The global biotechnology market size was valued at USD 752.88 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 15.83% from 2021 to 2028. The market is driven by favorable government initiatives owing to the growth of the biotechnology sector in developing countries, such as India and China. Government initiatives are oriented towards modernizing the drug regulatory pathway, standardizing clinical studies, improving reimbursement policies, and speeding up the product approval process, thereby offering lucrative growth opportunities to the market. In addition, in 2019, small molecules dominated the pharmaceutical compounds pipeline with around 22 U.S. FDA approvals as compared to eight large molecules (biotech). Around 4 out of every 10 drugs are biotech derived, which can be attributed to the growing demand for orphan drugs and personalized medicine. This is driving the influx of emerging and innovative biotechnologies companies, further boosting the market revenue.
Moreover, agricultural-input companies are focusing on improving the existing technologies that include the development of new stacked traits in crops and new germplasm by breeding innovations and gene sequencing. Companies are focusing on bringing agricultural innovations to the market for improving productivity with sustainable solutions. For instance, in February 2020, BASF announced that by 2029, the company will launch more than 30 projects for developing novel seeds, traits, biological and chemical crop protection solutions, new formulations, and digital products. Hence, extensive use of biotechnology techniques essential to enhance agricultural products contributes to the market growth.
Furthermore, the COVID-19 pandemic acts as a positive catalyst to market growth. Biotech companies are the frontrunners in the development of drugs targeting COVID-19. For instance, just after 8 months of the first case of COVID-19, Gilead Sciences, Inc. received the U.S. FDA approval for antiviral Remdesivir for the treatment of COVID-19 patients.
In addition, expanding the involvement of the biotechnology industry with diagnostic companies, drug manufacturers, research laboratories, and multinational pharmaceutical companies for developing therapeutic molecules to target COVID-19 is contributing to the market growth. For instance, in March 2020, Pfizer Inc. entered into a collaboration with BioNTech SE for the development of BNT162, COVID-19 vaccine candidate. BioNTech SE developed the vaccine using mRNA technology for the rapid development of the COVID-19 vaccine.
The health application segment held the largest share of 48.64% in 2020 and this trend is expected to continue through the forecast period. The growth in the segment can be primarily attributed to the increasing prevalence of diseases. In addition, increasing focus on agri-biotech and providing bio-services, rising adoption of bioinformatic solutions, and flourishing bio-industrial sector are contributing to the segment growth.
Moreover, companies are entering into partnerships for the development of new therapeutic molecules, which is driving the market. For instance, in April 2020, Amgen collaborated with Adaptive Biotechnologies for discovering and developing antibodies to combat the COVID-19 pandemic. The collaboration will use Adaptive's proprietary immune medicine platform for identifying virus-neutralizing antibodies and combine Amgen's expertise in the field of novel antibody therapy and immunology for developing promising new medicines against SARS-CoV-2.
The bioinformatics application segment is expected to expand at the fastest CAGR of 21.2% from 2021 to 2028 owing to the increasing alliances to coordinate and advance the adoption of informatics tools. For instance, in September 2020, GC Pharma entered into a partnership with Atomwise for discovering new ways of hemophilia treatment. The companies will focus on treatment options other than replacement therapies that are commonly used for hemophilia treatment. Atomwise’s AI platform called AtomNet investigated potential targets by screening around 16 billion compounds in less than two days.
The others technology segment held the largest share of 27.83% in 2020. DNA sequencing held the second-largest share in 2020. The growth in the segment can be attributed to the rising adoption of advanced DNA sequencing. For instance, in April 2020, the Baylor College of Medicine Human Genome Sequencing Center (BCM-HGSC) received a grant from the National Institutes of Health for Pacific Biosciences Sequel II DNA sequencing instrument. It will help in improving sequencing efficiency and capacity. The new sequencer is capable of sequencing through tough regions in the human genome, hence enabling comprehensive genome sequencing
Nanobiotechnology is expected to expand at a CAGR of 16.8% from 2021 to 2028 owing to increasing technological advancement in the field of nanotechnology. For instance, in January 2021, Oxford Nanopore collaborated with NVIDIA for integrating NVIDIA DGX Station A100 in PromethION, the company’s ultra-high-throughput sequencing system. The integration of such AI and computing tools helps in quick and accurate DNA or RNA sequencing for increasing the availability of nanopore sequencing data.
North America accounted for the largest share of 44.19% in 2020. The growth of the regional market can be attributed to several factors such as the presence of key players, extensive R&D activities, and high healthcare expenditure. In addition, expanding pool of companies operating in the region is receiving drug approvals, which is contributing to the market growth. For instance, in February 2021, Biogen Inc. received the U.S. FDA for PLEGRIDY (peginterferon beta-1a) that is used for the treatment of relapsing forms of multiple sclerosis. The approval expands the company’s leading portfolio for multiple sclerosis treatment.
Asia Pacific is expected to expand at the fastest growth rate of 16.8% from 2021 to 2028. The growth of the regional market can be primarily attributed to improving healthcare infrastructure, supportive government policies, clinical trial services, and epidemiological factors. In addition, foreign companies are extensively collaborating with local companies for accelerating the biotechnology industry growth. For instance, in September 2019, Bayer AG completed a USD 63 billion merger agreement with Monsanto India for forming Bayer CropScience Ltd. This will help in including Monsanto's expertise in seeds and traits and digital farming applications to Bayer’s product portfolio.
Companies are expanding their product portfolio through different business development strategies, such as acquisitions, mergers, and agreements. For instance, in September 2020, F. Hoffmann-La Roche Ltd. completed the acquisition of Inflazome, an Irish biotechnology firm engaged in the development of inflammasome inhibitors. The acquisition will give the company rights for Inflazome’s complete portfolio of the clinical and preclinical small molecule of NLRP3 inhibitors. In addition, the company intends to develop NLRP3 inhibitors for targeting a wide variety of indications. Some prominent players in the global biotechnology market include:
AstraZeneca
Gilead Sciences, Inc.
CELGENE CORPORATION
Biogen
Abbott
Amgen Inc.
Novo Nordisk A/S
Merck & Co.
Johnson & Johnson Services, Inc.
Novartis AG
Sanofi
F. Hoffmann-La Roche Ltd.
Pfizer, Inc.
Lonza
Report Attribute |
Details |
Market size value in 2021 |
USD 1,006.68 billion |
Revenue forecast in 2028 |
USD 2,438.90 billion |
Growth rate |
CAGR of 15.83% from 2021 to 2028 |
Base year for estimation |
2020 |
Historical data |
2017 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Revenue in USD billion and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Technology, application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; Germany; U.K.; France; Italy; Spain; Japan; China; India; South Korea; Australia; Brazil; Mexico; South Africa; Saudi Arabia |
Key companies profiled |
AstraZeneca; Gilead Sciences, Inc.; CELGENE CORPORATION; Biogen; Abbott; Amgen Inc.; Novo Nordisk A/S; Merck & Co; Johnson & Johnson Services, Inc.; Novartis AG; Sanofi; F. Hoffmann-La Roche Ltd.; Pfizer, Inc.; Lonza |
Customization scope |
Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this report, Grand View Research has segmented the global biotechnology market report on the basis of technology, application, and region:
Technology Outlook (Revenue, USD Billion, 2017 - 2028)
Nanobiotechnology
Tissue Engineering and Regeneration
DNA Sequencing
Cell-based Assays
Fermentation
PCR Technology
Chromatography
Others
Application Outlook (Revenue, USD Billion, 2017 - 2028)
Health
Food & Agriculture
Natural Resources & Environment
Industrial Processing
Bioinformatics
Others
Regional Outlook (Revenue, USD Billion, 2017 - 2028)
North America
U.S.
Canada
Europe
Germany
U.K.
France
Spain
Italy
Asia Pacific
China
Japan
India
South Korea
Australia
Latin America
Brazil
Mexico
Middle East & Africa
South Africa
Saudi Arabia
b. The global biotechnology market size was estimated at USD 752.88 billion in 2020 and is expected to reach USD 1,006.68 billion in 2021.
b. The global biotechnology market is expected to grow at a compound annual growth rate of 15.83% from 2021 to 2028 to reach USD 2,438.90 billion by 2028.
b. Health-related applications dominated the biotechnology market with a share of 48.64% in 2020 owing to the high penetration of biotechnology solutions in healthcare systems and commercial success of molecular diagnostics in disease management.
b. Some key players operating in the biotechnology market include Johnson & Johnson Services, Inc., F. Hoffmann-La Roche Ltd, Pfizer, Merck & Co., Abbott, Amgen, Merck & Co., Johnson & Johnson Services, Inc., and Sanofi.
b. Key factors that are driving the biotechnology market growth include favorable government initiatives, plummeting sequencing prices, growing market demand for synthetic biology, and rising R&D investment by the public as well as private agencies.
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Biopharmaceutical innovators are at the forefront of the human response to the coronavirus pandemic. A significant number of major biotech firms are in the midst of a race to investigate the Sars-Cov-2 genome and prepare a viable vaccine for the same. As compared to the speed of response to SARS/MERs etc, the biotech entities are investigating SARs-Cov-2 at an unprecedented rate and a considerable amount of funds are being put into the R&D. With multiple candidates in trial, the public and private sectors are anticipated to work in unison for the foreseeable period, until a vaccine is developed for Covid-19. The report will account for Covid19 as a key market contributor.
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