Biopharmaceutical Market Outlook
The Global Biopharmaceutical Market was estimated at USD 5,01,387.6 Million in 2021 and is anticipated to reach USD 17,96,708.2 Million by 2030, expanding at a CAGR of 14.9% during the forecast period.
Biopharmaceutical are medical drugs produced using biotechnology. These biopharmaceuticals are extensively used in the treatment of cancer, diabetes, cardiovascular diseases, immune diseases, and other diseases while providing targeted treatment.
Biopharmaceuticals are types of drugs made by extracting proteins and nucleic acids directly from biological sources with the help of biotechnology. Biopharmaceuticals comprise sugars, proteins, nucleic acids, living cells, tissues, and a complex combination of different components. These drugs are widely used in the manufacture and development of vaccines, blood components, body cells and tissues, allergenic, and living cells used in gene therapies, cell therapies, and recombinant therapeutic proteins.
Macro-economic Factors
Government Regulations
Government regulatory authorities such as the US Food and Drug Administration and the European Medical Agency are major agencies that authorize and approve biopharmaceutical formulations, which are safe and enhance the efficacy of the treatment.
The European Medical Agency grants marketing authorization to Nuvaxovid, a protein-based vaccine developed from recombinant nanoparticle technology, which is used for combating COVID-19 infection. The increasing regulations and approval of biopharmaceutical formulations from different types of pharmaceutical companies present a key aspect of market growth.
R&D Investment
Major biopharmaceutical companies are actively engaged in R&D by investing hundreds of dollars in several formulations, to meet the rising demand for biopharmaceutical formulations in the market. Biopharmaceutical companies conducted more than nearly 4,400 clinical trials in 2017 and spent more than USD 15 billion on research activities. The continuous R&D investment and ongoing clinical trials by biopharmaceutical companies are likely to create lucrative opportunities in the market.
Healthcare Spending
Healthcare spending in the majority of countries continues to rise across the globe, owing to rising investment in biopharmaceutical formulation. According to the International Federation of Pharmaceutical Manufacturers and Association, biopharmaceutical companies spent USD 179 billion in the year 2018, on their R&D activities.
The National Health Expenditure Accounts that the US healthcare spending grew 2.7% in 2021, reaching USD 4.3 trillion per person Government authorities and biopharmaceutical companies spent heavily on the development of vaccines for the safety and efficacy of the drug for the treatment of diseases such as cancer. The increasing spending on the development of vaccines and other biopharmaceutical drugs is a key factor boosting the market.
Biopharmaceutical Market Dynamics
Market Driver- Increase in Elderly Population
People above the age of 80 years are susceptible to illness, as they have low immunity and require a longer time to recover from illness. According to the World Health Organization (WHO), in 2020, the population above 80 years of age was higher than those of children. The elderly population with less immunity has a high chance of developing chronic conditions such as cancer and hypertension.
The WHO reported the incidences of cancer patients will increase by up to USD 27 million in 2030. An increase in chronic conditions among the elderly increases the demand for targeted therapies. Monoclonal antibodies are considered a targeted therapy for treating cancers among the elderly. Thus, an increase in incidences of cancer among the elderly is likely to drive the market.
Market Driver- Growing prevalence of cancer disease
The delayed diagnosis in cancer treatment results in an increase in the number of deaths among cancer patients. According to the WHO, cancer disease among patients accounted for nearly USD 10 million deaths in 2020. The mortality rate among cancer patients can decrease with early diagnosis and accurate treatment. Thus, the protein-based vaccine is used as a targeted therapy for the treatment of cancer diseases.
The increase in therapeutic efficacy offered by protein-based cancer vaccines directly targets cancer, which reduces death among cancer patients and enhances the quality of treatment. Thus, growing cases of cancer diseases boost the demand for biopharmaceutical formulations in the market.
Market Driver- Technological advancement
Biopharmaceutical drugs are extracted or semi-synthesized from biological sources such as human, animals, and micro-organisms. The production of biopharmaceutical drugs is a complex and time-consuming procedure. Thus, biopharmaceutical companies have adopted several technological and automation in the production process. Regeneron Pharmaceutical Inc introduced VelociSuite technologies, which improved the manufacturing process of human monoclonal antibodies.
Furthermore, the company launched a molecular vaccine technology center in 2021, which develops molecular vaccines for the treatment of cancer. This increases the adoption of technologies in the manufacturing of biopharmaceutical formulation, which is expected to propel the market.
Market Restraint- Less availability of skilled labors
Biopharmaceutical formulations are developed by the extraction process and recombinant DNA technologies. The production of biopharmaceutical medication requires skilled resources and technical expertise, owing to its complexity involved the production of biopharmaceutical.
Increasing cases of COVID-19 boosts the demand for biopharmaceutical companies. Limited availability of skilled resources, at manufacturing facilities, results in a shortage of biopharmaceutical drugs required for the treatment of COVID-19 patients. This, in turn, is limiting the market.
Market Opportunity- Rising Investments in Research & Development
Companies in the biopharmaceutical sector invest in research & development activities for the production of safe and advanced medication such as monoclonal antibodies and vaccine development. According to the International Federation of Pharmaceutical Manufacturers and Association, biopharmaceutical companies spent USD 179 billion on R&D in 2018. An increase in R&D spending boosts the sale of biopharmaceutical products in the market.
For instance, Regeneron Pharmaceuticals Inc. built the Molecular Vaccines Technology Center in 2021, a research platform for the development of molecular vaccines for oncology and infectious diseases. Thus, an increase in investment in such molecular vaccines center is expected to drive the market.
Scope of Biopharmaceutical Market Report
The report on the Global Biopharmaceutical Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Biopharmaceutical Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2015-2020
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Forecast Period
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2022–2030
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Segmentation
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Drug Class Type (Monoclonal antibodies, Interferon, Colony-stimulating factor, Erythropoietin, Insulin, Vaccines, Growth hormones, and Others), Application (Oncology, Diabetes, Cardiovascular, Hemophilia, Neurological Diseases, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered
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F. Hoffmann-La Roche Ltd, Amgen Inc., AbbVie Inc., Sanofi-Aventis, Johnson & Johnson, Pfizer, Novo Nordisk, Eli Lilly, Novartis, Merck, Bristol-Myers Squibb, GlaxoSmithKline, and many others.
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Biopharmaceutical Market Segmental Outlook
Based on drug type, the global Biopharmaceutical market is segmented into monoclonal antibodies, interferon, colony-stimulating factor, erythropoietin, insulin, vaccines, growth hormones, and others. The monoclonal antibodies segment is projected to expand at a 15.3% CAGR during the forecast period, owing to the wide adoption of monoclonal antibodies to treat chronic diseases, such as cancer and cardiovascular diseases.
The surge in R&D with respect to oncology drug development is anticipated to drive the Biopharmaceutical market for monoclonal antibodies. The interferon segment is expected to register high growth during the forecast period, due to the increasing prevalence of multiple sclerosis among patients worldwide. The growing development of novel interferon beta is a major factor, which in turn, drives the segment.
Based on application, the global Biopharmaceutical market is segmented into oncology, diabetes, cardiovascular, hemophilia, neurological diseases, and others. The Oncology segment is anticipated to expand at a 15.4% CAGR during the forecast period, owing to the technological advancements in bio-based drugs which increase the chances of survival for cancer patients.
The diabetes segment is projected to hold a share of the market at 21.6% during the forecast period due to the increasing prevalence of diabetes and rising initiatives by various health organizations to increase awareness about the disorder. The cardiovascular segment is expected to expand at a 14.7% CAGR during the forecast period.
The rising prevalence of cardiovascular diseases along with growing investments and research in efficient drug development, in turn, drives the segment. The other segment includes HIV, rare diseases, and autoimmune diseases. The segment is projected to hold a 19.3% share of the market during the forecast period due to the rise in the prevalence of neurological diseases and the increase in the adoption of Biopharmaceuticals.
Biopharmaceutical Market Regional Outlook
On the basis of regions, the global Biopharmaceutical market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in North America is projected to expand at a 15.2% CAGR during the forecast period due to the rising prevalence of chronic diseases and increasing investments in R&D activities in the US.
The market in Europe is expected to expand at a 14.7% CAGR, owing to the expanding healthcare sector along with increasing awareness about the effectiveness and availability of Biopharmaceutical among patients. The market in Asia Pacific is expected to grow at a rapid pace during the forecast period. The rising chronic diseases and the growing geriatric population are major factors projected to fuel the market share of the region.
Latin America is anticipated to hold a 6.0% share of the global market, owing to the surge in the prevalence of chronic diseases such as cancer and diabetes, and the increase in the adoption of biopharmaceutical. The market in the Middle East & Africa is projected to expand at a substantial pace, due to the enlarging population and increasing cases of malnutrition in the regions.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Biopharmaceutical Market
- Historical, Current and Projected Market Size in terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Biopharmaceutical Market Performance
Segments
By Drug Class Type
- Monoclonal antibodies
- Interferon
- Colony-stimulating factor
- Erythropoietin
- Insulin
- Vaccines
- Growth hormones
- Others
By Application
- Oncology
- Diabetes
- Cardiovascular
- Hemophilia
- Neurological Diseases
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Key Market Players Profiled in the Report
Competitive Landscape
- Manufacturers operating in the Global Biopharmaceutical Market include F. Hoffmann-La Roche Ltd, Amgen Inc., AbbVie Inc., Sanofi-Aventis, Johnson & Johnson, Pfizer, Novo Nordisk, Eli Lilly, Novartis, Merck, Bristol-Myers Squibb, GlaxoSmithKline, and many others.
- Market Players are pursuing key strategies such as acquisitions, collaborations, and geographic expansion where a potential opportunity arises for the Biopharmaceutical Market.
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