by The Global Biosimilars Market is estimated to be valued at USD 21.8 billion in 2023 and is expected to exhibit a CAGR of 15.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Biosimilars are highly similar to their reference biologics in terms of quality, safety, and efficacy. They are less expensive alternatives to biologic drugs, making them highly sought after in the market. Biosimilars offer several advantages such as improved patient access to affordable treatments, reduced healthcare costs, and increased competition among manufacturers.
Market Key Trends:
One of the key trends in the biosimilars market is the increasing adoption of biosimilar products by healthcare providers. The rising demand for affordable biologics has led to the development and commercialization of a wide range of biosimilar drugs. Healthcare providers are progressively embracing these cost-effective alternatives to improve patient outcomes and minimize healthcare expenditure. Biosimilar manufacturers are investing in research and development activities to expand their product portfolios and strengthen their market presence. This trend is expected to drive market growth in the coming years.
Porter’s Analysis:
Threat of New Entrants: The threat of new entrants in the biosimilars market is relatively low. The high entry barriers, such as complex regulatory frameworks and the need for significant investments in research and development, limit the entry of new players. Established companies in the industry have also built strong relationships with healthcare providers, creating a loyal customer base.
Bargaining Power of Buyers: Buyers in the biosimilars market have moderate bargaining power. The increasing availability of biosimilars has provided buyers with more options, giving them some leverage in negotiating prices. However, the complex nature of biosimilars and the reliance on them for life-threatening conditions limit the buyers’ bargaining power to some extent.
Bargaining Power of Suppliers: The suppliers in the biosimilars market, which primarily include biopharmaceutical companies, have a high bargaining power. They hold the patents and intellectual property rights for the manufacturing processes and technologies involved in producing biosimilars, giving them a significant advantage. This allows suppliers to dictate prices and negotiate favorable terms with manufacturers.
Threat of New Substitutes: The threat of new substitutes is low in the biosimilars market. Biosimilars offer a more cost-effective alternative to biologics, providing similar therapeutic benefits at a lower price. The high cost of developing new biologics and the time-consuming regulatory approval process make it difficult for new substitutes to emerge.
Competitive Rivalry: The competitive rivalry in the biosimilars market is high. Established players in the industry, such as Novartis AG, Pfizer, Inc., and Teva Pharmaceutical Industries Ltd., are continuously investing in research and development to develop new biosimilars and gain a competitive edge. The market is also witnessing collaborations and partnerships between companies to enhance their product portfolios and expand their market reach.
Key Takeaways:
The Global Biosimilars Market Size is expected to witness high growth, exhibiting a CAGR of 15.9% over the forecast period of 2023-2030. This growth is primarily driven by the increasing demand for cost-effective alternatives to biologics due to rising healthcare costs. The development of biosimilars allows for affordable treatment options for chronic and life-threatening diseases, making them more accessible to patients globally.
In terms of regional analysis, North America is projected to be the fastest-growing and dominating region in the biosimilars market. The presence of a well-established healthcare infrastructure, favorable reimbursement policies, and the high prevalence of chronic diseases in the region are key factors contributing to the growth of the market in North America.
Key players operating in the biosimilars market include Novartis AG, Pfizer, Inc., Teva Pharmaceutical Industries Ltd., Celltrion Healthcare Co., Ltd., Biocon Limited, Amgen, Inc., Dr. Reddy’s Laboratories, and Sanofi S.A. These companies are focusing on strategic collaborations, partnerships, and acquisitions to strengthen their market position and expand their product portfolios.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
