by Biotechnology involves the use of living systems and organisms to develop or make products, or “any technological application that uses biological systems, living organisms, or derivatives thereof, to make or modify products or processes for specific use” utilizing techniques as diverse as genetic engineering, protein engineering, molecular engineering, bioprocessing, enzymology and Fermentation. Biotechnology products include human and animal therapeutics, vaccines, gene therapies, diagnostics tests, genetically modified crops and biological industrial products. As an enabling technology, biotechnology helps develop new and improved products across various industry verticals including pharmaceutical, agriculture, industrial processing and bioenergy.
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, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Gene therapy has emerged as a key trend in the biotechnology market over the recent years. Gene therapy involves modification of genes within cells and tissues to treat and potentially cure disease. It aims to replace, modify or supplement defective or missing genes to prevent or treat a genetic disorder. Advancements in gene therapy is driving significant growth in the biotechnology market as it offers potential treatment for various inherited and acquired diseases. Some key developments in gene therapy include approval of Luxturna gene therapy for treatment of inherited retinal disease by FDA in 2017, approval of Zolgensma gene therapy for spinal muscular atrophy by FDA in 2019 and approval of Kymriah and Yescarta as first CAR-T cell immunotherapies for certain types of leukemia and lymphoma. Expanding clinical research in gene therapy for various conditions such as Alzheimer’s disease, Parkinson’s disease, diabetes, cancer and heart diseases is expected to propel significant growth of the biotechnology market over the forecast period.
Porter’s Analysis
Threat of new entrants: Low barriers to entry in biotechnology market enable startups and new businesses to enter easily. However, established players have significant resources and competitive advantages.
Bargaining power of buyers: Large pharmaceutical companies have significant bargaining power over biotech firms due to their resources and scale of operations.
Bargaining power of suppliers: Biotechnology companies have bargaining power over suppliers of core raw materials and machinery due to specialized nature of inputs.
Threat of new substitutes: New technological advancements in gene therapy and regenerative medicines pose threat of substitution to existing biotech products and services.
Competitive rivalry: High as the market comprises of many global and local players competing on basis of innovation, quality, and pricing.
Key Takeaways
The Global Biotechnology Market Size is expected to witness high growth.
Regional analysis comprises North America dominates the global market due to sizeable investments in R&D.
Key players operating in the biotechnology are Bausch Health, Pfizer, F. Hoffmann-La Roche Ltd, Johnson & Johnson, Merck, Gilead, Amgen, AstraZeneca, AbbVie, Novo Nordisk.
