The global biologics market is projected to grow at a CAGR of 12.19% to reach US$735.219 billion by 2027, from US$328.617 billion in 2020. The market is majorly driven by the rising financial investments from the key market players, the growing burden of chronic diseases such as cancer and autoimmune diseases, and the increased demand for innovative therapies. According to the world health organization, cancer is the most common cause of death worldwide, accounting for nearly 10 million deaths in 2020. The increasing consumption of tobacco and alcohol, obesity, low fruit and vegetable intake, and lack of physical exercise are expected to increase the cases of cancer in the coming years.
The rising geriatric population across the globe is also projected to increase the demand for biologics. Moreover, the driving investments in research and development of biologics are expected to have a positive impact on the overall market growth. The increasing adoption of innovative treatment therapies such as monoclonal antibodies, Recombinant-DNA technology, therapeutic proteins & vaccines has increased the focus of biotechnology and pharmaceutical companies on the development of biologics. Additionally, many firms are investing heavily in their research and development activities or manufacturing facilities. Goldman Sachs has invested around $150 million in Biocon biologics which will help the company’s research and development facility and high-quality manufacturing. Invetx invested USD 15 million in Series A financing and collaborated with WuXi Biologics and AbCellera. This will help the company to develop protein-based therapeutics for Animal Biopharmaceutical Development.?
Rising prevalence of chronic disease & Growing demand for generic drugs along with an increase in the production of vaccines
One of the prime reasons which are supporting the growth of the market is the rising prevalence of chronic diseases such as diabetes, asthma, cancer, auto-immune disease, etc. Due to the rising cases of chronic disease, there is an increased demand for biological medicines. Additionally, the increase in the production of vaccines for providing immunization against Covid-19, Dengue, Malaria, and Chikungunya across the globe is driving the growth of the global biologics market. Moreover, the rising population has increased the demand for generic drugs in countries like India, China, and the US. For instance, Yangtze River, which is a pharmaceutical company in China has submitted its first marketing application for eslicarbazepine acetate, a class 3 generic medication used to treat epileptic patients. Many countries are working in collaboration with each other for the development of vaccines and medical technology for the treatment of COVID-19 patients. Additionally, rising investments by the key market participants in their biologic facilities will further add to the market growth. For instance, Novartis AG invested around USD 700 million in their biologic facility in Singapore. Bristol-Myers Squibb has invested nearly USD 900 million in an Irish large-scale biologic’s facility.
Based on application, the global biologics market is segmented into oncology, neurology, cardiology, haematology, autoimmune diseases, infectious diseases, and others.
The growing number of deaths due to cancers worldwide and the increasing research and development activities in treating cancers are key factors to drive the growth of the biologics market for oncology in the future. Also, the comparative lesser side effects of biologic treatments over the traditional radiation and chemotherapies in certain types of cancers is another prominent cause to project the market growth of biologics in the oncology segment. Additionally, with developments, a variety of biological treatments are available to treat several types of cancers, which can be another strong cause for the growth of the future biologics market for the oncology segment.
As per the World Health Organization (WHO), cancer is the leading cause of death worldwide, amounting to 10 million deaths alone in the year 2020 or nearly 1 in 6 deaths. Such a colossal number of casualties worldwide due to cancers is expected to increase the oncology activities on a global scale. Also, a variety of biological treatments like immunotherapy, gene therapy, adoptive cell transfer, bio-chemotherapy, and so forth are available worldwide to detect and cure cancers. For instance, immunotherapy, a type of biological treatment for cancer, can treat a wide variety of cancers including the commonly occurring cancers like lung, breast, and skin cancers. Also, as opposed to chemotherapy, immunotherapy trains the immune system to detect, recognize and eliminate cancerous cells rather than destroying cancerous and non-cancerous cells, which is the principle of chemotherapy. In another instance, according to John Hopkins University, a new study concluded that immunotherapy treated Merkel cell carcinoma, an aggressive form of skin cancer, more effectively with better survival rates. Also, Cancer Research Institute (CRI), announced in February 2022, the publication release of the global landscape of clinical development of drugs targeting immune PD1/PDL1 checkpoints. The key findings of the report stated that there was an increase of 278% in the number of clinical trials conducted worldwide, which currently stands at 5,683 trials. Additionally, an estimated number of approx. 1.1 million patients will be treated by gene therapy, a kind of biological therapy, between January 2020 to December 2034. Also, the expected peak annual spending of USD 25.3 billion and a total estimate of USD 306 billion globally for the 2020-2034 period. Such key developments along with the advantages offered by biologics in oncology are expected to increase the global market share of biologics in the oncology segment.
The market was relatively resilient to the impact of COVID-19, negligibly reducing its growth potential. It is projected that the market reached a size of US$328.617 billion in COVID-19 hit 2020, corresponding to its potential estimate of US$337.846 billion under the No COVID-19 scenario. The robust outbreak of the virus and its exponential spread among the masses resulted in the implementation of nationwide lockdown and convergence of hospitals and clinics into COVID-19 wards. The diagnosis and testing of numerous chronic diseases were temporarily halted, giving preference to testing and treatment of the COVID-19 virus. Furthermore, people refrained from stepping out of the house, especially making a visit to hospitals and clinics, in case of a non-emergency situation. This resulted in a lower diagnosis of chronic disease potential cases, particularly oncology and neurology diseases cases, than the expected diagnosis and hence lower increased demand for their biologicals. National Cancer Institute reported that the discovery of new cancer cases in 2020 fell to 21.7 million from 22.1 million in 2019.
Furthermore, a lower general vaccination rate as well impacted the potential of the market. UNICEF reports that due to the robust outbreak of the virus, the children's vaccination rate fell by 13.86% in 2020 to 23 million from 26.7 million in 2019. Moreover, supply chain constraints and availability of raw materials also hampered the market to realize its full potential during the spread of the COVID-19 virus.
|Market size value in 2020||US$328.617 billion|
|Market size value in 2027||US$735.219 billion|
|Growth Rate||CAGR of 12.19 from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Product Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Hoffmann-La Roche AG, Amgen Inc., AbbVie Inc., Novo Nordisk A/S, Johnson & Johnson, Takeda Pharmaceutical Company, Alexion Pharmaceuticals, Samsung Biologics, UCB S.A., Merck & Co. Inc, Eli Lilly and Company, Sanofi SA|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global biologics market?
A1. Biologics Market was valued at US$328.617 billion in the year 2020.
Q2. What will be the biologics market size by 2027?
A2. The global biologics market is projected to reach a market size of US$735.219 billion by 2027.
Q3. What are the growth prospects for the biologics market?
A3. The biologics market is projected to grow at a CAGR of 12.19% over the forecast period.
Q4. What factors are anticipated to drive the biologics market growth?
A4. The biologics market is majorly driven by the rising financial investments from the key market players, the growing burden of chronic diseases such as cancer and autoimmune diseases, and the increased demand for innovative therapies.
Q5. How is the global biologics market segmented?
A5. The biologics market has been segmented by product type, application, and geography.
Hoffmann-La Roche AG
Novo Nordisk A/S
Johnson & Johnson
Takeda Pharmaceutical Company
Merck & Co. Inc
Eli Lilly and Company
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