. The report predicts a 28% CAGR for Asia Pacific, with use of pharmacokinetics and pharmacogenomics in clinical trials driving growth.

Genetic differences between the populations of key Asian markets, such as China, and Western countries necessitate such work in trials, particularly in an era of targeted therapies. Grand View Research cites development of personalized medicines as a key factor in the growth of the market for computational biology in proteomics for cellular simulation. Greater demand for analysis of proteins is predicted to result in a 22% CAGR for the niche.

Proteomics will add to demand for database services, which accounted for almost 45% of the overall computational biology market last year. Turning these growing databases into knowledge will remain a challenge, leading to a 21% CAGR for software and services for the analysis of biological data.

- read Grand View's release