The biotechnology industry develops and transforms biological processes into usable products or procedures to improve humans lives through healthcare, agriculture, and environment. The current market witnesses rising investments in R&D of complex stem cell therapies, gene therapies, cell therapies, and targeted therapies to treat chronic diseases like cancer, cardiovascular disorders, chronic kidney diseases, diabetes, obesity, etc. The Global Biotechnology Market Size is estimated to be valued at US$ 945.11 Mn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the biotechnology market is the growing geriatric population and prevalence of chronic diseases globally. As per United Nations, the global geriatric population aged above 65 years is projected to double to over 1.5 billion in 2050 from 703 million in 2019. Further, chronic diseases have become one of the major causes of mortality and morbidity worldwide affecting over 1.33 billion people globally. Growing aging population and rising chronic diseases burden due to changing lifestyle is expected to boost the demand for advanced biologics and targeted therapies during the forecast period. Additionally, rising government funding for R&D activities by biotech companies is also fueling the market growth. However, high costs associated with drug development and stringent regulations may hinder the market growth.
Segment Analysis
The biotechnology market can be segmented based on technology into DNA sequencing, nanobiotechnology, tissue engineering and regeneration, fermentation and cell-based assay. DNA sequencing segment dominated the market in 2023 and is expected to continue its dominance during the forecast period. Rapid adoption of next generation sequencing (NGS) technology in clinical diagnostics and personalized medicine is driving the growth of this segment. Nanobiotechnology segment is expected to witness highest growth during the forecast period due to increasing application of nanotechnology in drug delivery, medical devices and diagnostics.
PEST Analysis
Political: The biotechnology industry is regulated by various government agencies which can impact the research, product development and commercialization process of companies. Favourable regulatory environment promoting innovation is expected to drive market growth.
Economic: Rising healthcare spending globally and increasing commercialization of biotechnology products are driving economic growth of the market. Higher R&D investments from biotech companies are further fueling the market growth.
Social: Growing awareness about diseases and availability of personalized treatment options are positively impacting the social factors. However, high costs associated can limit broader acceptance of certain biologics.
Technological: Advancements in sequencing technologies, bioinformatics and artificial intelligence are revolutionizing drug discovery and development processes. Emerging fields like synthetic biology, targeted therapies and regenerative medicines offer potential for new product development.
Key Takeaways
The global biotechnology market is expected to witness high growth during the forecast period.
Regional analysis: North America dominated the global market in 2023 due to presence of leading biotech companies and favorable regulatory environment supporting innovation in the US and Canada. Asia Pacific is expected to be the fastest growing region during the forecast period driven by increasing R&D investments, improving healthcare infrastructure and advancing biomanufacturing capabilities in countries like China, India and Japan.
Key players: Key players operating in the biotechnology market are Bausch Health Companies, Inc., Recordati Rare Diseases Inc., Lucane Pharma SA, Acer Therapeutics, Ultragenyx Pharmaceutical Inc., Aeglea BioTherapeutics, Arcturus Therapeutics Holdings Inc., Orpharma Pty Ltd., Selecta Biosciences, Inc., Abbott Laboratories, NESTLÉ S.A., DANONE S.A., and Mead Johnson & Company, LLC. These players are focusing on new product launches, collaborations and geographic expansion to strengthen their market position.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
