Computational biology market is estimated to be valued at USD 9.13 Bn in 2025 and is expected to reach USD 28.4 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 17.6% from 2025 to 2032.
The market for computational biology is driven primarily by increasing demand for data-driven drug discovery, personalized medicine, and genomics research. As biological data from next-generation sequencing become more readily available and predictive models are increasingly needed in therapy development and disease diagnosis, computational solutions are becoming the center of modern life sciences. The major fields of application include molecular modeling, gene sequencing, systems biology, and disease simulation. Along with that, the integration of machine learning (ML), artificial intelligence (AI), and cloud computing on computational biology platforms has also enhanced the scalability, speed, and accuracy of biological research.
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Insilico Medicine Brings AI-Found Drug to Phase II Clinical Trials in China |
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IIT-BHU Creates Computational Framework to Fight Viral Drug Resistance |
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Various life science research companies, technological organization and research institutions are actively adopting and integrating AI in their workflows owing to the enhanced accuracy, improved efficiency and potential for unlocking new avenues in drug discovery and research with computational biology.
Different types of artificial intelligence algorithms such as machine learning, deep learning, natural language processing and data mining tools are employed for analysing vast amounts of biological datasets and implementation of generative AI models can be utilized for predicting 3D molecular structures, generating genomic sequences and for simulating biological systems.
For instance, in August 2024, Altos Labs, an American biotechnology company, focused on restoring cellular health and resilience launched the Institute of Computation (IoC) which aims at advancing AI and computational biology.
Increasing research and development with the use of computational biology are expected to drive the global computational biology market growth over the forecast period. In June 2024, Insilico Medicine announced that its AI-discovered small-molecule candidate ISM001‑055—designed using the company's generative AI platform Panda Omics and Chemistry42—entered Phase IIa clinical trials for idiopathic pulmonary fibrosis (IPF) after completing a successful Phase I safety study.
This milestone demonstrates how computational modeling and AI-driven compound design can accelerate drug development, moving quickly from target discovery to mid-stage trials. It highlights a shift toward data-centric pipelines where in silico methods directly influence clinical-stage progress, reducing timelines, cost, and risk.
Increasing launch of new products in computational biology is expected to drive the global computational biology market growth. For instance, on May 31, 2023, Biognosys AG, a Switzerland-based next-generation proteomics contract research services provider, launched Spectronaut 18 and major scientific and technological advances for its proprietary proteomics research software and services.
Spectronaut 18 provides DIA data analysis with unprecedented throughput and efficiency. Software and services like True Discovery accelerate biomarker discovery in oncology and neuroscience, TrueTarget offers high-resolution drug target identification and deconvolution while Bruker ProteoScape a software for computational 4D Proteomics was introduced for the monitoring and optimization of system performance for timsTOF platform.
Thermo Fisher Scientific Inc., U.S. based laboratory equipment supplier launched Thermo Scientific CellInsight CX7 LZR High-content Screening (HCS) platform for drug discovery applications. It is a fast, laser-based, automated cellular imaging, and analysis platform for quantitative microscopy and phenotypic screening. CX7 LZR incorporates both laser-based fluorescence illumination and integrated Nipkow spinning-disc confocal technology for publication quality imaging of a broad range of samples from simple monolayers to thick spheroid samples.
Based on type, the global computational biology market is segmented into cellular & biological simulation and disease modeling and simulation applications. Out of which, the cellular & biological simulation segment is expected to dominate the market due to increasing launches of newer tools.
Based on tools, the global computational biology market is segmented into content/database, analysis software and services, IT infrastructure (Hardware). Among these, analysis software and services segment are expected to dominate the market over the forecast period due to increasing technological innovations in these softwares in computational biology.
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Among region, North America is estimated to hold a dominant position in the global computational biology market over the forecast period, owing to increasing clinical trials using computational biology tools of different formulations.
The U.S. dominates the worldwide computational biology market because of its developed biotech ecosystem, intense R&D investment, and prominent presence of Illumina, Thermo Fisher Scientific, and Insilico Medicine. The U.S. also has high NIH and government funding, a developed clinical trial environment, and extensive collaborations between industry and academia.
Germany is a significant player in Europe's computational biology landscape, fueled by its strength in systems biology, pharmaceutical research, and government-supported bioinformatics initiatives. The nation boasts top players such as the Max Planck Society and Fraunhofer Institutes, which intensely pursue and implement computational models in drug development and genomic interpretation.
The UK boasts a healthy computational biology market underpinned by programs such as Genomics England and robust university-driven research in AI and bioinformatics. High-impact genomics projects are led by institutions like the University of Oxford and the Sanger Institute, while startups and software companies facilitate commercialization of computational biology tools.
China is fast becoming a key player with rising investments in artificial intelligence and biotechnology. National initiatives such as "Made in China 2025" have increased genomics, personalized medicine, and AI-driven biological modeling, with BGI and Huawei joining the bioinformatics arena.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 9.13 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 17.6% | 2032 Value Projection: | USD 28.4 Bn |
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| Companies covered: |
Accelrys, Certara, L.P., Chemical Computing Group Inc., Compugen, Ltd., Entelos, Inc. (Rosa & Co. LLC), Genedata AG, Insilico Biotechnology AG, Leadscope, Inc., Nimbus Discovery LLC, Rhenovia Pharma SAS, Schrodinger, and Simulation Plus, Inc. |
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*Definition: Computational biology uses data-analytical and theoretical methods, mathematical modeling, and computational simulation techniques in life sciences. Predictive modeling tools provide vital information for better streamlining of drug development process, thus reducing time and increasing efficiency. The increasing use of bioinformatics tools along with increasing investments in research and development is expected to propel the market growth during the forecast period. Furthermore, increasing patient population suffering from chronic diseases and the increasing adoption of cloud computing for data storage is also anticipated to assist the growth of the market during the forecast period.
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About Author
Manisha Vibhute is a consultant with over 5 years of experience in market research and consulting. With a strong understanding of market dynamics, Manisha assists clients in developing effective market access strategies. She helps medical device companies navigate pricing, reimbursement, and regulatory pathways to ensure successful product launches.
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