The global Biopharmaceutical market size accounted for USD 327.46 billion in 2022 and is estimated to achieve a market size of USD 1,101.77 billion by 2032 growing at a CAGR of 12.9% from 2023 to 2032.
The demand for biological drugs is growing with the increasing global prevalence of chronic diseases, such as cancer, diabetes, and cardiovascular diseases. In this regard, the growing geriatric population and prevalence of associated health issues and the booming demand for advanced biologic drugs are expected to create a healthy growth environment for the industry players.
Furthermore, the increasing number of clinical trials and high investments by companies in R&D activities on novel biologics and biosimilars are expected to boost the industry growth during the forecast period. The rising count of bio-based pharmaceutical product registrations for clinical testing and approvals, especially those created using new manufacturing technologies and platforms, is further expected to fuel the market growth.
Innovations are being brought about in cancer treatment and gene therapies, which are expected to unlock a massive potential for regenerative medicine. However, there are technological and operational challenges, mainly a lack of the capabilities to consistently produce biomolecules at an industrial scale.
The pandemic had a significant positive impact on the market, as many biotech companies were engaged in developing drugs and vaccines for COVID-19 treatment. Although, many countries were in lockdowns, which led to the suspension of trade with other countries and, in turn, a slight decline in industrial production around the world.
But, the International Federation of Pharmaceutical Manufacturers and Associations supported and continued conducting clinical research studies and trials, to ensure that despite the disruption in operational activities, biotherapeutic medicines and vaccines were supplied consistently.
Biopharmaceutical Market Report Scope
Report Coverage |
Details |
Market Size in 2023 |
USD 369.70 Billion |
Market Size by 2032 |
USD 1,101.77 Billion |
Growth Rate from 2023 to 2032 |
CAGR of 12.9% |
Base year |
2022 |
Forecast period |
2023 to 2032 |
Segments covered |
Product Type, Service, Raw Material Type, Application, Distribution Channel |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Key companies profiled |
Abbott Laboratories, Amgen, Inc., Biogen, Inc., Eli Lilly and Company, F. Hoffmann-La Roche, Ltd., Johnson & Johnson, Merck & Co., Inc., Novo Nordisk A/S, Pfizer, Inc., Sanofi |
Increasing R&D and Therapeutic Acceptance of Bio-Based Drugs Drive Market
As per a study, biopharma medicines have achieved widespread acceptance, ascribed to the Europe-wide average price reductions from nearly 8% for anti-TNF biosimilar products to 33–34% for erythropoietin and G-CSF biosimilars compared to before biosimilars for these drugs were introduced. Moreover, the efficacy and safety of bio-based drugs have led to their rapid adoption by people.
For 17 years till 2017, biopharma products observed more-accelerated and higher-priority approvals in the area of cancer therapeutics than others. As per a study, about 12 out of the 46 chemical entities in approved 2017 and 23 out of 55 chemical entities authorized for marketing in 2018 were anti-neoplastic agents. Thus, with the increasing number of approvals for bio-pharmaceutical products for malignancy therapeutics, the oncology category is expected to experience a tremendous growth rate during the forecast period.
Furthermore, various companies and institutes are focusing on R&D related to biological pharmaceuticals. The number of New Drug Applications (NDAs)/Biologic License Applications (BLAs) registered per year has increased significantly. In 2021, more than 60 agents were approved, compared to about 50 in 2019.
With the rising prevalence of infectious diseases, neurological disorders, and cancer, biopharmaceuticals are becoming increasingly important. Additionally, they are used for the treatment of neurodegenerative disorders, many of which require bio-medicines to be administered directly into the brain, which is not possible with traditional synthetic agents. Moreover, the technological advancements in bio-based drugs have helped increase the chances of survival for cancer patients, cure hepatitis, aid in the recovery of patients with arthritis, and transform treatment options for many other diseases.
Biopharmaceuticals Market Segmentation
By Product Type
Biopharmaceuticals Market By Application
North America Makes Largest Contribution to Global Revenue Generation
In 2022, North America was dominant, with a global revenue share of 47%, owing to the high R&D investments, growing adoption of technologically advanced solutions, presence of global players, and their efforts to come up with newer patents. The U.S. holds the major share in this region, which is followed by Europe and Asia-Pacific.
With the evolution of biotechnology and conventional pharma sciences, the awareness regarding the best treatments with lower side-effects has also increased. The U.S. leads the global biopharmaceutical R&D list with more than 150,000 studies conducted since 2008, because of the prominence and size of its pharmaceutical sector. Within the country, California accounts for the most studies, in part, because of its robust tech industry and desire for innovation.
Moreover, the U.S. biopharmaceuticals industry has produced more than half the world’s new molecules over the last decade, because of the well-supported intellectual property framework, investments, and government initiatives.
Thus, biopharmaceuticals market sales have shown an incredible growth over the past several years in the U.S. The country has been recognized as the innovation capital of the world for life sciences, and its government had put in capital investments since the early stages of pharmaceutical companies. Moreover, it is the biggest investor in healthcare due to its sizable population, established network of researchers, and expansive healthcare industry.
With regard to medical costs, the U.S. has a free-pricing marketing system. The U.S. prices of biologics are comparatively higher than in other countries, which allows biopharma firms to put in the high R&D funds on these drugs.
Some of the prominent players in the Biopharmaceutical Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Biopharmaceutical market.
Product Type
Service
Raw Material Type
Application
Distribution Channel
By Region