Biopharmaceuticals Market Poised for Significant Growth, Driven by Demand for Targeted Therapies, 2024-2028

The Global Bio-pharma Market is set to expand at a CAGR of 7.98%, with an estimated growth of USD 204.09 billion between 2023 and 2028. The rising prevalence of chronic diseases such as cardiovascular conditions, autoimmune disorders, and metabolic syndromes is fueling demand for biologic drugs. These pharmaceuticals, derived from biological sources like bacteria, yeast, and mammalian cells, offer targeted treatments with fewer side effects than traditional small-molecule drugs. Advances in genomics and molecular diagnostics further enhance the development of innovative therapies, particularly in oncology, where biologics have emerged as a preferred treatment option.

For more details about the industry, get the PDF sample report for free

Market Segmentation and Growth Factors

By Product:

• Monoclonal Antibodies: This segment is projected to dominate the market, with high-priced drugs offering life-saving treatments for conditions like cancer and autoimmune disorders. In 2018, it was valued at USD 151.68 billion, with strong growth expected due to increasing disease incidence.
• Recombinant Growth Factors: Essential in regenerative medicine and tissue engineering, these play a key role in wound healing and treating hematological conditions.
• Vaccines: The demand for recombinant and mRNA-based vaccines continues to rise, driven by infectious disease outbreaks and preventive healthcare measures.
• Recombinant Hormones: Widely used in endocrinology, these address conditions like diabetes and growth hormone deficiencies.
• Others: This includes biosimilars, blood factors, and gene therapies, contributing to the market’s diversification.

By Application:

• Oncology: The largest application segment, fueled by increasing cancer cases and the need for precision medicine.
• Autoimmune Disorders: Diseases like rheumatoid arthritis and multiple sclerosis are driving demand for targeted biologics.
• Metabolic Disorders: With rising diabetes and obesity rates, biologics offer new treatment avenues.
• Hormonal Disorders: Treatments for conditions like hypothyroidism and growth deficiencies contribute to segment expansion.
• Others: Neurological diseases and infectious conditions are also benefiting from biopharmaceutical advancements.

Regional Market

North America (42% Market Share Contribution)

• United States: Growth is propelled by high healthcare expenditure, an aging population, and widespread adoption of biologics in oncology and autoimmune disease treatment. The presence of leading pharmaceutical players, including Merck KGaA, Pfizer Inc., Amgen Inc., and Bristol Myers Squibb Co., further accelerates innovation.
• Canada: A growing biosimilar market and supportive regulatory environment encourage new biologic drug development.

Europe

• United Kingdom: Increasing R&D investments and biosimilar adoption drive growth.
• Germany: Home to major biopharma firms, the country remains a key innovation hub.
• France: Government support for biologic research and cancer treatment advancements fosters market expansion.

Asia

• China: Rapid healthcare infrastructure improvements and investments in biologics manufacturing contribute to market growth.
• India: Strong generic and biosimilar production capabilities support affordability and access to biopharmaceuticals.

Rest of the World (ROW)

• Brazil & Argentina: Expanding pharmaceutical manufacturing and biologic drug accessibility are key drivers.
• Australia: Government-backed biotech initiatives and partnerships fuel market expansion.

Market Drivers

Rising Prevalence of Chronic Diseases

The increasing incidence of cancer, metabolic disorders, autoimmune conditions, and cardiovascular diseases is a major driver of biopharmaceutical market growth. According to the World Health Organization, cancer alone accounted for nearly 10 million deaths globally in 2020, highlighting the urgent need for innovative biologic treatments.

Advancements in Biopharmaceutical Research and Development

Rapid progress in genomics, molecular diagnostics, and biotechnology has facilitated the development of more effective, targeted biologic therapies. Innovations in mRNA technology, personalized medicine, and next-generation monoclonal antibodies are expanding treatment options across multiple disease categories.

Market Trends

Increasing Acquisitions and Strategic Partnerships

Leading pharmaceutical companies are engaging in acquisitions, mergers, and collaborations to enhance their market presence.

• In January 2021, Angelini Pharma acquired Arvelle Therapeutics to expand its biopharmaceutical portfolio.
• In October 2020, Bayer AG acquired Asklepios BioPharmaceutical, strengthening its position in cell and gene therapy.

Emergence of mRNA and Gene Therapies

mRNA technology, popularized by COVID-19 vaccines, is now being explored for applications in oncology, rare genetic diseases, and autoimmune disorders. Companies are also investing in gene therapies, which have the potential to provide long-term or curative treatments for conditions previously considered untreatable.

Advancements in Bioprocessing and Manufacturing Technologies

Improved cell culture techniques, bioreactors, and purification methods are enhancing the efficiency and scalability of biopharmaceutical production. These advancements help reduce costs and accelerate time-to-market for new biologics.

Growing Demand for Biologics and Biosimilars

As biologics continue to demonstrate superior efficacy and safety over conventional drugs, their adoption is accelerating worldwide. Additionally, the increasing number of biologic patent expirations has opened the door for biosimilars, which offer cost-effective alternatives and contribute to market expansion.

Market Challenges

Regulatory and Approval Barriers

The stringent approval processes set by regulatory agencies such as the FDA and EMA pose a challenge to market entry for new biopharmaceuticals. Obtaining approval requires extensive clinical trials, substantial financial investment, and long development timelines.

High Development and Production Costs

Biologic drug development involves complex manufacturing processes, high R&D expenditures, and expensive raw materials. These factors contribute to the high cost of biopharmaceuticals, limiting accessibility in lower-income regions.

Market Entry Barriers for New Biopharmaceuticals

While established biologics have gained widespread acceptance among physicians and patients, newer biologics face challenges in gaining market traction. The dominance of existing therapies and patient reluctance to switch treatments can hinder the adoption of novel biopharmaceuticals.

Get more details by ordering the complete report

Key Players Shaping the Market

Prominent market players are deploying strategic initiatives, including acquisitions and partnerships, to strengthen their foothold. Notable companies include:

• AbbVie Inc. (Actigall, Actonell, Acular LS)
• Amgen Inc.
• Angelini S.p.a.
• AspenBio
• Astellas Pharma Inc.
• AstraZeneca Plc
• Bayer AG
• Biogen Inc.
• Bristol Myers Squibb Co.
• Eli Lilly and Co.
• F. Hoffmann La Roche Ltd.
• Ipsen Pharma
• Johnson & Johnson
• Merck KGaA
• Novartis AG
• Novo Nordisk AS
• Pfizer Inc.
• Sanofi SA
• Takeda Pharmaceutical Co. Ltd.
• Vertex Pharmaceuticals Inc.