Biologics Market Set for Rapid Growth Due to Rising Chronic Disease Burden

 

Biologics Market

Biologics refer to medicines derived from living organisms that help in treating various chronic conditions like cancer, inflammation, cardiovascular disorders, and more. They are produced using biotechnology and predominantly include monoclonal antibodies, vaccines, cell therapies, and gene therapies. The demand for biologics is high given they provide targeted treatment effects with minimal side effects compared to traditional drugs.

The global biologics market is estimated to be valued at US$ 463.06 billion in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the biologics market are Novartis AG; Pfizer Inc; Dickinson & Company; Smith’s Medicals; Roche Diagnostics; AstraZeneca; Bayer AG; GSK Biologicals; Samsung BioLogics; Merck & Co., Inc.; Eli Lilly and Company; Hoffmann-La Roche Ltd; AstraZeneca. Novartis AG and Roche Diagnostics currently account for over 25% of the global biologics market share driven by their strong product portfolios that include blockbuster products for specialty indications. The industry is witnessing significant opportunities due to advances in bioprocessing technologies that allow for improved yields and lower production costs. Companies are investing in building capacities to commercialize pipelines of complex Biologics Market Demand like gene therapies that hold huge potential given conditions like cancer are hard to treat without advanced modalities.

The global expansion of key players in the biologics industry has also been noteworthy. Factors like new product approvals in regional markets, strategic partnerships and acquisitions, expanding manufacturing capacities are enabling companies to increase access and cement their positions internationally. For example, Novartis acquired pharmaceutical company The Medicines Company for $9.7 billion in 2020 allowing it to strengthen its cardiovascular portfolio globally. Meanwhile, Roche doubled its biologics drug capacity by building a new $1.5 billion facility in Singapore over 2020-2021.

Market Drivers and Restraints

The rising prevalence of chronic diseases across the world due to sedentary lifestyles and growing geriatric population constitutes a key driver for the biologics market. Biologics Companies offer effective targeted treatment for conditions that have limited options with conventional drugs. For instance, monoclonal antibodies have revolutionized cancer treatment. Additionally, advantages of biologics like high specificity and minimal side effects compared to other drugs are propelling their demand. Continuous innovations resulting in the development of advanced biologics like bispecific antibodies with enhanced potency are further fueling revenue growth.

However, factors like the high development costs of biologics, stringent regulatory norms and complex manufacturing processes continue to restrain market potential to a degree. Significant investments required for setting up large scale facilities poses entry barriers as well. Manufacturing and supply chain complexities associated with biologics also increase prices limiting affordability especially in developing regions. But ongoing government support and investments from big pharmaceutical players are expected to help overcome such challenges over the forecast period.

Segment Analysis

The biologics market can be segmented based on product type into monoclonal antibodies, vaccines, recombinant proteins/insulin, and other biologics. The monoclonal antibodies segment currently dominates the market due to the increasing demand for effective therapies for cancer and autoimmune diseases. Monoclonal antibodies help in treating diseases like rheumatoid arthritis, multiple sclerosis, psoriasis, and cancer by targeting specific cells or proteins. The recombinant proteins/insulin segment is also expected to grow at a steady rate during the forecast period owing to the rising prevalence of diabetes, especially in developing nations.

Global Analysis

Regionally, North America is projected to hold the largest share of the biologics market during the forecast period. This is attributed to the growing need for biosimilars as well as the presence of major biologics manufacturers in the region. The Asia Pacific region, on the other hand, will experience the highest growth rate due to rising healthcare expenditure, rapid urbanization, large population base, and increasing healthcare awareness. Moreover, improving R&D facilities and the presence of developing economies like China and India are also fueling the market growth in this region. Additionally, initiatives undertaken by government organizations for promoting biologics research will support the regional market expansion through 2031.

 

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)