Bioinformatics Market by Product & Service (Knowledge Management Tools, Bioinformatics Platforms, Data Analysis, Structural Analysis, Services), Applications (Genomics, Proteomics, Transcriptomics), Sectors (Medical, Animal) & Region - Global Forecasts to 2027
Updated on : March 13, 2023
The global bioinformatics market in terms of revenue was estimated to be worth $10.1 billion in 2022 and is poised to reach $18.7 billion by 2027, growing at a CAGR of 13.0% from 2022 to 2027.
The growth of the market is driven by the increasing public and private-sector funding for bioinformatics, growth in demand for precision medicine as treatment options, rise in pharma biotech R&D expenditure, and reduced cost of genome sequencing. However, the high cost of equipment is hindering the growth of this market.
Attractive Opportunities in Bioinformatics Market
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Bioinformatics Market Dynamics:
Drivers: Increasing public-private sector funding for bioinformatics
Many government bodies and private organizations across the globe are investing in the field of bioinformatics. These investments leads to technological advancements in bioinformatics services, which, in turn, have improved the quality of these services. For instance, in 2016, the European Molecular Biology Laboratory (EMBL), an intergovernmental organization and pioneer in bioinformatics research, received funds from the Biotechnology and Biological Sciences Research Council, British Heart Foundation, Cancer Research UK, the European Commission, European Molecular Biology Organization, the European Research Council, the Foundation of the National Institutes of Health, Bill & Melinda Gates Foundation, the Human Frontier Science Program, Innovate UK, International Policy Governance Organization, the Medical Research Council, the National Institutes of Health, National Science Foundation, Parkinson’s UK, Research Councils UK, and Wellcome, for R&D in the field of bioinformatics.
Restraints: High Equipment Costs
Advancements in the NGS technologies, have led to increasing need for quick and accurate bioinformatics tools that can be easily operated. Scientists involved in experimental research are not necessarily bioinformaticians. Therefore, the availability of user-friendly tools is important for the use of bioinformatics platforms. Many bioinformatics tools require advanced computer expertise, mainly because they lack a suitable user-friendly interface.
Genomics instruments are also equipped with advanced features and functionalities come with premium, ranging between ~USD 10–20 million. As pharmaceutical companies and research laboratories require many such systems, their capital expenditure on procuring multiple genomic instruments is very high. For small and medium-sized pharmaceutical companies and research laboratories, it is not possible for them to make such high investments in multiple genomics instruments
Opportunities: Lucrative opportunities in emerging markets
markets like India, China, Brazil, Russia, Taiwan, and South Korea, offer high growth opportunities for the major players offering bioinformatics products and services.
The dominance of these emerging economies in terms of R&D investments from global players is expected to provide major opportunities—for the growth of genomics, transcriptomics, personalized medicine , drug discovery & clinical diagnostics , and other markets in the coming years. Also, regulatory policies in the Asia Pacific are more adaptive in nature due to fewer stringent regulations and less data requirements. The increasing competition in mature markets will further compel manufacturers to focus on emerging markets.
Challenges: Patient data confidentiality concerns
The rapid technological adoption in next-generation sequencing (NGS) technologies have generated a large volume of biological data, and with the rapid influx of data there is growing adoption of NGS. Data analysis is necessary, as a lot of information is still not researched in genome analysis. Hence, data after the process of bioinformatics analysis carries huge importance and can be reused. The current solutions offered in the market do not adequately solve the challenges of data management in bioinformatics.
North America holds the largest share in bioinformatics market
North America dominated the market, with a share of 45.1% in 2021, followed by Europe and Asia Pacific. The large share of North America in the global market can be attributed to factors such as government permissions for genetic research, key players having their headquarters in the region, cost reduction in sequencing, awareness related to bioinformatics services, and increased number of genomic research activities (and the corresponding adoption of bioinformatics) in the region are driving the growth of the market in North America. This regional market is characterized by increased government initiatives for the reimbursement of genomic testing and favorable funding scenario for research activities involving the use of bioinformatics technologies.
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The key players have a strong foothold in the market and offer a wide range of products & services. Some of the key players in this market are Thermo Fisher Scientific, Inc. (US), Eurofins Scientific (Luxembourg), QIAGEN N.V. (Netherlands), Agilent Technologies, Inc. (US), and Illumina, Inc. (US), Waters Corporation (US), DNASTAR (US), NeoGenomics Laboratories (US), Perkin Elmer, Inc. (US), GENEWIZ (US) and BGI Group (China), Fios Genomics (UK), Partek Incorporated (US), SOPHiA Genetics (Switzerland), Source BioScience (UK), and Biomax Informatics AG (Germany) among others.
Bioinformatics Market Report Scope:
Base year considered
Value (USD Million/USD Billion)
By Product & Services, By Application, By Sector, & By Region
North America, Europe, Asia Pacific, and Rest of the World
The major market players include Thermo Fisher Scientific, Eurofins Scientific, Illumina, PerkinElmer, Inc., NeoGenomics, QIAGEN, Source BioScience, Agilent Technologies, DNAStar, Psomagen, Inc., Waters Corporation, Microsynth, SOPHiA GENETICS, MedGenome Labs, Partek, Biomax Informatics AG, GENEWIZ, Beijing Genomics Institute (BGI), Fios Genomics, PetDx, JADBio, Biosystems Immunolab, Astalake Biosystems, and Nucleome Bioinformatics.among others (Total 25 companies)
This study categorizes the global bioinformatics market into following segments & sub-segments:
By Product & Services
- Knowledge Manageemnt Tools
- Bioinformatics Platforms
- Bioinformatics Services
- Chemoinformatics & Drug Design
- Other Applications
- Medical Biotechnology
- Animal Biotechnology
- Plant Biotechnology
- Environmental Biotechnology
- Forensic Biotechnology
- Other Sectors
- Rest of the World
- In October 2022, Illumina, Inc. and AstraZeneca formed a strategic research collaboration to expedite the discovery of therapeutic targets by combining their strengths in AI-based genome interpretation and genomic analysis tools with industry knowledge. The cooperation would assess if a framework made of both these technologies can boost target discovery yield and confidence in order to identify prospective therapeutics based on human omics insights.
- In September 2022, Thermo Fisher Scientific joined the Pennsylvania Biotechnology Center (PABC) as a founding sponsor of both the Philadelphia-based B+Labs incubator and the PABC site in Doylestown, Pennsylvania, where emerging life science enterprises can accelerate their progress to commercialization.
- In January 2021, BGI and the Ministry of Health of Brunei expanded their partnership to carry out extensive cooperation in public health emergency response and public health testing screening and diagnostic services, including reproductive health, personalized drug guidance, early cancer screening, and detection of unknown pathogens by using BGI’s cutting-edge sequencing technology.
- In January 2020, Charles River Laboratories, Inc. entered into a partnership with Fios Genomics to gain access to the expertise of Fios Genomics in the field of bioinformatics, statistics, and biology.
Frequently Asked Questions (FAQ):
What is the projected market value of the global bioinformatics market?
The global market of bioinformatics is projected to reach USD 18.7 billion.
What is the estimated growth rate (CAGR) of the global bioinformatics market for the next five years?
The global bioinformatics market is projected to grow at a Compound Annual Growth Rate (CAGR) of 13.0% from 2022 to 2027.
What are the major revenue pockets in the bioinformatics market currently?
North America dominated the market, with a share of 45.1% in 2021, followed by Europe and Asia Pacific. The large share of North America in the global bioinformatics market can be attributed to factors such as government permissions for genetic research, key players having their headquarters in the region, cost reduction in sequencing, awareness related to bioinformatics services, and increased number of genomic research activities (and the corresponding adoption of bioinformatics) in the region are driving the growth of the bioinformatics market in North America. This regional market is characterized by increased government initiatives for the reimbursement of genomic testing and favorable funding scenario for research activities involving the use of bioinformatics technologies.
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This study involved four major activities in estimating the size of the bioinformatics market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across value chains through primary research. The bottom-up approach was employed to estimate the overall market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and sub-segments.
This research study involved the use of widespread secondary sources, directories, databases (such as Bloomberg Business, Factiva, and D&B Hoovers), white papers, annual reports, company house documents, investor presentations, and SEC filings of companies. Secondary research was used to identify and collect information useful for this extensive, technical, market-oriented, and commercial study of the bioinformatics market. It was also used to obtain important information about the key players alongside market classification and segmentation according to industry trends to the bottom-most level and key developments related to market and technology perspectives. A database of the key industry leaders was also prepared using secondary research.
Secondary research was used to identify and collect information useful for the extensive, technical, market-oriented, and commercial study of the bioinformatics market. It was also used to obtain important information about key market players, market classification and segmentation according to industry trends to the bottom-most level, and key developments related to market and technology perspectives.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report.
The primary sources from the supply side include CEOs, VPs, managing directors, marketing and sales heads/directors, marketing managers, regional/area sales managers, and bioinformatics scientists. Primary sources from the demand side include vice presidents, C-level executives, product managers, department heads, research scientists, research heads, and hospital directors. Other primary respondents include industry experts such as consultants, government, and officials/regulatory authorities.
Breakdown of Primary Interviews
Note 1: C-level executives include CEOs, COOs, CTOs, and VPs.
Note 2: Other primaries include sales managers, marketing managers, and product managers.
Note 3: Companies are classified into tiers based on their total revenue. As of 2020: Tier 1 = >USD 1 billion, Tier 2 = USD 500 million to USD 1 billion, and Tier 3 = <USD 500 million.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the bioinformatics market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and markets have been identified through extensive secondary research
- The industry’s supply chain and market size, in terms of value, have been determined through primary and secondary research processes
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources
After arriving at the market size, the total market was divided into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, data triangulation and market breakdown procedures were employed, wherever applicable. The following figure shows the market validation, source structure, and data triangulation methodology implemented in this report’s market engineering process.
- To define, describe, and forecast the bioinformatics market based on products & services, application, sector, and region
- To provide detailed information regarding the major factors influencing the growth of this market (such as drivers, restraints, opportunities, and challenges)
- To analyze the micromarkets with respect to individual growth trends, prospects, and contributions to the overall bioinformatics market
- To analyze the opportunities for stakeholders and provide details of the competitive landscape for market leaders
To forecast the size of the market segments with respect to four main regions, namely,
North America, Europe, Asia Pacific and Rest of the World.
- To profile the key players and analyze their market shares and core competencies
- To track and analyze competitive developments such as product/service launches & approvals, partnerships, agreements, collaborations, joint ventures, expansions, and acquisitions in the overall bioinformatics market
- To benchmark players within the market using the proprietary “Competitive Leadership Mapping” framework, which analyzes market players on various parameters within the broad categories of business and product/service strategy
MarketsandMarkets offers the following customizations for this market report:
- Additional country-level analysis of bioinformatics market
- Profiling of additional market players (up to 3)
Growth opportunities and latent adjacency in Bioinformatics Market