The biotechnology market is estimated to be valued at US$ 820.4 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Market Overview: The biotechnology market includes products and services used in healthcare, food and agriculture. Increased spending on R&D for developing advanced diagnostics and therapeutics is a major driver. Biologics and bio-similar drugs are used extensively to treat various diseases. Stem cell therapy and gene therapy hold promise for future treatments. Additionally, GM crops improve agricultural yields. Market Dynamics: Several drivers are contributing to the growth of biotechnology market. Rising prevalence of chronic diseases is driving demand for advanced diagnostics and personalized medicine. The COVID-19 pandemic has highlighted the need for rapid disease diagnosis kits and effective vaccines. Biologics have become the primary treatment option for many indications like cancer, autoimmune disorders due to their targeted approach. Support from governments worldwide in the form of funding and regulatory clearances has boosted R&D activity. However, factors like high R&D costs, regulatory hurdles and intellectual property disputes act as challenges. SWOT Analysis Strength: The biotechnology market benefits from advancements in life sciences research and technologies that support treatment development. Government funding is increasing for research and development. It leverages biology and technology to develop innovative products and services to help improve patient care. Weakness: Biotechnology research requires huge capital investments and there are risks of project failures. Stringent regulatory approvals and ethical issues also impact product development timelines and costs. Access to healthcare and affordability of innovative treatments remain a challenge in many countries. Opportunity: The current pandemic has accelerated focus on developing vaccines, therapies and diagnostics. Growth opportunities exist in developing nations as incomes rise and access to healthcare improves. Areas like genetic engineering, drug discovery, regenerative medicine and personalized healthcare offer scope for new product pipelines. Threats: Pricing pressures can shrink profit margins of established products. Intense competition exists from generic drug makers and biosimilars. Regulations may become more stringent on safety, quality and ethical standards impacting compliance costs. Dependence on intellectual property rights makes the industry vulnerable to litigation and patent cliff risks. Key Takeaways The global biotechnology market is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing prevalence of chronic diseases and demand for cost-effective innovative therapies. North America holds the major share of the global biotechnology market currently and is expected to maintain its dominance during the forecast period owing to the presence of major players and availability of advanced technologies. Regional analysis: Europe accounts for the second largest market share globally supported by funding opportunities for Research & Development activities and availability of skilled workforce. Asia Pacific region is expected to grow at fastest CAGR during the forecast period due to increasing healthcare investments, expanding research infrastructure, rising incomes and demand for low-cost drugs and therapies. Key players: Key players operating in the biotechnology market are Abbott Laboratories, Amgen Inc., GlaxoSmithKline, Johnson and Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Inc., Roche, and Sanofi Aventis. The industry is fragmented in nature but these global players dominate through continuous innovation, licensing agreements, collaborations and mergers & acquisitions to gain technological leadership.
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