Biopharmaceuticals Market Overview
The global biopharmaceuticals market size is projected to reach $278.2 billion by 2020, growing at a CAGR of 9.6 during the forecast period. Increasing prevalence of chronic diseases, increasing R&D investment, growing aging population and technological advancements in biopharmaceuticals are the major growth drivers of the market.
Based on type, the biopharmaceuticals market is categorized as monoclonal antibodies, vaccines, colony stimulating factor, recombinant proteins, interferon, recombinant human insulin, erythropoietin, growth hormones, purified proteins, and others. The monoclonal antibodies segment held the largest share in global market in the historical period and it is projected to hold a market share of 25% by 2020. The recombinant human insulin segment is expected to witness the fastest growth during the forecast period.
Based on application, the biopharmaceuticals market is divided into oncology, inflammatory and infectious diseases, metabolic disorders, neurological disorders, cardiovascular diseases, and others. The oncology segment accounted for the largest share in the global market in the historical period and it is projected to hold a market share of 29% by 2020. The segment is also expected to witness the fastest growth during the forecast period.
Geographically, North America dominates the global biopharmaceuticals market, due to increasing prevalence of chronic diseases and aging population in the region. In addition, the increasing R&D investments and increasing technological advancements are also driving the growth of the market in the region. The technological advancements in biopharmaceuticals, such as, improved efficiency to act against specific target areas help in the efficient treatment of cardiovascular, neurological, cancer, oncology, and various other chronic diseases. These advancements in biopharmaceuticals have further improved the quality of healthcare, increased longevity, and reduced incidence of diseases in the North American region.
Biopharmaceuticals Market Dynamics
Biopharmaceutical companies are dependent on contract manufacturing organizations to produce biopharmaceutical drug substance, which helps in reducing investments for a new product launch. This inclination towards outsourcing is gaining popularity and has become a key trend in the global biopharmaceuticals market.
Biopharmaceuticals are extremely helpful in the treatment of infectious diseases, neurological disorders, and cancer. Also, they are used for the treatment of neurodegenerative disorders that requires drug to be administered directly into the brain, which is not possible through the traditional method. Biopharmaceuticals, such as engineered nerve growth factors and interferons, are used for the treatment of neurodegenerative disorders. The technological advancements in biopharmaceuticals have transformed treatment options for many diseases in the recent years and have been driving the growth of the biopharmaceuticals market. The technological advancements in biopharmaceuticals help to increase the chances of survival for cancer patients, curing hepatitis and recovery of patients with arthritis.
The high cost of biopharmaceuticals is a key restraint, which is adversely impacting the growth of the global biopharmaceuticals market. Biopharmaceutical products are costly, as its manufacturing process requires the use of living organisms. The production, isolation, and usage of living organisms involving recombinant DNA technology for biopharmaceutical drug production, is a complex process and demands skilled workforce, which adds to the cost of biopharmaceuticals. In addition, factors such as requirement of high investments and their long development time is further restraining the growth of the global biopharmaceuticals market.
Biopharmaceuticals Market Competitive Landscape
The key companies operating in the global biopharmaceuticals market include Eli Lilly and Company, Sanofi, AbbVie Inc, Abbott Laboratories, Pfizer Inc., Novartis AG, AstraZeneca PLC, Bristol-Myers Squibb Company, Amgen Inc. and Biogen Idec.