Drug Modeling Software Market to Grow at a CAGR of 8.1% to reach US$ 6,205.22 Million from 2020 to 2027

Drug Modeling Software Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Product type ( Database, Software, Others ); Application ( Drug Discovery and Development, Computational Physiological Medicine, Disease Modeling, Medical Imaging, Predictive Analysis of Drug Targets, Simulation Software, Cellular Simulation ), and Geography

Publication Month : Aug 2020

  • Report Code : TIPRE00013619
  • Category : Healthcare IT
  • Status : Published
  • No. of Pages : 156
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The drug modeling software market was valued at US$ 6,205.22 million in 2019 and is projected to reach US$ 11,299.85 million by 2027; it is expected to grow at a CAGR of 8.1% from 2020 to 2027.

Drug modeling has become an essential tool in the drug design process. Software based drug discovery and development methods are playing a key role in the development of novel drugs. Software based methods such as molecular modeling, structure-based drug design, structure-based virtual screening, ligand interaction, and molecular dynamics are considered to be powerful tool for the investigation of pharmacokinetic and pharmacodynamic properties of drugs. These methods are fast, accurate, and provide valuable insights of experimental findings and mechanisms of action. Additionally, appropriate implementation of these techniques may help in reducing drug designing and development cost. Increasing cost of the drug development coupled with increasing drug failures is likely to drive the growth of the drug modeling software market during the forecast period. However, the market is likely to get negatively impacted by the less adoption of drug modeling software in emerging countries.

Lucrative Regions for Drug Modeling Software Market

Lucrative Regions for Drug Modeling Software Market
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Market Insights

Increasing Adoption of Modeling Tools in Drug Discovery

The discovery and development of new drugs with potential therapeutic applications is a complex, expensive, and time-consuming venture. Considering these challenges, various novel technologies have been developed to increase the efficiency of the drug discovery process. Computational methodologies have become a crucial part of several drug discovery programs. From hit identification to lead optimization, techniques such as ligand or structure-based virtual screening are widely being used by many pharmaceutical companies. With the help of modeling, existing data can be leveraged to gain insights on product safety and effectiveness. Owing to the efficiency of computational methods, the FDA and EMA have included modeling to support efficient drug development. Nowadays, in-Silico design (computer-aided) is being utilized to expedite and facilitate hit identification, optimize the absorption, distribution, metabolism, and toxicity profile to avoid safety issues. Commonly used in-silico approaches include ligand-based drug design, structure-based drug design, and quantitative structure-activity.

These methods are faster and provide valuable insights to experimental findings and mechanisms of action. Moreover, various pharmaceutical companies have started adopting these techniques for better outcomes. For instance, in April 2020, Boehringer Ingelheim has partnered with Insilico Medicine to leverage artificial intelligence (AI) technology to identify potential therapeutic targets. These methods are highly beneficial in case of virus outbark and emergency development of drugs. For instance, in Aug 2020, Certara announced the development of a new biosimulation platform for COVID-19 vaccines. The company has partnered with pharmaceutical companies to speed up the drug discovery and development. Its QSP platforms have vast potential to improve biopharmaceutical research and development and inform decision-making.  By creating virtual patients and virtual trials, this new vaccine platform will facilitate dosing strategies for a range of patients infected by COVID-19. Moreover, many research organizations have also started adopting drug modeling technologies for expediting the research process. For instance, Southwest Research Institute (SwRI) is expanding the capacity to virtually screen drug compounds for possible treatment of COVID-19 and other infectious diseases. Recently, SwRI increased the capacity of its Rhodium software to scan 250,000 drug compounds per day. Thus, above mentioned factors are expected to drive the growth of the drug modeling software market during the forecast period.

Product Type-Based Insights

Based on product type, the drug modeling software market is segmented into database, software, and others. The software segment held the largest share of the market in 2019. Successful drug discovery, development, and launch of a single new drug into the market, costs about one billion dollars, and it requires nearly 12 years for accomplishing. High cost, insufficient and lengthy-time duration, high level of risk, uncertainty in the results, and highly complex procedures are the main challenges in developing a new drug. To overcome these problems, there is a strong need to employ new and cost-effective drug discovery and designing methods, such as software and computer-aided drug design and molecular docking. For instance, the platform provided by Schrödinger has devoted decades to refining computational algorithms to accurately compute the essential properties of molecules. The company uses NVIDIA GPUs to generate and evaluate the petabytes of data to accelerate drug discovery, as an improvement over the traditional process of slow and expensive lab work.

Exploring software and model-based tools has become a vital way of drug discovery and development in the pharmaceutical industry, playing a crucial role in expanding new bio-active drugs across a range of therapeutic areas. Proper use of software and computer-based modern methods has reduced several hindrances in drug discovery and hastened new drug development.

Global Drug Modeling Software Market, by Product Type– 2019 & 2027

Global Drug Modeling Software Market, by Product Type– 2019 & 2027

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Application-Based Insights

Based on application, the drug modeling software market is segmented into drug discovery and development, medical imaging, computational physiological medicine, predictive analysis of drug targets, disease modeling, simulation software, cellular simulation, and others. The drug discovery process is complex and includes an interdisciplinary effort to design practical and commercially feasible drugs. In pharmaceutical, medicinal, and  other scientific research, a computer plays a significant role in the development of new compounds in the quest for better therapeutic agents.

Moreover, computational power along with advanced analytical techniques such as X-ray crystallography and NMR, have improved the application of CADD (Computer-Aided Drug Design) in the field of pharmaceutical industries like numerous of approved drugs that credited their discovery in large part to the tools of CADD, such as angiotensin-converting enzyme (ACE) inhibitor captopril for the treatment of hypertension, Carbonic anhydrase inhibitor dorzolamide for the treatment of cystoid macular edema, renin inhibitor aliskiren, which is used for essential hypertension, Human immunodeficiency virus (HIV) protease inhibitors saquinavir, ritonavir, and indinavir for the treatment of HIV. Moreover, the CADD and bioinformatics tools provide benefits such as cost-saving, time to market, in-sight knowledge of drug-receptor interactions, and speed up drug discovery and development. Such advantages offered by drug modeling software for drug discovery and drug development will drive the segmental growth during the forecast period.

Additionally, the development of new platforms will further offer lucrative opportunities. For instance, on  March 16, 2020, Fujitsu has partnered with Polarisqb to pilot a ground-breaking new drug discovery platform designed to support pharmaceutical companies in bringing vital medication to market quickly and cost-effectively. The platform uses quantum-inspired technology, machine learning, hybrid quantum mechanics, and molecular mechanics simulations (QM/MM) to transform the process of drug discovery. On July 19, 2019, Pumas-AI, a new company established by the University of Maryland School of Pharmacy faculty members, announced its first cutting-edge software platform for pharmaceutical researchers and clinicians,  known as Pharmaceutical Modeling and Simulation (Pumas). It is a comprehensive platform based on the Julia programming language that contains multiple modules designed to meet the needs of analysts in the pharmaceutical industry, while also working to advance therapeutic innovation in the clinic setting. In August 2019, London, UK-headquartered Evaluate, a company providing software services for researchers and drug developers, has released Product Specific PTRS (probability of technical and regulatory success), a platform that processes data to predict a drug’s likelihood of success. However, the predictive analysis of drug targets segment is anticipated to witness a significant growth rate during the forecast period.

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Drug Modeling Software Market: Strategic Insights

Market Size Value inUS$ 6,205.22 Million in 2019
Market Size Value byUS$ 11,299.85 Million by 2027
Growth rateCAGR of 8.1% from 2020-2027
Forecast Period2020-2027
Base Year2020
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Product launches and expansion strategies are commonly adopted by the companies to expand their footprint worldwide, meet the growing demand, and increase its product portfolio.

The key players operating in the drug modeling software market adopted the strategy of product innovation to cater to changing customer demand across the world, which also permits the players to maintain their brand name globally.

By Product Type

  •   Database
  • Software
  • Others

By Application

  • Drug Discovery and Development
  • Computational Physiological Medicine
  • Disease Modeling
  • Medical Imaging
  • Predictive Analysis of Drug Targets
  • Simulation Software
  • Cellular Simulation
  • Others

By Geography

  • North America
    • US
    • Canada
    • Mexico
  • Europe
    • France
    • Germany
    • Italy
    • UK
    • Spain
  • Asia Pacific (APAC)
    • China
    • India
    • South Korea
    • Japan
    • Australia
  • Middle East & Africa (MEA)
    • South Africa
    • Saudi Arabia
    • UAE
  • South and Central America (SCAM)
    • Brazil
    • Argentina

Company Profiles

  • Crown Bioscience Inc.
  • Chemical Computing Group Ulc
  • Nimbus Therapeutics
  • Schrödinger, Inc.
  • Dassault Systèmes
  • Genedata Ag
  • Biognos Ab
  • Compugen Ltd
  • Acellera ltd.
  • Leadscope, Inc
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Product type ; Application , and Geography

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, RoAPAC, RoE, RoMEA, RoSCAM, Saudi Arabia, South Africa, South Korea, Spain, United Arab Emirates, United Kingdom, United States

The List of Companies - Drug Modeling Software Market

  1. Crown Bioscience Inc.
  2. Chemical Computing Group Ulc
  3. Nimbus Therapeutics
  4. Schrödinger, Inc.
  5. Dassault Systèmes
  6. Genedata Ag
  7. Biognos Ab
  8. Compugen Ltd
  9. Acellera ltd.
  10. Leadscope, Inc

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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