[180 Pages Report] The global biosimulation market is projected to reach USD 2,881 billion by 2022 from USD 1,375 billion in 2017, at a CAGR of 15.9%. Factors such as increase in R&D investments in the pharmaceutical and biotechnology industries, growing adoption of biosimulation software by regulatory bodies, technologically advanced QSP systems, need to curtail drug discovery and development costs, and growth in the biologics and biosimilars markets are driving the growth of the market.

By product & service, the biosimulation software segment is expected to grow at the highest growth rate during the forecast period

Based on product & service, the biosimulation market is segmented into software and services. The biosimulation software segment is expected to account for the largest market share in 2017. The high growth in this segment is attributed to the growing adoption of biosimulation software by pharmaceutical and research organizations and the increasing R&D investment for pharmaceutical research.

By end user, the pharmaceutical and biotechnology companies segment to record the highest CAGR during the forecast period

Based on end user, the biosimulation market is segmented into research institutes, pharmaceutical and biotechnology companies, contract research organizations (CROs), regulatory authorities, and other end users (consulting firms, defense research and development organizations, nutraceutical companies, and food and agricultural companies). In 2017, pharmaceutical and biotechnology companies are expected to form the largest share in 2017, and is projected to register the highest CAGR during the forecast period. Increased R&D budgets of pharmaceutical and biotechnology companies and increasing adoption of inorganic growth strategies by different biosimulation service providers are likely to boost the adoption of biosimulation solutions in the pharmaceuticals and biotechnology industry.

North America to account for the largest market size during the forecast period.

The biosimulation market is segmented into four major regions, namely, North America, Europe, Asia, and the Rest of the World (RoW). The dominance of the North American market is attributed to factors such as growth in the biotechnology and pharmaceutical industry, a large number of ongoing drug development processes, increased use of personalized medicine, and increasing R&D expenditure by pharmaceutical and biotechnology companies.

Market Dynamics

Driver: Growth in the biologics and biosimilar market

Growth in the global biosimilars market is mainly driven by factors such as the growing pressure to curtail healthcare expenditures, growing demand for biosimilars due to their cost-effectiveness, rising incidence of various diseases, increasing number of off-patented drugs, positive outcomes in ongoing clinical trials, and rising demand for biosimilars in different therapeutic applications such as rheumatoid arthritis and blood disorders. As there is very little success in the R&D of new chemical entities, pharmaceutical companies are trying to find new applications for their existing drugs. As toxicity and other vital parameters of drug safety are already tested, biosimulation technologies are used to confirm the hypothesis of using the drugs for a new indication or disease.

Restraint: Lack of standardization

Biosimulation uses a variety of models, tools, and languages for capturing and processing different aspects of biological processes. The current modeling methods do not capture the underlying semantics of biosimulation models to support building, reusing, composing, and merging of varied, complex biosimulation models. The governing bodies are yet to standardize the use of in silico or biosimulation technologies in the drug discovery or development process. Recent technological advancements have increased the computational power of biomedical researchers for building and managing complex biosimulation systems. However, as their models and simulations grow in complexity, researchers find it more difficult to share, manage, and edit their models. The problem of sharing complex biomedical models becomes severe with the lack of scalable standards for model representation and reuse. As a consequence, many model developers are unable to share and build new models upon previously coded models. This shortcoming of biosimulation can only be solved by the provision of a principled, standards-based representation model, which is able to represent biosimulation data unambiguously in both a human and a machine-interpretable way. The biosimulation community, therefore, has a growing need for tools that will help them to efficiently build, manage, and reuse their models.

Opportunity: Emerging applications

The emerging applications of biosimulation in defense, industrial bioprocessing, nutraceuticals, and agri-food production present significant opportunities for the growth of the global biosimulation market. Various biosimulation companies are adopting inorganic and organic growth strategies to expand the applications of their biosimulation software and services. In May 2017, the Institute of Life Science at Swansea University delivered an in silico drug discovery software platform for the UK Ministry of Defense for the development of antimicrobials to meet the needs of defense and security in the country. Likewise, in April 2017, Certara formed a partnership with the Australian Department of Defense. Certara�s d3 medicine company was selected to conduct a national audit to check the research and development capabilities and capacity of Australia�s medical countermeasures (MCM) product.

Challenge: Shortage of biosimulation and modeling experts

Biosimulation uses mathematical equations to represent real-life processes that take place inside of the human body. Because it can replicate human biological elements and their relationships to drugs when they are introduced into the system, researchers are able to simulate a wide variety of scenarios and study the behavior of a human system in different situations.

However, skilled expertise is required for running, planning, and monitoring biosimulation software. In research laboratories and companies, there is a high demand for researchers well-versed in biosimulation methods, such as molecular modeling and simulation and PK/PD modeling and simulation. Furthermore, the applications of biosimulation for various drug discovery and development purposes require various modified forms of molecular modeling and simulation and PK/PD modeling and simulation. These processes are highly technical and involve the use of various complex laboratory documentation systems; this necessitates training for the personnel carrying out biosimulation. It is important to provide adequate training and support to researchers in order to overcome this challenge. All these factors make biosimulation development a tedious process and thus limit its uptake among researchers.

Scope of the Report

Report Metric Details Market size available for years 2015�2022 Base year considered 2016 Forecast period 2017�2022 Forecast units Million (USD) Segments covered Product & service, application, delivery model, end user, and region. Geographies covered North America, Europe, Asia, and Rest of the World Companies covered Certara (US), Simulations Plus (US), Dassault Syst�mes (France), Schr�dinger (US), ACD/Labs (Canada), Chemical Computing Group (Canada), Physiomics (UK), Evidera (US), In silico biosciences (US), INOSIM Software (Germany), Insilico Biotechnology (Germany), LeadInvent Technologies (India), Rosa (US), Nuventra Pharma (US), and Genedata (Switzerland)

The research report categorizes the biosimulation to forecast the revenues and analyze the trends in each of the following sub-segments:

By Product & Service

Software Molecular Modeling and Simulation Software PBPK Modeling and Simulation Software PK/PD Modeling and Simulation Software Trial Design Software Toxicity Prediction Software Other Biosimulation Software

Services In-house Services Contract Services



By Application

Drug Development Preclinical Testing PK/PD ADME/TOX Clinical Trials

Drug Discovery Target Identification and Validation Lead Identification and Optimization

Other Applications

By Delivery Model

Subscription Models

Ownership Models

By End User

Pharmaceutical and Biotechnology Companies

Research Institutes

Contract Research Organizations

Regulatory Authorities

Other End Users

By Region

North America US Canada

Europe Germany UK France RoE

Asia

Rest of the World (RoW)

Key Market Players

Certara (US), Simulations Plus (US), Dassault Syst�mes (France), Schr�dinger (US), ACD/Labs (Canada), Chemical Computing Group (Canada), Physiomics (UK), Evidera (US), In silico biosciences (US), INOSIM Software (Germany), Insilico Biotechnology (Germany), LeadInvent Technologies (India), Rosa (US), Nuventra Pharma (US), and Genedata (Switzerland).

Recent Developments

In April 2017, Simulations Plus signed Distributor Agreement with Quantum Bio Solutions (Q-Bio) (South Korea) To strengthen its relationships with South Korean companies and universities

In June 2017, Simulations Plus acquired DILIsym Services, Inc. (�DILIsym�) (US). This enabled the company to expand its product portfolio in simulation software and consulting services of drug-induced liver injury.

In December 2015, Certara acquired XenologiQ (UK) To strengthen its product portfolio in mechanistic pharmacology and modeling and simulation

Critical questions the report answers:

Where will all these developments take the industry in the long term?

What are the upcoming trends for the biosimulation market?

Which segment provides the most opportunity for growth?

Who are the leading vendors operating in this market?

What are the opportunities for new market entrants?

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company�s specific needs. The following customization options are available for the report:

Geographic Analysis

Further breakdown of the Asia biosimulation market into India, China, and Japan.

Company Information

Detailed analysis and profiling of additional market players (up to five)

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