Biologics Market

Biologics Market Size (2022 to 2027)

As per our analysis report, the global biologics market size was worth USD 269.1 billion in 2021 and is expected to exhibit an 8.1% CAGR from 2022 to 2027. The market is estimated to be worth USD 429.4 billion by 2027 from USD 290.9 billion in 2022.

A biologic is a component derived from the living organism and is made up of living organisms, and these products are derived from humans, animals, and microorganisms using biotechnology. These products represent cutting-edge research and enable the latest scientific discoveries. Such discoveries can be translated into novel therapies that provide new treatment options for patients. Key players in the market focus on collaborations and partnerships to commercialize biologics drugs and gain a competitive edge in the global market.

MARKET DRIVERS:

The growth of the global biologics market is majorly driven by the factors such as government initiatives, steps to develop innovative techniques, Y-O-Y growth in the incidence of chronic diseases, growing healthcare expenditure, and rising prevalence to promote excellent treatment procedures.

Increasing acceptability of innovative therapies and rising demand for biologic drugs with an increasing number of patent expiries are expected to favor the market's growth rate. Biologics have wide applications in targeted therapies and help treat various medical conditions when treatments are unavailable. In addition, gene-based and cellular biologics are significant elements in biomedical research, which is expected to be a favorable sign for the market's growth rate.

Additionally, the rising scale of pharmaceutical companies worldwide and the growing initiatives of government organizations to spread awareness among people over the availability of treatment procedures for the targeted diseases are further greatly influencing the market's growth rate. Also, there is an increased efficacy for the oral products of various illnesses such as Crohn’s and rheumatoid arthritis, pulling patients to adopt novel treatment procedures. This is enhancing the growth rate of the biologics market eventually. Furthermore, the rising geriatric population and increasing prominence of lowering the cost of treatment procedures also propel the market demand. Also, people's preference for pills rather than injections boosts the market's growth rate. Technological advancements are also expanding the growth rate of the market. For instance, Eli Lilly and Pfizer adopted Amazon’s Elastic Compute Cloud (EC2) platform to conduct simulation models in early drug discovery effectively.

Launching innovative therapies with the latest technologies is anticipated to set growth opportunities for the market. On the other hand, a reduction in the demand for small molecule drug R&D activities is expected to promote the demand in the biologics market soon.

MARKET RESTRAINTS:

Lack of proper knowledge over the utilization of biologics in the research centers and the complex regulatory structure of the government in approving the new products are hindering the growth rate of the global biologics market.

Additionally, long-term use of biologics leads to specific problems such as changes in blood pressure, gastrointestinal complications, breathing problems, and others that slowly hamper the market’s demand. Furthermore, supervising treatment procedures with biologics require advanced technologies. This is quietly to restrain the demand of the market. The absence of skilled people in laboratories to analyze the outcome also limits the growth rate of the biologics market. The high cost for installation and maintenance of the devices in laboratories also impedes the demand of this market.

The manufacturing process of the biologics drugs is a little complex, and that remains a significant challenging factor for the biologics market to grow. In addition, less turnover for clinical trials is declining the growth rate of the biologics market.

Impact of COVID-19 on the global biologics market:

The COVID-19 pandemic has disrupted almost every sector in an unprecedented way. The novel coronavirus has been spreading rapidly since the WHO declared it a pandemic. Most people infected by COVID 19 have mild symptoms such as cold, cough, fever, and loss of smell or taste. However, it may yield severe heart failure symptoms, acute respiratory distress syndrome, and others for older people aged 65 to 70. As a result, the Biologics market has a declining growth rate in the initial months of 2020. The market was valued at USD 249 billion in 2019, dropping to USD 239 billion in 2020. The primary reason for the declined growth rate is to lock down restrictions and ban flights. As the treatment procedures using biologics are postponed or canceled, the market shares have reduced suddenly. As a result, the number of patients infected with the coronavirus and getting treatment with biologics is significantly less. This is a significant factor in the biologics market's slow growth rate in 2020. All the activities were resumed in the hospitals and clinics by taking specific measures. All the postponed treatment procedures were continued in the last months of 2020, and the treatment procedures used biologics.

REPORT COVERAGE:

This research report on the global biologics market has been segmented and sub-segmented based on source, product, biologics manufacturing type, disease category, and region.

Biologics Market – By Source:  

• Microbial
• Mammalian
• Others

Based on source, the microbial source segment dominated the biologics market in 2021 and is expected to grow at the highest rate. This is because scientists have found many beneficial applications derived from microbial source biologics, which is a major contributing factor in this sub-segment.

The mammalian source segment had second place in the biologics market and is expected to grow at a healthy CAGR during the forecast period. However, scientists have more research in this field, and soon this source will have the same market share as microbial.

Biologics Market – By Product:

• Monoclonal Antibodies
• Vaccines
• Recombinant Proteins
• Antisense, RNAi, & Molecular Therapy
• Others

The monoclonal antibodies segment dominated the global biologics market in terms of share, based on the product in 2021, and is expected to have high growth due to their higher usage in different therapeutic areas. Monoclonal antibodies allow the targeting of unhealthy cells without harming healthy cells. These drugs benefit cancer management and treat autoimmune diseases, including rheumatoid arthritis.

The vaccine segment is anticipated to witness the fastest growth due to its use as a preventative tool in infectious diseases. In the current time, when a world is suffering from a deadly virus, there is an immediate need for an effective virus. Therefore, the development of biologics will be a key to developing vaccines.

Biologics Market – By Biologics Manufacturing:

• Outsourced
• In-house

Manufacturing is a part of the significant steps of biologics production and comprises a substantial share of the biologics market. It has two segments, 'Outsourced' and 'In-house.' Companies are opting to manufacture biologics in their plants, and thus, In-house is dominating the market. Companies are engaged in investing in their bioprocessing capabilities. The companies are investing more in their plants to increase their commercial manufacturing capacity. The rising population has forced the countries to be self-sustained, as in the world pandemic, and there might be problems in supply if dependent on others.

Biologics Market – By Disease Category:

• Oncology
• Infectious Diseases
• Immunological Disorders
• Cardiovascular Disorders
• Hematological Disorders
• Others

Based on the disease category, the oncology segment accounted for the largest share in the global biologics market due to the rising incidence of cancer and cure. In addition, there is the presence of different R&D projects. These projects include gene therapies and antisense therapies for cancer eradication. Oncology also had the second-highest growth rate among all other sub-segments. The advantages of cancer therapy are a significant reason.

The infectious disease sub-segment has the second largest market share. However, the increase in the viral disease's negative impact has led to more investments in treating infectious diseases. As a result, it will soon take over the oncology sub-segment.

Immunological, cardiovascular, and hematological disorders have third, fourth, and fifth places, respectively.

Biologics Market – By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Geographically, the North American biologics market dominated the global biologics market in 2021 due to significant established participants in this region. In addition, the North American region has 80% of research being done in healthcare biotechnology. As a result, higher demand for the products for the treatment of diseases has increased the revenue share of this region.

The European biologics market was the second-largest regional market in 2020 and is expected to grow reasonably. The improvement of healthcare quality and the rise in disease cases have fuelled the growth in this region.

The Asia Pacific biologics market is expected to be at the fastest rate during the forecast period and is considered the most lucrative region for biologics in the global market. In addition, the significant and high expected population growth has led to more investments in this science, thus boosting the biologics market.

The Latin America Biologics market is estimated to be growing at a healthy CAGR during the forecast period. It is further expected to be driven by such factors as increased capital investment by major market players coupled with increased support and initiatives from governments of various countries worldwide for the development and implementation of biologics. Regarding biologic medicines, particularly biosimilars, Latin America offers many options. Because Latin America has a high level of awareness and growth in biosimilars, local and multinational pharmaceutical companies are keen to enter the market to investigate, produce, and commercialize locally and internationally. Biologic medicines are being used to treat diseases including cancer and autoimmune diseases, and their rising success rate prompts big pharmaceutical firms to invest in their development and commercialization. Insulin, granulocyte colony-stimulating factor (G-CSF), erythropoietin, and human growth hormone were the first biosimilar medicines to hit the market in Latin America. Later, interferon and monoclonal antibodies appeared in the region. The market for monoclonal antibodies is still in its infancy and requires additional growth. Because these products' prices are higher than those in the traditional biologics market, the biosimilars market will grow throughout the penetration phase.

The MEA biologics market size is expected to showcase a healthy growth rate during the forecast period. There is an increase in High Throughput Screening (HTS) technology in the Middle East and Africa for various drug development processes. For example, the technology identifies threads to discover an inhibitor of Middle East Respiratory Syndrome (MERS). This factor is attributed to fueling the growth rate of the biologics market in the MEA region.

KEY MARKET PARTICIPANTS:

Johnson & Johnson (J&J), F Hoffmann-La Roche, Bristol-Myers Squibb, GlaxoSmithKline, AbbVie, Amgen, Sanofi, Eli Lilly and Company, Merck & Co., and Pfizer Inc. are some of the dominating companies in the global biologics market.

RECENT HAPPENINGS IN THIS MARKET:

• In August 2019 - National Centre for Research and Development funded Euro 6.7 Billion to Wroclaw-based pure Biologics, a biotech startup, for its PureBike project. The project focused on developing an immuno-oncological drug useful to treat triple-negative breast cancer (TNBC). 
• In September 2019 - BioCare Medical LLC, a leading provider of immunohistochemistry (IHC) instrumentation and reagents, announced the launch of p16INK4a, a new mouse monoclonal antibody. It is cost-effective and shows accurate results in the evaluation of cervical biopsies.