Biologics Market is Estimated to Witness High Growth Owing to...

Biologics Market is Estimated to Witness High Growth Owing to Increase in Chronic Diseases

Posted 2023-12-15 10:48:40

Biologics refer to medicines created from living cells and are used to treat complex diseases such as cancer, autoimmune disorders, and other medical conditions. The sector has witnessed robust growth in recent years owing to the increasing prevalence of chronic ailments globally. Biologics find wide applications ranging from anti-cancer therapy to neurodegenerative disease management.

The global biologics market is estimated to be valued at US$ 401.96 Bn or Mn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The global biologics market is estimated to witness high growth owing to increase in chronic diseases. One of the key drivers for the market is the rising incidence of cancer across both developed and developing countries. According to WHO, cancer burden rose to 19.3 million new cases and 10.0 million cancer deaths in 2020 worldwide. Growing geriatric population which is more susceptible to chronic illnesses will further propel the demand for biologics over the forecast period. The other driver for the biologics industry is the increasing prevalence of autoimmune disorders. Autoimmune diseases arise when immune system attacks body's own healthy cells and tissues. Growing environmental pollution and lifestyle changes have increased the risk of autoimmune disorders significantly. These factors are expected to augment the global biologics market growth between 2023 to 2030.

SWOT Analysis

Strength: The biologics market has gained rapid popularity among patients and physicians alike owing to its specificity and efficacy in treating chronic, complex diseases. Growing preference for biologics over small-molecule drugs for their high target selectivity and wide therapeutic window are key strengths fuelling market growth. Furthermore, rising number of FDA approvals for novel biologics augments the market strength.

Weakness: High costs associated with biologics development and production pose significant weakness. Lengthy research and development cycles increase the drug price burden on patients. Short product life cycles due to patent expiries also weaken the market.

Opportunity: Increasing demand for biosimilars presents lucrative opportunities owing to their cost-effectiveness. Rising healthcare expenditures in developing nations will foster market prospects. Growing prevalence of autoimmune diseases worldwide offers opportunities for novel biologic approvals and commercialization.

Threats: Stiff competition from generics significantly threatens market profitability. Regulatory hurdles for biosimilar approvals in some regions challenge manufacturers. Unfavorable drug price control policies especially in price-sensitive developing markets impede the demand for biologics. Intense global trade wars also threaten market supply chain.

Key Takeaways

The Global Biologics Market Size is expected to witness high growth over the forecast period. The market size for biologics is projected to reach US$ 401.96 billion by 2023 from US$ ~277 billion in 2018, expanding at a notable CAGR of 9.3% from 2023-2030.

Regional analysis: North America currently dominates the global biologics market with the United States representing the fastest growing regional market. rising healthcare expenditures and stringent regulatory oversight accelerate market growth in the region. Meanwhile, Asia Pacific displays momentous growth potential driven by expanding patient pool, improving access to healthcare, and increasing focus of key players in emerging countries.

Key players: Key players operating in the biologics market are Novartis AG., AstraZeneca PLC., Bayer AG., Sanofi SA., Pfizer Inc., Merck & Co., Johnson and Johnson, GlaxoSmithKline PLC., Amgen Inc., AbbVie Inc., F. Hoffmann-La Roche AG., Eli Lilly and Company., and AGC Biologics. These companies deploy exclusive organic and inorganic strategies such as new product launches, acquisitions, and collaborations to solidify their market position.