Biopharmaceuticals are medicinal products manufactured in or extracted from biological sources using biotechnology tools such as recombinant DNA technology or controlled gene expression methods. These products help treat various chronic and acute diseases like cancer, anemia, diabetes, autoimmune diseases, and infectious diseases. Biopharmaceuticals provide targeted therapy with fewer side effects compared to conventional small-molecule drugs.
Market key trends:
Biologics have revolutionized the treatment of various chronic diseases owing to their high specificity and efficacy. The development of cutting-edge antibody drug conjugates, bispecific antibodies, and cell and gene therapies have expanded treatment options for diseases like cancer. For instance, bispecific antibodies help fight cancer more effectively by engaging and activating T-cells at the tumor site. Cell therapies make use of modified cells, such as CAR-T cells, to precisely target cancer cells. With continuous technological advancements, biopharmaceuticals are increasingly gaining dominance over conventional drugs due to their high potency and safety profile. This is expected to propel market revenue growth over the forecast period.
Threat of new entrants: The Biopharmaceuticals Market Demand requires high investments in R&D activities and clinical trials, which poses as a significant barrier for new players.
Bargaining power of buyers: The presence of many substitutes increases the bargaining power of the buyers in this market.
Bargaining power of suppliers: Major suppliers like contract manufacturing organizations have control over the raw materials and their supply, thus maintaining high bargaining power.
Threat of new substitutes: Emerging technological advancements can potentially threaten the market with new substitute drugs.
Competitive rivalry: Intense competition exists among existing players to develop novel drugs.
Strengths: Continuous high demand for biopharmaceuticals and growing acceptance of biological therapeutics present key growth opportunities.
Weaknesses: High costs associated with R&D, clinical trials and production processes increase the product costs. Stringent regulatory norms add to compliance challenges.
Opportunities: Unmet clinical needs in the emerging markets and growing focus on personalized medicines will support future growth.
Threats: Price control policies and drug development & safety issues can negatively impact the industry.
The global biopharmaceuticals market is expected to witness high growth, exhibiting CAGR of 7.4% over the forecast period, due to increasing prevalence of chronic diseases and growing geriatric population. The market size is estimated to reach US$ 641.65 Bn by 2030 from US$ 371.26 Bn in 2023.
North America dominated the biopharmaceuticals market in 2021 owing to the presence of major players and high healthcare spending in the region. However, Asia Pacific is anticipated to grow at the fastest pace during the forecast period, with China, India, Japan, and South Korea emerging as highly lucrative markets.
Key players operating in the biopharmaceuticals market are Amgen Inc., Abbvie Inc., GlaxoSmithKline PLC, Pfizer Inc., Novo Nordisk AS, Novartis AG, Johnson & Johnson, Eli Lilly and Company, Bristol-Myers Squibb Company, and F. Hoffmann-La Roche Ltd., among others. Major players are focused on expanding their product portfolios through acquisitions and partnerships with novel drug developers.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it