Market Overview:
Biologics are medicinal products that are derived from living organisms and are used in therapeutic applications. Some common types of biologics include vaccines, blood components, allergenics, somatic cells, gene therapies, tissues, and recombinant therapeutic proteins. They offer several advantages over conventional small-molecule drugs such as high target specificity, lower toxicity levels, and effectiveness against complex diseases. The biologics market is growing due to the rising prevalence of chronic diseases, increasing healthcare expenditure, and growing adoption of biologics over conventional drugs due to their high efficacy and safety profile.
Market key trends:
One of the key trends in the biologics market is the rising R&D investments by pharma companies to develop novel biologics. Companies are investing heavily in developing sophisticated recombinant therapeutic proteins, monoclonal antibodies, and other advanced therapies to treat complex diseases. For instance, Novartis invested $9.7 billion in R&D in 2021, a significant portion of which was directed towards developing and commercializing biologic drugs. Similarly, AbbVie spent $7.5 billion on R&D in 2021 with a focus on immunology, oncology, virology, and neuroscience. Such heavy investments are anticipated to fuel the clinical pipeline of biologics and subsequent market revenue over the forecast period.
The global Biologics Market Demand is estimated to be valued at US$ 401.96 Bn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: The Biologics Market has significant barriers for new entrants owing to large capital requirements for R&D and manufacturing facility setup. Strict regulations by regulatory bodies also make market entry difficult.
Bargaining power of buyers: The bargaining power of buyers is low as biologics have limited substitutes for treatment of chronic diseases like cancer. However, price control measures by governments increases buyers power to some extent.
Bargaining power of suppliers: A few large players dominate the supply chain of active ingredients and other raw materials. This gives them significant influence over prices of supplied products.
Threat of new substitutes: Threat from new substitutes is moderate as innovative drug delivery methods and newer biologics continuously challenge existing products. However, substitutes require huge investments and time for development and commercialization.
Competitive rivalry: The market witnesses intense competition among top players to gain higher market share through new product launches and acquisitions.
Key Takeaways
The global Biologics Market is expected to witness high growth, exhibiting CAGR of 9.3% over the forecast period, due to increasing prevalence of chronic diseases and rising demand for targeted therapies.
Regionally, North America dominates the global Biologics Market owing to growing adoption of biologics and presence of major players in the region. Asia Pacific is expected to be the fastest growing market due to rising healthcare expenditures, increasing generics market, and improving access to healthcare facilities in emerging countries.
Key players operating in the Biologics Market are Novartis AG., AstraZeneca PLC., Bayer AG., Sanofi SA., Pfizer Inc., Merck & Co., Johnson and Johnson, GlaxoSmithKline PLC., Amgen Inc., AbbVie Inc., F. Hoffmann-La Roche AG., Eli Lilly and Company., and AGC Biologics. These players are focusing on new product launches, expanding manufacturing facilities and acquisitions to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it