Global Biotechnology Market by Product Type (Instruments, Reagents and Services, and Software), By Technology (Nanobiotechnology, Tissue Engineering & Regents, DNA Sequencing, Cell-Based Assay, Fermentation, PCR Technology, Chromatography, and Other Technology), By Application (Healthcare, Food & Agriculture, Natural Resources & Environment, Industrial Processing, Bioinformatics, and Other Application), By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global Biotechnology market was valued at USD 1023.8 Billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 14%. It is expected to reach USD 3672.9 Billion by 2032.

Biotechnology involves the use of living organisms or their components for developing useful products and processes. It combines biology, physics, chemistry, engineering, and computer science. Biotechnology has a huge range of applications, from developing new medicines and therapies to improving crop yields and creating sustainable industrial processes. Some of the major areas of biotechnology consist of genetic engineering, bioprocessing, tissue engineering, and bioinformatics. 

Key Takeaways

1. Market Size and Growth: The global biotechnology market valued at USD 1023.8 Billion in 2022 is expected to register a remarkable CAGR of 14% between 2023 and 2032, reaching USD 3672.9 Billion by 2032.
2. Product Type Analysis:
   • Lucrative Segment: The instruments segment is the most lucrative, contributing to 61.5% of the total revenue share in 2022. Laboratory equipment and devices play a crucial role in conducting experiments and producing biotechnology products.
   • Growing Segments: Reagents and services are expected to grow significantly, driven by outsourcing R&D activities and the need for advanced management tools and data analysis.
3. Technology Analysis:
   • Dominant Segment: DNA sequencing holds the majority share in the technology segment, with a market share of 42.6% and a projected CAGR of 13.8% in 2022. Its wide usage in drug discovery, personalized medicine, agriculture biotechnology, and genetic testing contributes to its prominence.
   • Fastest-Growing Segment: Tissue engineering & regeneration is identified as the fastest-growing technological segment, with a projected CAGR of 13.2%, driven by advancements in sequencing technologies and applications of genomics.
4. Application Analysis:
   • Major Revenue Source: The healthcare segment dominates, accounting for 35.8% of the market’s revenue share in 2022, with a projected CAGR of 13.8%. The rising demand for personalized medicine and cost-effective treatment options fuels its growth.
   • Fastest-Growing Application: The food & agriculture segment is expected to be the fastest-growing, with a revenue share of 23.8% in 2022, driven by the increasing global population, demand for sustainable agriculture practices, and the use of biotechnology products in food processing.
5. End-User Analysis:
   • Dominant End-User: Pharmaceutical and biotechnology companies hold the significant share of the end-user segment, with a market share of 49.3% and a CAGR of 13.8%, driven by the demand for personalized medicine and cost-effective treatment options.
   • Fastest-Growing End-User: Contract research organizations are identified as the fastest-growing end-user segment, with a CAGR of 13.3%, providing flexible and scalable models for drug development through outsourcing services.
6. Regional Analysis:
   • Leading Region: North America holds the largest revenue share (39.4%) in 2022, supported by a highly developed research infrastructure, skilled researchers, favorable regulatory environment, substantial financial resources, and advanced technology.
   • Fastest-Growing Region: Asia Pacific is projected to be the fastest-growing region, with a CAGR of 13.5%, driven by increased demand for healthcare and medical services, significant R&D investments, and the presence of emerging economies like China and India.
7. Market Drivers: Growing demand for personalized medicine, increased investment in R&D, and a rise in chronic diseases propel the biotechnology market. Outsourcing R&D activities to contract research organizations and the demand for sustainable agriculture practices are contributing factors.
8. Market Restraints: Competition for established products, lack of public awareness, ethical concerns, high development costs, and regulatory challenges pose restraints to the biotechnology market.
9. Market Opportunities: Opportunities lie in the development of sustainable agriculture practices, collaboration and partnerships, advancements in economics, and personalized medicine. Growing healthcare industries in emerging economies and technological advancements contribute to market growth.
10. Market Trends: Artificial intelligence, synthetic biology, gene editing, cell and gene therapies, and plant biotechnology are recent trends shaping the biotechnology market.

Product Type Analysis

The Instruments Segment is The Most Lucrative Segment in The Product Type of Biotechnology Market.

Based on product type, the market for Biotechnology is segmented into instruments, reagents and services, and software. Among these types, the instruments segment is the most lucrative in the global biotechnology market, with a projected CAGR of 13.5%. The total revenue share of instrument-type biotechnology is 61.5% in 2022. Instruments such as laboratory equipment and devices, are important tools for conducting experiments and making biotechnology products.

The Regents and Service Type are Expected to Grow in the Projected Period in Biotechnology Market.

Followed by regents and service type, which accounted for the fastest-growing type segment in the biotechnology market, and its estimated market share is 27.7% in 2022. Owing to its increasing trend of outsourcing R&D activities from biotechnology companies, also the need for advanced management tools and data analysis.

Technology Analysis

The DNA Sequencing Segment Holds the Majority Share in the Technology Segment of the Biotechnology Market.

By technology, the market is further divided into nanobiotechnology, tissue engineering & regeneration, DNA sequencing, cell-based assays, fermentation, PCR technology, and chromatography. The DNA sequencing segment is estimated to be the most lucrative segment in the global biotechnology market, with a market share of 42.6% and a projected CAGR of 13.8%, in 2022. Owing to its wide usage in various fields such as drug discovery, personalized medicine, agriculture biotechnology, and genetic testing.

Tissue Engineering & Regeneration Segment is Expected as Fastest Growing Technological Segment in Biotechnology Market.

Also, the tissue engineering & regeneration segment is estimated as the fastest-growing segment in technology with a CAGR of 13.2. Owing to its increasing demand for advancements in sequencing technologies, personalized medicine, and growing applications of genomics in various fields.

Application Analysis

The Healthcare Segment Accounted for the Largest Revenue Share in Biotechnology Market in 2022.

Based on end-user, the market is segmented into healthcare, food & agriculture, natural resources & environment, industrial processing, and bioinformatics. Among these, the healthcare segment is estimated to be the most lucrative segment in the global biotechnology market, with the largest revenue share of 35.8% and a projected CAGR of 13.8% during the forecast period. Owing to its rising demand for personalized medicine, increasing prevalence of chronic diseases, and need for cost-effective treatment options.

The Food & Agriculture Segment is Expected to be the Fastest Growing Application Segment in Biotechnology Market.

The food & agriculture segment is projected as the fastest-growing application segment in the biotechnology market, with a revenue share of 23.8% in 2022, and registering a CAGR of 13.2% from 2022 to 2031. Due to the increasing global population which led to an increase in demand for food production. Also growing demand for sustainable agriculture practices. Biotechnology products such as microorganisms and enzymes are also being used in food processing to improve the safety & quality of products.

End-User Analysis

The Pharmaceutical and Biotechnology Companies Hold the Significant Share of the End-User Segment in the Biotechnology Market.

Based on end-user, the market is divided into pharmaceutical and biotechnology, contract research organizations, and academic and research institutes. Among these end-users pharmaceutical and biotechnology companies are dominant in the end-user segment in the biotechnology market, with a market share of 49.3% and a CAGR of 13.8. This is due to the rising demand for personalized medicine, the need for cost-effective treatment options, and the increasing prevalence of chronic diseases.

Contract Research Organizations is Identified as Fastest Growing End-User Segment in Projected Years.

Contract research organizations are also an important end-user segment in the biotechnology market and it is expected to grow faster in the end-user segment in the biotechnology market with a CAGR of 13.3 and a market value is 25%. Due to the increasing demand for outsourcing services, it also provides a flexible and scalable model for drug development.

Key Market Segments

Based on Product Type

• Instruments
• Reagents and services
• Software

Based on Technology

• Nanobiotechnology
• Tissue Engineering & Regeneration
• DNA Sequencing
• Cell-based Assays
• Fermentation
• PCR Technology
• Chromatography
• Other Technology

Based on Application

• Healthcare
• Food & Agriculture
• Natural Resources & Environment
• Industrial Processing
• Bioinformatics
• Other Applications

Based on End-User

• Pharmaceutical and Biotechnology Companies
• Contract Research Organizations
• Academic and Research Institutes
• Other End-Users

Drivers

Growing Demand for Personalized Medicine, Increase in Investment in R&D, and Increase in Prevalence of Chronic Diseases Drive the Market Growth of the Biotechnology Market.

Biotechnology products such as gene therapies, cell therapies, and biopharmaceuticals are developed to provide innovative treatments for a range of diseases. These therapies have the potential to be more effective and have less side effects than traditional pharmaceuticals. It also helps in improving agriculture practices, advancing scientific understanding, providing diagnostic tools, and contributing to sustainability.

The factors which drive the biotechnology market includes, growing demand for personalized medicine, an increase in investment in R&D, an increase in the prevalence of chronic diseases, rising demand for outsourcing services, and increasing demand for sustainable agriculture. The of outsourcing biotechnology research and development services to contract research organizations is increasing. Biotechnology is also used to develop sustainable agriculture practices and improve crop yields. Government funding and support for biotechnology research is also increasing which drives the growth of the biotechnology market.

Restraints

Competition for Established Products, Lack of Public Awareness, Ethical Concerns, and High Development Casts are Some Restraints for Biotechnology Market.

Biotechnology also has some restraints in the global market which affect the growth of the biotechnology market. The factors include competition for established products, biotechnology products may face competition from traditional pharmaceuticals or other well-established products. Lack of public awareness, Intellectual property challenges, ethical concerns, high development costs, and regulatory challenges can negatively impact the growth of the biotechnology market.

Opportunity

Development of Sustainable Agriculture Practices, Collaboration and Partnerships, Advancements in Economics, and Personalized Medicine in Such Sectors Creates Opportunities in the Biotechnology Market.

The biotechnology industry is also boosted due to growing healthcare industries in several emerging economies such as Brazil, India, South Africa, and China. Environmental sustainability, the environment includes environmental challenges and there is an opportunity to develop sustainable agriculture practices, and the production of biofuels, and renewable resources.

There are some opportunities in other sectors also like collaboration and partnerships between academic institutions, industry players, and government agencies. Advancements in economics and personalized medicine, drive the development of new diagnostic tools and therapies that can improve patient outcomes. Technological advancement, in areas such as synthetic biology, machine learning, and gene editing. Increased funding and investment, which attracts significant investment, with venture capital firms and other investors.

Trends

Artificial Intelligence, Synthetic Biology, and Plant Biotechnology are Some Recent Trends in Biotechnology Market.

The biotechnology market is now more inclined toward artificial intelligence, gene editing, synthetic biology, cell and gene therapies, and plant biotechnology. Artificial intelligence (AI) is transforming the biotechnology industry by enhancing drug discovery, optimizing clinical trials, and improving patient outcomes. Gene editing such as CRISPR-Cas9 is revolutionizing the biotechnology market by providing new tools for developing innovative therapies and treatments.

Synthetic biology involves designing and engineering biological systems for a wide range of applications. Cell and gene therapies provide personalized treatments for diseases like cancer, genetic disorder, and immune system disorder. These are some recent trends in the biotechnology market.

Regional Analysis

North America Accounted for the Largest Revenue Share in Biotechnology Market in 2022.

North America is estimated to be the most lucrative market in the global biotechnology market, with the largest market share of 39.4%, and is expected to register a CAGR of 14.1% during the forecast period. Owing to the region is a highly developed research infrastructure, and there are highly skilled and educated researchers and scientists.

It is supported by a favorable regulatory environment. North America has substantial financial resources and the latest technology which helps researchers to develop and commercialize innovative biotechnology products.

APAC is Expected as Fastest Growing Region in Projected Period in Biotechnology Market.

Asia Pacific is expected as fastest growing region in the biotechnology market with a CAGR of 13.5% and a market value of 21.3%. Owing to its increase in demand for healthcare and medical services, APAC has a major focus on R&D with governments investing heavily, APAC also has many emerging economies like China and India which have a large population and drive demand for healthcare services and products.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

Emerging key players are focused on the development and commercialization of new and innovative biotech products. For example, Amgen Inc. which specializes in the development of biological drugs for bone disorders, cancer, and inflammatory diseases, has a market share of around 5.5%.

Novo Nordisk A/S focuses on the development of drugs for diabetes, it has a market share of around 5.1%.  Gilead Sciences Inc. develops drugs for the treatment of hepatitis, viral infections, and HIV. Biogen Inc. focuses on the treatment of neurological disorders including multiple sclerosis and Alzheimer’s disease.

Market Key Players

• AstraZeneca
• Gilead Sciences, Inc.
• Bristol-Myers Squibb
• Sanofi
• Biogen
• Abbott Laboratories
• Pfizer, Inc.
• Amgen, Inc.
• Novo Nordisk A/S
• Merck KGaA
• Johnson & Johnson Services, Inc.
• Novartis AG
• Hoffmann-La Roche Ltd.
• Abbott
• Agilent Technologies Inc.
• Danaher
• BD
• Bio-Rad Laboratories Inc.
• General Electric
• bioMérieux SA
• LONZA
• Hoefer, Inc.
• PerkinElmer Inc.
• Promega Corporation
• Quality Biological
• Siemens
• Bio-Techne
• TAKARA HOLDINGS INC.
• Sysmex Corporation
• Tosoh Corporation
• Ortho Clinical Diagnostics
• Olympus Corporation
• Other Key Players

Recent Developments

• In 2022, Pfizer and Moderna started testing COVID-19 vaccine boosters for the Omicron variant.
• In 2022, BioNTech announced plans to develop a vaccine for the seasonal flu using its mRNA technology.
• In 2022, the US FDA granted full approval to Pfizer-BioNTech’s COVID-19 vaccine for use in individuals aged 16 and above.

Report Scope