The global biopharmaceutical market is expected to grow at a CAGR of around 7.3% from 2020 to 2027 and expected to reach the market value of around US$ 535 Bn by 2027.
The biopharmaceutical sector involves research, discovery, testing, and manufacturing of medicines and therapeutics that cure disease and improve patient health. Biopharmaceuticals are the substances that are produced using living organisms, such as microorganisms and animal cells, and have a high therapeutic value. These large and complex molecular drugs are known as biologics and biotech drugs.
Research and development activities bolster the growth of biopharmaceuticals
Scientific and technological advances fuel the development of new treatments and cure for the patients. The nation's innovative biopharmaceutical research companies remain committed to bring new and important treatment options to patients and are consistently working to introduce new efficiencies in the R&D process. As per the reports revealed by the Pharmaceutical Research and Manufacturers Of America (PhRMA), members alone invested an estimated US$ 58.8 Bn in R&D in 2015 and have invested more than half a trillion since the past. Additionally, the biopharmaceutical sector represents the single largest share of business R&D accounting for approx. 17% of all R&D spending by US businesses. Innovative biopharmaceutical companies are increasingly incorporating the patient perspective into all stages of drug development, involving patient insights on their diseases, symptoms, and treatment option with a strong support of collaboration between the companies. America's innovative biopharmaceutical companies collaborate with academic researchers, the National Institutes of Health (NIH), the FDA, nonprofit patient and disease groups, clinical research organizations, clinical trial centers, health care providers, venture and other private capital investors, among others.
High government involvement propels the growth of biopharmaceutical market globally
The Biopharmaceutical Development Program (BDP) develops, manufactures, and provides novel biological agents for early-phase clinical trials. These program offers leading-edge development and analytical technologies for antibodies, recombinant proteins, peptide and DNA vaccines, virus vaccines and oncolytic viruses, gene therapy products, and other biological and immunomodulating agents. For instance, on March 2020, The International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) confirmed that the biopharmaceutical industry commits to accelerate its efforts to use its skills, technology and resources to bring safe, effective diagnostics, treatments, and vaccines to patients worldwide as a matter of urgency for responding to COVID-19 pandemic. Moreover, Karnataka Innovation and Technology Society, a registered society with the brand name K-Tech under the Department of Information Technology,Biotechnology and Science and Technology is facilitating and promoting the Information Technology (IT) and Biotechnology (BT) sectors in the state by organizing as well as participating in Trade shows, Conferences, Symposia, Seminars held at National and International levels etc. This enables to project the State and its potential for investments, implementation of its policies and programs, assisting industries in getting quick clearances, administering incentives and concessions announced in State policies. Such factors highly support the growth of global biopharmaceutical market globally.
The global biopharmaceutical market is segmented based on product and application. By product, the market is segmented as monoclonal antibody, interferon, insulin, growth and coagulation factor, erythropoietin, vaccine, hormone, and others. By application, the market is segmented as oncology, blood disorder, metabolic disease, infectious disease, cardiovascular disease, neurological disease, immunology, and others.
Based on product, monoclonal antibody is expected to register significant market share in the forecast period. Successful utility of monoclonal antibody and antibody derivatives in therapeutics acts as a major driver for the growth of global biopharmaceutical market. Therapeutic application of monoclonal antibody involves treatment for rheumatoid arthritis, multiple sclerosis, cardiovascular diseases, and others. Furthermore, by application segment, oncology segment is projected to dominate the global biopharmaceutical market in the coming years.
North America dominates the biopharmaceutical market and is expected to continue the similar trend in the coming years. As per the reports revealed by the Information Technology & Innovation Foundation, the US leads the world in life science in terms of innovation. Till 2016, the US headquartered enterprises accounted for 42% of new chemical and biological entities introduced and approved globally. Moreover, pharmaceutical companies invested 40% more in US than in Europe. This has resulted in US becoming the world's largest funder of biomedical R&D investment over the past two decades and a share by some analysts have estimated around 80% high. This contributed to an unprecedented era of life sciences innovation and creation of jobs in the US. The biopharmaceutical companies have invested over half a trillion dollars in R&D, while more than 350 new medicines have been approved by the Food and Drug Administration (FDA). Furthermore, The International Trade Administration (ITA), the US is the largest market for biopharmaceuticals, accounting for one-third of the global market and is the world leader in biopharmaceutical R&D. More than 800,000 people work in the biopharmaceutical industry in the United States across a broad range of occupations, including scientific research, technical support, and manufacturing. The US attracts the majority of global venture capital investments in start-up biopharmaceutical enterprises.
On the other hand, Asia Pacific is expected to record fastest growing CAGR in the forthcoming years. Among APAC region, China is the dominant country focusing on biopharmaceutical development. Key developments involve building large scale and high-throughput genome sequencing technology and equipment, massive biological information processing and analysis technology. Moreover, construction of public technology service platform to build a large scale biological resource pool and the core platform of the biological information center, build networked national biological resources and biological information service facilities, strengthen the deep exploration of genetic information, and promote the development of new sequencers. The Chinese Government has implemented drug regulatory system and its approval system. This ultimately results in high consumption of the products and also ensures the production of high quality Chinese produced drugs that other nations will import. This is highly supported by the International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use (ICH). Both the U.S. Government and U.S. industry encouraged this move to international standards.
The prominent players of biopharmaceutical market involve Abbott, Amgen Inc., Biogen Inc., Eli Lilly and Company, F. Hoffmann-La Roche AG, Johnson & Johnson Services, Inc., Merck Sharp & Dohme Corp., Novo Nordisk A/S, Pfizer Inc., Sanofi, and others
Market By Product
Growth and coagulation factor
Market By Application
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
Biopharmaceutical market is expected to reach a market value of around US$ 535 Bn by 2027.
The biopharmaceutical market is expected to grow at a CAGR of around 7.3% from 2020 to 2027.
Based on product, monoclonal antibody segment is the leading segment in the overall market.
Research and development is one of the prominent factors that drive the demand for biopharmaceutical market.
Abbott, Amgen Inc., Biogen Inc., Eli Lilly and Company, F. Hoffmann-La Roche AG, Johnson & Johnson Services, Inc., Merck Sharp & Dohme Corp., Novo Nordisk A/S, Pfizer Inc., Sanofi, and others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years