According to the deep-dive market assessment study conducted by Growth+ Reports, the global biosimulation technology market was pegged at ~US$ 3.15 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of ~13% from 2022 to 2030.
The rising demand to lower healthcare costs, growing demand for biosimilars due to their cost-effectiveness, rising prevalence of various diseases, rising number of off-patent drugs, positive results in ongoing clinical trials, and rising demand for biosimilars in various therapeutic applications such as rheumatoid arthritis and blood disorders are some of the main factors driving growth in the global biosimulation technology market.
Biosimulation software is currently being used to create drugs that imitate diseases. With the aid of biosimulation software, computers can run sickness simulations to conduct virtual clinical trials for new pharmacological drugs. For instance, according to the US Centers for Medicare & Medicaid Services, healthcare spending in the US increased 4.6% in 2019 to US$ 3.8 trillion, or US$ 11,582 per person, or 17.7% of the GDP. As a result, the biosimulation technology market is being driven ahead by the increase in healthcare spending.
The development of a new drug requires a sizable amount of research and funding. There is a significant risk of failure at every level of the drug development process, from clinical trials to approval. Biosimulation technology can significantly reduce these chances. By lowering the number of clinical trials necessary, biosimulation technology not only helps in the prediction of drug failure during the development phase, but it also lowers the cost of other potential failures. To shorten the duration of trials and lower the high costs associated with failures, pharmaceutical companies and research organisations have been using biosimulation software and service providers. As a result, it is anticipated that the high cost of drug research and discovery will fuel the expansion of the market for biosimulation technology globally. However, the global biosimulation technology market is somewhat constrained in its expansion by a number of problems, including a lack of skilled specialists and a lack of biosimulation standardisation.
Geographically, North America will dominate the global biosimulation technology market in the upcoming years owing to the technical improvements, rapid expansion of biologics and biosimilars' industries, high healthcare costs, and the region's abundance of pharmaceutical and biotechnology firms. Additionally, the U.S. Food and Drug Administration (FDA) strongly suggests using simulation methods in drug discovery and development, thereby promoting the expansion of the North American biosimulation technology market. Europe is the region with the quickest growth in the global market for biosimulation technology due to high healthcare costs and an increase in R&D activities are the main causes of the fastest growth in Europe biosimulation technology market.
On the other hand, the Asia Pacific region is anticipated to see significant growth potential. The market growth in Asia Pacific can be attributed to more money being spent on advancing the healthcare industry. Additionally, it is probable that increasing initiatives and financing for R&D will contribute to the expansion of the Asia Pacific biosimulation technology market.
Some of the key players operating in the market global biosimulation technology market includes Simulation Plus Inc., Dassault Systèmes SA, Advanced Chemistry Development, Inc., Certara USA, Inc., In Silico Biosciences, Inc., Rhenovia Pharma Ltd., Chemical Computing Group, Inc., Physiomics PLC., Entelos Holding Corporation, Leadscope, Inc., Genedata AG, and Schrodinger Inc. among others. Due to the existence of multiple leading market players, the biosimulation industry is moderately fragmented. To enhance their positions and expand their market shares, these market players are consistently engaged in a variety of developmental methods, including partnerships, mergers, acquisitions, collaborations, new product launches, and many others. For example, due to the existence of multiple leading market players, the biosimulation technology industry is moderately fragmented. To enhance their positions and expand their market shares, these market players are consistently engaged in a variety of developmental methods, including partnerships, mergers, acquisitions, collaborations, new product launches, and many others. For instance, Lixoft was purchased by Simulations Plus Inc., a US-based provider of simulation and modelling software for pharmaceutical research and discovery for $16.5 million. Simulations Plus wants to increase the company's position in Europe by acquiring Lixoft and expanding its selection of modelling software.