Biotechnology Market to Show Rapid Growth By 2028 Owing to Government Initiatives Towards Standardizing Clinical Studies And Improving Reimbursement Policies | Grand View Research, Inc.

May 02 18:14 2022
Biotechnology Market to Show Rapid Growth By 2028 Owing to Government Initiatives Towards Standardizing Clinical Studies And Improving Reimbursement Policies | Grand View Research, Inc.
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According to a new report published by Grand View Research, the global biotechnology industry is driven by favorable government initiatives owing to the growth of the biotechnology sector in developing countries, such as India and China.

The global biotechnology market size was valued at USD 752.88 billion in 2020 and is expected to reach USD 2.44 trillion by 2028, expecting to expand at a compound annual growth rate (CAGR) of 15.83% from 2021 to 2028. 

The market is driven by favorable government initiatives owing to the growth of the biotechnology sector in developing countries, such as India and China. Government initiatives are oriented towards modernizing the drug regulatory pathway, standardizing clinical studies, improving reimbursement policies, and speeding up the product approval process, thereby offering lucrative growth opportunities to the market. In addition, in 2019, small molecules dominated the pharmaceutical compounds pipeline with around 22 U.S. FDA approvals as compared to eight large molecules (biotech). Around 4 out of every 10 drugs are biotech derived, which can be attributed to the growing demand for orphan drugs and personalized medicine. This is driving the influx of emerging and innovative biotechnologies companies, further boosting the market revenue. 

Gather more insights about the market drivers, restrains and growth of the Global Biotechnology Market 

Moreover, agricultural-input companies are focusing on improving the existing technologies that include the development of new stacked traits in crops and new germplasm by breeding innovations and gene sequencing. Companies are focusing on bringing agricultural innovations to the market for improving productivity with sustainable solutions. For instance, in February 2020, BASF announced that by 2029, the company will launch more than 30 projects for developing novel seeds, traits, biological and chemical crop protection solutions, new formulations, and digital products. Hence, extensive use of biotechnology techniques essential to enhance agricultural products contributes to the market growth.

Germany biotechnology market size, by application, 2018 - 2028 (USD Billion)

Furthermore, the COVID-19 pandemic acts as a positive catalyst to market growth. Biotech companies are the frontrunners in the development of drugs targeting COVID-19. For instance, just after 8 months of the first case of COVID-19, Gilead Sciences, Inc. received the U.S. FDA approval for antiviral Remdesivir for the treatment of COVID-19 patients. 

In addition, expanding the involvement of the biotechnology industry with diagnostic companies, drug manufacturers, research laboratories, and multinational pharmaceutical companies for developing therapeutic molecules to target COVID-19 is contributing to the market growth. For instance, in March 2020, Pfizer Inc. entered into a collaboration with BioNTech SE for the development of BNT162, COVID-19 vaccine candidate. BioNTech SE developed the vaccine using mRNA technology for the rapid development of the COVID-19 vaccine. 

Biotechnology Market Segmentation 

Based on the Technology Insights, the market is segmented into nanobiotechnology, tissue engineering and regeneration, dna sequencing, cell-based assays, fermentation, pcr technology, chromatography and others.

  • Nanobiotechnology is expected to expand at a CAGR of 16.8% from 2021 to 2028 owing to increasing technological advancement in the field of nanotechnology. 
  • The integration of such AI and computing tools helps in quick and accurate DNA or RNA sequencing for increasing the availability of nanopore sequencing data.
  • The others technology segment held the largest share of 27.83% in 2020.
  • DNA sequencing held the second-largest share in 2020. The growth in the segment can be attributed to the rising adoption of advanced DNA sequencing. 

 

Based on the Application Insights, the market is segmented into health, food & agriculture, natural resources & environment, industrial processing, bioinformatics and others. 

  • The health application segment held the largest share of 48.64% in 2020 and this trend is expected to continue through the forecast period.
  • Increasing focus on agri-biotech and providing bio-services, rising adoption of bioinformatic solutions, and flourishing bio-industrial sector are contributing to the segment growth.
  • The bioinformatics application segment is expected to expand at the fastest CAGR of 21.2% from 2021 to 2028 owing to the increasing alliances to coordinate and advance the adoption of informatics tools. The companies will focus on treatment options other than replacement therapies that are commonly used for hemophilia treatment.

 

Based on the Biotechnology Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa 

  • North America accounted for the largest share of 44.19% in 2020. The growth of the regional market can be attributed to several factors such as the presence of key players, extensive R&D activities, and high healthcare expenditure.
  • Asia Pacific is expected to expand at the fastest growth rate of 16.8% from 2021 to 2028. The growth of the regional market can be primarily attributed to improving healthcare infrastructure, supportive government policies, clinical trial services, and epidemiological factors.

 

Market Share Insights: 

  • September 2020: F. Hoffmann-La Roche Ltd. completed the acquisition of Inflazome, an Irish biotechnology firm engaged in the development of inflammasome inhibitors.
  • February 2021: Biogen Inc. received the U.S. FDA for PLEGRIDY (peginterferon beta-1a) that is used for the treatment of relapsing forms of multiple sclerosis. 

 

Key Companies Profile:

The acquisition will give the company rights for Inflazome’s complete portfolio of the clinical and preclinical small molecule of NLRP3 inhibitors. 

Some prominent players in the global biotechnology market include 

  • AstraZeneca
  • Gilead Sciences, Inc.  
  • CELGENE CORPORATION
  • Biogen
  • Abbott
  • Amgen Inc.
  • Novo Nordisk A/S
  • Merck & Co.
  • Johnson & Johnson Services, Inc.
  • Novartis AG
  • Sanofi
  • F. Hoffmann-La Roche Ltd.
  • Pfizer, Inc.
  • Lonza 

 

Order a free sample PDF of the Biotechnology Market Intelligence Study, published by Grand View Research. 

About Grand View Research

Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services. 

Web: https://www.grandviewresearch.com

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