Biotechnology harnesses cellular and biomolecular processes to develop technologies and products that combat rare and debilitating diseases, develop cleaner, safer and efficient industrial manufacturing processes, reduce environmental footprint, energy consumption.Genetic analysis and manipulation have greatly aided the drug discovery process, and many large biotech firms such as Novo Nordisk, Amgen and Biogen Idec have transformed into key pharmaceutical and biopharmaceutical firms. In the field of agriculture, biotech products have enhanced crop yield, increased the nutritional value and quality of crops, and improved the efficacy and safety of pesticides. In environmental science, biotech has contributed innovative solutions to clean up the environment and manage waste. Increasing global geriatric population, renewed focus on developing effective vaccines to combat diseases, growing dependence on genetically-engineered seeds and increasing life expectancy rates are expected to drive market growth over the next six years. Moreover, increasing demand and subsequent focus on orphan drug manufacturing is expected to fuel future demand. The global biotechnology market was valued at USD 270.50 billion in 2013 and is expected to grow at a CAGR of 12.3% from 2014 to 2020.
Key technology segments analyzed and reported in this study include fermentation, tissue engineering and regeneration PCR technology, nanobiotechnology, chromatography, DNA sequencing, cell based array and others. Tissue engineering and regeneration segment dominated the market in terms of revenue share and was valued at USD 87.92 billion in 2013. This technology involves combining scaffolds, cells and biologically active molecules into functional tissues in order to assemble functional constructs that restore maintain or improve damaged tissues or whole organs. It aims to create tissue equivalents of heart muscle, blood vessels, cartilage, bone, nerves and other organs for the purpose of tissue replacement.
Key application segments analyzed and reported in this study include biopharmacy, bioservices, bioagricultural and bioindustrial. The biopharmacy application segment dominated the overall market in terms of revenue share in 2013 at approximately 62%. Increasing demand for drugs and vaccines to counter diseases coupled with genetic analysis and manipulations aiding the drug discovery process are some of the factors accounting for its large market share. Bioservices followed biopharmacy in terms of revenue share in 2013. Bioservices involve preclinical and clinical researches done by following the standards laid down by regulatory bodies. Increasing R&D investments in an attempt to reduce clinical trial durations is expected to serve this segment as a key growth driver.
Global Biotechnology market revenue, by application, 2013
North America dominated the market in 2013 and was valued at USD 113.48 billion. The free-pricing nature of the pharmaceuticals market coupled with favorable patent and regulatory environment are some of the drivers for this market. In addition, presence of sophisticated healthcare infrastructure and reimbursement policies clubbed with the presence of high patient awareness and disposable income levels is expected to boost demand during the forecast period. Europe on account of the presence of rigorous biotechnology based research initiatives followed North America in terms of revenue share in 2013. The Asia Pacific biotechnology market is expected to exhibit the highest CAGR of over 13% during the forecast period owing to growing regulatory and financial government support and rising healthcare expenditures in emerging markets such as China and India.
The global biotechnology market is consolidated in nature and is marked by acquisition exercises conducted by key players in an attempt to enter into new markets and gain access to proprietary technologies. Key market players include Novo Nordisk, Amgen, Gilead Sciences, Celgene, Biogen Idic, Teva Pharmaceutical Industries, Merck KGaA, CSL, Regeneron, Alexion Pharmaceuticals, Shire PLC, Vertex Pharmaceuticals, BioMarin Pharmaceutical, Elan, Actelion, Onyx Pharmaceuticals, Dr. Reddy’s Laboratories, Seattle Genetics, Alkermes, Ariad Pharmaceuticals, Cubist Pharmaceuticals, United Therapeutics, Ipsen Group and DiaSorin.