Biopharmaceuticals are drugs made by extracting bioactive compounds from their natural source, such as plants or animals. They can be acquired through recombinant DNA technology or transgenic organisms. Biopharmaceuticals offer the benefits of the naturally occurring substance without any of the drawbacks that may be associated with their source. They offer a highly specific and efficient way of targeting a disease. As a result, the global biopharmaceuticals market has witnessed growth at a high rate over the last few years.
According to Persistence Market Research, the global biopharmaceuticals market was worth US$162 bn in 2014. It is expected to exhibit a robust CAGR of 9.40% from 2014 to 2020 and end up at a valuation of US$278 bn by 2020.
Increasing R&D Investments Propel Global Biopharmaceuticals Market
One of the major drivers propelling the global biopharmaceuticals market is the liberal support afforded to it by several governments all over the world. Due to their recorded efficacy in treating several diseases, numerous public as well as private healthcare bodies have invested heavily in biopharmaceuticals in the last decade, and innovation of more efficient and safe biopharmaceuticals remains a lucrative area for R&D.
The rising prevalence of chronic diseases also remains a major driving factor for the global biopharmaceuticals market. Due to the worsening environment, unhealthy dietary choices, and increasing preference for a sedentary lifestyle, diseases such as psoriatic and rheumatoid arthritis, cardiovascular diseases, cancer, renal disorders, and diabetes are on the rise. Many of these can be cured, and some prevented, by biopharmaceuticals, which has led to high demand from the global biopharmaceuticals market.
High Costs of Biopharmaceuticals Restraining Global Biopharmaceuticals Market
In spite of the aforementioned market drivers, the global biopharmaceuticals market is significantly hampered by the high costs of biopharmaceuticals. Particularly in developing countries, where the healthcare network may not be modernized, utilizing biopharmaceuticals can be a pricey business. Apart from vaccines, which have been around for more than a century, other biopharmaceuticals are relatively recent discoveries, which means that extracting and utilizing them on a large scale is financially unfeasible in many countries.
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Another roadblock in the way of the global biopharmaceuticals market is the strong entry of biosimilars into the healthcare scenario. Biosimilars act in a similar manner to biopharmaceuticals and cost less than the latter, resulting in biosimilars emerging as a more lucrative treatment channel.
North America to Lead Global Biopharmaceuticals Market
Due to the presence of modernized healthcare infrastructure, the North America biopharmaceuticals market emerged as the largest regional segment, accounting for close to 40% of the global market in 2014. The rising prevalence of chronic diseases in the highly urbanized and industrialized U.S. means that North America will remain the undisputed leader in the global biopharmaceuticals market over the forecast period.
Oncology remains the largest application segment of the biopharmaceuticals market, ahead of metabolic disorders, cardiovascular diseases, neurological diseases, inflammatory and infectious diseases, and others.