Extensive European R&D Pushes Bioinformatics Market Growth To 15%

RNCOS: The field of bioinformatics has experienced an explosive growth over the last few years with proliferating database and an improved drug research productivity providing a key impetus to the bioinformatics industry. The European bioinformatics industry has received a shot in its arms after receiving the support of national governments.

Countries, such as Germany and the United Kingdom have taken steps to promote the growth of bioinformatics, by increasing their overall R&D investments. This is going to have a positive impact on the Bioinformatics market. The Bioinformatics market is about to witness continued consolidations in form of mergers or partnerships with an aim to increase their product distribution. Europe accounted for 15% ($170 million) of the worldwide bioinformatics market in 2004 and is expected to reach $188 million at the end of 2005. Sales of bioinformatics tools in Europe are expected to more than double to $725 million by 2011, up from $300 million in 2004, at a compound annual growth of 15%.

Despite the acceptance of bioinformatics solutions by the mainstream, the market is still facing challenges in the form of the general idea that the available bioinformatics tools are meant for the use of a very specialized group. The entire market dynamics for bioinformatics companies has been changed by the smaller biotech companies who constitute merely 30% of the total R&D spending but lay a claim on nearly 60% of the drugs. World Bioinformatics Market [2005-2010 Publ 20060109