CHEMINFORMATICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global chemoinformatics market size is expected to reach US$ 13.77 billion by 2030, from US$ 7.68 billion in 2023, at a CAGR of 8.7% during the forecast period. The increasing demand for new drugs and the rising need for efficient drug discovery and development are the major factors driving the growth of the chemoinformatics market.

Cheminformatics is a multidisciplinary field that combines chemistry, computer science, and information science to store, manage, and analyze chemical data. It is used in various applications, such as drug discovery, chemical safety, and environmental analysis.

Cheminformatics Market Regional Insights

• North America is the largest market for chemoinformatics, accounting for a 35% share in 2023. The growth of this market is attributed to the increasing investment in research and development by pharmaceutical and biotechnology companies in the region. Additionally, the presence of a large number of academic institutions and research institutes is also driving the growth of the chemoinformatics market in North America.
• Europe is the second largest market for chemoinformatics, accounting for a 25% share in 2023. The growth of this market is attributed to the increasing adoption of chemoinformatics tools and technologies by pharmaceutical and chemical companies in the region. Additionally, the presence of a strong regulatory environment is also supporting the growth of the chemoinformatics market in Europe.
• Asia-Pacific is the fastest growing market for chemoinformatics, accounting for a 20% share in 2023. The growth of this market is attributed to the increasing demand for new drugs and chemicals from the emerging economies in the region. Additionally, the growing focus on personalized medicine is also driving the growth of the chemoinformatics market in Asia-Pacific.

Figure 1. Global Cheminformatics Market Share (%), by Region, 2023 

Cheminformatics Market Drivers

• Increasing R&D investments in pharmaceutical and biotechnology industries: The pharmaceutical and biotechnology industries are steadily increasing their R&D investments to discover novel drugs and biologics. The average cost of developing a new drug is estimated to be over $2.5 billion. Companies are adopting the latest technologies like cheminformatics to make the long and expensive drug discovery process more efficient. For instance, in 2021 the global pharmaceutical R&D spending was estimated to be $179 billion, increasing by about 3% over 2020. The expanding R&D budgets create significant opportunities for growth of the cheminformatics market.
• High throughput screening and combinatorial chemistry: High throughput screening allows rapidly testing thousands of chemical compounds against therapeutic targets. Combinatorial chemistry produces large compound libraries for high throughput screening. This generates huge volumes of chemical data. Cheminformatics plays a vital role in analyzing this data and identifying hit compounds. For example, machine learning models can predict properties of virtual compounds to focus screening on compounds with desired characteristics. The growing adoption of HTS and combinatorial chemistry drives cheminformatics software adoption.
• Growth in biosimilars and biologics: Biologics including monoclonal antibodies and recombinant proteins are complex large molecules. Their discovery and development requires specialized modeling and simulation tools provided by cheminformatics software. The increasing number of approved biologics and the upcoming patent expiration of blockbuster biologics is expected to drive the growth of biosimilars. Cheminformatics enhances the characterization, production and quality control of biosimilars. According to estimates, the global biosimilars market is projected to grow at over 30% CAGR from 2022 to 2030.
• Increasing adoption of cloud-based solutions: Cloud-based cheminformatics software enable researchers to access advanced modeling and simulation capabilities on-demand through cloud infrastructure. It allows companies to reduce upfront costs associated with on-premise solutions. Small companies also gain access to enterprise-level cheminformatics capabilities. Cloud solutions also offer advantages like better collaboration, scalability and regular feature upgrades. The growing trend of adopting cloud-based solutions is expected to provide growth opportunities.

Cheminformatics Market Opportunities

• Integration with emerging technologies: There are significant opportunities for integration of cheminformatics software with emerging technologies like artificial intelligence, machine learning and automation. AI can analyze large chemical datasets from high throughput screening to predict properties of new molecular structures. Automation can help accelerate workflows in repetitive tasks like data entry, analysis and reporting. For instance, advanced algorithms can systematically traverse chemical space to generate focused virtual compound libraries. Integrating these technologies can enhance productivity.
• Expansion in emerging markets: Emerging pharmaceutical markets in Asia Pacific, Latin America and Middle East & Africa offer lucrative growth opportunities for cheminformatics software providers. The increasing investments in biopharmaceutical research and favorable government policies are attracting companies to these markets. Local companies are also increasing adopting newer technologies. Setting up partnerships and providing localized solutions tailored to market needs can help strengthen presence in emerging markets.
• Growing focus on rare and orphan diseases: The emerging focus on developing treatments for rare and orphan diseases presents an opportunity for cheminformatics software. These diseases have complex underlying mechanisms and often lack clarity on therapeutic targets. Cheminformatics can assist in understanding disease pathways and identifying suitable drug molecules through modeling molecular interactions. Companies can leverage these benefits and develop specialized modeling solutions for rare disease drug discovery.
• Entry of new players: The cheminformatics software market has high entry barriers due to initial investments required in R&D and advanced algorithm development. However, increasing adoption of cloud-based solutions offers opportunities for specialized technology companies to enter this space through strategic partnerships. Emerging companies focused on AI/ML can partner with pharmaceutical companies to transform legacy workflows by integrating new capabilities. This can expand the range of solutions on offer.

Cheminformatics Market Trends

• Integration with artificial intelligence and machine learning: Artificial intelligence and machine learning are disrupting drug discovery workflows. AI algorithms can predict properties of compounds, identify promising leads and design focused libraries for screening. ML improves virtual screening accuracy by training on experimental bioactivity data. For instance, deep learning neural networks can learn complex molecular interactions. Integrating AI/ML with cheminformatics enhances the productivity and reduces time taken in initial screening phases.
• Adoption of cloud-based solutions: Pharmaceutical companies are increasingly adopting cloud-based cheminformatics platforms over on-premise solutions. The scalability, flexibility and affordable pricing offered by cloud platforms provide advantages over traditional software. Cloud solutions enable accessing centralized databases, advanced simulation capabilities and computational resources through the internet. Companies can avoid large upfront costs associated with on-premise installations. Smaller companies also gain access to enterprise-level solutions using the cloud.
• Use of real world evidence: Real world data from clinical practice such as electronic medical records, patient registries and insurance claims provide valuable insights. Cheminformatics software can integrate real world evidence with clinical trial data to support drug discovery decisions. It enables better understanding of disease profile in diverse patient populations. The demand for real world evidence integration will rise as payers increasingly focus on effectiveness in patient populations outside clinical trials.
• Emergence of contract research organizations: Biopharmaceutical companies are increasing outsourcing drug discovery activities to cut costs and improve efficiency. Contract research organizations (CROs) provide services spanning hit identification, lead optimization and preclinical development using informatics platforms. CROs invest in the latest cheminformatics and bioinformatics solutions to offer niche services to clients. Small companies also benefit by accessing advanced technologies through outsourcing partnerships with CROs.

Cheminformatics Market Restraints

• High upfront costs: Cheminformatics software solutions require large investments in licensing, hardware, maintenance, training and integration. Companies must strategically evaluate expected ROI from automation of specific drug discovery processes before software purchase. Many smaller companies cannot afford large upfront expenses, limiting adoption. However, the availability of scalable cloud-based pricing models is expected to address cost concerns and drive broader adoption.
• Shortage of trained personnel: The efficient use of cheminformatics platforms requires researchers trained in deploying, operating and maintaining complex software tools. However, there is a shortage of personnel with specialized skills like software coding, computation chemistry knowledge, and data analytics experience. Educational institutes must develop targeted cross-disciplinary training programs and industry collaborations to address this gap in skilled labor.
• Integration challenges: Seamless integration of cheminformatics tools with existing research workflows poses challenges for technology adoption. For instance, legacy enterprise systems may lack capabilities to interface with newer software. Migrating historical data to new structured formats can be difficult. Companies must properly evaluate integration requirements during technology evaluation to maximize benefits and ROI from investments.

Recent Developments

New product launches

• In September 2022, BIOVIA launched BIOVIA Materials Studio 2022 for polymer simulation and modeling. The new release enhances polymers and nanocomposites modeling capabilities.
• In June 2021, PerkinElmer launched the Signals Notebook in its Signals software suite for electronic lab notebook capabilities. It helps improve workflow automation and collaboration.
• In March 2020, Schrödinger launched the FEP+ software for more accurate free energy perturbation calculations. It provides better predictions of drug binding affinities.

Acquisition and partnerships

• In January 2022, BIOVIA acquired CISS to expand its materials modeling expertise for polymers, crystals and surfaces.
• In June 2021, PerkinElmer partnered with Hexagon Bio to enhance its informatics capabilities for biopharmaceutical companies.
• In April 2019, BIOVIA and Cresset entered into a partnership to integrate Cresset's field-based molecular modeling tools into BIOVIA's Discovery Studio.

Figure 2. Global Cheminformatics Market Share (%), by Application, 2023

Top companies in Cheminformatics Market

• BIOVIA
• Chemical Computing Group
• Agilent Technologies
• Schrödinger
• PerkinElmer
• CambridgeSoft
• ChemAxon
• Molecular Discovery
• OpenEye Scientific Software
• Dassault Systèmes

*Definition: Cheminformatics involves the use of computational techniques to analyze chemical information. It combines computer science, information technology, and chemistry to interpret chemical data. Cheminformatics has applications in pharmaceutical and biotechnology research for drug discovery by predicting biological activities of compounds through modeling and simulation. Key techniques used include quantitative structure–activity relationship (QSAR) modeling, molecular modeling and simulation, virtual screening, and chemical databases management. Cheminformatics enables faster and more efficient drug discovery by complementing traditional wet lab experiments.

Few Other Promising Reports In HealthcareIT Industry

Biosimulation Market

Healthcare EDI Market

Smart Healthcare Products Market

Digital Health Market