The global biotechnology market size is set to grow from USD 1.68 trillion in 2024 to USD 3.75 trillion by 2034, expanding at a compound annual growth rate (CAGR) of 8.36% from 2025 to 2034.
How are Synthetic Biology & Precision Medicine Turning to be Leaders for Biotechnology Market and What to Expect in Coming Years?
As the global biotechnology market is witnessing it road ahead, the expansion of bio manufacturing and personalized cell therapies are observed to support the expansion of the market. To consider an instance, Australia recently established Genomics Australia 2024, for elevating diagnosis procedures from 11% to 55% costing conventional approaches.
On the other side, United Kingdom’s Advanced Research & Invention Agency allocated 800 million Pound Sterling for next 5 years in order to focus on AI-supported pathogen detection and biosecurity.
While artificial intelligence is observed to be the road ahead in the biotechnology industry, deep learning and AI are seen to optimize 85% correct prediction of clinical trials while reducing the last-stage failures by 30%. For example, the Beijing AI Healthcare Platform aimed to use AI-based diagnostic for 180+ hospitals by 2025. India has also increased spending by 109% from 2018 in healthcare sector while projecting growth in precision medicine labs.
Alongside, robust funding from governments and private investors are backing the industry. National initiatives such as Our Future Health (UK) and All of US are seen to scale –up the procedures in the sector. Additionally, Unites States’ federal funding of $161 million is a large-scale support for synthetic biology.
Some sales insight of biotechnology are listed below:
North America is the home to the numerous leading biotechnology companies, which has great contributions towards the growth of the biotechnology market. The increased investments by these companies in the research and development, drug discovery, and clinical trials coupled with the rising prevalence of chronic diseases in the region and high healthcare expenditure are the major factors that has promoted the growth of the North America biotechnology market. The government policies and regulatory authorities like FDA plays a crucial role in the development of the biotechnology market. The high healthcare expenditure and increased demand for the innovative biotech drugs to treat traditionally non-curable diseases has fostered the growth of the biotechnology market in the North America. In 2018, the healthcare expenditure in US contributed around 18% to its GDP. The rising investments in the technological advancements in the pharmaceutical industry is expected to further fuel the market growth in the forthcoming years.
With the rising advancements in the field of life sciences, the adoption of the innovative and novel technologies in the pharma and the healthcare sector is boosting rapidly. The adoption of the novel technologies like 3D bioprinting, biosensors, and artificial intelligence in the drug discovery and production process are gaining a rapid traction in the biotechnology industry. The rising prevalence of various chronic diseases and genetic diseases is fueling the adoption of the innovative technologies in the biotech sector that can effectively provide treatment to the patients and improve their quality of life. Moreover, the government regulations are being updated with accordance to the upgradations in the drug development processes. The rising government initiatives to upgrade the regulatory amendments in the drug regulations is expected to fuel the growth of the global biotechnology market in the upcoming future.
The ethical issues pertaining to the clinical trials are the major challenges to the market. Clinical trials are of utmost importance to determine the safety and side-effects of the newly developed drugs. These clinical trials are undertaken only after gathering a substantial amount of data. The lack of proper regulations in several nations regarding the clinical trials and drug development resulted in large number of deaths in the past. Furthermore, the research organizations faces huge pressure to produce the desired results in a given timeline, which further increases the risks and hampers the quality of research. Moreover, the investments involved in drug development is huge and most of the times the drug discovery fails that results in financial losses. These are some of the major factors that may hinder the growth of the global biotechnology market in the forthcoming years.
The rising government expenditure on the development of sophisticated healthcare infrastructure, formation of favorable policies, and epidemiological factors are significantly contributing to the growth of the Asia Pacific biotechnology market. Further, the presence of various key CMOs and CROs in the nations like China, India, and South Korea are significantly driving the biotechnology market. The growing prevalence of various lifestyle diseases and chronic diseases in the region is a major factor behind the burgeoning demand for the biotechnology drugs across the Asia Pacific region. Moreover, the rising applications of the biotechnology in the various end use industries such as food and agriculture, bioinformatics, healthcare, industrial processing, and environment and natural resources industries is expected to drive the growth of the biotechnology market during the forecast period.
Lonza, AstraZeneca, Pfizer Inc., Gilead Sciences Inc., F. Hoffmann-La Roche Ltd., Biogen, CELGENE Corporation, Sanofi, Abbott, and Novartis AG are some of the prominent players operating in the global biotechnology market.