Biologics such as monoclonal antibodies are increasingly being used to treat chronic diseases owing to their high target specificity and low side effects. Biologics help manage conditions such as rheumatoid arthritis, psoriasis, cancer and inflammatory bowel disease by mimicking the action of natural substances produced by the body like cytokines, enzymes or hormones. They reduce disease symptoms, slow progression and improve quality of life. With rising prevalence of chronic illnesses worldwide due to growing geriatric population and changing lifestyles, the demand for biologics is steadily climbing.
The global Biologics Market is estimated to be valued at US$ 401.96 billion in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the biologics market growth is the rising demand for biosimilars. Biosimilars are biological products that are essentially similar to an already approved biological drug (reference product). They offer cost savings over reference biologics as their development requires lower investments compared to innovative biologics. As many blockbuster biologics are expected to lose their patents in the coming years, biosimilar competition is anticipated to intensify. This is prompting healthcare providers and payers to integrate biosimilars into treatment pathways, thereby contributing to market expansion. According to estimates, biosimilars market could generate savings of over $100 billion globally during 2019–2024 period. Their uptake is steadily climbing across major markets like the US, Europe and Asia Pacific, thus serving as a key growth multiplier.
Porter’s Analysis
Threat of new entrants: The biologics market requires high capital investment and strict regulatory norms which act as a deterrent to new entrants.
Bargaining power of buyers: Large pharmaceutical companies and hospitals have significant bargaining power over biologics manufacturers due to their high volumes and scale of purchases.
Bargaining power of suppliers: Suppliers of raw materials, packaging and transport facilities have low bargaining power as there are many suppliers and raw materials required are common.
Threat of new substitutes: Threat from other treatment areas like gene therapy and regenerative medicine. However, they are at a nascent stage currently and do not pose major threat.
Competitive rivalry: Intense competition among existing players due to focus on research and development of innovative drugs.
Key Takeaways
The Global Biologics Market Size is expected to witness high growth.
Regional analysis: North America currently dominates the global biologics market due to presence of major players and continuous technological advancements while Asia Pacific is expected to grow at fastest pace during forecast period owing to growing health awareness and improving healthcare infrastructure.
Key players related content comprises Key players operating in the biologics market are Advanced Accelerator Applications (AAA).
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it