Biotechnology Market Growth & Trends
The global biotechnology market size is expected to reach USD 2.44 trillion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 15.83% from 2021 to 2028. The factors driving the market include favorable government policies, the launch of new and advanced products, robust investment in the biotechnology sector, and rising demand for synthetic biology.
Robust funding through alliance investment in start-up biotechnology companies for adopting new and advanced products is contributing to market growth. For instance, in February 2021, Illumina, Inc. invested in nine new genomics companies through Illumina Accelerator in 4 start-ups in the U.K. and 5 start-ups in the U.S. The companies include MultiplAI Health LTD.; BiotaX Labs LTD.; Mitra Bio Limited; Broken String Biosciences Limited; Flightpath Biosciences, Inc.; Doloromics Inc.; Oshun Medical Inc.; Parallel Health Inc.; and Rubik Therapeutics, Inc. Illumina Accelerator is an initiative through which selected startups can access to seed investment, genomics expertise, and Illumina sequencing systems and reagents and seek business guidance.
The bioinformatics application segment is expected to expand at the fastest CAGR from 2021 to 2028 owing to the increasing adoption of these tools for analyzing complex sequencing data. By technology, nanobiotechnology is expected to expand at a lucrative growth rate of 16.8% over the forecast period owing to the growing focus on nanotechnologies for efficient drug delivery and increasing research using this technology.
Supportive government initiatives are significantly contributing to market growth. For instance, in September 2020, the Government of India supported research institutes in agriculture biotechnology, including organic farming. Since the last 3 years, around USD 42.67 million had been invested to support this endeavor.
Moreover, the emergence of the SARS-COV-2 infection is driving the market. Companies are developing new solutions for combating the pandemic situation. For instance, in December 2020, Thermo Fisher Scientific Inc. announced CE-marking for TaqPath COVID-19 that can be used to perform in-vitro diagnosis of SARS-CoV-2, respiratory syncytial virus (RSV) A/B, and influenza A/B infections. The new kit will help in the detection and differentiation between diseases that have similar clinical symptoms.
Biotechnology Market Report Highlights
- The health application segment accounted for the largest share of 48.64% in 2020 owing to the COVID-19 impact, prevalence of diseases, increasing focus on the development of regenerative medicines, and improving healthcare infrastructure
- The DNA sequencing technology segment held the second-largest share in 2020 owing to its growing penetration in the development of precision medicines
- North America held the largest share of 44.19% in 2020. Companies operating in the region are launching advanced solutions to cater to the needs of the biotechnology industry
- For instance, in February 2021, Waters Corporation launched Waters ACQUITY PREMIER Solution. It is a next-generation liquid chromatography solution for improving analytical data quality
- Asia Pacific is expected to expand at the fastest CAGR of 16.8% from 2021 to 2028 owing to favorable government initiatives and changes in drug approval regulations in India and China