Biotechnology Market Growth & Trends
The global biotechnology market size is expected to reach USD 3.88 trillion by 2030, registering a CAGR of 13.96% over the forecast period, according to a new report by Grand View Research, Inc. The market is driven by factors including the advent of innovative and advanced technologies, significant investments & government initiatives favoring the biotechnology industry, and rising demand for synthetic biology applications. Biotechnology startups are acquiring robust funding support and venture capital investments, which, in 2021, amounted to USD 41 billion; an increase of over 11% as compared to the previous year’s USD 36.7 billion. Notable funding rounds included Caris Life Sciences’ $830 million in May 2021 for its precision medicine platform expansion, Abogen’s $700 million Series C funding in August 2021 for its COVID-19 vaccine candidate’s clinical development, & ElevateBio’s $525 million Series C funding in March 2021 for advancing its cell & gene therapy technologies.
In addition, 28 new biotech unicorns were created in 2021, leading to a total of 192 unicorns present in the sector. Government support for the development of biotechnological infrastructure is also contributing to market growth. For instance, India’s Union Budget 2021–22 consisted of a provision of USD 227.94 million for biotechnology R&D, along with plans for the setting up of nine biosafety level-3 laboratories in the country. Furthermore, initiatives, such as Illumina Accelerator, are providing access to seed investment, genomics expertise, and Illumina sequencing systems & reagents to selected emerging companies and propelling the market growth.
Due to the COVID-19 pandemic, novel solutions are being explored in the development of vaccines & diagnostic tools for combating the disease. For instance, the advent of mRNA vaccines was supported by cutting-edge technologies in the biotechnology sector, including molecular research tools & genetic sequencing methods that accelerated the timelines for vaccine development. Furthermore, in March 2022, the Diagnostic Analyzer for Specific Hybridization (DASH), a highly sensitive and easy-to-perform PCR test for COVID-19, received FDA emergency use authorization. The test is commercialized by Minute Molecular Diagnostics and can deliver results within 15 minutes. Such advancements in molecular diagnostics are expected to fuel market growth.
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Biotechnology Market Report
Biotechnology Market Report Highlights
- The health application segment accounted for the largest share of 50.69% in 2022 due to high disease prevalence, increasing focus on regenerative medicines, innovations in technologies fueled by the COVID-19 pandemic, and improvements in healthcare infrastructure
- The DNA sequencing technology segment held a significant market share of 16.51% in 2022 as a result of declining costs of sequencing and rising penetration of advanced DNA sequencing techniques
- North America accounted for the largest share of 41.63% in 2022. The regional market is witnessing growth due to several factors, such as the presence of key players, extensive R&D activities, and high healthcare expenditure.
- Asia Pacific is expected to expand at the fastest growth rate of 18.17% from 2023 to 2030 due to promising government initiatives and favorable regulatory changes in drug approval processes in India and China
