Bioinformatics Market Size

Bioinformatics Market Analysis

The Bioinformatics Market size is estimated at USD 16.36 billion in 2024, and is expected to reach USD 23.97 billion by 2029, growing at a CAGR of 7.94% during the forecast period (2024-2029).

The impact of COVID-19 on the market's growth was substantial in its preliminary phase. Sequencing and data analysis were termed useful tools for the characterization and detection of viruses in the environment, animals, and people during the pandemic, thereby resulting in higher usage of such computational technology across several research platforms. Information related to transmission chains was critical for public health control and containment measures, while knowledge of virus variability guided the development of vaccines and cheaper diagnostic methods. Thus, as per the analysis, the market is expected to follow the same trend over the post-pandemic phase due to emerging strains of the SARS-CoV-2 virus and an increase in research and development activities. For instance, in November 2021, Illumina donated sequencing consumables and cloud-based bioinformatics to Canadian COVID-19 projects. The donations were to support the HostSeq and VirusSeq projects of Canada's COVID-19 Genomics Network, or CanCoGen. Thus, such initiatives by the market players are anticipated to support the market's growth during the forecast period.

The growth factors for the bioinformatics market include the rising demand for nucleic acid and protein sequencing, rising initiatives from private and government organizations, the accelerating growth of proteomics and genomics, and rising research on molecular biology and drug discovery. Owing to the above factors, the global bioinformatics market is expected to experience rapid growth during the forecast period.

In July 2021, the National Institute of Technology, Rourkela (NIT-R), India, launched its Center for Bioinformatics and Computational Biology (CBCB), which will help develop novel disease biomarkers and therapeutic strategies using big data analysis. Thus, the launch of such centers using computational biology in developing countries is boosting the market growth.

Additionally, according to the data published in Mid-Year Review: New Drug Approvals in June 2021, the US FDA and Center for Drug Evaluation and Research (CDER) have authorized 26 new molecular entities (NMEs) at the halfway point of 2021 (as of June 28, 2021), which was on par with the full-year 2020 approval rate of 53 times. Except for 2018, when 59 NMEs were granted, the number of NMEs approved in 2020 was the second-highest in the last decade. The rising approvals from the FDA will further boost the research and development activities, which will in turn need databases and software to ease the process of drug design and development, in turn boosting the market's growth. Moreover, the introduction of technologically advanced bioinformatics software such as BALL, Bioclipse, RasMol, and AUTODOCK and the rising market usage of these tools for effective and accurate analysis of biomarker discovery programs that assist in toxicity detection during the initial stage of the drug development process is expected to boost the industry's growth over the upcoming years. For instance, in June 2022, My Intelligent Machines (MIMs) launched powerful software for drug development in oncology.

However, the lack of well-defined standards and common data formats for the integration of data and concerns about data complexity, as well as the shortage of user-friendly tools, are likely to hamper market growth over the forecast period.