The interdisciplinary and innovative field of biotechnology encompasses many aspects, like the utilization of organisms and biological processes. It helps in the production of products that can potentially benefit humanity. This is a type of engineering of organisms and has had many advancements in recent times.
Due to this, this scientific field is vital in developing eco-efficient and profitable products. One look at the recent biotechnology market size & growth analysis report, and you will know how big the industry is.
One of the key reasons behind this is the various application of biotechnology that helps achieve industrial sustainability. This has been helpful not only in industrialization but also in agriculture, aquaculture, etc.
Source: Mckinsey
This growth was even steady during the COVID-19 pandemic when most other industries were struggling. It is also one of the reasons that biotech stocks have been a center of attention for a while now, although not without risks.
With the global biotechnology market expanding at a record rate, it is wise to have a look at the current market size and growth.
Current Biotechnology Market Size & Growth Analysis Report
In 2020, the global biotechnology market saw astounding growth and reached a value of USD 497 billion. In 2021, the estimated value stood at USD 793.87 billion.
With an expected CAGR growth rate of more than 9.4% between 2021 and 2027, this provides much scope for the ongoing development. Many subareas of biotechnology can benefit from this, especially molecular biology.
This is also the driving force behind the recent advancements in metabolomics, genomics, and proteomics.
Source: GmInsights
At the rate the market is growing at the moment, it is not impossible to speculate that by 2030, the growth could reach around USD 1,683.52 billion. This will impact various applications within the biotechnology market, such as bio-industries, bio-pharmacy, bio-agriculture, tissue engineering and regeneration, nanobiotechnology, etc.
Source: PrecedenceResearch
In addition to this, the rising application of biotechnological products in both agriculture and industrial sectors has also contributed to the growth.
The Impact of COVID-19 on the Market
When discussing the biotechnology market size & growth analysis report, it is impossible not to bring up the COVID-19 topic. The pandemic had a massive role in expanding the biotechnology market worldwide. The primary reason for this is the importance of biotechnology companies in developing vaccines and medications for the virus.
Can you guess how long it took for Gilead Sciences, Inc. to get FDA approval for Remdesivir, the anti-viral treatment for COVID-19?
Only eight months!
This is just one aspect, though. The increased market collaboration with diagnostic centers, research organizations, and multinational pharmaceutical corporations was also a driving force behind this exponential growth.
Another instance is the collaboration between Pfizer Inc. and BioNTech SE in March 2020 for research on BNT162, a vaccine candidate for COVID. The combined work of Pfizer’s antigen technology and BioNTech’s proprietary mRNA technology has created new standards in vaccination for the COVID-19 virus. Even in the second half of 2022, millions and millions of dollars are being invested in further research and clinical trials.
However, it has not been all sunshine and cakewalk!
Even if the pandemic had a negative impact on the global biotech market for a short period, it helped boost the market eventually. The entire global economy was forced to shut down, disrupting the supply-chain network. Also, restrictions on raw materials and imposed transportation limitations were hampering the advancements majorly.
But the good news is that the biotechnology market has come around and is taking over the world with its new scientific endeavors. Getting huge funding from investors has also helped accelerate the research and discovery process for new medications, treatments, and vaccines.
Other Important Factors Behind the Biotechnology Market Growth
Apart from COVID-19, increased awareness about the wide application of biotechnology in recent times has been one of the primary driving factors. There have been tremendous improvements in aspects like nutrition of animals and humans, development of medicines and drugs, and environmental protection. According to current market dynamics, the improvements in agriculture will also play a crucial role in taking the market forward.
Source: GmInsights
1. Favorable Government Policies
All biotech products need to meet the necessary guidelines and standards set by the regulatory bodies. In the USA, the major federal agencies that are involved in monitoring this are:
- The US Environmental Protection Agency (EPA)
- The US Department of Health and Human Services’ Food and Drug Administration (FDA)
- The US Department of Agriculture (USDA)
- Animal and Plant Health Inspection Service (APHIS)
In addition to these, the Co-ordinated Framework for Regulation of Biotechnology by the White House Office of Science and Technology Policy also plays a key role. This regulation was proposed in 1984 and has been active since 1986, and is one of the primary federal policies to exist in the US today.
Furthermore, the country has proposed an updated regulatory system for the biotechnology sector with new regulations and compliances. So, while the FDA is responsible for monitoring the safety and effectiveness of various pharmaceutical products, and food products; EPA regulates pesticides and everything related to plants.
Moreover, the APHIS, with its Biotechnology Regulatory Services (BRS) program, monitors the advancement of genetic engineering and its impact on the population.
So, in short, the change in regulations is an essential factor for the growth of the biotechnology industry.
2. New Technological Improvements
Agriculture is another sector where advancements have contributed to the growth of the biotechnology market. As new techniques are being developed and implemented to increase productivity, crop quality and yields have increased.
It also simplifies the working process for farmers allowing them to manage the work in lesser time.
Simultaneously, the health sector has equally benefitted from technologies like 3D bioprinting, genome modification, and new drug developments. The industry also has the potential for developing synthetic tissue and replacing organs like the liver and heart completely using cellular modifications.
Furthermore, other advancements include the implementation of biosensors, which can be a milestone in the journey to monitor personal health.
Each biosensor can scan biosignatures, like blood pressure, body temperature, and pulse. Examples of this would be pregnancy detectors and glucose monitoring sensors.
3. Increased Medical Application of Fermentation Technology
One of the biotechnology market areas that witnessed significant growth has been the fermentation segment. Thanks to this technology, it is possible to achieve better and more eco-friendly outputs at a lesser cost. This has majorly boosted the production of medical products, like antibiotics, probiotics, ethanol, etc.
The newer generation of fermentation products also includes therapeutic recombinant protein, anti-viral drugs, and even DNA. Also, developing commercial products, like medical devices and diagnostic kits, has been possible due to this.
4. Rising Number of Chronic Disorders
The average US adult is susceptible to many chronic conditions today, with about 51.8% of the population suffering from at least one chronic disease. About 27.2% of US citizens are prone to multiple chronic diseases.
This is not just a problem in the US but all over the world. As the World Health Organization has set new goals in their annual World Health Statistics Report, the importance of the biotechnology sector cannot be denied.
With the rising acceptance of biopharma products across the globe, and innovations coming along the way, even untreatable conditions can be improved. In addition, these products also come with an assurance of safety, which has been favorable for the market.
Scope and Application of Biotechnology in Different Industries
As the latest and most important field of applied science in the 21st-century world, biotechnology or biotech includes various science and technology. This includes the application of mathematics, law, chemistry, physics, engineering, and of course, biology.
Simultaneously, the inclusion of genetic engineering in biotechnology provides scope for developing therapeutic drugs and proteins. Additionally, manufacturing advanced seeds, pesticides, and even human cell modification is possible with the help of biotechnological advancements. Hence, the field offers many scopes for the improvement of human lives.
One such recent noteworthy advancement would be that of the CRISPR-Cas9 technology, which allows genome modification. This has been particularly fruitful in developing vaccines for the COVID-19 virus.
Apart from that, other advancements have been in plant tissue culture, medicines, enzymes, and transgenic production in plants and animals. Even the scope for developing monoclonal antibodies and gaining better pollution control are mentionable.
Frequently Asked Questions
1. Is the biotechnology market big?
The global biotechnology market is vast and still growing at an exponential rate. According to recent market research, the market was expected to grow to USD 1006.68 billion in 2021 alone. In the United States, the current biotechnology market value stands at USD 140.8 billion.
2. Which is the largest market for biotechnology?
Health-related applications and biopharmaceuticals are the dominating sectors of the biotechnology market. The biotechnology sector has many segments, like PCR technology, fermentation, DNA sequencing, tissue engineering, nanotech, etc.
However, biotechnology has penetrated the healthcare systems the most, thanks to disease management and molecular diagnostics.
3. What is the current market growth for biotechnology?
The biotechnology market size was around USD 752.88 billion in 2020 and was estimated to grow at 8-15% CAGR between 2021 and 2028. With the current scenario, the industry could potentially reach up to USD 1,683.52 billion by 2030.
4. What are the factors for the growth of the biotechnology market?
Government initiatives working in favor of the biotechnology market and increased market demand are the primary reasons behind the growth. Also, new advancements in synthetic biology and increased investment in research and development have helped the biotechnology market.
Conclusion
As new technologies are evolving, the importance of biotechnology is becoming more prevalent. This also raises the demand for better data management and interpretation to handle all the massive generated data. Simultaneously, the growing demand is likely to maintain a positive impact on the biotechnology market.
Although it is not without its challenges, the recent growth analysis report proves that it can overcome them. However, factors like the value chain, end-user analysis, competition mapping, and other macro and microeconomic factors across regions and countries will influence the market.
But for now, it can be said that the biotechnology market is a promising field that is not looking to slow down any time soon.
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Gracie Johnson is a Senior Content Writer at MyTechMag. She is an enthusiastic learner and loves to explore all the areas of technology.
