According to a new market report published by Transparency Market Research (http://www.transparencymarketresearch.com),"Computational Biology (Pharmacodynamics, Cellular Modeling, Computational Genomics, Proteomics, Pharmacogenomics, Pharmacokinetics, Human Simulation Software, Drug Discovery & Development) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2012 - 2018," in 2011, the global computational biology market was valued at USD 760 million and is expected to grow at a CAGR of 21.3% from 2012 to 2018 to reach an estimated value of USD 2,937.3 million by 2018.
Computational biology uses sequencing, databases and supercomputers for analysis and algorithm formation to predict the molecules that can be taken for drug identification and lead optimization. Setbacks in drug discovery with absence of potential blockbusters in the market coupled with cost containment issues faced by major drug manufacturers has compelled the major players to shift their focus to newer methods of drug discovery in order to help accelerate the drug development process and bring down R&D expenditure.
The drug discovery market is the fastest growing segment and is anticipated to grow at a CAGR of more than 25% from 2012 to 2018. The use of computational biology for drug discovery now offers manufacturers a method to reduce R&D expenditure and to reduce chances of late stage failure of drug candidates. Computational software and simulation tools are being used in various stages of drug discovery to minimize the future risks of drug failure in later stages of drug development.