Computational Biology Market Size, Share and Trends 2025 to 2034

Computational Biology Market Size and Forecast 2025 to 2034

The global computational biology market size was calculated at USD 6.34 billion in 2024 and is predicted to increase from USD 7.18 billion in 2025 to approximately USD 21.95 billion by 2034, expanding at a CAGR of 13.22% from 2025 to 2034. The computational biology market is driven by ongoing launches of innovative computational platforms and tools, rising investments, integration of artificial intelligence and progress in multiomics research.

Computational Biology Market Key Takeaways

• North America dominated the market with the highest share of 49% in 2024.
• Asia Pacific is estimated to grow at the fastest CAGR of 15.81% during the forecast period between 2025 and 2034.
• By service, the software platform segment held the largest market share of 42%in 2024.
• By service, the infrastructure and hardware segment is anticipated to grow at a CAGR of 12.41% during the forecast period
• By application, clinical trials segment captured the biggest market share of 28%  in 2024
• By application, computational genomics segment is expected to expand at a notable CAGR of 16.23% over the projected period
• By end-use, the industrial segment accounted for the highest market share of 64% in 2024
• By end-use, the academic & research segment is anticipated to show fastest growth during the predicted timeframe

Artificial Intelligence (AI) in Computational Biology 

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.

Furthermore, AI can be applied in gene therapy for designing vectors and modelling gene delivery methods, for developing personalized medicine strategies, in metagenomics and microbiome analysis, for protein identification, for automating biological image analysis in microscopy and medical imaging, using mathematical models for predicting cancer outcomes and for enhancing gene editing technologies such as CRISPR.

Pharmaceutical and biotechnology companies, research organizations and venture capitalists are heavily investing in developing AI-powered platforms and tools for discovering new drugs and for integrating data on different levels of biological scales. Ongoing advancements in AI technologies and increased support from government bodies is creating opportunities for market growth. 

• 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.

U.S. Computational Biology Market Size and Growth 2025 to 2034

The U.S. computational biology market size was exhibited at USD 2.86 billion in 2024 and is projected to be worth around USD 10.05 billion by 2034, growing at a CAGR of 13.39% from 2025 to 2034.

North America dominated the global computational biology market with the largest share in 2024. The market dominance of this region is driven by the presence of world-class academic institutions and research organizations, increased investments for development of bioinformatics tools, major market players focused on developing advanced technological platforms and existence of skilled researchers and computational biologists. Furthermore, ongoing advancements with the adoption of artificial intelligence and blockchain technologies is fostering market growth.

How Does the U.S. Lead Global Innovation in Computational Biology?

U.S. being a hub for research in computational biology is leading the market in North America owing to the surging demand for personalized medicine, growing emphasis on data-driven research with digitalization of biological data, expanding applications of big data analytics in biology, rising investments and collaborations and increased adoption of computational methods.

Moreover, active involvement of the U.S. government through various agencies and programs such as National Institute of Health (NIH) and Department of Energy (DOE). Several institutes and programs under the NIH such as the National Cancer Institute, National Institute of Neurological Disorders and Stroke (NINDS), and Bioinformatics and Computational Biology (BCB) among others utilize computational biology tools though research initiatives and funding from the government for various applications such as systems biology, data management and analysis, software and tool development, training , data sharing and integration of AI  which fosters the market growth.

• For instance, in August 2024, the U.S. National Science Foundation invested $14 million through the Emerging Frontiers in Research and Innovation (EFRI): Biocomputing through EnGINeering Organoid Intelligence program (BEGIN OI) for funding seven interdisciplinary research projects with focus on ethically responsible research and developing organoid intelligence systems while advancing aspects of Biocomputing research.

Asia Pacific is anticipated to witness lucrative growth in the market during the forecast period. The ongoing advancements and adoption of genomics and bioinformatics technologies, large population base creating demand for personalized medicine, increasing expenditure on healthcare, surge in bioinformatics start-ups fostering innovation with AI-powered drug development strategies, rise in number of clinical trials backed by diverse demographics, supportive government initiatives for research and regulatory flexibility of the region fuels the market growth of this region.

Key organizations and initiatives in the Asia Pacific region

The computational biology market in the Asia Pacific region is expanding owing to the increased influence of key regional players on establishing a vibrant bioinformatics and computational biology community through various organizations and initiatives such as the Asia Pacific Bioinformatics Network (APBioNet), Association of Asian Societies for Bioinformatics (AASBi), Japanese Society for Bioinformatics (JSBi), Asia Pacific Bioinformatics and Interaction and Networking Society (APBians) and the International Society for Computational Biology (ISCB).

Expansion of Pharma Sector: India & China to Grow Rapidly

China is anticipated to dominate the Asia Pacific region owing to the rising investments in health technologies, surge in pharmacogenomics and pharmacokinetics clinical studies, supportive government initiatives boosting bioinformatics research activities and launch of innovative AI-driven drug discovery platforms such as Tencent’s iDrug.

Indian computational biology market is growing significantly. The expanding biopharmaceutical industries, increased investments in healthcare IT and life science research and the influence of government initiatives such as the GenomeINDIA project creating demand for advanced computational biology tools.

Europe is expected to see a notable growth in the computational biology market in the upcoming years. The market is driven by the rising investments to address the demands in drug discovery and personalized medicine, expansion of bioinformatics research, need for infrastructure and hardware services for increasing access to high-performance computing resources, surge in clinical trials and increased use of biosimulation software by major companies to get the upper hand in the market.

Germany’s computational biology market is expected to grow significantly due to the increasing strategic collaborations between organizations for advancing drug discovery and vaccine development, increased adoption of AI and machine learning tools, growing availability of omics generated biological data and rising expenditure on healthcare by the government and various investors.

Market Overview

Computational biology refers to a scientific field utilizing mathematics, statistics and computers for studying biological systems. This field focuses on developing algorithms, models and simulations for testing hypotheses as well as for collecting, storing and organizing huge amounts of data and integrating the data from various biological sources.

The ongoing advancements in bioinformatics tools, platform launches, increased demand for skilled professionals, growing adoption of computational tools, supportive government initiatives, surge in number of outsourcing service providers for computational biology tools and integration of Internet of Medical Things (IoMT) devices such as smart sensors and digital biomarkers for early disease detection, remote patient monitoring and big data analysis are the factors boosting the growth of the computational biology market.

Computational Biology Market Growth Factors

• Implementing Internet of Things (IoT): The intersection of computational biology and Internet of Things together termed as Bio-IoT has enabled collecting, transmitting and analysing biological data with the help of sensors, devices and interconnected networks which can be further applied for real-time monitoring and collection of data, automating experiments, data analysis, precision healthcare and in translational bioinformatics.
• Rising investments and collaborations: Venture capitalists, industries and governments are heavily investing in computational tools. Furthermore, ongoing research collaborations for developing innovative tools and therapies with advanced diagnostic and treatment capabilities boost the market growth.

Market Scope

Market Dynamics

Drivers

Ongoing advancements in bioinformatics and data science

The increased focus on implementing advanced computational tools in the field biology for enhancing applications in drug discovery and precision medicine are driving the market growth. Furthermore, rising investments by various pharmaceutical companies, government funding and private investors for implementing bioinformatics tools in life science research to reduce the increasing chronic disease burden and embracing longevity. Ongoing launches of bioinformatics platforms and data analysis tools integrated with AI technologies is streamlining workflows and automating experimentation leading to increased adoption by companies and research organizations for developing novel treatments and therapies.

• For instance, in February 2024, the UCLA (University of California, Los Angeles) received a grant of $4.6 million form The Warren Alpert Foundation for initiating the Warren Alpert UCLA Computational Biology/ AI Training and Retention Program which will sheltered in the Department of Computational Medicine.
• The program aims at attending to the rising demand for adept professionals with meticulous training in artificial intelligence and computational biology.

Restraint

Disintegration and mismanagement of data

In the field of computational biology, researchers and biologists need to deal with huge amounts of complex datasets which is made available from various sources and can be noisy. Absence of standardized formats and metadata makes it difficult for comparing and incorporating data from various sources and platforms further affecting reproducibility of research findings. Moreover, issues in data quality, shortage of skilled personnel, complexity of biological systems and need for robust computational resources and power as well as the high costs for successful implementation of data management platforms are the factors restraining the growth of the computational biology market.

Opportunity

Increased emphasis on adopting advanced technologies

Rising market competition, increased focus on expanding product portfolios for strengthening market presence, rising investments for developing innovative technologies and the multitude of applications in life science fields with the use of computation tools is boosting the adoption of advanced technologies. Furthermore, rapid advancements in biotechnology and genomics, accelerated drug discovery and development processes, development of robust bioinformatics tools, integration of machine learning techniques, increased cross-disciplinary research collaboration and rising influence of government and regulatory agencies is creating opportunities for market growth.

Service Insights

The software platform segment dominated the market with the largest share in 2024 and is anticipated to show the fastest growth during the forecast period. Ongoing advancements in software development technologies covering a vast range of areas such as generation of code, source code management, software packaging and delivery with containerization technologies, software testing and deployment, cloud computing platforms and project management are further enhancing the scientific discovery processes.

• Additionally, AI-powered advanced software tools in computational biology such as LLaVa-Med, CodonBERT, MedLM, GeneGPT, DrugCHAT and DrugGPT applied for scanning literature, optimization of mRNA designs, genetic queries, designing vaccines, compound brainstorming and drug development processes.

The rising investments by public and private sectors for research and development purposes, increased collaborations and acquisitions between various companies and organizations, need for computational tools, growing emphasis on personalized medicine, government support, launch of open-source platforms and progress in genomics, computational modelling and bioinformatics are the factors driving the growth of the software platform segment.

The infrastructure & hardware segment is predicted to witness notable growth in the predicted timeframe. With the rapid expansion of data generated by several omics technologies such as genomics, proteomics, metabolomics and transcriptomics is creating the demand for robust computing infrastructure and hardware. Furthermore, advancements in AI & machine learning methodologies, utilization of bioinformatics tools, active involvement of government through funding for research and development by upgrading infrastructure and developing academic courses, demand for high-performance computing (HPC) for performing complex simulations and rising research collaborations among computational biologists, clinicians, experimental biologists and biopharmaceutical companies is driving the adoption and market growth of this segment.

Application Insights

The clinical trials segment accounted for the largest market share in 2024. Pharmaceutical and biotechnology companies as well as outsourcing service providers such as Contract Research Organizations (CROs) are increasingly depending on computational tools for enhancing accuracy and streamlining workflows in clinical trials and drug development. Computational models are applied for optimizing clinical trials designs, integrating patient data from electronic health records (EHR), improving patient selection and recruitment, tailoring personalized treatments for individual patients, biomarker identification, predicting patient responses and improving dosage regimens. Furthermore, integration of AI in clinical trials for enhancing regulatory compliance and increased access to data across various biological fields are boosting the market growth.

The computational genomics segment is anticipated to witness lucrative growth over the forecast period. Rising investments in research and development of genomics, increased demand for sophisticated data analysis tools, advancements in single-cell genomics, incorporating genomics with other omics such as proteomics and launch of innovative platforms are fuelling the market growth of this segment.

• For instance, in April 2024, Seed Health launched CODA which is a computational biology platform powered by the Human Phenotype Project for the discovery and development of next-generation precision probiotics and microbiome-directed interventions. The CODA platform utilizes microbial genomics and exploits AI and ML for advancing brain health, metabolic health, menopause and longevity.

End-Use Insights

The industrial segment held the largest market share in 2024. Industries are actively exploiting advanced computational biology tools for strengthening their market presence, expanding product pipelines and keeping up with the constantly changing consumer needs. The market growth is driven by the increased collaborations with academic institutions and research organizations rising investments in emerging markets for advancing healthcare infrastructure, leveraging computational models for developing rare diseases treatments, utilization of biosimulation tools and quantitative systems pharmacology (QSP) for drug development and implementing digital twin technology for conducting computer-based trials by creating virtual patients for predicting drug behaviour and responses.

The academic & research segment is expected to show the fastest growth during the forecast period. Academic institutes and research organizations implement computational tools for understanding biological systems and analysing the massive and complex data generated by broad range of research areas including genomics, proteomics, metagenomics, phylogenomics, computational biophysics among others for enhancing applications in drug discovery and disease research. 

Furthermore, the rising number of training programs and courses related to bioinformatics and AI being added to curriculum in academic institutes and universities to address the shortage of skilled professionals, increased collaborations with industries and government support are the factors favouring the market expansion of this segment.

Computational Biology Market Companies

• Aganitha AI Inc.
• Compugen
• DNAnexus, Inc.
• Fios Genomics
• Genedata AG
• Illumina, Inc.
• Schrodinger, Inc.
• QIAGEN
• Simulations Plus, Inc.
• Thermo Fisher Scientific, Inc.

Leader’s Announcements

• In February 2025, the Chan Zuckerberg Initiative (CZI) announced the launch of the Billion Cells Project in collaboration with 10x Genomics, Ultima Genomics and a group of leading researchers. Jonah Cool, Cell Science Senior Science Program Officer at CZI, said that, “CZI’s Billion Cells Project illustrates the power of collaboration to make previously unfathomable amounts of single-cell data available for researchers, which will help clarify our understanding of the fundamental biology underpinning human health and disease while supercharging efforts at the intersection of AI and biology.”
• In October 2024, MiLaboratories, a leader in computational biology innovation announced the successful closing of its series A funding round and also launched its state-of-the-art Platforma.bio Software Development Kit (SDK) which is an ingenious tool allowing biologists for analysing next-generation sequencing data independently. Stan Poslavsky, CEO of MiLaboratories said that, “We believe that opening our platform to the developer community will accelerate the adoption of modern computational tools, setting the next level of biomedical research. Today, therapy development is driven by data, algorithms, and AI. Our mission is to make cutting-edge computational advances accessible to researchers as they work towards discovering new drugs.”

Recent Developments

• In January 2025, Vanderbilt University, a private research university launched the Center for Computational Systems Biology (CCSB) which will accelerate research and discovery processes associated with human diseases and conditions by analysing extensive amounts of generated data from innovative technologies fostering development of new solutions.
• In November 2024, YZi Labs (previously Binance Labs), a venture capitalist and accelerator firm investing in blockchain and cryptocurrency alongwith other industries, invested in BIO Protocol which is an evolving protocol utilizing blockchain technology for transforming financing and commercialization of early-stage scientific research. This new project marks Binance Labs first step and investment in the Decentralized Science (DeSci) sector.

Segments Covered in the Report

By Service

• Databases
• Infrastructure & Hardware
• Software Platform

By Application

• Drug Discovery & Disease Modelling
  
  • Target Identification
  • Target Validation
  • Lead Discovery
  • Lead optimization
• Preclinical Drug Development
  
  • Pharmacokinetics
  • Pharmacodynamics
• Clinical Trial
  
  • Phase I
  • Phase II
  • Phase III
  • Phase IV
• Computational Genomics
• Computational Proteomics
• Others

By End-Use

• Academic & Research
• Industrial

By Region

• North America
• Europe
• Asia Pacific
• Latin America 
  Middle East & Africa