Global Bioinformatics Market size was estimated at USD 8.55 billion in 2019. It is expected to grow at the CAGR of 14.9% within the time horizon of 2020-2025. It will reach USD 18.76 billion by the year 2025.
- Definition / Scope
- Market Overview
- Market Risks
- Top Market Opportunities
- Market Trends
- Industry Challenges
- Technology Trends
- Pricing Trends
- Regulatory Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
Bioinformatics is the interdisciplinary field of science comprising the knowledge of biology, information technology, computer science, statistics, and mathematics to examine, analyze and comprehend the biological data through the development and use of data-based systems and software tools.
It is mostly applied for storing, retrieving and analyzing biological data in the field of genomics, proteomics, and metabolomics.
The bioinformatics market is concerned with the development and utilization of the biological database system including software and tools, DNA sequencing, sequence assembly, and gene and protein expression.
On the basis of the technology and services, application and end-user, its market is segmented into the following types:
Global Bioinformatics market size is estimated to value at USD 8.55 billion in 2019, increased from USD 6.3 billion in 2017. Its market value is expected to grow at the CAGR of 14.9% within the forecasted time horizon of 2020-2025.
It will reach USD 18.76 billion by the end of the year 2025. On the basis of geography, North America is dominating the bioinformatics market with a market share of 36% and its market size is estimated to value at USD 3.07 billion in 2019.
In terms of market growth, the Asia Pacific region is anticipated to grow at the highest CAGR of 14.3% because of the rising prevalence of chronic disorders, growing interest in proteomics and genomics.
On the basis of the technology and services, the bioinformatics platform is dominating the bioinformatics market with a market share of almost 50% with the estimated market size of USD 4.27 billion in 2019.
On the basis of the application, the drug development and cheminformatics segment are leading the bioinformatics market with the estimated market size of USD 3395 million in 2019 followed by personalized medicine, gene engineering, and microbial genome.
On the basis of the end-user, the pharmaceutical segment is leading the market with a market share of almost 23% of the total global bioinformatics market because of the bioinformatics tools in the clinical and pharmaceutical fields.
The major market players engaged in the bioinformatics market are illumine Inc., DNA star, DNA nexus, Seven bridges genomics, QIAGEN, etc.
- High cost of research and development
The cost of the research and development is quite high in order to introduce the new innovative ideas and concepts in the sector of bioinformatics.
For instance, the cost required for the discovery of a new drug through the research and development activities is about USD 880 million and it takes almost 15 years to take the newly discovered drug to the market.
Here the cost for the clinical trials is about USD 124 million per drug. Every year, the biotechnological and pharmaceutical companies are spending almost USD 38.8 billion on research and development activities.
The high cost required to initiate the research activities for the development of innovative bioinformatics tools and applications might risk the growth of its field and market.
Top Market Opportunities
- The trend of collaboration between research institutes and companies
The research institutions and health institutions are working collaboratively to develop innovative and advanced methods and procedures for the treatment of clinical illnesses through the use of bioinformatics.
For instance, IBM Watson is integrated with the Apollo chain of hospitals for the purpose of the treatment of cancer. In addition to this, IBM Watson has worked in partnership with Quest Diagnostics for the commercial development and availability of the cloud-based genomic data interpretation software for researchers.
This type of collaborative approach will expand the scope of bioinformatics and create a significant opportunity for the development of its market.
- Rising popularity of personalized medicine
Globally, the personalized medicine market is expected to grow at the CAGR of 9.1% within the forecasted time horizon of 2020-2025 and will reach USD 1.7 trillion by the year 2026.
It is driven by the increasing incidence of chronic illnesses such as cancer, the affordability of personalized medicine, strong acceptance and fewer side effects associated with it.
The increasing use of personalized medicine is widening the scope for the genome sequencing which is used to design the treatment procedures specialized for the particular patients. It will create a significant opportunity for the growth of the bioinformatics market.
- Rapid growth in the field of genomics and proteomics
In the global context, the genomic market is expected to grow at the CAGR of 8.6% within the forecasted time period of 2020-2025 and will reach USD 27.61 billion by 2025.
In addition to this, the proteomics market is also estimated to grow at the CAGR of 14.5% within the time horizon of 2020-2025 and will reach USD 72.44 billion by the year 2025.
As the genomics and proteomics account for almost 25% of the global bioinformatics market in terms of the application segment, its growing trend is driving the growth in the utilization and market value of the global bioinformatics market.
- Increasing research and development in drug discovery and molecular biology
IT giants have initiated the research and developmental activities in the sector of healthcare applications with a view to developing the advanced test and treatment procedures for chronic illnesses such as cancer.
For instance, Bill Gates, co-founder of Microsoft, and Jeff Bezos, founder of Amazon, collaboratively has invested almost millions of dollars for the development of the cancer screening blood test entitled grail which is capable to detect the illness even in case of absence of symptoms.
Along with this, other IT giants such as IBM are also investing to develop innovative and advanced electronic databases for genome sequencing. This increasing interest and investment of the IT giants are widening the opportunities for the development of the bioinformatics market.
- Lack of well-defined standards and common data formats
In the sector of bioinformatics, the standardization in terms of the data formats and tools isn’t developed and well defined. Because of this, the data models differ according to the organization, which is creating the challenge for data integration even for a similar type of data of bioinformatics.
For instance, the common data formats available are FASTA, FASTQ, SAM, BAM, VCF, GFF, and GTF. Here, multiple sequence alignment formats are used for the rice genome annotation project.
It might restrain the growth and development of the global bioinformatics market. So, the standard structure for the indexing schemes and data tools is quite crucial for the integration of the diverse nature of the information.
- Dearth of skilled professionals
In the sector of bioinformatics, almost 133 million new jobs are available for the bioinformatics scientists globally and 3,798 bioinformatics jobs are available just in the context of the US.
Along with this, generation and accumulation of a large amount of data per second through the advancement in the data generation techniques are further creating and increasing the job opportunities.
However, CSI-India and Institute of Bioinformatics and Applied Biotechnology have reported the severe shortage of qualified bioinformatics and cheminformatics professionals at the global level. It might restrain the growth of the bioinformatics market at the global level.
- Highly consolidated market
In the context of the global bioinformatics market, the majority of its market value is accounted for by just the top five major market players engaged in this market. The major top five biotechnological companies are DNAnexus, Seven Bridges Genomics, Illumina, Genedata, and Genomatriz GmbH.
So, it is quite challenging for other market players to establish their business and enhance their growth and contribution in terms of the total revenue of the global bioinformatics market.
Advancement in the technological sector is driving the introduction of innovative ideas and the development of new software tools in the sector of the bioinformatics. Some of the technological changes in this market are as follows:
- Blockchain technology: It is the information technology in which all users are a part of the secure network. It assists the protection and control of the genetic data and enables the share of genetic information globally within a short time period in a safe and anonymous way.
- Cloud technology: This technology provides the data centers available for multiple users over the internet. In the sector of bioinformatics, it enables to create the common interface for biological data collection, analysis, and management.
- Integration of machine learning and artificial intelligence in healthcare: Artificial intelligence is applied to carry out the tasks of bioinformatics research and other tasks in a smart way through the use of machines. Here, machine learning helps to give access to the data for the machines.
The cost of bioinformatics is based on the type of technology being used, its application, and the production company. The price of genome sequencing is in a decreasing trend. Within the time period of a decade, the cost of the whole genome sequencing has been declined from USD 95 million to USD 7666.
Along with this, the cost of identifying the megabase has also decreased from USD 5000 to USD 0.09 within a decade. The cost of the Illumina TruSeq small RNA library is USD 223 per unit while the cost of the clontech SMARTer standard RNA library is USD 129 per unit.
The list price for the Qiagen whole blood DNA extraction is about USD 8.54 per unit in 2019.
In the context of bioinformatics, the major organizations responsible for the development of its standards are the Asia-Pacific Bioinformatics Network, European Bioinformatics, Inst., Genomic Standards Consortium, Metabolomics standards Initiative, OBO Foundry, world wide web consortium, etc.
The standards for data indexing and management are inadequate and aren’t well defined. Some of the standards related to the bioinformatics are as follows:
Minimum Information about a proteomics Experiment: It was developed by the Proteomics Standards Initiative in 2002. According to this, PSI has no responsibility for the validity and rights related to the implementation of the technology.
CellML: This standard was developed by the University of Auckland in 2004. According to this, individuals can freely use, publish and redistribute CellML, write and sell applications that write the CellML XML files.
Minimum information about a marker gene sequence standard: According to this, the genomic standards consortium use the common public version 1.0 which grants the royalty-free license to use the copyrighted materials.
Minimum Information about a Microarray Experiment: According to this, no funding sources have IP rights for the functional genomics data output. Functional genomics data socy has no patents and advocates the free use of data and tools.
Market Size and Forecast
Globally, the total market size for the bioinformatics market is estimated to value at USD 8.55 billion in 2019.
Its market value is expected to grow at the CAGR of 14.9% within the forecasted time horizon of 2020-2025 because of the rising demand for the genomics and increasing research and development activities in the sector of bioinformatics.
It will reach USD 18.76 billion by the end of the year 2025.
On the basis of the technology and services
- The bioinformatics platform segment is dominating the bioinformatics market with a market share of almost 50% of the total global bioinformatics market. Its market size is estimated to value at USD 4.27 billion in 2019.
- The knowledge management tools segment accounts for about 37% of the total bioinformatics market value. Its market size is estimated at USD 3.6 billion in 2019.
- Bioinformatics services hold the remaining 13% of the total bioinformatics market value with its estimated market size at USD 1.44 billion in 2019.
On the basis of the application
- The drug development and cheminformatics segment is leading the bioinformatics market with a market share of almost 30.5% with Its estimated market size at USD 3395 million in 2019.
- The proteomics and metabolomics segment is holding the second-largest position with the market share of 25% of the total bioinformatics market. Its market size is estimated at USD 3.61 billion in 2019.
- It is followed by personalized medicine(15.27%), microbial genome(11.11%), gene engineering(9.72%), and proteomics and metabolomics(25%).
On the basis of the end-user
- The pharmaceutical segment is leading the market with a market share of almost 23% of the total global bioinformatics market because of the increasing use of bioinformatics tools in the clinical and pharmaceutical fields. Its market size is estimated at USD 1.96 billion in 2019.
- The forensic science segment is holding the second position in terms of the market share of the bioinformatics market with its market value estimated at USD 2.88 billion in 2019.
- The agricultural segment accounts for 21% of the total bioinformatics market share and its market value is estimated at USD 2.04 billion in 2019.
On the basis of the geography
- North America is dominating the bioinformatics market with a market share of 36% and its market size is estimated to value at USD 3.07 billion in 2019.
- Europe holds the second largest position In terms of the market share of 30% of the total bioinformatics market size. Its market value is estimated at USD 2.92 billion in 2019.
- The Asia Pacific region accounts for 21% of the total bioinformatics market share and is anticipated with a market value of USD 2.33 billion in 2019.
The global bioinformatics market is expected to grow at the CAGR of 14.9% within the forecasted time period of 2020-2025 because of the rising demand for genomics, proteomics and rising research and development activities in bioinformatics sector. It will reach USD 18.76 billion by the year 2025.
Adoption of advanced technological solutions such as blockchain technology, cloud-based software tools is driving the growth and development of the bioinformatics market globally. In addition to this, the introduction of artificial intelligence and machine learning are widening the significant opportunities for the enhancement of the scope and application of the bioinformatics market.
Distribution Chain Analysis
The key stakeholders involved in the operation of this market are research institutions, hardware, and software product developers, software and tools sellers, and consumers. Here at first, the research institutions are engaged in the development of innovative tools, software, and databases for bioinformatics.
Once they are developed, they are available for utilization, exchange and sale purpose. They are generally utilized in the pharmaceutical sector, forensic science, agricultural sector, etc.
The key market players such as research institutions, software and tools developers are engaged in this market are competing for the initiation of the advanced technological solutions for the management of the biological data.
Besides this, they are competing for the development of these solutions in an efficient and effective way through the use of machines, artificial intelligence, and robotics.
Key Market Players
Short profile of the major market players engaged in the bioinformatics market are discussed as below:
|DNA nexus||It develops the cloud-based platform for the management of the huge amount of DNA sequence data.||California, USA|
|Seven Bridges Genomics||It provides the solutions to the cloud-computing infrastructure, analytic workflow, access to datasets and scientific support and develops the set of bioinformatics tools such as graph genome suite||USA, UK, Serbia, and Turkey|
|Illumina||It provides the products and services for gene expression, genotyping, sequencing, and proteomics.||USA, Australia, China, Japan, Brazil, Singapore, etc.|
|Genedata||It develops software solutions for academia, pharmaceutical, biotechnology and agricultural industries globally.||Switzerland|
|Geno matrix GmbH||It provides the hardware and software-based solutions for the analysis and interpretation of the genomic data.||Germany|
|Qiagen||It offers insight solutions for the isolation and processing of DNA and protein in the field of bioinformatics.||Netherlands|
|DNA star||It develops the software for sequence analysis for genomics, biotechnology, and molecular biology.||Wisconsin, United States|
|Wuxi Next CODE||It is the bioinformatics company that uses the sequencing of the biological data for the understanding of diseases and improvement of the health.||Cambridge, England|
Global bioinformatics market is in the growing stage and is growing at the rate of 14.9% because of rising personalized medicine, genomics, proteomics and increasing research and development activities.
However, non-defined database standards, high cost of research and development, and scarcity of competent bioinformatics professionals might restrain the growth of its market.
- SAM= Sequence Alignment Map
- BAM= Binary Alignment Map
- VCF= Variant Calling Format
- GFF= General Feature Format
- GTF= Gene transfer format
- USD= United States Dollar
- CAGR= Compound Annual Growth Rate