Biotechnology Market Analysis

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.

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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.