The global biologics market size was worth USD 249.02 billion in 2019 and is expected to exhibit an 8.1% CAGR from 2020 to 2025.
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 also 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 growth rate of the market. Biologics have wide applications in the targeted therapies and help treat a variety of medical conditions when treatments unavailable. Gene-based and cellular biologics are major elements in biomedical research, which is expected to act as a favorable sign to the growth rate of the market.
Additionally, the rising scale of pharmaceutical companies across the world, growing initiatives of government organizations to spread awareness among people over the availability of different treatment procedures for the targeted diseases are further greatly influencing the growth rate of the market. Also, there is an increased efficacy for the oral products for various diseases 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. The rising geriatric population and increasing prominence to lower the cost of treatment procedures are also impelling the market demand. Also, people's preference for pills rather than injections is gearing up the growth rate of the market. 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 more effectively in early drug discovery.
The launch of innovative therapies with the latest technologies is anticipated to set growth opportunities for the market. Reduction in the demand for small molecule drug R&D activities is expected to promote the demand of the biologics market in the near future.
MARKET RESTRAINTS:
However, lack of proper knowledge over the utilization of biologics in the research centers and the complex regulatory structure by the government in approving the new products are some of the major factors hindering the growth rate of the market. Additionally, long-term use of biologics leads to certain problems such as changes in blood pressure, gastrointestinal complications, breathing problems, and others that are slowly hampering the market’s demand. Supervise treatment procedures with biologics require advanced technologies. This is quietly to restrain the demand of the market. The dearth of skilled people in laboratories to analyze the outcome is also limiting the growth rate of the biologics market. The high cost for installation and maintenance of the devices in laboratories is also impeding the demand of this market.
The manufacturing process of the biologics drugs is a little complex where that remains a big challenging factor for the biologics market to grow. Less turnover for clinical trials is declining the growth rate of the biologics market.
Impact of COVID-19 on the global biologics market:
COVID 19 pandemic has disrupted almost every sector in an unprecedented way. The novel coronavirus has been spreading at rapid speed since the WHO declared it as a pandemic. Most people infected by COVID 19 have mild symptoms such as cold, cough, fever, loss of smell or taste. It may yield severe heart failure symptoms, acute respiratory distress syndrome, and others for older people aged 65 to 70. The Biologics market has a decline growth rate in the initial months of 2020. The market was valued at USD 249 billion in 2019, where it was dropped 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. The number of patients infected with the coronavirus and getting treatment with biologics is very less. This is a major factor for the market to have a slow growth rate in 2020. By taking certain measures, all the activities were resumed in the hospitals and clinics. All the postponed treatment procedures were resumed in the last months of 2020, along with the treatment procedures using biologics.
REPORT COVERAGE:
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REPORT METRIC |
DETAILS |
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Market Size Available |
2019 to 2025 |
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Base Year |
2019 |
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Forecast Period |
2020 to 2025 |
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Segments Covered |
By Source, Product, Biologics Manufacturing Type, Disease Category and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East, and Africa |
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:
A microbial source has dominated the source segment and is expected to grow at the highest rate. Scientists have found a wide variety of beneficial applications that can be derived from microbial source biologics. This reason is a major contributing factor in this sub-segment.
A mammalian source has second place in this segment and is expected to grow at a reasonable growth rate but less than the microbial sub-segment. More research is going on in this field by scientists, and soon this source will have the same market share as microbial.
Biologics Market – By Product:
Based on the product, the monoclonal antibodies have dominated the biologics market in terms of revenue. They are 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 are beneficial in cancer management, treatment of autoimmune diseases, including rheumatoid arthritis.
Vaccines are anticipated to witness the fastest growth in the coming years owing to usage 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, and the development of biologics will be a key to the development of vaccines.
Biologics Market – By Biologics Manufacturing:
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 case of the world pandemic, and there might be problems in supply if dependent on others.
Biologics Market – By Disease Category:
Oncology accounted for the largest share due to the rising incidence of cancer coupled and to cure it. There is the presence of different R&D projects. These projects include gene therapies and antisense therapies for cancer eradication. The 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. The increase in the viral disease's negative impact has led to more investments in treating infectious diseases. It will soon take over the oncology sub-segment.
Immunological disorders, cardiovascular disorders, and hematological disorders have third, fourth and fifth places, respectively.
Biologics Market – By Region:
Geographically, North America is dominated concerning revenue generation due to significant established participants in this region. The North American region has the world's 80% research being done in healthcare biotechnology. Higher demand for the products for the treatment of diseases has increased the revenue share of this region.
Europe has the second largest market share and is expected to grow at a reasonable rate. The improvement of healthcare quality and the rise in disease cases have fuelled the growth in this region.
Asia pacific right now has the third-highest market share and is expected to have the highest growth in this field. Large population and high expected population growth have led to more investments in this science, thus boosting the biologics market.
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.
SOME OF THE RECENT HAPPENINGS IN THIS MARKET:
In August 2019, National Centre for Research and Development had funded Euro 6.7 Billion to Wroclaw-based pure Biologics, a biotech startup, for its PureBike project. The project focussed on developing an immuno-oncological drug that is 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 showing accurate results in the evaluation of cervical biopsies.
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