Biotechnology refers to the integration of biological systems, living organisms or parts thereof and various technological applications using them. It involves DNA technology and recombinant techniques to develop products and solutions to improve the quality of human life. Some key areas where biotechnology has applications include healthcare, agriculture, industrial processing and environmental management among others. With the help of biotechnology techniques like DNA sequencing and monoclonal antibodies, new drugs are being developed for rare and complex diseases. Increased focus on precision medicine and personalized care is also driving innovations in biotechnology.
The global Biotechnology Market is estimated to be valued at US$ 820.4 Bn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
With advancing biotechnology and availability of genomic data, new therapies are being developed which can target specific genetic mutations and molecular characteristics of diseases. This makes treatments more precise and effective while reducing side effects. The development of personalized medicine represents a major opportunity in the biotechnology market as it enhances outcomes and quality of life for patients with complex medical conditions such as cancer. Increased R&D investment and healthcare reforms promoting precision therapies will drive the adoption of personalized approaches, thereby fueling growth of the biotechnology sector over the coming years.
Porter’s Analysis
Threat of new entrants: The biotechnology market requires heavy R&D investment and compliance with strict regulations which poses barriers for new companies.
Bargaining power of buyers: The large size of pharmaceutical companies gives them higher bargaining power over biotech firms for licensing deals and product pricing.
Bargaining power of suppliers: Due to specialized technical expertise required, suppliers of raw materials and key inputs have some bargaining power over biotech companies.
Threat of new substitutes: Emerging areas like synthetic biology and digital therapeutics pose a potential threat to traditional biotech offerings if successfully commercialized.
Competitive rivalry: Strong competition exists between major players for licensing deals, acquisitions and development of novel therapies in high growth segments like gene therapy.
SWOT Analysis
Strengths: Biotechnology offers novel solutions for diseases through targeted therapies and gene/cell therapies. Large companies have significant financial resources for R&D.
Weaknesses: Development cycles are long and outcomes uncertain requiring high capital investments. Dependence on partnerships/licensing for commercialization and marketing.
Opportunities: Growing aging population and demand for personalized medicine will drive the markets for biosimilars, vaccines and novel therapies. Regional expansion into emerging markets presents new opportunities.
Threats: Stringent regulations and lengthy approval processes. Dependence on reimbursement policies and pricing pressures in mature markets.
Key Takeaways
The Global Biotechnology Market Size is expected to witness high growth over the forecast period supported by increasing prevalence of chronic diseases. The global biotechnology Market is estimated to be valued at US$ 820.4 Bn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030.
North America currently dominates the market owing to presence of major players, availability of advanced healthcare infrastructure and higher healthcare spending. However, Asia Pacific is anticipated to be the fastest growing region due to growing geriatric population, rising disposable incomes, increasing investments in health care infrastructure and expansion activities of major biotech companies in the region.
Key players operating in the biotechnology market are Bausch Health Companies, Inc., Recordati Rare Diseases Inc., Lucane Pharma SA, Acer Therapeutics, Ultragenyx Pharmaceutical Inc., Aeglea BioTherapeutics, Arcturus Therapeutics Holdings Inc., Orpharma Pty Ltd., Selecta Biosciences, Inc., Abbott Laboratories, NESTLÉ S.A., DANONE S.A., and Mead Johnson & Company, LLC. These players are involved in new product launches, collaborations and acquisitions to strengthen their market position. For instance, in 2023, Moderna collaborated with Catalent for large-scale drug substance manufacturing of its mRNA vaccines and therapies.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
