Bioinformatics Market

Bioinformatics Market Overview

The global bioinformatics market, valued at $10.1 billion in 2022, is projected to reach $18.7 billion by 2027, growing at a CAGR of 13.0%. This growth is driven by increasing public and private-sector funding, rising demand for precision medicine, higher pharma biotech R&D expenditure, and reduced genome sequencing costs. However, high equipment costs pose a restraint. Emerging markets like India, China, and Brazil offer lucrative opportunities, while patient data confidentiality remains a challenge. North America, holding a 45.1% market share, leads due to favorable government policies and significant genomic research activities. Key market players include Thermo Fisher Scientific, Eurofins Scientific, QIAGEN, Agilent Technologies, Illumina, and others.

Attractive Opportunities in Bioinformatics Market

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Bioinformatics Market Dynamics

Driver: 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.

Restraint: 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 and bioinfirmatics 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 and bioinfirmatics companies and research laboratories, it is not possible for them to make such high investments in multiple genomics instruments

Opportunity: 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.

Challenge: 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%, 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:

This study categorizes the global bioinformatics market to forecast revenue and analyze trends in each of the following submarkets:

By Product & Services

• Knowledge Management Tools
• Bioinformatics Platforms
• Bioinformatics Services

By Application

• Genomics
• Chemoinformatics & Drug Design
• Proteomics
• Transcriptomics
• Metabolomics
• Other Applications

By Sector

• Medical Biotechnology
• Animal Biotechnology
• Plant Biotechnology
• Environmental Biotechnology
• Forensic Biotechnology
• Other Sectors

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • RoE
• Asia
  • Japan
  • China
  • India
  • RoAPAC
• Rest of the World

Recent Developments

• 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.

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