Biotechnology Market - By Application (Biopharmacy, Bioindustries, Bioservices, Bioagriculture, Bioinformatics), By Technology (Fermentation, Tissue Engineering and Regeneration, PCR Technology, Nanobiotechnology, Chromatography) & Forecast, 2021-2027

Biotechnology Market Size

Biotechnology Market size was valued at around USD 497 billion in 2020 and is projected to grow at a CAGR of over 9.4% between 2021 and 2027. Ongoing innovations and development associated with molecular biology has led to an advent of novel scientific disciples including genomics, metabolomics and proteomics. Growing use of biotech solutions has facilitated the development of therapeutic proteins and other drugs. The rising prevalence of chronic diseases has fuelled the need for drug discovery and development. It is used increasingly in other industrial sectors also due to the extensive nature of the application. The rising usage in agriculture pertaining to the growing demand for organic products is also contributing to the market growth.
 

Biotechnology is an interdisciplinary, innovative field that utilizes living organisms, biological systems, or derivatives to modify or develop processes and outcomes for producing healthcare-related products and therapeutics. It has profound impact on different sectors such as medicine & pharmaceuticals, genomics, production of food & chemicals, and others. It has comprehensive and significant use in solving critical challenges related to health & well-being, food & energy supply, and environmental protection.
 

Biotechnology and associated products are required to meet regulatory guidelines and pre-set standards. The major federal agencies in the U.S., responsible for monitoring essential parameters are the Animal and Plant Health Inspection Service (APHIS), the U.S. Environmental Protection Agency (EPA), and the U.S. Department of Health and Human Services' Food and Drug Administration (FDA). The Co-ordinated Framework for Regulation of Biotechnology demonstrates the federal system for assessment of products designed utilizing modern biotechnology. This framework relies upon existing laws developed to protect public health and the environment.
 

The U.S. government has established new policies, regulations, and compliances to implement laws for biotech products. The FDA monitors safety and efficacy of pharmaceutical products, human food and animal feed. EPA monitors pesticides, including plants containing plant-incorporated protectants to secure public safety. And the APHIS with the help of its Biotechnology Regulatory Services (BRS) program, regulates development of specific organisms produced using genetic engineering that can potentially pose a risk to population health. Thus, the biotechnology products and services are regulated by a host of regulatory authorities that may slowdown the development and commercialization of the products. Furthermore, certain amount of risk related to genetic data may hinder the biotech industry growth.
 

The emergence of COVID-19 pandemic is an unprecedented health concern across the world and has adversely affected the biotechnology market. Outbreak of SARS-CoV-2 has resulted in shutdown of vital sections of global economy, disrupted the supply and distribution network, halted the supply of raw materials and has put restrictions on movement of goods, thereby impacting the industry progression.
 

Despite of the pandemic there has been a substantial increase in investments in the biotech sector owing to the provision of safety against SARS-CoV-2 virus. For instance, growing interest in biotech companies was observed since the onset of COVID-19 pandemic, with investors investing more than USD 13 billion in biotechnology companies, in 2020 globally. It provided opportunities for the pursuit of novel scientific activities, particularly in biotechnology. Extensive investments in the industry accelerated development of innovative new drugs, gene therapies and vaccines in essential therapeutic areas.
 

Favorable government initiatives along with collaborations with industry players will drive the market expansion

Favourable government initiatives are leading the growth of biotech sector in developing economies such as India, Brazil and China. Government policies are aligned towards upgrading the drug regulatory process, standardizing clinical studies, enhancing reimbursement scenario, and accelerating the product approval procedure. Several initiatives are being taken by the Indian government to promote the industry. The National Biotechnology Development Strategy of Department of Biotechnology aims to establish a strong base for discovery and innovation. This strategy would incorporate novel technology platforms and benefits in improvising biotech products. Government funding and technical support offered to biotech firms is further accelerating the market progression.
 

Moreover, the biotech organizations are focusing on the development of ingenious systems and their utilization by collaborating with members in the market. Significant partnerships with government subsidized association exhibit monetary support to aid R&D activities and novel product improvisation attempts.
 

Innovations and advent of novel technologies will accelerate the biotechnology market value

Growing advancements in life sciences are offering numerous benefits associated with healthcare interventions and productivity by incorporating innovative technology. Development of innovative techniques and their implementation by the firms impacts the biotech sector positively and is envisaged to spur momentous expansion of the market. Innovative technologies including 3D bioprinting are being used in medicine. 3D bioprinting uses living cells to develop certain parts of human body including heart valves, cartilage and skin. It has high potential to develop drugs as well as tissues, organs such as liver and heart using patient’s body cells. The ability to create human cells and tissues will further extend the range of applications in medical research by providing precise models for study and analysis.
 

Similarly, advancements in medical technology has led to incorporation of biosensors, another innovative technology used for monitoring personal health. Biosensors are designed to monitor several biosignatures such as pulse, blood pressure, body temperature and others. This technology facilitates remote-patient monitoring and aids the healthcare practitioners by providing them vital health data.
 

Biotechnology Market Analysis

Biopharmacy segment is anticipated to witness 9.2% growth rate by 2027 owing to increasing prevalence of chronic diseases and rising acceptance of biopharmaceutical products globally. The growing use of novel developments such as bio-recombinant proteins in therapeutic treatment of numerous chronic disorders will lead to innovative product offerings. The safety and efficacy assured by the use of biopharmaceutical products coupled with their ability to offer solutions to previously untreatable conditions will spur their acceptance rate.
 

Biopharma firms are emphasizing on improvement of personalized medications. The applications of personalized medicine will assist in treating certain inherited genetic disorders and pave the way for manufacturing tailored procedural healthcare requirements. In addition, novel concepts such as the cell therapy used in treatment of cancer that can potentially provide regenerative medicine or disease remission are being introduced in the market.
 

Fermentation segment in the biotechnology market accounted for USD 57 billion in 2020, led by wide range of applications of fermentation technology coupled with better outputs, low cost and environment-friendliness. Fermentation technology has been extensively used in production of several medical products including solvents such as ethanol, antibiotics, probiotics, intermediary compounds such as citric acid, etc.
 

Advancements in fermentation technology is increasingly being used in production of monoclonal antibodies, therapeutic recombinant proteins & DNA, and anti-viral drugs among others. Apart from the medications, fermentation technology is also used for the production of essential materials needed to develop drug delivery vehicles, diagnostic kits and medical devices. Furthermore, growing use of bioethanol due to ecological concerns to reduce dependence on synthetic or petroleum-derived counterparts will surge the demand for fermentation technology market.
 

U.S. biotechnology market is estimated to attain a CAGR of over 9.2% CAGR through 2027 on account of presence of major market players, high healthcare expenditure and extensive R&D activities. According to the OECD report, in June 2018, it is predicted that the U.S. invested around 17.2% of its GDP in health care systems. Additionally, Thermo Fisher Scientific Inc. invested USD 475 million for expansion of drug development, biologics, cell and gene therapy. Rising number of companies in the region receiving product approvals will enhance the industry value.
 

Germany dominated the Europe market and exceeded USD 33 billion in 2020 driven by the strong presence of biotech firms and extensive research & development activities in the country. According to a published report, majority of the 668 German biotech enterprises are operating in the healthcare sector. Around 25% of these firms are engaged in development of novel therapeutics for immunotherapies, cancer, and neurological diseases among others. About 16% are involved in developing diagnostic solutions and another 14% provide services for medical research. Moreover, growing number of research institutions due to surging interests in R&D sector is fueling the huge demand.
 

Biotechnology Market Share

Some of the major companies operating in the market are

• Abbott Laboratories
• Agilent Technologies
• Amgen
• Bio-Rad Laboratories
• Danaher
• F. Hoffmann-La Roche
• Illumina
• Merck
• PerkinElmer
• Qiagen
• Thermo Fisher Scientific

The major players are emphasizing on strategies such as product development, mergers, acquisitions and partnerships to launch novel products to expand their geographical presence and strengthen their product portfolio. These leaders are engaged in making investments that enables them to garner maximum revenue share.
 

Recent industry developments:

• In April 2021, Thermo Fischer Scientific agreed to acquire clinical research organization Pharmaceutical Product Development (PPD) for USD 17.4 billion. This acquisition would assist the company to commercialize drug discoveries by investing more in drug development and would further assist in expanding in clinical research business.
   
• In March 2021, Amgen entered into an agreement with Rodeo Therapeutics Corporation (Rodeo) to acquire Rodeo, a biopharmaceutical company based engaged in development of small-molecule therapies designed to facilitate regeneration and repair of certain tissues. This acquisition will help Amgen to offer innovative biopharmaceutical products and reinstate its market position.
   

Biotechnology market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027, for the following segments:

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Market, By Application, 2016 - 2027 (USD Billion)

• Biopharmacy
• Bioindustries
• Bioservices
• Bioagriculture
• Bioinformatics

Market, By Technology, 2016 - 2027 (USD Billion)

• Fermentation
• Tissue engineering and regeneration
• PCR Technology
• Nanobiotechnology
• Chromatography
• DNA sequencing
• Cell Based Assay
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • Japan
  • China
  • India
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East Asia & Africa
  • Saudi Arabia
  • South Africa
  • UAE