The global bioinformatics market is projected to reach USD 16.18 Billion by 2021 from USD 6.21 Billion in 2016, growing at a CAGR of 21.1% during the forecast period.
Growth of the bioinformatics market is driven by the growing demand for nucleic acid and protein sequencing, increasing initiatives from government and private organizations, growing application of bioinformatics, and improved collaborative ties between companies and research institutes. It is expected that the market will offer opportunities for manufacturers of bioinformatics solutions with the introduction and adoption of upcoming technologies such as nanopore sequencing and cloud computing. However, factors such as dearth of skilled personnel to ensure proper use of bioinformatics tools and lack of integration of a wide variety of data generated through various bioinformatics platforms are retraining the growth of the market.
The bioinformatics market is segmented on the basis of sector, products and services, application, and region. Based on sector, the market is segmented into medical biotechnology, academics, animal biotechnology, environmental biotechnology, forensic biotechnology, and other sectors (homeland security and defense, law enforcement groups, bioweapon creation, and evolutionary biotechnology). Based on products and services, the bioinformatics market is divided into knowledge management tools, bioinformatics platforms, and bioinformatics services.
North America is expected to account for the largest share of the bioinformatics market in 2016. The increasing demand for bioinformatics across genomics and proteomics research, technological advancements, increasing research funding, and presence of a large number of market players and research institutes are driving the growth of the bioinformatics market in this region. However, the Asia-Pacific region is estimated to witness the highest growth during the forecast period.
Factors such as lack of well-defined standards and common data formats for integration of data and lack of user-friendly tools are restraining the growth of the bioinformatics market.