Chromatography Software Market Analysis

Chromatography Software Market Analysis

There has been an upsurge in the R&D activities coupled with high investments and clinical trials for the development of innovative medications that provide valuable medical advantages. As per the article published in 2021, the rising number of research and development activities in the pharmaceutical industry led to the U.S. FDA approval of 355 novel drugs and biologics from 2009 to 2018.

Additionally, R&D expenses for 63 of these drugs calculated from SEC government filings were estimated to be USD 985 million to USD 1,336 million. According to the Congressional Budget Office of the U.S. Congress report 2018, the new approvals augmented by around 60% with 59 novel therapeutics approval. This specifies the rising R&D activities in the biotechnology and pharmaceutical sector that are predicted to increase in the near future.

Hence, an upsurge in R&D activities is associated with growing demand for chromatography data software to deliver robust and validated methods in less time and with higher efficiency is expected to propel the business revenue.

Based on device type, the chromatography software market is segmented as standalone and integrated. The standalone segment surpassed USD 126 million in 2021. Standalone software devices are all in one system that facilitates chromatography-based analysis and performs their function without the necessity of other devices. These device types majorly offer a combination of multiple technologies and an extensive range of applications, helping the scientists in pharmaceutical R&D activities to deliver focused high-quality research outcomes.
 

The significant applications of standalone chromatography data software are gaining significant traction in developed countries, particularly for drug discovery, cancer & genomics research, and forensic testing among others.
 

Moreover, in developing countries, the preference for these devices is expected to grow extensively owing to the growing prevalence of diseases requiring diagnosis & testing along with surging concerns related to food safety. These major factors are expected to positively influence the standalone segment revenue.
 

Based on deployment mode, the chromatography software market is segmented as on-premises, web-based, and cloud-based. The web-based chromatography software segment accounted for over 38% revenue share in 2021. This majority revenue share is highly attributed to web-based chromatography systems delivering quick accessibility over network connection at lower handling costs.
 

While the database is stored on a central server instead of a desktop. Increasing usage of such chromatography data software in the pharmaceutical & biotechnology industry for real-time tracking, storing of data, easy data backup, and remote access to data is anticipated to upsurge the market demand.
 

The launch of advanced solutions by prominent players is further set to drive the market expansion. For instance, Shimadzu Corporation has developed a web-based chromatography system that allows viewing analysis results and outputting reports for liquid chromatography in real-time. Also, a web-based software solution eliminates the requirement for additional software licenses, delivering maximum efficiency for a minimum investment.
 

Hence, owing to a host of benefits offered by chromatography data software in conjunction with the development of highly precise web-based software are expected to stimulate chromatography software industry landscape in the coming years.
 

Based on application, the chromatography software market is segmented as pharmaceutical industry, environmental testing, forensic testing, food & beverage industry, and others. The pharmaceutical industry segment is expected to reach over USD 330 million by 2028. This dominant market share is owing to the rising burden of a broad range of diseases and an increase in the usage of liquid chromatography for establishing the components of a drug’s formulation.
 

For instance, as per the World Health Organization, an estimated around 17.9 million people die due to cardiovascular diseases (CVDs) every year worldwide. The COVID-19 pandemic also promoted the research activities associated with drug discovery for the treatment of this infectious disease. The chromatography data software applications in the pharmaceutical industries comprise drug discovery, molecular biology, clinical research, and pharmaceutical development among others.
 

Chromatography software updates further provide customization of procedures, full traceability, and security features to handle increasing regulatory requirements. Thus, a host of capabilities possessed by chromatography software is projected to augment the use of these devices in the pharmaceutical industry, thereby driving the market growth significantly.
 

Based on end-use, the chromatography software market is segmented as pharmaceutical and biotechnology companies, academic and research institutes, testing facilities, and hospitals/clinics. The academic and research institutes segment is anticipated to expand at 7.7% CAGR from 2022 to 2028. This substantial growth is owing to the growing adoption of chromatography software in academic and research institutes, increasing research volume, etc. Owing to the emergence of the COVID-19 pandemic, several companies are focusing to introduce innovative devices comprising chromatography software for the automation of the lab.
 

The chromatography instruments integrated with control software support comprehensive chromatographic data processing and interpretation. Owing to numerous clinical benefits offered by the chromatographic techniques in the long run, the academic and research institutes segment is set to promote market size in the coming years.
 

The notable contribution of R&D at academic institutes is further expected to increase the product acceptance rate. According to the Survey of Research and Development Expenditures at Universities and Colleges, academic institutes account for around 13% of total R&D costs in the U.S. The rising number of research institutes is also contributing to the market expansion.
 

As per the German Academic Exchange Service, over 1000 publicly funded research institutions are operating in Germany. As a result, the increasing research volume along with the adoption of chromatography software at academic and research institutes is expected to spur industry forecasts.
 

U.S. chromatography software market is anticipated to reach over USD 356 million by 2028. This high revenue share is owing to growing food safety concerns, rising R&D activities & investment, etc. As per the recent estimates from the Government Accountability Office, the U.S. government spent over USD 18 billion and USD 23 billion to promote the COVID-19 vaccine development. Thus, growing spending on drug discovery for various ailments indicates the need for chromatography software used in clinical research.
 

Further, the presence of prominent players such as Thermo Fisher Scientific, Inc., Agilent Technologies, Inc., and Waters Corporation among others in the country are engaged in new product development & commercialization that facilitates the industrial expansion in the U.S.