Biotechnology Market

The Biotechnology Market was valued at approximately US$ 427.17 billion in 2024 and is projected to reach US$ 966.68 billion by 2031, reflecting a compound annual growth rate (CAGR) of 12.6% during this period.

Biotechnology is utilized in various fields, including industrial bioprocessing, bioinformatics, food and agriculture, healthcare, natural resource management, and environmental conservation. Modern biotechnology fosters innovation by facilitating the creation of advanced products and technologies aimed at tackling rare and complex diseases, while also promoting sustainability through reduced environmental impact and enhanced food security.

Moreover, biotechnology contributes to cleaner and more energy-efficient industrial manufacturing processes. Key factors driving the market include the decreasing costs of genome sequencing, rapid technological advancements, and robust support from both private and public sector initiatives. The increasing number of industry conferences and workshops indicates a growing interest and investment in the sector, highlighting important market trends that are likely to influence ongoing growth.

Biotechnology Market Analysis

The significant drop in genome sequencing costs has been a major driver in the advancement of clinical genetics, transforming the diagnosis and treatment of rare diseases and accelerating the adoption of precision medicine. The cost of sequencing a human genome has plummeted from around $1 million in 2007 to $1,000 in 2014, and it currently stands at approximately $600.

This dramatic reduction has made genome sequencing more accessible, serving as a primary growth driver in the biotechnology market. Additionally, the increasing use of genomic technologies by pharmaceutical and biopharmaceutical companies is further propelling market growth, as these companies utilize sequencing data for drug discovery, targeted therapies, and personalized treatment strategies.

Biotechnology Market Overview

Experts in informatics and biology are increasingly employing advanced sequencing technologies to produce more accurate and comprehensive genomic data. Recent years have witnessed significant advancements in software for DNA assembly and innovative techniques for locating sequences on chromosomes, thereby enhancing genomic research capabilities.

To promote the adoption of these emerging technologies, several strategic initiatives have been launched. For instance, the National Human Genome Research Institute (NHGRI) initiated the Genome Sequencing Program in 1989 to capitalize on evolving opportunities in genomics. Concurrently, the Genome Technology Program is actively fostering the development of next-generation tools and instruments that facilitate rapid, cost-effective DNA sequencing, functional genomics experiments, and SNP genotyping. This program also aids in technology transfer from developers to end-users, encouraging multidisciplinary collaboration between academic and industrial research settings.

The market has also experienced a surge in innovation from industry players. Companies such as Pacific Biosciences (Sequel) and Oxford Nanopore Technologies (PromethION) have launched state-of-the-art next-generation sequencing (NGS) platforms. Meanwhile, systems like Roche GS FLX (454), Illumina HiSeq 2000 (Solexa), and AB SOLiD (Agencourt) continue to dominate the market. These technological advancements have significantly enhanced the speed, accuracy, and affordability of genome sequencing.

Consequently, ongoing innovations in sequencing technologies are anticipated to be a key driver of rapid growth in the biotechnology market throughout the forecast period.

The global biotechnology market is categorized by region into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. North America, particularly the US, represents the largest biotechnology market. Growth in this region is characterized by an increasing demand for innovative products from biopharmaceutical and biotechnology companies, the presence of major market players, and extensive R&D efforts by various academic and research institutions. Furthermore, continuous technological advancements are expected to further stimulate market growth in North America.

Strategic Insights

Biotechnology Market Drivers and Opportunities

Growing Emphasis on Advanced Methods in Healthcare to Benefit the U.S. Market

The biotechnology market in North America is experiencing rapid growth, driven by the integration of advanced technologies in healthcare, an increasing focus on precision medicine, and significant investments in genomic research from both public and private sectors. The region has become a center for biotechnological innovation, supported by collaborative efforts aimed at transforming healthcare delivery, enhancing agricultural productivity, and improving industrial biomanufacturing capabilities. Precision medicine, one of the most transformative trends in contemporary healthcare, is gaining substantial traction in the U.S. and Canada. Government-backed initiatives, along with venture capital and institutional funding, are propelling research into genomics, targeted therapies, and personalized diagnostics. This heightened focus is reshaping clinical practices and paving the way for tailored treatment regimens that offer improved efficacy and reduced side effects.

Both medical and agricultural biotechnology have seen significant advancements due to evolving research programs and adaptive business models. Bioengineering tools such as CRISPR, synthetic biology, and molecular diagnostics are being employed to create novel biomolecules, enhance disease resistance in crops, and develop next-generation therapeutic products. Notably, in 2022, the U.S. Department of Health and Human Services (HHS) allocated US$40 million to bolster biomanufacturing capacity for active pharmaceutical ingredients (APIs), antibiotics, and essential raw materials needed for producing critical medicines and enhancing pandemic preparedness. This investment addresses vital supply chain vulnerabilities and supports the onshoring of pharmaceutical production. Simultaneously, the U.S. Department of Defense (DoD) initiated the Tri-Service Biotechnology for a Resilient Supply Chain program, backed by over US$270 million over five years. This ambitious initiative aims to accelerate the commercialization of bio-based innovations, particularly in the defense sector, by developing sustainable fuels, high-performance materials, polymers, resins, and protective gear-elements crucial to national security and resilience.

These developments are further bolstered by a growing ecosystem of biotech companies, academic institutions, and innovation clusters in cities like Boston, San Francisco, and Toronto. Strong intellectual property frameworks, advanced research infrastructure, and a skilled workforce are also enhancing the region's global competitiveness. In summary, North America's biotechnology market is poised for sustained growth, driven by strategic investments, cutting-edge innovation, and government initiatives aimed at strengthening both healthcare and industrial resilience. This dynamic environment is expected to unlock significant economic value and solidify the region's leadership in the global biotechnology landscape over the forecast period.

Government Initiatives - An Opportunity for the Biotechnology Market

In December 2023, the Department of Biotechnology (DBT) and the Biotechnology Industry Research Assistance Council (BIRAC) announced the introduction of 14 new biotech-based products developed by start-ups and entrepreneurs across various sectors, including healthcare, diagnostics, medical devices, agriculture, and industrial biotechnology, during the 3rd edition of Global Bio-India, a major international biotechnology event held at Bharat Mandapam, Pragati Maidan in New Delhi.

Such advancements in recent years are likely to create attractive growth opportunities for the biotechnology market.

Biotechnology Market Report Segmentation Analysis

Key segments contributing to the Biotechnology Market analysis include product and application.

By product, the biotechnology market is divided into DNA sequencing, fermentation, cell-based assays, nanobiotechnology, chromatography, PCR technology, tissue engineering and regeneration, and other technologies. The DNA sequencing segment held the largest market share in 2023 and is expected to grow at the highest rate during the forecast period. DNA sequencing is a vital technique for determining the exact order of nucleotide bases within a DNA strand. It has become essential in both basic and applied research, with extensive applications in healthcare, biotechnology, agriculture, and forensic science.

One of the earliest large-scale applications of DNA sequencing was in the Human Genome Project, which lasted thirteen years and significantly advanced our understanding of genetic mutations associated with hereditary diseases. Today, DNA sequencing allows researchers to identify specific genes linked to genetic disorders, aiding in the development of targeted therapies and personalized medicine.

Beyond healthcare, DNA sequencing is widely utilized in genetic testing for paternity and familial relationships. It also plays a crucial role in forensic science, assisting in the identification of crime suspects and victims. In environmental contexts, DNA sequencing helps analyze bacteria and other microorganisms that contribute to air, water, and food contamination.

Additionally, this technology is vital in agricultural research, enabling scientists to study genetic variation and migratory patterns among animal and plant species. This information is essential for identifying rare breeds and optimizing seed and livestock development.

Overall, the versatility and impact of DNA sequencing continue to drive innovation and investment across various sectors.

Numerous companies, including Thermo Fisher Scientific Inc., Merck KGaA, Illumina, Inc., and various start-ups, provide a range of kits and reagents for DNA sequencing techniques. Thus, the benefits offered by DNA sequencing and its applications are expected to significantly boost the growth of this segment in the forecast period.

By application, the biotechnology market is segmented into industrial processing, bioinformatics, food & agriculture, health, natural resources & environment, and other applications. The industrial processing segment held the largest market share in 2023, while the bioinformatics segment is anticipated to grow at a faster rate during the forecast period. The industrial processing or bioprocessing market is one of the most promising areas of biotechnology, significantly impacting healthcare and agricultural biotechnology, and offering a new approach to pollution prevention and resource conservation. The industrial processing or bioprocessing market provides businesses with lower costs and creates new markets while minimizing environmental disruption. Most laboratory studies in biotechnology are conducted for commercial applications. These applications are utilized for drug discovery and development. Therapeutics for human proteins are developed through recombinant methods. For example, recombinant human insulin was the first recombinant medicine produced and marketed by Genentech in 1982. The rising prevalence of diabetes has led to substantial profits for recombinant insulin, contributing to significant future growth in the biotechnology market. Furthermore, industrial processing applications include the production of enzymes and microorganisms to create bio-based products in sectors such as chemicals, food ingredients, detergents, paper, textiles, beverages, fabrics, plastics, personal care, biofuels, and more.

Biotechnology Market Share Analysis by Geography

The geographic scope of the Biotechnology Market report is primarily divided into five regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.

Asia Pacific is recognized as the fastest-growing region in the global biotechnology market. The market in this region is expected to experience significant growth in countries such as China, Japan, and India. This growth is attributed to the increasing focus of market players in developing economies and supportive government policies.

Biotechnology Market Report Scope

Biotechnology Market News and Recent Developments

The Biotechnology Market is assessed by collecting qualitative and quantitative data through primary and secondary research, which includes important corporate publications, association data, and databases. Below is a list of recent developments in the biotechnology market and strategies:

• In April 2022, CytoTronics secured US$9.25M in initial seed funding, led by Anzu Partners, in collaboration with Milad Alucozai (BoxOne Ventures) and institutional investors. The company utilized this seed funding to advance its innovative platform that employs computer chip technology for conducting electrical and electrochemical cell-based assays (Source: CytoTronics, Press Release, 2022)

Biotechnology Market Report Coverage and Deliverables

The "Biotechnology Market Size and Forecast (2022-2030)" report offers a comprehensive analysis of the market covering the following areas:

• Market size and forecast at global, regional, and country levels for all key market segments included in the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter's Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles