Biotechnology involves the use of living organisms and systems for industrial and other purposes, especially genetic engineering and recombinant DNA techniques. The biotechnology industry is engaged in the discovery, development, and manufacturing of pharmaceuticals using biological and genetic tools. It has wide applications in areas such as healthcare, agriculture, industrial processing, and environmental applications. Biotechnology helps in developing novel therapies for the treatment of chronic diseases like cancer. The growing prevalence of cancer cases worldwide has bolstered the demand for advanced biotechnology-based cancer treatment options. According to the World Health Organization, cancer accounted for nearly 10 million deaths in 2020.
The global Biotechnology Market is estimated to be valued at US$ 820.4 Bn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Geriatric Population: The growing geriatric population is one of the major market drivers. As per the United Nations report, the number of people aged 65 years or over is projected to grow to more than double its size, from 703 million in 2019 to 1.5 billion in 2050 worldwide. Older persons are more prone to suffer from chronic diseases such as cancer, cardiovascular diseases, neurological disorders, and diabetes which drives the growth of the biotechnology market.
Increasing Cancer Incidence: Biotechnology plays an important role in cancer diagnosis and treatment. The increasing incidence of cancer cases has bolstered the demand for advanced biotechnology-based cancer therapies. According to the WHO, cancer burden has risen to 18.1 million new cases and 9.6 million cancer deaths in 2018 globally. This creates lucrative opportunities for biotechnology innovators and manufacturers to develop cancer vaccines, immunotherapy drugs, and targeted therapeutics.
Segment Analysis
The biotechnology market is segmented into pharmaceutical biotechnology and subsequent segments:
Pharmaceutical Biotechnology is the dominating segment in the biotechnology market, accounting for over 55% share. Growing prevalence of chronic diseases and increasing demand for biopharmaceuticals are major factors accelerating the growth of this segment.
PEST Analysis
Political: Regulations regarding clinical trials, funding for research, and drug approvals have a significant impact on the biotechnology market. Favorable government initiatives to promote biotech research will boost market growth.
Economic: Rising healthcare budgets and increasing expenditure on drug development augur well for the global biotechnology industry. The high cost of R&D activities poses economic challenges.
Social: Growing awareness about personalized medicine and biopharmaceuticals is fueling the adoption of biotech products. However, social taboos surrounding controversial technologies hinder market potential.
Technological: Advancements in areas such as artificial intelligence, machine learning, and CRISPR technology provide immense opportunities for productivity gains. Blockchain solutions can streamline drug trials and regulatory processes. (200-250 word explanation)
Key Takeaways
The Global Biotechnology Market Size is expected to witness high growth at a CAGR of 3.5% during the forecast period of 2023 to 2030.
Regional analysis: North America dominates the global biotechnology industry, accounting for over 40% market share in 2024. The large presence of key players and availability of funds for research drive the growth of the market in this region. However, Asia Pacific shows high growth prospects and is expected to be the fastest growing market, expanding at around 5% CAGR during the forecast period.
Key players operating in the biotechnology market are Bausch Health, AbbVie Inc., Amgen Inc, Biogen Inc., Bristol-Myers Squibb Company, Eli Lilly and Company, F. Hoffmann-La Roche Ltd, Gilead Sciences Inc., Johnson & Johnson, Merck KGaA, Novartis AG, Novo Nordisk A/S, Pfizer Inc., Sanofi. There is intense competition among these players to capture a large pie of the market through new product launches, collaborations, and acquisitions.
