Biologics Market Is Estimated to Witness High Growth Owing to Rising Prevalence Of Chronic Diseases And Increasing Demand From Aging Population
Global biologics market is estimated to be valued at USD 522.1 Mn in 2024, exhibiting a CAGR of 10.4% over the forecast period (2024-2031), Furthermore, growing geriatric population who are more susceptible to various diseases can boost the demand for biologics drugs.
Market Dynamics
Global biologics market growth is driven by rising disease burden and an aging global population. Chronic diseases have become more widespread across both developing and developed nations. Conditions like cancer, diabetes, and heart disease pose a tremendous health burden and treatment cost. Biologics drugs have proven effective in managing several such serious and life-threatening illnesses. Medical experts predict that the proportion of elderly people will significantly rise in the near future. Older age groups have weaker immune systems and are at higher risk of developing diseases. This expanding geriatric demographic pool can boost demand for sophisticated biologic therapies. While high costs remain a challenge, ongoing R&D into biosimilars may help increase patient access and affordability over the forecast period.
Increasing incidence of chronic diseases drives the global biologics market
Global prevalence of chronic diseases has been steadily increasing over the past few decades. Some of the major chronic diseases include cancer, diabetes, cardiovascular diseases, respiratory diseases, and others. Biologics have proven to be effective treatment options for various chronic diseases. As more people are being diagnosed with chronic conditions, there will be huge demand for biologic drugs. chronic diseases currently account for most hospital admissions and deaths worldwide. This growing disease burden can drive the growth of global biologics market.
Advancements in biologic drug development and manufacturing technologies
Biopharmaceutical companies are continuously investing in R&D to develop more efficacious and targeted biologic drugs. Advancements in fields such as monoclonal antibody therapies, cell and gene therapies, recombinant proteins, and others have enabled development of biologics to treat complex diseases. Improvements in manufacturing technologies such as single-use bioreactors, continuous bioprocessing, and others have enabled large scale and cost-effective production of biologics. This has enhanced their applications to several therapeutic areas. Constant innovation and technological progress in drug development and manufacturing have expanded the market potential of biologics significantly.
Biosimilars may restrain the market share of innovator biologics
As patents of many originator biologics expire, the entry of low-cost biosimilar versions poses a major challenge. Since biosimilars offer nearly equivalent therapeutic benefit at a substantially lower price, these are rapidly capturing the market share of off-patent biologics. However, the impact may vary between developed and developing markets depending on regulations governing substitution of biosimilars. Countries with stringent policies around substitution may provide innovators some protection against biosimilar erosion versus others allowing automatic substitution. Overall, increased biosimilar competition act as a restraint for sales of patented innovator biologics.
Cost of biologic drugs limits widespread adoption
High cost of various biologic drugs can act as growth barriers for the global biologics market. On an average, the prices of biologics are much higher than conventional drugs. Some of the factors contributing to their high cost include extensive R&D, complex manufacturing processes, stringent regulatory requirements for approval, and others. This makes biologics unaffordable for large patient population, especially in developing regions with budget constraints. The high cost restricts widespread adoption and global market penetration of commercially available biologics.
Increasing healthcare expenditure creates opportunities
Rising healthcare expenditure of countries around the world offers lucrative growth opportunities for biologics market. Both developing and developed nations are allocating higher budgets to strengthen their healthcare systems and improve access to advanced treatment options. This expanding healthcare spending facilitates reimbursement and affordability of costly biologics. It also encourages healthcare providers to adopt novel biologic products in treatment protocols. Growth in healthcare expenditure can drive the market growth by enhancing the demand and uptake of various biologics across regions.
Advancing technologies in oncology create a viable market
Promising medical advancements are being made in fields like cancer immunotherapy, gene therapy, targeted therapy, and others. By utilizing mechanisms such as immune checkpoint inhibitors and chimeric antigen receptor T-cell (CAR-T) therapy, several innovative oncology biologics have achieved groundbreaking results in treating hard-to-address cancers. This realm holds substantial commercial opportunities considering the high prevalence and mortality associated with cancers worldwide. Strong clinical data and breakthrough designations given by regulatory agencies have boosted confidence in these novel biologic pipelines. The oncology domain hence remains an attractive segment driving growth in the biologics industry.
Link: https://www.coherentmarketinsights.com/market-insight/biologics-market-2663
Key Developments
- On December 1, 2024, Biocon Biologics Ltd., a global biopharmaceutical company specializing in biosimilars, announced that the U.S. Food and Drug Administration (FDA) had approved YESINTEK (ustekinumab-kfce), a biosimilar to Janssen's Stelara (ustekinumab). YESINTEK is indicated for the treatment of several autoimmune conditions, including Crohn’s disease, ulcerative colitis, plaque psoriasis, and psoriatic arthritis. This approval marks a significant advancement in providing more accessible treatment options for patients with chronic autoimmune diseases.
- In July 2024, Lonza Group, a multinational chemicals and biotechnology company, reported a smaller-than-expected decline in first-half profits, attributed to strong performance in its Biologics unit, despite challenges in other segments
- In May 2024, Biogen Inc., a leading biotechnology company specializing in neurological treatments, announced the acquisition of Human Immunology Biosciences for US$ 1.15 billion upfront, with up to US$ 650 million in potential milestone payments. This move aims to strengthen Biogen's immunology portfolio.
- In May 2024, Genmab, a Denmark-based biotechnology company specializing in antibody therapeutics for cancer, acquired ProfoundBio, a biotechnology company for US$ 1.8 billion. This acquisition aims to bolster Genmab's position in the biologics market.
Key Players
- Hoffmann-La Roche Ltd., AbbVie Inc., Amgen Inc., Johnson & Johnson Services, Inc., Merck & Co., Inc., Pfizer Inc., Sanofi S.A., Gilead Sciences, Inc., Novartis AG, Bristol-Myers Squibb Company, Regeneron Pharmaceuticals, Inc., Takeda Pharmaceutical Company Limited, Biogen Inc., Eli Lilly and Company, and Celltrion Healthcare Co., Ltd.
