The global biopharmaceuticals market is led by North America owing to rapid technological advancements and increasing research and development. Medicinal drugs that are manufactured with the help of biotechnology techniques such as hybridoma, fermentation, and DNA techniques are known as biopharmaceuticals.
The growth of the global biopharmaceuticals market has led to an improved quality of healthcare on the one hand and rising quality of life of patients on the other. Purified proteins, recombinant human insulin, monoclonal antibodies, interferon, and erythropoietin, amongst others, are a few of the commonly used biopharmaceuticals in treating diseases.
Expanding at a healthy CAGR of 9.4% from 2014 to 2020, the global biopharmaceuticals market, which in 2014 stood at US$161,851.6 million, is projected to reach US$278,232.9 million by the end of the forecast period. The global biopharmaceuticals market is propelled by factors such as rising R&D investments, growing global geriatric population, rapid technological developments, and high incidence of chronic ailments all across the globe.
Rise of Biosimilars to Hamper Market Growth
Despite the growth of the global biopharmaceuticals market, there are quite a few challenges that this industry has to witness, such as the steep costs of pharmaceuticals and the risk of side effects of biopharmaceutical drugs. Another glaring challenge in the global biopharmaceuticals market is the entry of inexpensive biosimilars.
Owing to their affordability, the demand for biosimilars is projected to surge in the forthcoming years, which in turn will affect the demand for biopharmaceuticals. The Asia Pacific market for biosimilars is anticipated to record the highest rate of growth, with South Korea being the main hub for the development of biosimilars. China, Taiwan, and India will be the fastest growing segments in the Asia Pacific biosimilars market. Biosimilars offer inexpensive alternatives to most products. This ensures that vital biological drugs are available to patients at affordable prices.
Apart from being beneficial to patients, the approval for biosimilars in several countries has also brought down the healthcare costs incurred by governments. Another factor driving the demand for biosimilars is that these drugs are highly effective on specific targets and exhibit minimal toxicity.
Greater Number of New Pipeline Products to Add to Market’s Growth Prospects
Johnson & Johnson Services Inc., Merck & Co. Inc., Bayer AG, GlaxoSmithKline plc, Biogen Idec, Amgen Inc., Novartis AG, AbbVie Inc., and Pfizer Inc. are a few of the prominent companies operating in the global biopharmaceuticals market. Novartis AG, a leading multinational pharmaceutical firm based in Switzerland, is greatly committed to increasing its production capacity of biologics.
The Tuas Biomedical Park that the company had established in Singapore in 2007 is the sole supplier of popular medications to the markets in the Middle East, the U.S., and, most importantly, Asia. This has been one of the biggest biopharma manufacturing centers in Singapore. Almost 1/4th of the Novartis’ research program is aimed towards biologics and biopharmaceuticals.
Greater number of new pipeline products and the high incidence of diseases with unmet treatment needs are the key factors that will drive the global biopharmaceuticals market in the forecasting horizon.