Dublin, March 21, 2023 (GLOBE NEWSWIRE) -- The "Bioinformatics Services Market, By Service Type, By Application, By End-Use, and By Region Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.
The market size of bioinformatics services was USD 2.50 billion in 2021, and it is projected to experience a revenue CAGR of 15.2% over the forecast period.
The growth in demand for bioinformatics services in biotechnology research and drug discovery is propelling market revenue growth. Bioinformatics plays a significant role in managing, storing, and analyzing vast amounts of biological data, which is crucial in the research and development of life-saving drug discoveries. Many pharmaceutical companies and research institutes are increasingly combining biology with information technology and computer science to gain new biological insights and a global perspective on drug discovery.
The rising prevalence of chronic diseases is driving the demand for research and drug discovery, which in turn is boosting the need for bioinformatics services. For instance, The Centers for Disease Control and Prevention (CDC) of the United States estimates that cancer survivors will reach 22.1 million by 2030. Consequently, pharmaceutical companies are deploying bioinformatics in cancer treatment and diagnosis.
Hospitals worldwide prefer genome sequencing to analyze patients' genes closely for mutations and health indicators. Bioinformatics services and genetic resources are ideal for analyzing family-based genomic data, with a close focus on new disease-causing mutations. Genetic testing startups are collaborating with large pharmaceutical companies to gain insights into chronic diseases. For example, a Los Angeles-based startup recently raised USD 7 million to accelerate Whole Genome Sequencing (WGS). Leading market players in life science technology and bioinformatics services such as Thermo Fisher Scientific, Agilent Technologies, and others are using Artificial Neural Network (ANN) and Convolutional Neural Network (CNN) algorithms for the classification of alignments of non-coding RNA sequences, which is further boosting the growth of the market. Additionally, government support is creating several opportunities in the bioinformatics services market. For example, in June 2021, The U.S. Department of Health and Human Services (HHS) allocated USD 80 million in funding to strengthen U.S. public health informatics and data science, which is expected to drive the demand for bioinformatics services in the coming years.
Market Dynamics
Driver: Rising demand for bioinformatics services in computational biology
Bioinformatics services have become integral in several areas, including chromatography and mass spectrometry, chemical analysis, materials and structural analysis. Pharmaceutical companies are currently conducting various drug development trials, generating vast amounts of data that need to be accurately analyzed.
The data is computed through software to obtain precise results. Several companies are developing advanced Artificial Intelligence (AI) algorithms to identify patterns and make functional inferences from sequence data, which is propelling the market's growth. Additionally, bioinformatics is widely used in academic and research institutions to automate computational processes and increase efficiency in research and development.
The demand for Artificial Intelligence (AI) and Machine Learning (ML) enabled bioinformatics services is on the rise, particularly in exploring sequence databases, pairwise and multiple sequence alignment, and phylogenetic approaches, among other methods. These methods help reduce costs and enhance service quality. According to the National Center for Biotechnology Information (NCBI), the integration of AI in the healthcare industry is projected to decrease global healthcare costs by USD 150 Billion by 2026, which is a significant driver for market growth.
Key Takeaways
Service Type Outlook
The global bioinformatics services market has been segmented based on service type, application, and end-use. The service type segment includes sequencing services, data analysis services, drug discovery services, differential gene expression analysis, database management services, and others. Sequencing services accounted for the largest revenue share in 2021 due to the widespread adoption of bioinformatics in the classification and discovery of several sequencing profiles. Data analysis services accounted for a steady revenue share in 2021, as bioinformatics results can be achieved through several statistical analyses and machine learning computational techniques that are becoming vital for understanding diseases and future drug discovery. Drug discovery services accounted for a moderate revenue share in 2021, as bioinformatics approaches are becoming an essential service in drug discovery, such as identifying novel drug targets and biomarkers.
Application Outlook
The application segment includes genomics, chemoinformatic, drug discovery, transcriptomics, and others. The genomics segment accounted for the largest revenue share in 2021 due to the widespread use of bioinformatics in genomic tests and genome sequencing, as well as in the pharmaceutical and biotechnology industries to identify treatments for chronic illness cases. The chemoinformatic segment accounted for a steady revenue share in 2021, as bioinformatics is highly used in computational biology for the discovery of effective chemotherapy treatments. The drug discovery segment accounted for a moderate revenue share in 2021 due to the significant use of bioinformatics analysis to accelerate drug candidate screening, refinement, and predicting drug resistance.
End-Use Outlook
The end-use segment includes healthcare and pharmaceuticals, biotechnology, Contract Research Organization (CRO), Contract Development and Manufacturing Organization (CDMO), and others. The healthcare and pharmaceutical segment accounted for the largest revenue share in 2021 due to the increasing adoption of bioinformatics services for various applications such as genome sequencing, chemoinformatic, treatment analysis, and drug discovery. The biotechnology segment accounted for a steady revenue share in 2021 due to the high adoption of bioinformatics services for genome sequencing, automatic identification of genes, 3D structure modeling, and many other applications. The Contract Research Organization (CRO) segment accounted for a moderate revenue share in 2021, as several biotechnology services are engaged in commercial physical and biological research and development.
Regional Outlook
In 2021, North America held a significant revenue share in the bioinformatics market, primarily due to the rapid adoption of bioinformatics in biological data analysis, especially in the healthcare and pharmaceutical industry. Companies like Pfizer, Merck & Co., and Johnson & Johnson are widely using bioinformatics for clinical data analysis and identifying potential drug targets for intervention. The United States is a major contributor to the bioinformatics market in this region, owing to its funding support in healthcare research and development. Recently, Tempus Labs and VectorBuilder Biotechnology, two US-based startup companies, received a massive funding of USD 275 million for the development of precision medicine, which will utilize artificial intelligence algorithms in clinical pipeline analysis. In addition, the latest development in molecular profiling and clinical presentation of cancer is expected to further fuel the demand for bioinformatics services in North America.
Europe's revenue share in the bioinformatics market remained stable in 2021, driven by funding support in research and development. The European Union (EU) is funding USD 894 million in healthcare research, and several pharmaceutical companies are partnering with bioinformatics companies to accelerate growth in artificial intelligence-based sequencing platforms. For instance, Alacris Theranostics in Germany has partnered with MGI Tech to implement sequencing platforms on a national level, while Sanofi in France has collaborated with BioMed X to clinically forecast the effectiveness of first-in-class medication candidates using digital data and artificial intelligence.
Asia Pacific held a moderate revenue share in the bioinformatics market in 2021, driven by the rapid adoption of bioinformatics services in clinical diagnosis and drug discovery. Incorporation of artificial intelligence and high-performance computing in next-generation DNA sequencing has raised the demand for bioinformatics services in the healthcare and pharmaceutical industry in Asia Pacific. Several healthcare and pharmaceutical companies in this region are highly adopting these technologies for early-stage drug discovery and medical technology.
Key Topics Covered:
Chapter 1. Market Synopsis
Chapter 2. Executive Summary
Chapter 3. Indicative Metrics
Chapter 4. Bioinformatics Services Market Segmentation & Impact Analysis
4.1. Bioinformatics Services Market Segmentation Analysis
4.2. Industrial Outlook
4.2.1. Market indicators analysis
4.2.2. Market drivers analysis
4.2.2.1. Increasing demand for bioinformatics services for biotechnology research and drug discovery
4.2.2.2. Rising demand for bioinformatics services in computational biology
4.2.3. Market restraints analysis
4.2.4. Availability of open-source solutions and shortage of skilled personnel
4.2.5. Risk regarding data security
Chapter 1. Bioinformatics Services By Service Type Insights & Trends
Chapter 2. Bioinformatics Services Market By Application Insights & Trends
Chapter 3. Bioinformatics Services Market By End-Use Insights & Trends
Chapter 4. Bioinformatics Services Market Regional Outlook
Chapter 5. Competitive Landscape
Chapter 6. Company Profiles
Companies Mentioned
- Thermo Fisher Scientific Inc.
- Agilent Technologies Inc.
- QIAGEN Digital Insights
- Intrexon Bioinformatics Germany GmbH
- Rosalind Inc.
- Illumina Inc.
- DNAnexus Inc.
- PerkinElmer Inc.
- Biomax Informatics Inc.
- Waters Corporation
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