Number of pages: 100-120 | Report Format: PDF | Published date: 20 July, 2022
Historical Years – 2018 & 2019 | Base Year – 2020 | Forecasted Years – 2021 to 2031
The global biotechnology market was pegged at ~US$ 1,032.92 billion in 2021 and is expected to witness a CAGR of 13.0% during the forecast period.
Biotechnology is a branch of science that develops or creates products from biological systems, living creatures, or elements derived from them. Biotechnology now encompasses many disciplines, including biochemistry, genetics, and molecular biology. Biotechnology is the application of living organisms, specific organisms, and microbes, to create a variety of solutions that benefit humans. It is a synthesis of various techniques used to study living cells, including biological, arithmetic, biochemistry, and engineering.
The COVID-19 pandemic is expected to have a long-term impact on the industry. Several biotech companies have increased their investment in research for the development of vaccines and drugs, which has boosted the industry's growth.
Factors driving the overall biotechnology market include the introduction of consistent new and advanced technologies, significant investments and government initiatives promoting the biotechnology industry, and rising demand for synthetic biology applications. Government assistance in the development of biotechnological infrastructure is also helping to drive market growth. For instance, India's Union Budget 2021-22 included US$ 227.94 million provisions for biotechnology R&D, as well as plans to establish nine biosafety level-3 laboratories across the country. Likewise, initiatives such as Illumina Accelerator are propelling market growth by providing access to seed investment, genomics expertise, and Illumina sequencing systems and reagents to selected emerging companies.
However, ethical concerns about clinical trials are expected to hinder the market growth. Drug clinical trials consist of a series of tests designed to generate information about the effects, safety, and side effects of the drugs. These trials are only carried out after sufficient information about the drug has been gathered. However, a lack of regulations in some areas has resulted in a large number of deaths in the recent years. Additionally, faulty clinical trial practices such as lack of observation, non-disclosure of drug trial risks, and trials conducted without permission from authorized bodies have added to the ethical concerns of these trials.
The global biotechnology market has been analyzed from four perspectives: by product type, technology, application, and region.
Biotechnology Market by Product Type
On the basis of product type, the global biotechnology market has been segmented into instruments, reagents, and software & services. During the forecast period, the software and services segment is expected to dominate the global biotechnology market. Biotech software includes imaging, bioinformatics, patient management systems, laboratory management software, diagnostic and decision-making systems, and other solutions. The increasing use of such software is driving the segment's revenue growth. The reagents segment showed the fastest growth during forecast period. Chemicals or compounds used in biotechnology to identify or create another substance in order to obtain a test result are referred to as reagents. Areas such as research, diagnosis, biology, genetics, bioscience, and immunology all use reagents. Reagents are widely used in technologies such as in-vitro diagnostics (IVD), cell culture, flow cytometry, spectrometry, polymerase chain reaction (PCR), chromatography, expression and transfection, and electrophoresis, and have applications in immunophenotyping, DNA analysis, fluorescent microscopy, and cell cycle analysis.
Biotechnology Market by Technology
Based on technology, the global biotechnology market has been segmented into DNA sequencing, fermentation, nanotechnology, cell based assay, and others. During the forecast period, the nanotechnology segment is expected to dominate the global biotechnology market. The investment in R&D is a critical component driving the growth of the nano-biotechnology segment. During the forecast period, the segment will be driven by rising demand for treatments for essential diseases. Additionally, nanotechnology has the potential to revolutionize medicine and cancer treatment.
Biotechnology Market by Application
Based on application, the global biotechnology market has been segmented into bio-pharmacy, bio-industry, bio-services, bio-agriculture, and bio-informatics. The bio-pharmacy segment dominated the global biotechnology market and is expected to continue this trend throughout the forecast period. The rising prevalence of diseases is primarily responsible for the segment's expansion. The resultant, rising demand for medicines and drugs is propelling the bio-pharmacy segment of the biotechnology market forward. Bio-informatics, on the other hand, is expected to grow at a rapid pace during the forecast period. Significant advancements in the fields of Artificial Intelligence (AI), machine learning, and big data are also expected to increase the penetration of bioinformatics applications. Moreover, rising demand for nucleic acid and protein sequencing, rising initiatives from private and public sector organizations, propelling the growth of proteomics and genomics, and rising research on molecular biology and drug discovery are all growth factors for the bio-informatics segment.
Biotechnology Market by Region
Asia Pacific is expected to develop at the fastest growth rate during the forecast period. Increased investments and improvements in healthcare infrastructure, favorable government initiatives, and expansion strategies from key market players are all contributing to the regional market's growth. For instance, in February 2022, Moderna Inc. announced plans to expand its commercial network in Asia by establishing four new subsidiaries in Malaysia, Singapore, Hong Kong, and Taiwan. Additionally, biopharmaceutical collaborations, such as Kiniksa Pharmaceuticals and Huadong Medicine's strategic collaboration in Asia Pacific for the development and commercialization of Kiniksa's ARCALYST and mavrilimumab, are expected to drive market growth.
Some of the key players operating the market global biotechnology market include
These market players are trying to grow their market share through various marketing strategies such as new product launches, investments, partnerships, and mergers and acquisitions.