Chemoinformatics Market Size, Share & Trends Analysis Report By Application (Chemical Analysis, Drug Discovery, Drug Validation, Others), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global chemoinformatics market size was valued at USD 2.9 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 15.5% from 2023 to 2030. Some of the key drivers comprise the increasing prevalence of chronic diseases and the corresponding need to formulate novel drugs, the growing significance of validating the diverse number of potential drug candidates developed by combinatorial chemical methods. In addition, the rising emphasis on the effective management of data generated during molecular and atomic reactions and the increasing investments driving the R&D efforts are expected to contribute to the market growth.

One of the critical success factors contributing to the growth of the market for chemoinformatics is the advances in computer technology, which have enabled the handling of large-scale chemical databases and complex calculations with unprecedented speed and efficiency. The emergence of cloud computing has provided researchers and scientists with on-demand access to vast computational resources, allowing scalable and collaborative chemoinformatics research.

The improvements in data storage and management technologies have enabled the efficient organization and retrieval of chemical data. Technological advancements have accelerated the drug discovery process and facilitated personalized medicine approaches by enabling the analysis of individual patient data and tailoring treatments to specific molecular profiles.

The growing awareness levels related to personalized medicine driving the demand for effective medication and the unsustainable burden of chronic diseases serve as an impelling factor for new drug development, positively impacting the growth of the chemoinformatics industry. These techniques find many applications in the various stages of drug design. It has revolutionized the drug discovery process in identifying effective lead targets with estimated success rates, thereby assuring a higher probability of success in lowering the high drug attrition rates. Furthermore, the growing R&D intensity further reinforces the sector owing to technological innovation inputs.

Due to the massive volume of data generated in synthesizing new, potential drug candidates through the combinatorial chemistry approach, efficient data storage and retrieval methods are imperative. The effective management of copious amounts of data is achievable with the help of pertinent tools. As a result, the field has gained significant momentum in research institutions, pharmaceutical companies, the biotechnology industry, research laboratories, and academic institutions.

The integration of Artificial Intelligence (AI) and Machine Learning (ML) techniques within chemoinformatics is revolutionizing the field. Machine learning algorithms can analyze vast amounts of chemical and biological data and predict compound properties and interactions.

AI-driven approaches streamline the drug discovery process by facilitating virtual screening, lead optimization, and toxicity prediction, leading to faster and more efficient drug development.

The exponential growth of chemical and biological data necessitates advanced data analytics techniques. Big data analytics platforms integrate chemoinformatic tools with data mining, statistical analysis, and visualization capabilities. These platforms enable researchers to efficiently analyze large databases and derive actionable insights, ultimately accelerating drug discovery and development.  

Application Insights

The key applications of chemoinformatics are in drug discovery, chemical analysis, drug validation, and a few other areas like the paper and pulp industry, textile industry, biochemistry, botany, and in the prediction of drug toxicity. In 2022, the chemical analysis segment dominated the market. Accurate and precise chemical analysis is essential for generating reliable data for various chemoinformatics applications such as structure-activity relationship (SAR) modeling and virtual screening. Advancements in chromatography, spectrometry, and spectroscopy have significantly improved the efficiency of chemical analysis. Chemical analysis plays a crucial role in supporting drug discovery, formulation, and development processes and ensuring the safety and efficacy of pharmaceutical products.

The drug discovery segment is expected to witness a lucrative CAGR during the forecast period. The key factors contributing to the segment’s high growth include the increasing investments in R&D and the relatively low success rate of the potential leads as drug molecules; these factors, in conjunction with each other, are expected to boost the usage of these platforms.

The field plays a prominent role in developing novel medicines due to the wide applicability of its tools in the various areas of drug development, including target identification, lead optimization, drug validation, ADMET predictions, determining structure-quantitative relationships, molecular modeling, and 3D structure development. It has been a great breakthrough in the drug development industry as many complex molecular and atomic level problems can be solved with the in-silico approach. The automation-based rapid screening of many compounds at a go with the development of high throughput screening techniques has spurred growth. Applications in the drug discovery process are expected to hold a major share due to the rise in heavy investments being made in the R&D sector and the relatively low success rate of the potential leads as drug molecules.

Regional Insights

The North America segment dominated the market with a market share of 43.6% in 2022 owing to the high R&D intensity and the incorporation of highly innovative technologies, the increasing prevalence of chronic disorders, and the presence of some of the major players in the drug manufacturing industry. Increasing patient awareness about healthcare services and growing demand for personalized medicine is expected to boost market growth. Moreover, North America has a strong foothold in the global pharmaceuticals industry and a strong R&D presence. The robust pharmaceutical and biotechnology industries are supported by advanced IT infrastructure in North America, contributing to this region's market growth.

The Asia Pacific segment is expected to be the fastest-growing segment, with a CAGR of 20.3% during the forecast period. Some growing economies in the Asia Pacific region, such as India, China, and Singapore, are attracting large multinational players to conduct research due to the cheap manufacturing and labor costs and a favorable manufacturing environment. In addition, the rapid increase in the research efforts undertaken in the fast-emerging economies of the Asia Pacific region is expected to further reinforce growth.

Key Companies & Market Share Insights

The market participants use important business strategies, such as product launches, approvals, strategic acquisitions, and innovations, to maintain and grow their global reach. For instance, in June 2022, ChemAxon, Inc., a leading web-based cheminformatics and bioinformatics software provider, announced its collaboration with the Tetra Partner Network to help customers dramatically increase their capacity to find and synthesize chemical compounds with overall improved property profiles.

Similarly, in February 2022, Agilent Technologies Inc. announced the acquisition of powerful artificial intelligence (AI) technology developed by Virtual Control. This AI and machine learning software provider creates unique analytical solutions in lab testing. Agilent will incorporate the ACIES software into its industry-leading gas chromatography and mass spectrometry (GS/MS) equipment to improve productivity, efficiency, and accuracy. The following are some of the major participants in the global chemoinformatics market:

• BIOVIA (formerly Accelrys)

• ACD/Labs, Inc.

• Agilent Technologies, Inc.

• Cambridgesoft Corp.

• ChemAxon, Inc.

• Bio-Rad Laboratories, Inc.

• Schrödinger, LLC

• Molecular Discovery Ltd.

Chemoinformatics Market Report Scope

Global Chemoinformatics Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global chemoinformatics market report based on application, and region:

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Chemical Analysis

  • Drug Discovery

  • Drug Validation

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Sweden

    • Norway

    • Denmark

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE

    • Kuwait