Bioinformatics Service Market Report 2025 (Global Edition)

CURRENT SCENARIO OF THE BIOINFORMATICS SERVICES

Driving Factors of the Bioinformatics Services Market

• Expansive uses of bioinformatics across multiple sectors is propelling the market's growth.

Several industries, such as the food, bioremediation, agriculture, forensics, and consumer industries, are also using bioinformatics services to improve the quality of their products and supply chain processes. Companies in a variety of sectors are rapidly utilizing bioinformatics services such as data integration, manipulation, lead generation, data management, in silico analysis, and advanced knowledge discovery. 

•    Bioinformatics Approaches in Food Sciences

In order to meet the needs of food production, food processing, enhancing the quality and nutritional content of food sources, and many other areas, bioinformatics plays a significant role in forecasting and evaluating the intended and undesired impacts of microorganisms on food, genomes, and proteomics research. Furthermore, bioinformatics techniques can be applied to produce crops with high yields and resistance to disease, among other desirable qualities. Additionally, there are numerous databases with information about food, including its components, nutritional value, chemistry, and biology.

Genome Canada is proud to partner with five Institutes where there are five funding pools within this opportunity and Genome Canada is partnering on the Bioinformatics, Computational Biology and Health Data Sciences pool.
(Source:https://genomecanada.ca/genome-canada-partners-with-cihr-to-launch-health-research-training-platform-2024-25/)

•    Bioinformatics in agriculture

Bioinformatics is becoming more and more crucial in the gathering, storing, and processing of genomic data in the field of agricultural genomics, or agri-genomics. Generally referred to as agri-informatics, some of the various applications of bioinformatics tools and methods in agriculture focus on improving plant resistance against biotic and abiotic stressors as well as enhancing the nutritional quality in depleted soils. Beyond these uses, computer software-assisted gene discovery has enabled researchers to create focused strategies for seed quality enhancement, incorporate extra micronutrients into plants for improved human health, and create plants with phytoremediation potential.

India/UK-based Agri-Genomics startup, Piatrika Biosystems has raised $1.2 Million in a seed round led by Ankur Capital. The company is bringing sustainable seeds and agri chemicals to market faster and cheaper. The investment will be used to build a strong Product Development team, also for more profound research, and to accelerate the productionising and commercialization of MVP. 
(Source:https://pressroom.icrisat.org/agri-genomics-startup-piatrika-biosystems-raises-12-million-in-seed-funding-led-by-ankur-capital)

This expansion in the application areas of bioinformatics services is likely to drive the overall market growth. Bioinformatics services such as data integration, manipulation, lead discovery, data management, in silico analysis, and advanced knowledge discovery are increasingly being adopted by companies across various industries. 

This growth in the application areas of bioinformatics services is expected to create new revenue pockets for players operating in this market, which in turn will further support the adoption of these services and lead to overall market growth.

• Growing financing from the public and private sectors for bioinformatics contributes to the market's expansion

Globally, a large number of public and commercial institutions are funding the field of bioinformatics. Technological developments in bioinformatics services are a result of these investments, and this has raised the caliber of these services. Governments from all around the world are working nonstop to expand the global bioinformatics market.

It is anticipated that growing government and private sector activities would accelerate market expansion. Bioinformatics institutes are funded by both public and private entities. The caliber of these services has increased because to the financing and investments. Citizens' genomes are being sequenced by government organizations in order to further study.

Many nations are investing in national population sequencing studies in an effort to learn more about the genetic basis of disease. These help to diagnose rare diseases, and treat cancer, and other conditions. Moreover, it results in data and technological advancements in bioinformatics services. 

For instance, in 2019 European Bioinformatics Institute in Cambridge received £45 million government investment to increase centre’s computing, storage and building capacity.
(Source:https://www.gov.uk/government/news/new-investment-in-european-bioinformatics-institute-to-tackle-life-threatening-diseases)

Also, in 2019, NIH granted approximately USD 29.5 million funds for advancing sequencing and bioinformatics technology for human genome. 
(Source:https://www.nih.gov/news-events/news-releases/nih-funds-centers-advancing-reference-sequence-human-genome)

And recently, in 2023 UKRI(UK Research and Innovation)is set to invest more than £80 million in the European Bioinformatics Institute (EMBL-EBI), part of the European Molecular Biology Laboratory (EMBL).
(Source:https://www.ukri.org/news/ukri-funding-set-to-transform-embl-ebi-bioinformatics-capability/)

Thus, Government fundings and collaborative research initiatives have emerged as crucial drivers for the market.

Key Factors Affecting the Market Growth

• Lack of user-friendly tools and high cost of equipment

Software applications are tools in bioinformatics. In order to do structural analysis, it is employed to extract data from biological databases. Tools with good usability increase productivity and increase market income. Nonetheless, during the projected period, the market's expansion is anticipated to be hampered by the absence of user-friendly tools.

Because bioinformatics tools don't have an intuitive user interface, they require considerable computer knowledge. Fast and accurate bioinformatics tools that are simple to use are becoming more and more necessary with the introduction of cutting-edge technologies. Prices Improvements in NGS technologies have resulted in a growing demand for user-friendly, accurate, and fast bioinformatics tools. Researchers who do experiments are not bioinformatics platform scientists. Many bioinformatics tools require advanced computer expertise, mainly because they lack a suitable user-friendly interface

Furthermore, in the upcoming years, it is expected that the high cost of equipment will impede market progress. Advanced systems costing between USD 10 and USD 20 million are required by numerous pharmaceutical businesses and research facilities. Large investments in several genomics equipment are not feasible for businesses, particularly for small and medium-sized research labs and pharmaceutical firms.

Due to the significant capital costs associated with purchasing several genomic instruments, research facilities and pharmaceutical and bioinformatics corporations require a large number of these systems. 

Large sums of money are needed to build and maintain the necessary infrastructure, which consists of sophisticated computers and data storage. Expert IT workers, storage systems, and high-performance computing clusters are needed to manage the massive volumes generated by biological investigations like genomics. It can be expensive to purchase and maintain state-of-the-art bioinformatics software. The cost of acquiring, setting up, and maintaining bioinformatics tools can be a significant barrier for start-ups, smaller research institutions, and underfunded projects. The rate of innovation and scientific advancements may be slowed down by this imbalance in resource availability. Bioinformatics technologies are advancing so quickly that continued investment is necessary to stay competitive.

Opportunities

• Development of advanced products & technological advancements to push the growth of market

Product development is expected to create lucrative opportunities for market players during the forecast period. Product development helps to grow market size in the past years. Companies working in this field are trying to get advanced products in the market. The regulatory agency allows product development and technological advancements in the market.

Additionally, the field's existence and importance stem from the exploration of biological data produced by high-throughput sequencing technologies, particularly next-generation sequencing (NGS). These technologies have revolutionized the field of genomics research by making it possible to sequence genomes, transcriptomes, and other biological entities quickly, cheaply, and thoroughly. Scientists and researchers can navigate the vast genomic landscape with the help of bioinformatics. Genome assembly, variant calling, functional annotation, and comparative genomics all depend on it. Through the application of bioinformatics, genomic technologies have enhanced our knowledge of genetic diversity, disease causation, and evolutionary processes. Larger datasets are anticipated in the future thanks to the continuous development of genomic technology, underscoring the significance of bioinformatics in deciphering this genetic information gold mine.

For instance, Agilent Technologies, Inc. released a new exome design called Sure Select Human All Exon V8 that offers specific content and current coverage of protein-coding areas from Refuses, CCDS, and GENCODE. Moreover, it includes exons that are stimulating to capture, and the TERT promoter, which is ignored by competing exomes. 
(Source:https://www.agilent.com/about/newsroom/presrel/2021/02jun-ca21013.html)

And, Indivumed GmbH launched nRavel, a new artificial intelligence discovery platform for precision medicine and oncology in July 2021. IndivuType’s deep multi-omics information and data is combined with extensive disease models, high powered automated machine learning methods, and a huge selection of latest and advanced analytical tools in this platform.
(Source:https://www.indivumed-therapeutics.com/media-11/indivumed-launches-nraveltm-ai-platform)

How did COVID–19 Impact the Bioinformatics Services Market?

The market for bioinformatics services was positively impacted by the COVID-19 pandemic. The pandemic sharply increased the need for bioinformatics services as scientists around the globe scrambled to analyze and decipher viral genomic data. Bioinformatics was used by scientists and medical professionals to better understand the virus and develop diagnostic tools and treatments. Consequently, there was a discernible spike in the demand for bioinformatics tools and services during this time.

The industry grew quickly as a result of the explosion in genomic research and the rising demand for data sharing and remote collaboration. In 2020, the market expansion was further boosted by increased investments in data analytics tools and cloud-based solutions to enable the worldwide scientific response to the pandemic. 

Post-pandemic: In the early stages of the market's development, COVID-19 had a significant effect on growth. During the pandemic, sequencing and data analysis were deemed helpful tools for characterizing and detecting viruses in the environment, animals, and humans. As a result, these computational technologies were used more often across a variety of research platforms. Transmission chain information was essential for public health containment and control strategies, and virus variability knowledge directed the creation of vaccinations and less expensive diagnostic techniques. Because of the rising SARS-CoV-2 viral strains and increased R&D efforts, the analysis predicts that the market will continue in the same direction during the post-pandemic phase. 

For instance, in November 2021, Illumina donated sequencing consumables and cloud-based bioinformatics to Canadian COVID-19 projects. The donations were to support the HostSeq and VirusSeq projects of Canada's COVID-19 Genomics Network, or CanCoGen. 
(Source:https://sapac.illumina.com/company/news-center/press-releases/2021/f04daeea-20ac-438d-9a4f-354931b7fe42.html)

Thus, such initiatives by the market players are anticipated to support the market's growth during the forecast period.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Bioinformatics Service Market is witnessing significant growth in the near future.

In 2023, the Sequencing services segment accounted for noticeable share of global Bioinformatics Service Market and is projected to experience significant growth in the near future.

The Transcriptomics segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies GENEWIZ and BGI Group Waters Corporation , NeoGenomics Laboratories and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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