by The red biotechnology market deals with techniques and products related to the development and manufacturing of biopharmaceuticals including vaccines, monoclonal antibodies, recombinant products, blood and blood products, and gene therapy. Products of red biotechnology are used widely for the treatment, prevention and diagnosis of chronic diseases such as cancer, cardiovascular diseases, diabetes, autoimmune disorders, infectious diseases, and other indications. Rising prevalence of chronic diseases across the globe has boosted the demand for advanced biopharmaceuticals. According to WHO, chronic diseases accounted for over 70% of total global deaths in 2020. Cancer alone claimed lives of nearly 10 million people worldwide in 2020.
The global red biotechnology market is estimated to be valued at US$ 742.80 Bn in 2023 and is expected to exhibit a CAGR of 10 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the key trends in the red biotechnology market is the boom in biomanufacturing and biosimilars. Growing demand for cost-effective biologics has boosted investments in building biomanufacturing facilities and enhancing biosimilar production capabilities. Leading pharmaceutical companies are collaborating with contract manufacturing organizations to scale up production of biosimilars. This has improved accessibility and afforded significant cost savings for patients. Additionally, increasing R&D in cell and gene therapies presents lucrative opportunities. Cell and gene therapy manufacturers are commercializing therapies for genetic disorders, cancer, cardiovascular diseases, and musculoskeletal disorders. Promising clinical trial results of CAR-T therapies and other gene therapies will further spur market gains over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat is moderate as the red biotechnology market requires high capital investments for R&D and manufacturing facilities. However, growing healthcare needs may attract new players.
Bargaining power of buyers: The bargaining power of buyers is moderate as the demand for biologics and biosimilars is increasing. Buyers can negotiate on pricing and purchase large volume.
Bargaining power of suppliers: The bargaining power of suppliers is high as raw material suppliers like cell culture media manufacturers hold significant control over pricing. Suppliers also provide critical expertise in cell culture production.
Threat of new substitutes: The threat of substitutes is low as red biotechnology focuses on developing novel therapeutics which face less threat of substitution. However, alternative treatment options may impact certain drug sales.
Competitive rivalry: The competition is high among major players due to patent cliffs and pressure to reduce costs. Companies strive to develop innovative biologics and biosimilars through market expansion and strategic collaborations.
Key Takeaways
The global red biotechnology market is expected to witness high growth. Regional analysis focused on North America and Europe dominated over 40% market share collectively in 2022 owing to increasing R&D investments and advanced healthcare infrastructure in the US and Western European countries. Asia Pacific is expected to be the fastest growing region due to rising healthcare expenditure, growing biopharmaceutical industry and improving regulatory guidelines in major Asian markets like China and India.
Key players operating in the red biotechnology market are Amgen, Gilead Sciences, Biogen, Pfizer, Novartis, Roche, Johnson & Johnson, Sanofi, Merck & Co., AbbVie, GlaxoSmithKline, AstraZeneca, Eli Lilly, Novo Nordisk, Bayer, Bristol-Myers Squibb, Teva Pharmaceutical, Takeda Pharmaceutical, Boehringer Ingelheim, Astellas Pharma. The industry is highly consolidated with top players accounting for over 60% of the market share. Companies are focusing on expanding their product portfolios organically through R&D and inorganically through acquisitions and partnerships.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
