Market Introduction

The global biotech market was valued at USD 1.23 trillion in 2024 and grew at a CAGR of 11% from 2025 to 2034. The market is expected to reach USD 3.49 trillion by 2034. The increasing healthcare expenditure will drive the growth of the global biotech market.

The area of biotechnology or biotech, makes use of biology, chemistry, genetics and engineering to create useful products and technologies for human and environmental welfare. Basically, biotechnology focuses on using living things or parts of their structure, for instance cells, enzymes and DNA, to develop beneficial things or find solutions in many sectors. It covers a wide area of application in various sectors, including healthcare, farming, protecting the environment and industry-related functions. In healthcare, biotechnology has made medicine better by helping to make new drugs, gene therapies and better diagnostic methods. technologies like recombinant DNA technology and monoclonal antibody production have made it possible to treat diseases like cancer, disorders related to genes and infectious diseases more effectively. Biotech is a major factor in the development of vaccines, especially for vaccines against COVID-19. As a result of biotech, plants now have stronger growth, better protection from pests and increased tolerance of environmental stresses from genetically modified organisms (GMOs). They ensure enough food and environmentally friendly farming by cutting down on chemical pesticides and increasing how healthy food is. Using microbes and plants in environmental biotechnology allows for cleaning the environment, handling waste and generating renewable energy from biofuels, supporting the well-being of the planet. With industrial biotechnology, chemical, material and bio-based manufacturing is done more efficiently and more environmentally friendly than with older methods. It means making biodegradable plastics, creating enzymes for use in detergents and creating bio-based solvents. To sum up, biotechnology is an area that is growing fast by linking science and technology to help solve major global problems. Because biology can create advances in many fields, it is at the heart of science today and helps solve problems in health, food production, industry and preserving the environment. Progress in research keeps biotechnology growing which contributes to the world’s economy and improves living standards for everyone.

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Recent Development

• Sanofi, a French pharmaceutical company, has agreed to pay up to $9.5 billion to purchase Blueprint Medicines (BPMC).  The agreement broadens Sanofi's immunology portfolio and provides access to medications for "other KIT-driven diseases," according to the company, as well as systemic mastocytosis (SM), a rare immunological condition.  Additionally, Sanofi stated that the acquisition will provide them with access to avapritinib, a medication for rare immunological diseases that is approved in the US and the EU and is sold as Ayvakit or Ayvakyt.

Market Dynamics

Drivers

Rising investments and technological advancements – Quick developments in genomics, bioengineering and synthetic biology have helped create precise medicines, personalized care and new technologies in farming. Their discoveries help enhance the range of biotechnology and they also form new areas for business. Higher spending on research and development (R&D) helps drive innovation. Most biotech firms concentrate a large share of their budgets on R&D which leads to a steady stream of new products, among them gene therapies, biologics, diagnostics and bio-based chemicals. Keeping this cycle of new products improves the company’s competitiveness and attracts more customers which further increases investments in the future. Part of growth comes from expanding the company’s drug pipeline. Regular mergers, acquisitions and partnerships take place between biotech companies and firms from pharmaceutical, research or Agri-tech fields. Such cooperation allows biotech businesses to develop products faster, increase sales in other countries and launch their products sooner, all of which help them gain a higher position. In addition, personalized medicine is being practiced more often which requires greater use of biotech, as it stems from a wider healthcare trend to match treatments to patients’ needs.

Restraints

Significant capital investments and longer time periods – Innovation characterizes biotechnology, but certain factors within the industry stop its market from growing properly. Research and development (R&D) work takes a long time and costs a lot which makes it a major constraint. It often takes over ten years and a significant amount of money, depending on the field, to create a biotech product in pharmaceuticals or therapeutics and there is no certainty of success. All this effort means smaller businesses often find it hard to survive throughout a product’s development. A further serious challenge comes from the complex nature and low chances of success in most biotech innovations. Problems with safety, how well a drug performs or production often cause products to fail in preclinical or clinical testing, costing the company significant funds and lowering the interest of investors. Regulations make it even harder for companies to run things internally. Because global regulations are strict and often change, biotech companies must comply with different sets of rules in various regions which can result in delays and extra cost. After approval, it can be hard for biotech products to deal with issues that arise in the manufacturing process. These products, biologics and cell therapies, are hard to produce in large amounts because of their complex structure and specialized handling requirements. Because of this, they struggle commercially and it can also impact how much is available and how much it costs. The law of intellectual property (IP) can also block advancements. There is a lot of competition in biotech and issues regarding patents or infringement can block progress and turn off people from innovating.

Opportunities

The growing burden of health and environmental challenges globally – A key factor is the growing difficulty of global health issues which include chronic illnesses, new infectious outbreaks and the development of drug resistance. Thus, the increase in these health problems has highlighted the demand for breakthrough therapies, vaccines and lab tests which biotechnology can provide. Moreover, the population of the world is rising and there is more worry about enough food, encouraging the rise of agricultural biotechnology. Genetic modification in crops and the use of bio-fertilizers help farmers get higher yields, use less chemicals and grow all kinds food in any climate. Favourable laws, public money, tax benefits and improving biotech infrastructure contributed to biotech growth through government aid. Biotech ecosystems are being developed and invested in by many countries in North America, Europe and Asia, mainly to improve healthcare and agriculture. A strong external influence comes from the worldwide focus on protecting the environment and reducing climate change. Biotechnology supports many green choices like using biofuels, biodegradable plastics and bio-cleaning methods that help cut down on pollution and use of resources. Demographic changes, especially the global aging trend, are leading to greater demand for new healthcare solutions which helps biotech innovation thrive. Similar factors will drive the market for biotech globally.

• The French biotech company TreeFrog Therapeutics is receiving €30 million in funding from the European Investment Bank (EIB) to advance its efforts to create cell therapy for the treatment of Parkinson's disease and other ailments.  A new EIB instrument that includes dilutive financing is being used to deliver the €30 million finance in three tranches of €10 million each.   The European Commission's Invest EU program provides a guarantee for the deal.  Before the end of June 2025, the first €10 million must be used.  TreeFrog, a biotech company established in Bordeaux, specialising in regenerative medicine and aims to commercialise affordable cell therapies that potentially help millions of people with a variety of illnesses.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global biotech market, with a 40% market revenue share in 2024.

North America’s position as a leader comes from placing a strong focus on research and development (R&D), assisted by many renowned universities, research institutes and centres for biotechnology in the region. The cluster brings together academics, industry groups and government which furthers the biotech innovations and growth. Biotech innovation is promoted and new drugs are approved more quickly, thanks to large government funding from the NIH and flexible policies set by the FDA. Besides, North America is supported by a well-developed healthcare setting, quite a high budget for healthcare and nationwide use of advanced tech in medicine, all of which increase the demand for biopharmaceuticals and precision medicines. The large number of leading biopharmaceutical companies, new startups and contract research organizations (CROs) make the market lively and attract much venture capital funding. In addition, having good intellectual property protection laws in the area helps companies increase innovation by making their investments more secure. AI and bioinformatics are being widely used in drug discovery and personalized healthcare in North America which is why the region is leading in digital biotech adoption. Also, due to more chronic diseases, people living longer and knowing more about modern biotech approaches, the market keeps growing steadily.

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• With a licensing agreement worth up to $870 million, Eli Lilly is relying on Camurus and its long-acting delivery technology to help advance its line of diabetes and obesity medications. Through the collaboration, Lilly will be able to create and market long-acting incretin medicines based on up to four of its own compounds using Camurus' FluidCrystal technology.  Camurus is eligible to receive upfront, development, and regulatory milestone payments totalling up to $290 million in exchange.  Along with tiered mid-single-digit royalties on worldwide net product sales, the Swedish company is also entitled for an additional $580 million in sales-based milestone payments.

Application Segment Analysis

The application segment is divided into healthcare/medical biotechnology, agricultural biotechnology, industrial biotechnology, environmental biotechnology, animal biotechnology and marine biotechnology. The healthcare/medical biotechnology segment dominated the market, with a market share of around 36% in 2024. Healthcare or medical biotechnology represents the biggest share in the global biotechnology market because of its key role in supporting human health and new advances in medicine. More people suffering from chronic problems like cancer, diabetes and heart conditions are a major reason why personalized and effective treatments are now more necessary. Biologics have become very important in oncology, autoimmune diseases and rare genetic disorders, so this sector is now a leading source of revenue for biotech companies. The COVID-19 pandemic emphasized the significance of healthcare biotechnology, as biotechnology firms quickly introduced mRNA vaccines and diagnostic kits, proving the field can quickly help when there are global health threats. People looking for treatments specific to their genetics have increased the demand for biotech ideas in diagnostics and therapeutic solutions. Greater funding, relaxed regulations and new AI and data analytics technology have allowed this segment to lead the biotech industry for a long time. Besides, as populations around the globe age, demand for regenerative medicine and chronic disease care has gone up, giving healthcare biotech more reasons to succeed.

• In order to bring innovative biosurfactants to the North American personal care industry, Belgian biotech company AmphiStar has established a strategic alliance with Kensing, a US-based manufacturer of speciality surfactants and plant-based chemicals. Through the cooperation, Kensing's industrial capabilities and market access will be combined with AmphiStar's IP-backed biosurfactant platform, which is made exclusively from agri-food waste.  By offering a sustainable, circular substitute, the companies want to upend the traditional surfactant supply chain.  AmphiStar's biosurfactants, which are made from microbial fermentation and biobased waste streams, are expected to have a substantially smaller environmental impact than first-generation biosurfactants made from palm oil or other crops as well as petrochemical-based biosurfactants.

Technology Segment Analysis

The technology segment is divided into DNA sequencing and recombinant technology, cell and tissue culture, fermentation, PCR technology, chromatography, nanobiotechnology, CRISPR and gene editing and bioinformatics. The DNA sequencing and recombinant technology segment dominated the market, with a market share of around 33% in 2024. DNA sequencing and recombinant DNA technology lead the global biotechnology sector because they form the core of present-day biological studies, diagnostics and creating new drugs. DNA sequencing enables the understanding of precise arrangement of DNA letters which helps in the discovery of genes involved in diseases and offer personalized medical care. Now with NGS, sequencing is more accurate, time-efficient and cheaper, so it has been more widely adopted by healthcare, farming, police investigation and microbiology. Recombinant DNA technology generally means combining pieces of DNA from various sources to make something new. Making genetically engineered organisms, therapeutic proteins, insulin, growth hormones and monoclonal antibodies requires this type of technology. It helps to advance the progress of drugs and genetic engineering in health care and agriculture. Manipulating genes now makes it possible for scientists to design new vaccines, gene therapies and synthetic biology techniques that improve public health and farming. They also lead in their field because they are used widely in science, healthcare and business and keep advancing with new technology. Finding drugs, creating vaccines and providing diagnostics often depends on these technologies by major biotech and pharmaceutical companies.

• A Memorandum of Understanding (MoU) has been signed between Klinikum rechts der Isar, the university hospital connected to the Technical University of Munich (TUM), Germany, and MarkHerz Inc., a biotechnology startup based in South Korea that specialises in AAV-based gene therapies targeting cardiovascular and metabolic diseases.  The goal of the agreement is to create a wide-ranging partnership for the collaborative study and development of next-generation gene treatments for peripheral vascular and ischaemic heart disorders.  The focus of this will be on MarkHerz's exclusive MAAV Platform, which makes it possible to create pinpointed AAV (adeno associated virus) gene treatments, especially its MRTF-A candidate.  Preclinical and clinical studies, technology consultation, and research infrastructure sharing are all part of the partnership.

End-User Segment Analysis

The end-user segment is divided into biopharmaceutical companies, academic & research institutes, CROs (contract research organizations), biotechnology companies, hospitals & clinics and agriculture & food industry. The biopharmaceutical companies segment dominated the market, with a market share of around 38% in 2024. They concentrate on creating biologics which include monoclonal antibodies, recombinant proteins, gene therapies and vaccines. The rise in chronic diseases, rare genetic disorders and cancer has placed biopharmaceuticals at the forefront of more effective and targeted treatments. The powerful position of big pharma depends on their abundant investments in research and development (R&D), strategic partnerships with universities and new biotech firms and strong infrastructure for clinical trials and meeting regulations. Biopharma firms use their resources and infrastructure to bring difficult and long-term studies from research to commercialization. They are major users and supporters of advanced technologies such as CRISPR, cell and gene therapy and AI in medicine which adds to their overall leadership in the sector. COVID-19 showed that these companies were critical, as leaders in the field rapidly brought out vaccines and treatments with mRNA technology. On a global scale, their supply chains provided them with the ability to mass-manufacture and rapidly send products to people. In addition, these companies are protected by strong patents, regulations and high costs for newcomers to the industry which explains their stability and profitability.

• In order to co-sell SCIEX mass spectrometry systems with the recently announced Evosep Eno for standardised high-throughput proteomics, Evosep Biosystems, a global leader in proteomics solutions, and SCIEX, a global leader in life science analytical technologies and operating company of Danaher Corporation have entered into a reseller agreement.  Through a new reseller partnership, SCIEX and Evosep increase Pharma and Biotech's access to standardised proteomics.  The reseller agreement gives researchers the ability to use standardised proteomics processes, providing a reliable LC-MS solution made to satisfy the changing needs of biotech and pharmaceutical businesses.  Researchers may achieve remarkable throughput, sensitivity, and reproducibility with Evosep Eno.  This partnership guarantees access to state-of-the-art technology designed to meet today's analytical challenges when paired with SCIEX mass spectrometers, which are designed for speed and sensitivity in both quantitative and qualitative analysis.

Some of the Key Market Players

• Amgen
• Biogen
• BioNTech
• Bluebird Bio
• CRISPR Therapeutics
• Genentech (a member of the Roche Group)
• Gilead Sciences
• Illumina
• Moderna
• Novavax
• Regeneron Pharmaceuticals
• Vertex Pharmaceuticals

Report Description

• Market Introduction
• Market Dynamics
• Segment Analysis
• Some of the Key Market Players