The global biotechnology market size was valued at USD 270.5 billion in 2013 and is expected to grow at a CAGR of 12.3% owing to the increasing demand for diagnostics and therapeutics solutions such as recombinant technology, red biotechnology, and DNA sequencing. Increasing prevalence of diseases such as cancer, hepatitis B, and other orphan disorders is expected to serve as a high-impact rendering driver for this industry over the forecast period. Rising government initiatives owing to high significance towards growth of the economy are expected to boost the biotechnology market growth over the forecast period
Furthermore, presence of organizations, such as the DBT, together with other government-funded institutions such as the NBTB and other autonomous organizations representing the biotechnology industry promotes funding to support R&D and product development exercises pertaining to the field and are expected to drive growth from 2013 to 2020.
Increasing demand for agricultural and food products such as wheat, rice, sugarcane, and beans owing to growing population base in countries such as the U.S., China, and India is another major factor positively impacting growth of the industry. Factors such as limited availability of agricultural land, shortage of water, low yield of crops, and pest attacks are encouraging researchers to develop innovative agricultural technologies via extensive R&D activities. Application of biotechnological processes such as Genetic Modification (GM) and genetic engineering on agricultural products is a major driver for growth of this industry.
The U.S. biotechnology market revenue by application, 2012-2020, (USD Million)
Key technologies include fermentation, tissue engineering, nanobiotechnology, PCR technology, DNA sequencing, chromatography, cell-based assay, and others. In 2013, the tissue engineering and regeneration segment dominated the overall industry with USD 87.92 billion revenue. However, the DNA sequencing and cell-based assay segment is expected to witness lucrative growth till 2020 due to rising research and development initiatives by various pharmaceutical and biotechnological companies.
Tissue engineering has wide applications in various diseases. Tissue engineering is utilized for development and repair of cells and organs, which have lost its functionality due to injury, burns, aging, diabetic ulcers, and congenital abnormalities. Increasing incidences of Parkinson’s disease and Alzheimer’s is a vital driver for growth of this industry as tissue regeneration technology repairs damaged cells. Rising prevalence of diabetes is another growth propeller as tissue regeneration repairs islet cells of pancreas.
DNA sequencing is expected to grow at a CAGR of over 18.1% owing to its wide applications in various verticals such as agriculture, biology, medical, and geology. Rising R&D, declining cost of DNA sequencing, rising demand for PCR technology along with breakthroughs in nanotechnology and bioinformatics field are expected to be high-impact rendering drivers for this industry.
Based on application, global biotechnology market is divided into biopharmaceutical, bioservices, bioagriculture, and bioindustrial. In 2013, biopharmaceuticals that are segmented into advanced drugs, orphan drugs, monoclonal antibodies, and recombinant proteins dominated the overall industry with around USD 184.21 billion revenue.
Recombinant proteins are expected to dominate the biopharmaceutical market over the forecast period owing to various vaccines manufactured with the help of biorecombinant proteins that are able to treat several diseases.
Bioservices market is expected to have lucrative growth by 2020 due to rising clinical research initiatives by various pharmaceutical and biotechnological companies. The rising demand for cost cutting, stringent regulations, and increasing complexity of biotechnological processes are driving forces of this segment.
On the basis of geographical regions, global biotechnology market is segmented into North America, Europe, Latin America, Asia Pacific, and MEA. North America accounted for the largest share of the overall industry in 2013, accounting for over 42.30% of the revenue share, as a result of increasing initiatives in R&D by various pharmaceutical companies.
Asia Pacific is expected to gain substantial market share and reach around USD 145.9 billion by 2020. Escalating awareness about the advantages associated with adoption and introduction of healthcare benefits by the government are driving forces for this region.
The global biotechnology market is consolidated in nature. The key players include Amgen, Novo Nordisk, Teva Pharmaceutical Industries, Regeneron, Roche Diagnostics, Alkermes, and Cubist Pharmaceuticals.
The market was dominated by Roche Diagnostics with a market share of 17.1% in 2013. Key strategies adopted by these companies to gain market share include strategic collaborations, mergers, outsourcing research & development, and manufacturing activities.
For instance, Sanofi-Aventis entered into collaboration with Transgene, Bristol-Myers Squibb, and Joslin Diabetes Centerfor for the development of immunotherapy and diabetes products. To increase its presence in Latin America, the company acquired Genfar, a leading pharmaceutical company in Colombia. It has also acquired Pluromed to expand its presence in biosurgery.