Computational Biology Market - Growth Drivers and Challenges
Growth Drivers
- Uprising in artificial intelligence: The existence of AI has been transforming conventional drug discovery, as well as developmental models by implementing algorithms, computational power, and data. As stated in the February 2025 Journal of Pharmaceutical Analysis report, Heal-X, as of 2021, deliberately used AI to recognize the latest utilization of the HLX-0201 drug. This has been suitable for aiding fragile X syndrome and advancing the project to Phase II clinical trials within 1.6 years. This is a huge driver for augmenting the success, accuracy, and efficiency of drug development, which is boosting the market internationally.
- Revolution in genetic engineering: This field is currently witnessing revolutionary advancements, which are fueled by technologies, including CRISPR-Cas9, denoting a positive impact on the market. Besides, through the adoption of gene technology, scientists can positively influence the reproductive health of particular genes. As per an article published by Carnegie Endowment for International Peace in October 2024, the staggering cost for this procedure was USD 2.7 billion, particularly for the human genome. At present, this can be conducted within a day, and the overall expense is USD 600, thereby denoting the cost-effectiveness aspect.
- Innovation in cardiovascular disease research: Biomarkers and conventional risk factors of CVD have been mainly undergoing research through clinical observations. According to the September 2024 NPJ article, this disease has been one of the leading causes of death, accounting for 50% across high-income nations and 28% in low-income nations. In addition, for the past 6 years, CVD incidence has also been the main reason for poor life expectancy and health among 369 other disorders. This has created a huge opportunity for the market to identify potential biomarkers, along with analyzing model biological systems and large datasets.
Efficiency Boost in Science Through Computational Biology
In-disciplinary Team Science Support to Accelerate Biological Discoveries
Components |
Biology |
Computer Science |
Biology Silo |
100% |
- |
Biological-Focused Research Parasitism |
95% |
5% |
Data Generation Focused Collaboration |
90% |
10% |
Data Science Focused Collaboration |
15% |
85% |
Computationally-Focused Research Parasitism |
10% |
90% |
Computational Silo |
- |
100% |
Source: NLM, October 2021
Computational Biology Market Drives Pathogen Genomics Investment
Investment and Cost Cases for Pathogen Genomics
Component |
Benefits |
Enhanced meningococcal disease control efforts in Africa |
Cost savings up to USD 80 |
Reduction in medical expenses and productivity loss |
USD 507 million |
Improved recall of tainted food products |
USD 37 million |
Disease burden |
100,000 per individual |
Source: Cell Genomics, March 2025
Challenges
- Increased treatment expenses and limited insurance services: The presence of substantial expenses linked with solutions in the market has created huge barriers for adoption, especially across fragmented healthcare systems. For instance, Medicaid programs and private insurers have initiated independent coverage strategies to ensure reimbursement for innovative computational diagnostics. Besides, the price points for wide-ranging genomic profiling have made these services unavailable for the majority of patients in the absence of insurance coverage, thus causing a hindrance in the market’s development internationally.
- Administrative delay in key economies: The international patchwork for administrative demands for tools in the market has developed challenges for market entry. Each high-income market has created its clearance framework for AI-based diagnostics, along with bioinformatics software, frequently with less harmonization between nations. For instance, Europe’s In Vitro Diagnostic Regulation (IVDR) has created identical bottlenecks with small-scale organizations that are struggling to meet strict clinical needs. Therefore, these delays comprise extremely severe consequences, thus causing a negative impact on the market.
Computational Biology Market Size and Forecast:
Base Year |
2025 |
Forecast Year |
2026-2035 |
CAGR |
13.7% |
Base Year Market Size (2025) |
USD 7.2 billion |
Forecast Year Market Size (2035) |
USD 22.8 billion |
Regional Scope |
|