The global biotechnology market is growing at a significant CAGR of around 6.1% during the forecast period (2020-2026). The market is driven by the growing healthcare spending and increase in demand for food security. With the growing demand for food security, the demand for genome editing tools has been significantly increasing to improve crop yield. Genome editing tools is considered as an advanced biotechnological method that allows accurate and efficient targeted modification of an organism’s genome. It can be implemented on a wide range of plant species to improve agricultural traits and characterize gene functions. These factors offer growth to the biotechnology in crop production and agriculture application.

Moreover, the market growth is attributed to the increasing application of synthetic biology in a wide range of sectors and increasing investments in the field of synthetic biology. The companies are using synthetic biology for accelerating the search for potential COVID-19 vaccine. For instance, Synthetic biology company, Ginkgo Bioworks is bringing its R&D experience into the fight against the spread and is speeding up the development of a vaccine by working together with the different teams who are working on an inoculation. The company in March 2020 announced to collaborate with researchers at the Department of Bioengineering of Stanford University and use its DNA design and synthesis capabilities for building DNA that will enable researchers to express these viral proteins (on which the vaccines against COVID-19 rely). This assist in the growth of the synthetic biology, which in turn, will offer growth to the biotechnology market during the forecast period.

Segmental Outlook  

The biotechnology market is classified on the basis of technology and application. Based on technology, the market is segmented into DNA sequencing, cell-based assay, nanobiotechnology, tissue engineering and regeneration, fermentation, and others. Based on application, the market is segregated into healthcare, crop production and agriculture, industrial processing, natural resources & environment, and others. 

Global Biotechnology Market Share by Application, 2019 (%)

Global biotechnology market is driven by its rising application in healthcare

Biotechnology finds significant application in healthcare application. The biotechnology deals with the study of genes. From the various global research, it has been found that the field of biotechnology is getting greatly dependent on the tissue diagnosis. The progress of modern research in medical areas such as diffuse lung disease and cancer ultimately requires access by researchers to great quality specimens of human tissue including bodily fluids. Many organizations are now involved in collecting, processing, distribution, and storage of human tissues to aid investigators in biomedical research. This has led to remarkable developments in the field of medicine.

Regional Outlook 

The global biotechnology market is classified on the basis of geography, which includes North America, Europe, Asia-Pacific, and Rest of the World. North America holds a significant share in the global biotechnology market. The US plays the critical role in geographic contribution of North America in global biotechnology market, attributing to the substantial number and amount of funding for crop gene-editing technology. According to FSA (Federation of American Scientists), NIH had sanctioned funds with a value of approximately $267.0 million, $603.2 million, $947.5 million, and $1,155.4 million in 2015, 2016, 2017, and 2018 respectively for the gene modification-related research activities and projects. Footprints of the major market players in the US are supporting the dominance of North America in the market by investing a significant amount in the R&D activities. Further, gene modification is also actively pursued in the developed agriculture industry of European countries and advanced economies of Asia-Pacific with the aid of research activities. 

In addition, a huge funding for the development and commercialization of devices based on PCR technologies coupled with high per capita healthcare expenditure is a key factor to drive the growth of this regional market. For instance, in November 2018, Illumina Ventures had made an investment of around 17 million in Series A funding in a US-based digital PCR firm, Stilla Technologies to avail the funds to commercialize the Naica digital PCR system of the firm. Therefore, the rising for molecular diagnostics is expected to spur the growth of the biotechnology market in North America.

Global Biotechnology Market Growth, by Region 2020-2026

Asia-Pacific is expected to propel with a considerable growth rate in the global market

Asia-Pacific is estimated to project a considerable CAGR in the global biotechnology market. Countries in Asia-Pacific that are contributing to the market growth include China, India, and Japan. Increasing population and the rising demand for healthcare and the prevalence of cancer in the Rest of Asia-Pacific countries are driving the growth of the market in this region. The countries have started to enhance their market by setting up biotech parks for the production of innovative drugs. The nation has already established a $380 million Biomedical Translation fund in 2017 to enable the development and commercialization of biomedical discoveries. In addition, the research activities in the SMBs biotechnology companies are developing at a rapid pace. There are more than 1,000 such entities nationwide at present, and more than 30% of them are privately owned. Special governmental funds are also available to promote this type of entrepreneurship.

Market Players Outlook

The key players in the biotechnology market are contributing significantly by providing advanced technology-based products and through expanding their geographical presence across the globe. The key players operating in the global biotechnology market include Amgen Inc., Novo Nordisk A/S, CSL Ltd., Bristol-Myers Squibb Co., AstraZeneca PLC, Merck & Co., Inc., Johnson & Johnson Services Inc., and Pfizer Inc. These market players adopt various strategies such as product launch, partnerships, collaborations, merger, and acquisitions to sustain a strong position in the market. 

The Report Covers

• Market value data analysis of 2019 and forecast to 2026.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global biotechnology market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.