Computational Biology Market - By Tool, By Application, By Services, By End Use - Global Forecast, 2025 - 2034

Computational Biology Market Size

The global computational biology market was estimated at USD 7.1 billion in 2024. The market is expected to grow from USD 8 billion in 2025 to USD 22.7 billion in 2034, at a CAGR of 12.3% during the forecast period, according to the latest report published by Global Market Insights Inc. The market is driven by increasing clinical trial activities using computational designs, rising drug development costs & timeline pressures, ongoing advancements in bioinformatics and data science, and supportive government policies, among other factors.

Rising volume of omics data & bioinformatics research, consistent innovation and adoption of AI-based tools coupled with the growing number of clinical trials are among the key variables fueling the market growth. Thermo Fisher Scientific, Illumina Inc., QIAGEN, BIO-RAD Laboratories, and Dassault Systèmes are among the leading players operating in the market. These players mainly focus on product/service innovation, expanding their offerings, and incorporating advanced technologies in different frameworks and platforms to improve efficiency.
 

The market reached from USD 3.8 billion in 2021 to USD 6 billion in 2023. Governments across the globe have started to recognize and understand the changing landscape of computational biology in healthcare and environmental science. They are beginning to fuel innovation in genomics, bioinformatics, and personalized medicine via funding initiatives, public-private partnerships, and regulatory support. National genomics programs in countries such as the U.S., UK, and India generate large-scale data and support infrastructure development. It enables streamlined regulatory pathways for digital health tools and AI-based diagnostics that allow companies to get their products to market faster. Additionally, supportive policy initiatives reduce market entry barriers, increase investment in R&D, and encourage an ecosystem for startups as well as large established companies to scale their computational biology-based solutions.
 

Conventional drug development is a lengthy (often more than 10 years) and costly process, which has led to an increased demand for computational biology tools to enhance and streamline R&D, decrease trial and error, and identify likely candidates that exhibit drug efficacy and safety earlier in the pipeline. Computational biology can be employed for biological system simulations, modeling drug interactions, and/or analyzing omics data, ultimately reducing the time on lab experiments and the subsequent failures of clinical trials. Pharmaceutical companies are increasingly pressured to deliver therapies faster and at a lesser cost, thereby driving the industry growth.
 

Clinical trials are transforming with the application of computational biology, which provides new trial designs, patient stratification, and discovery of biomarkers. For instance, as of May 2025, there are around 22,985 ongoing clinical trials that are recruiting patients in the U.S. Adaptive trial models that use simulations and predictive analytics will allow researchers to amend their trial protocol in real time to improve the likelihood of success while lowering costs. Computational tools can be applied to identify optimal dosing, predict an adverse outcome, and even simulate a trial within the constraints of ethics before conducting the actual research. This paradigm shift is going to have increasing value in the field of precision medicine as specialized patient data can inform their participation in trial recruitment and a rationale for the modification in care or treatment strategies.
 

Computational biology is an interdisciplinary field combining algorithms, data analytics, and/or high-performance computing, with applications in modeling biological systems, analysis of complex biological data (genomics, proteomics), and speeding up drug discovery, disease modeling, and personalized medicine. The field is an integral part of modern life sciences and pharmaceutical research and development.

Computational Biology Market Trends

Multiple trends are expected to shape the computational biology industry's growth throughout the analysis period. First, the usage of artificial intelligence and machine learning is transforming the analysis of data, offering faster and more accurate predictions around genomics, drug discovery, and disease modeling. These methods are transforming the traditional R&D timelines and costs.
 

• Second, as the capacity to generate omics data for genomics, proteomics, and metabolomics has witnessed a surge, there is a notable demand for scalable computational platforms to manage and interpret complex biological data sets.
   
• Additionally, advancing personalized medicine results in increasing demand for patient-specific modeling and simulation tools for individualized therapies.
   
• In addition, the adoption of cloud computing is enhancing data access and collaboration among research institutions and global pharmaceutical companies. Regulatory agencies are also increasingly willing to support computational approaches in clinical trials, facilitating more innovative trial designs and biomarker validation.
   
• Finally, the increasing occurrence of wearable health devices is opening new opportunities to integrate real-time data, thereby enriching the computational model with even more information. Overall, all of these factors can accelerate scientific discovery and change the perspective of developing a healthcare solution, its assessment, and delivery in many ways. Thus, computational biology is the foundation for the advancement of the next-gen biomedical innovation.
   

Computational Biology Market Analysis

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In 2021, the market was valued at USD 3.8 billion and grew to USD 4.9 billion in 2022, reaching USD 6 billion by 2023. Increasing preference for advanced computational platforms and frameworks and integration of innovative solutions are among the key variables contributing to industry growth.
 

Based on tool, the global computational biology market is segmented into analysis software and services, databases and hardware. The analysis software and services segment accounted for a leading share of 41.7% in 2024. The demand for analysis software and services is rapidly increasing due to the surge in omics data, need for advanced modeling tools, and growing reliance on AI-driven insights in drug discovery and precision medicine. The segment is expected to exceed USD 9.8 billion by 2034, growing at a CAGR of 12.8% during the forecast period.
 

• The sales of analysis tools and services are rising significantly owing to the rapid growth of omics data, the increasing need for modeling tools, and the introduction of AI and machine learning into drug discovery.
   
• These analysis tools and services provide faster, more accurate biological knowledge, which is critical to pharmaceutical R&D, clinical trials, and personalized medicine initiatives.
   
• Additionally, the database segment was the second largest in 2024, valued at USD 2.6 billion. The demand for biological databases has increased rapidly, as researchers and companies need a central, organized data store for their vast amounts of genomic, proteomic, and clinical data.
   
• These biological databases enable interoperability, data sharing, and access to real-time, which are invaluable to collaborative research, regulatory submissions, and data driven healthcare solutions.
   
• The hardware segment was USD 1.6 billion in 2024. High-performance computing (HPC) hardware is witnessing an increasing demand to support the processing of complicated biological simulations, large genomic sequencing efforts, and AI-based analyses.
   
• Further, as the generation of data rises, scalable and efficient computing hardware infrastructure becomes critical and includes GPUs, cloud servers, and storage systems to enable real-time analyses and accelerate the computational workflow for research and clinical purposes.
   

Based on application, the global computational biology market is segmented into cellular & biological simulation, drug discovery & disease modelling, preclinical drug development, clinical trials, and human body simulation software. The cellular & biological simulation segment accounted for a leading share and was valued at USD 2.5 billion in 2024.
 

• Cellular and biological simulation is being driven by strong market demand for its ability to simulate complicated biological processes in silico, reducing the need for expensive and labor-intensive lab experiments.
   
• Additionally, simulations are important to understand disease processes, understand drug interactions, and predict responses in cells. Due to the growth in systems biology and personalized medicine, researchers and pharmaceutical companies are increasingly interested in simulation tools to increase discovery speed, refine therapeutic strategies, and reduce the high cost of clinical development by implementing better preclinical modeling.
   
• The drug discovery and disease modelling segment is projected to grow at a higher pace with a CAGR of 12.8% over the forecast period. It is growing at a robust growth rate as pharmaceutical companies are seeking faster and cheaper methods to identify drug candidates.
   
• Virtual screening, target identification, and lead optimization through computational biology can reduce the time and resources spent on early-stage drug discovery R&D. Disease modeling using AI and multiomic data can be employed to simulate disease progression and treatment responses and is particularly relevant for precision medicine initiatives. The movement is also encouraged by the increased desire to study complex diseases and mitigate the drug development cycle.
   
• Further, the preclinical drug development segment was valued at USD 1.1 billion in 2024, and is steadily utilizing computational biology for simulating pharmacokinetics, pharmacodynamics, and toxicity profiles for candidates prior to testing on patients. These tools may predict the voice of a drug in a biological system and may reduce the use of the animal models in preclinical pharmacology studies, providing a better chance of proceeding to clinical trials.
   

Based on services, the computational biology market is segmented into contract and in-house. The contract segment accounted for the majority market share of 54.9% in 2024 due to advantages such as cost-effective approach, access to advanced tools and expertise, etc.
 

• There is strong demand for contract services as pharmaceutical and biotech companies shift to contract organizations (CROs), companies specializing in computational biology. These models allow companies to attain cost efficiency and gain access to advanced technologies and expert talent while avoiding the overhead cost of developing the infrastructure in-house.
   
• Contract organizations promote computational biology as it provides advantages such as speed of project execution, scalability, and flexibility, which can be especially important for small to mid-sized companies.


• ent becomes increasingly complex, data-intensive, and time-consuming, it is considered a strategic choice to support innovation and reduce operational burden.
   
• The in-house segment was valued at USD 3.2 billion in 2024. Computational biology services within pharmaceutical companies and academic settings remain a necessity when organizations want full control of proprietary data and workflows. Organizations invest in computational biology services to retain data security and intellectual property and to provide support for long-term research and development (R&D).
   
• In-house services are typically more expensive but allow for more adaptability and compatibility with existing workflows, electronic medical record systems, etc.
   

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Based on end use, the computational biology market is segmented into commercial and academics & research. The commercial segment accounted for the majority market share of 57.6% in 2024 due to growing adoption of such tools and solutions primarily in industrial settings.
 

• The commercial sector is witnessing the adoption of computational biology at an industrial scale, specifically pharmaceutical, biotechnology, and healthcare companies that utilize advanced modeling, simulation, and data to drive drug discovery, shorten R&D time and cost, or arrive at personalized therapies faster.
   
• Additionally, the need for competitive advantage, shorter time-to-market (TTM), and regulatory approval continues to drive demand in this area.
   
• The academics & research segment was valued at USD 3 billion in 2024. Academic institutions and research organizations use computational biology for studying fundamental biological processes, for new methods, or for contributing to innovation in science.
   
• It is often supported by growing government and private funding and is an important entity in developing algorithms, as well as trained professionals to implement the algorithms, and therefore facilitates the overall ecosystem of computational biology.
   

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• The North America region is regarded as the world leader in computational biology, supported by an advanced biotechnology ecosystem, strong research infrastructure, and robust public and private ventures. The U.S. is the major regional country with headquarters of key organizations, including Thermo Fisher Scientific, Illumina, and various other players. The U.S. benefits from extensive federal funding, exceptional research at its academic institutions, and a flourishing start-up ecosystem throughout the country, combining efforts across AI, genomics, and personalized medicine.
   
• Additionally, programs such as the All of Us Research Program by the National Institutes of Health (NIH) and the rise in electronic health record usage result in significant generation and integration of data.
   
• Further, Canada complements the growth of computational biology with its focus on ethical AI, genomics research, and collective innovation spaces. Countries are making investments in cloud computing, high-performance infrastructure, and regulatory progress to support digital health and computational tools.
   
• North America is focused on reducing the timelines for drug development, improving clinical trial processes, and advancing precision medicine, ensuring it remains at the forefront of innovation and commercialization in computational biology for the foreseeable future.
   

The U.S. computational biology market was valued at USD 1.7 billion and USD 2.2 billion in 2021 and 2022, respectively. In 2024 the market size was valued at USD 3.2 billion from USD 2.7 billion in 2023. The significant focus on faster drug development processes through integrating advanced tools and frameworks is projected to fuel the market growth.
 

• The U.S. has established itself as the prominent force in computational biology due to its established biotech ecosystem, advanced research and development infrastructure, and deep engagement between public and private stakeholders.
   
• Leading pharmaceutical and technology companies are investing heavily in the areas of AI-based drug development, genomics, and precision medicine. Academic institutions in the country and national laboratories continue to make open and important contributions to the development of algorithms, data analytics, and biological modeling.
   
• Additionally, the country also benefits from a developed regulatory environment that is increasingly amenable to digital health development.
   
• Further, the U.S. will continue to lead computational biology due to its robust workforce, state-of-the-art infrastructure, and consistent innovation.
   
• In particular, there is demand for software-based platforms for analytics in the cloud and simulation, across various applications in oncology studies, rare diseases research, and modeling of infectious diseases.
   

Europe Computational Biology Market

Europe accounted for a substantial share in the market and was valued at USD 2 billion in 2024.
 

• Europe is a hub of influential research in computational biology due to countries such as the UK, France, Germany, Switzerland, and the Netherlands. The UK has been at the forefront of research in genomics and the area of personalized medicine, supported by initiatives such as Genomics England and the NHS's vision of a digitally-enabled health service.
   
• France and Switzerland are known for significant contributions to the pharmaceutical industry and strong research programs in biology, life sciences, and healthcare. The Netherlands is also recognized for data-driven healthcare innovations.
   
• Additionally, the EU's Horizon Europe program represents a substantial investment in multi-national research focused on bioinformatics, systems biology, and AI applications in health care and life sciences. There are networks of collaboration within England and across Europe that connect researchers at universities and research institutes with biotech firms and hospitals, creating a dynamic system of innovation.
   

Germany held a significant share of the European computational biology market, showcasing strong growth potential.
 

• Germany is a key driving force in Europe’s computational biology ecosystem, with particular strength in systems biology, bioinformatics, and precision medicine. The integration of a robust industrial base of life science companies, complemented by world-leading institutions (such as the Max Planck Society and Helmholtz Association), acts as fertile ground for the development of innovative computational modelling techniques and data-driven life sciences. Germany’s life science and biotech sectors are keenly adopting computational methods to improve drug discovery and clinical trials and to enhance diagnostics.
   
• Additionally, support from government initiatives to create digital health and associate AI research with a national focus, in conjunction with initiatives that support and foster small businesses in the EU, further enhances the ecosystem.
   
• Finally, Germany’s focus on interdisciplinary approaches across academic settings, healthcare, and industry has resulted in numerous startups and government-funded research consortia in recent years.
   

Asia Pacific Computational Biology Market

The Asia Pacific market is anticipated to grow at the highest CAGR of 13.9% during the analysis timeframe.
 

• The fastest-growing segment of the market is the Asia Pacific region. The growth is driven by increased investments in biotechnology, improved healthcare infrastructure, and a stronger emphasis on precision medicine.
   
• China, India, Japan, South Korea, and Australia are investing in national genomics programs, AI healthcare initiatives, and growing pharmaceutical R&D in the region. With a high regional population, it generates a large amount of omics and clinical data, which creates demand for advanced computational methods and tools to analyze the data.
   
• In addition, the region benefits from its growing economy to optimize how digital health transformation occurs through optimized, targeted roles for academic institutions and startups that are innovating within the bioinformatics, drug discovery, and disease modeling space.
   

China computational biology market is estimated to grow with a considerable CAGR, in the Asia Pacific market.
 

• China is becoming a powerhouse in computing biology, aided by government backing, huge investment in genomics, and a robust biotech sector. Programs such as the Precision Medicine Strategy and the China Genome Project are accelerating the pace of biological data production, leading to a growth in the adoption of computational tools.
   
• Chinese technological companies and start-ups are leveraging AI and machine learning services for drug discovery and disease modeling.
   
• Academic institutions and research parks are forming partnerships with pharmaceutical companies to create homegrown bioinformatics platforms.
   
• Furthermore, the focus on developing domestic technologies and becoming self-sufficient in biotech innovation is encouraging the development of computational biology capabilities in China.
   

Latin America Computational Biology Market

Brazil leads the Latin American market, exhibiting remarkable growth during the analysis period.
 

• Brazil is an emerging market for computational biology in Latin America, supported by a strong community of academic researchers and growing governmental interest in biotechnology. Brazil has made major advances in genomics, especially in agricultural biotechnology and infectious disease research.
   
• Institutions such as Fiocruz and EMBRAPA have incorporated computational tools into their research on genome sequencing, epidemiological modeling, and vaccine development.
   
• Additionally, the private sector remains underdeveloped; however, collaborative partnerships between academia and an emerging biotechnology start-up community are encouraging innovation.
   
• As Brazil continues to modernize its healthcare delivery and remain a key research player, the demand for solutions in computational biology will continue to increase in a steady manner in Latin America's life sciences ecosystem.
     

Middle East and Africa Computational Biology Market

Saudi Arabia market to experience substantial growth in the Middle East and Africa market in 2024.
 

• Saudi Arabia is progressively expanding its reach in computational biology as a part of its Vision 2030 program, which emphasizes diversifying into knowledge-based areas such as biotechnology and healthcare.
   
• The government is investing in genome research, precision medicine, and digital health infrastructure, with a view to enhancing public health outcomes.
   
• King Abdullah University of Science and Technology (KAUST) and King Faisal Specialist Hospital are leading efforts in genome science and bioinformatics. The country is actively promoting international collaborations to develop local expertise and attract international biotechnology companies.
   
• Overall, with a continued focus on R&D, education, and infrastructure investment, Saudi Arabia is well-placed to serve as a hub for computational biology and life sciences innovation in the Middle East.
   

Computational Biology Market Share

Leading companies operating in the market, such as Thermo Fisher Scientific, Illumina Inc., QIAGEN, BIO-RAD Laboratories, and Dassault Systèmes, among others, have a significant presence in the industry. These players maintain their key position by combining a strong product portfolio, regulatory clearances, consistent innovation, and partnerships with key stakeholders in the industry.
 

The market is competitive and innovation-driven, with a presence of established life sciences companies and specialized bioinformatics firms. Companies such as Thermo Fisher Scientific, Illumina, BIO-RAD Laboratories, and QIAGEN leverage integrated platforms, acquisitions, and global presence to help their expansion. These companies invest in AI, cloud processing, and multiomics to enhance drug discovery methods and support precision medicine.
 

Emerging companies in this market, including players such as Schrödinger and Certara focus on providing better advanced modeling and biosimulation methods for specific aspects of pharmaceutical R&D. There is emerging competition in the area of machine learning, with smaller startups utilizing platforms to compete and stay ahead of their peers for faster and more accurate biological information.
 

Computational Biology Market Companies

Few of the prominent players operating in the global computational biology industry include:

• aganitha
• Atomwise
• Benevolent AI
• BIODIGITAL
• BIO-RAD
• cadence
• CERTARA
• compugen
• DASSAULT SYSTEMES
• deep genomics
• DNAnexus
• fios GENOMICS
• Genedata (Danaher)
• GINKGO
• Illumina
• instem
• QIAGEN
• Schrödinger
• strand
• Thermo Fisher SCIENTIFIC
   
• Thermo Fisher Scientific

Thermo Fisher Scientific held a leading position in the computational biology market with a share of around 16% in 2024. Thermo Fisher focuses on end-to-end integration across the life sciences value chain, combining R&D, manufacturing, diagnostics, and clinical services. Its strategy emphasizes aggressive mergers and acquisitions, digital transformation, and AI-driven innovation to accelerate drug development and precision medicine. It also invests in sustainability and global expansion to maintain the key position.
 

• Illumina Inc.

Illumina is pivoting beyond sequencing into multiomics and AI-powered data interpretation. The company's new division, BioInsight, targets pharma partnerships for drug discovery using large-scale omics datasets. The company is expanding into proteomics (e.g., SomaLogic acquisition), enhancing clinical adoption, and driving innovation in single-cell and population-scale genomics.
 

• QIAGEN

QIAGEN’s strategy centers on its Sample to Insight model, offering integrated molecular diagnostics and life science tools. It focuses on high-growth platforms such as QIAstat-Dx while expanding its companion diagnostics and automation solutions. Strategic M&A, emerging market penetration, and operational efficiency are key pillars of the company's growth plan.
 

Computational Biology Industry News:

• In June 2025, Illumina, Inc. announced that it had entered into a definitive agreement with Standard BioTools to acquire SomaLogic. This development will enhance Illumina's presence in the growing proteomics market. It will aid the company in improving its industry presence.
   
• In December 2024, QIAGEN announced the launch of Ingenuity Pathway Analysis (IPA) Interpret, a new feature designed to simplify and accelerate the interpretation of complex biological data. This development enabled the company to enhance its service offering and improve the user experience through continuous advancement and updates.
   
• In November 2024, NVIDIA announced the availability of the open-source platform NVIDIA BioNeMo Framework to advance drug discovery and accelerate molecule design. This platform focuses on accelerating and scaling digital biology for different stakeholders in the industry.
   

The global computational biology market research report includes an in-depth coverage of the industry with estimates and forecasts in terms of revenue in (USD Million) from 2021 - 2034 for the following segments:

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Market, By Tool

• Analysis software and services
• Databases
• Hardware

Market, By Application

• Cellular & biological simulation
  • Computational genomics
  • Computational proteomics   
  • Pharmacogenomics
  • Other simulations
• Drug discovery & disease modelling
  • Target identification
  • Target validation
  • Lead discovery
  • Lead optimization
• Preclinical drug development
  • Pharmacokinetics
  • Pharmacodynamics
• Clinical trials
  • Phase I
  • Phase II
  • Phase III
  • Phase IV
• Human body simulation software

Market, By Services

• Contract
• In-house

Market, By End Use

• Commercial
• Academics & research

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE