According to the deep-dive market assessment study conducted by Growth Plus Reports, the global biopharmaceuticals market was pegged at ~US$ 401.32 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of ~7.5% from 2022 to 2030.
Numerous advantages provided by biopharmaceuticals, as well as technological advancements, are propelling the biopharmaceuticals market forward. These products are extremely beneficial in the treatment of a variety of diseases, including infectious diseases, neurological disorders, and cancer. Biopharmaceuticals are extremely useful for the treatment of various neurodegenerative disorders because these disorders necessitate drug administration directly into the brain, which traditional medications do not allow. Further technological advancements are also assisting in the growth of this market. These advancements have increased the survival rate of patients suffering from serious diseases such as cancer and hepatitis.
The massive demand for biopharmaceuticals is aided by an increasing emphasis on R&D-related investments. According to the United Nations Educational, Scientific, and Cultural Organization (UNESCO) Institute for Statistics, the global R&D spending on biopharmaceuticals will reach a record high of US$~1.7 trillion in 2020. In addition, there is a growing need to avoid the side effects associated with some small-molecule therapeutics and invasive surgical treatments, which is driving up market demand for biopharmaceuticals.
The ongoing COVID-19 outbreak is expected to have a significant impact on the pharmaceutical industry globally. To develop vaccines against the SARS-CoV2 virus, the majority of biopharmaceutical companies put in a lot of effort. Using conventional immunizations like attenuated and inactivated vaccines are among the alternatives available to market players.The majority of vaccine candidates in development, however, are sophisticated protein subunit vaccines, RNA, and DNA. This factor is expected to increase demand in the global biopharmaceuticals market in the near future.
A leading trend that has been observed in the global biopharmaceuticals market is the increasing tendency of market players to outsource the production of biopharmaceutical drug substances to contract manufacturing organizations. This essentially helps market players reduce their investments in new product launches. Furthermore, emerging economies such as India and China are expected to provide lucrative growth opportunities to key players involved in the global biopharmaceuticals market for business expansion. However, one of the major factors impeding market growth is the high cost of biopharmaceutical drug production. Biopharmaceutical drugs are complex mixtures of whole cells or derivatives from human, plant, animal, or microorganism sources, resulting in an expensive biologic manufacturing process.
The rising prevalence of chronic diseases such as cancer, heart diseases, and obesity are driving the biopharmaceuticals market in North America. The increased number of COVID-19 clinical trials is expected to boost the North American biopharmaceuticals market. According to the Pharmaceutical Research and Manufacturers of America, nearly 1,750 clinical trials for the development of vaccines and drugs for the treatment of COVID-19 were in progress as of January 2021, with 420 clinical trials based in the United States. Additionally, Thermo Fisher Scientific Inc. invested nearly US$ 475 million in March 2020 to expand its biologics, cell and gene therapy, and drug product development facilities, as well as to expand its global commercial capabilities. Eli Lilly and Company agreed to acquire Dermira, a biopharmaceutical company, in January 2020. With the addition of Dermira's lebrikizumab, an IL-13 antibody intended for use in the treatment of moderate-to-severe atopic dermatitis, this acquisition aided the company's biopharmaceutical portfolio expansion.
Asia Pacific is the fastest growing regional segment of the biopharmaceuticals market owing to an increase in the number of people afflicted with diseases such as diabetes and cancer. Furthermore, the region has a favorable regulatory framework for biopharmaceutical approval, which drives the biopharmaceuticals market growth. Rising investment in the research and development of new biomolecular drugs, supportive government regulations, and an increasing preference for biopharmaceuticals-based treatment by a large population group are all driving the Asia Pacific biopharmaceuticals market forward.
Some of the key players operating the market global biopharmaceuticals market include Pfizer, Inc., F. Hoffmann-La Roche Ltd., AbbVie, Inc., Johnson & Johnson Private, Ltd., Novartis AG, Bayer AG, Abbott Laboratories Inc., Amgen Inc, Eli Lilly and Company, Biogen Inc., Biocon Ltd., Thermo Fisher Scientific Inc., hold significant market share in biopharmaceuticals and engage in various growth strategies such as acquisitions and collaborations to expand their product portfolios.