Biopharmaceuticals are medications or therapeutic agents that are produced from living cells and organisms using genetic engineering and recombinant DNA technology. They are used to treat complex chronic diseases such as cancer, autoimmune disorders, infectious diseases, and rare genetic disorders. The increasing prevalence of chronic diseases globally and high disease burden of cancer are driving the demand for biopharmaceuticals. Additionally, extensive R&D activities and steady rise in investments in drug discovery and development is accelerating the growth of the biopharmaceuticals market.
The global biopharmaceuticals market is estimated to be valued at US$ 457.63 Bn in 2023 and is expected to exhibit a CAGR of 9.4% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increased investments and funding in R&D activities by pharmaceutical companies and governments is one of the major trends being witnessed in the biopharmaceuticals market. Biopharmaceutical drug development requires immense capital and long development cycle and thus steady rise in investments is crucial for innovation and development of novel therapeutics. For instance, according to the Pharmaceutical Research and Manufacturers of America (PhRMA), the biopharmaceutical industry's research and development investment in the U.S. reached US$ 83 billion in 2021, up from US$ 82 billion in 2020. This continued focus on R&D is expected to boost the clinical research and development of advanced biologics and novel therapeutic proteins in the coming years.
The global biopharmaceuticals market is segmented by product, application and end user. Based on product, the market is segmented into monoclonal antibodies, therapeutic proteins, and vaccines. Among these, monoclonal antibodies dominated the market in 2020, accounting for a largest market share. This is mainly due to the rising prevalence of chronic diseases and increasing usage of monoclonal antibodies for treatment of various cancer and autoimmune diseases.
The Global Biopharmaceuticals Market Size is expected to witness high growth.
Regional analysis: The North American region currently holds the largest share of the global biopharmaceuticals market and is expected to maintain its dominance over the forecast period. This is attributed to rising research activities for development of novel biologics, increasing usage of biosimilars, and presence of major players in the region.
Key players operating in the biopharmaceuticals market are Accenture, Teleperformance SE, Infosys Limited (Infosys BPM), WNS (Holdings) Ltd., HCL Technologies Limited, AMDOCS, CBRE Group Inc., Sodexo, NCR Corporation, TTEC Holdings, Inc., Wipro Limited, and Capgemini. Accenture currently dominates the market, owing to its strong product portfolio and global footprint across various countries.