Red Biotechnology Market Size, Share & Trends Analysis Report By Product Type (Monoclonal Antibodies, Polyclonal Antibodies, Recombinant Proteins, Vaccines, Cell-Based Immunotherapy Products, Gene Therapy Products, Cell Therapy Products, Tissue-Engineered Products, Stem Cells, Cell Culture, Viral Vector, Enzymes, Kits and Reagents, Animal models, Molecular diagnostics, Others), By Application (Pharmacogenomics, Gene Therapy, Genetic Testing , Biopharmaceutical Production), By End-User (Research Institutes, CMOs and CROs, Pharmaceutical and biotechnology companies, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global red biotechnology market size was valued at USD 550 billion in 2023 and is projected to reach USD 1,360 billion by 2032, registering a CAGR of 10.2% during the forecast period (2024-2032). The global red biotechnology industry is expected to be driven by the growing awareness of chronic illness therapy and a robust pipeline of new medicinal compounds.

The global red biotechnology industry is anticipated to be propelled by the increasing awareness of chronic disease treatment and a strong pipeline of novel therapeutic molecules. Red biotechnology involves using biological agents or organisms to produce biopharmaceutical drugs, genetically modified crops, environmentally friendly biofuels, and other goods. Biotechnology spans a range of scientific disciplines, including genetics, molecular biology, biochemistry, embryology, and cell biology. These fields generate goods and services in human and veterinary medicine, farming, food manufacturing, and ecological administration. 

Red biotechnology is used in diverse fields like pharmacological research, genetic therapy, tissue engineering, medical diagnostics, and vaccine development. This method is primarily utilized in manufacturing biopharmaceuticals such as monoclonal antibodies, hormones, and antigens. These treat many ailments, including cancer, autoimmune disorders, and infections. 

Additionally, the revenue of the global red biotechnology market is growing due to heightened investments in research and development by prominent market players, new facilities to meet rising demands, a robust pipeline of new drugs undergoing clinical trials, and an uptick in product approvals.

highlights

• Monoclonal antibodies generate the highest revenue share based on product.
• Pharmacogenomics accounts for the largest market share by application.
• Pharmaceutical and biotechnological companies contribute significantly to the market through end users.

Market Dynamics

Global red biotechnology market drivers

Growth in precision medicine

The growing discipline of precision medicine and increasing focus on developing targeted therapies customized to an individual’s genetics is driving research and development in biologics. Biologics are well-suited for precision medicine due to their capacity to interact with intricate signaling proteins and modulate disease pathways according to a patient’s genetic profile. Siemens Healthineers and the Indian Institute of Science (IISc) have opened the Siemens Healthineers-Computational Data Sciences (CDS) Collaborative Laboratory for AI in Precision Medicine at IISc Bangalore, India. In July 2023, Dartmouth University inaugurated the Center for Precision Health and Artificial Intelligence (CPHAI). This initiative promotes multidisciplinary research using artificial intelligence (AI) and biomedical data to enhance precision medicine and improve health outcomes.

In addition, during the Bio-IT World Conference in May 2023, Google Cloud unveiled two innovative artificial intelligence (AI)-based solutions for the life sciences industry. These solutions aim to expedite the process of drug development and enhance precision medicine for biotechnology companies, pharmaceutical firms, and public sector organizations. The Target and Lead Identification Suite, now accessible globally, enhances researchers’ ability to determine the role of amino acids and forecast protein structure. Additionally, the Multiomics Suite expedites the analysis and comprehension of genomic data, aiding companies in developing precise therapeutic approaches. The market expansion is propelled by the progress made in precision medicine. 

Increasing prevalence of chronic diseases

The increasing prevalence of chronic diseases such as cancer, cardiovascular diseases, diabetes, and autoimmune disorders is driving the demand for innovative biologics. According to the World Health Organization (WHO), by about 2050, chronic diseases such as cardiovascular diseases, cancer, diabetes, and respiratory ailments will make up 86 percent of the 90 million annual fatalities. This represents a significant rise of 90 percent in absolute numbers compared to 2022.

Over the past few years, the American lifetime has decreased due to the impact of COVID-19 and the diseases of despair, including overdose, suicide, and excessive alcohol usage. Nevertheless, chronic diseases continue to account for 8 out of the top 10 causes of mortality in the United States. The numbers 6 and 7. Despite the COVID-19 pandemic, heart disease and cancer collectively constituted over 40% of the total number of deaths in the United States in 2022. Global estimates indicate that in 2020, around 523 million individuals experienced various cardiovascular diseases (CVD), resulting in around 19 million fatalities. This accounts for around 32% of all worldwide deaths and indicates a significant increase of 18.7% compared to 2010.The numbers 17 and 18. In 2021, there was a 0.6% increase in the number of deaths caused by cardiovascular disease (CVD), which includes heart disease and stroke. These two conditions are the first and fifth significant causes of death in the United States. The total number of deaths from CVD in 2021 was 934,509. Therefore, the increasing occurrence of these chronic diseases presents a significant market opportunity.

Global red biotechnology market restraints

Pricing pressures on biologics

Despite the rapid growth of biologics, they are currently experiencing rising challenges related to cost and reimbursement. The red biotechnology market, which primarily focuses on medical applications like pharmaceuticals and biologics, is confronted with substantial difficulties due to pricing pressures. Biologics, originating from living creatures, can involve significant expenses in their development and production, resulting in higher prices than conventional small-molecule medications. Payers are undertaking cost management measures by transferring a more substantial portion of expenses to patients due to the significant costs involved. Biosimilars are causing pricing issues for branded biologics due to increased competition. 

Therefore, this pricing dynamic can impede market expansion by restricting patient access, deterring investment, and generating affordability problems for healthcare systems. Moreover, the expiration of patents, competition from biosimilar products, and obstacles in the form of regulations exacerbate pricing pressures, hindering the industry's expansion. 

Global red biotechnology market opportunity

Adoption of advanced manufacturing

The increasing utilization of sophisticated manufacturing technologies, such as single-use bioreactors, continuous processing, and modular facilities, presents fresh prospects for enhancing the scale-up and efficiency of biomanufacturing. Single-use systems offer increased flexibility, reduced capital expenditures, and improved risk management. Automation systems allow the monitoring and control of processes in real-time. Companies that allocate resources to enhance production by implementing these technologies can optimize output, minimize expenses, and guarantee seamless bioprocessing, thereby attaining a competitive edge.

Furthermore, the FDA implemented a framework on February 12, 2024, to allow stakeholders such as applicants, contract manufacturers, and technology developers to formally propose the designation of a medication manufacturing technique as an advanced manufacturing technology (AMT). The FDA and the Product Quality Research Institute (PQRI) will also organize a workshop on September 26-27, 2023. The workshop focussed on the regulatory framework for adopting artificial intelligence in pharmaceutical manufacturing. This virtual workshop aims to promote collaboration among individuals involved in artificial intelligence (AI) on essential aspects of its development, implementation, and regulatory considerations. These aspects include its application in process development and control, operation of Pharmaceutical Quality Systems, lifecycle approaches, and adherence to Current Good Manufacturing Practices. The advancements in sophisticated manufacturing offer potential business prospects. 

Regional Analysis

The global red biotechnology market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North america dominates the global market

North America is the most significant global red biotechnology market shareholder and is estimated to grow at a CAGR of 9.8% over the forecast period.  This is because of the increasing occurrence of chronic and rare illnesses, expanding research and development efforts, and significant technology developments in this area. The rising expenditure by both the government and market participants to enhance research on genetic illnesses substantially impacts market growth. According to the updated March 2023 article from the National Institute of Health, the expenditure on gene therapy was USD 486 million in 2021 and USD 560 million in 2022. According to the same source, the spending on genetics research was USD 11,010 million in the previous year and USD 11,615 million in the current year. According to the data released by the National Center for Health Statistics (NCHS) in March 2023, research funding for nucleic acid-based research is projected to rise in the United States.

Additionally, according to the source, funding for research in Genetics is expected to increase from USD 1,615 million to USD 12,445 million by next year. According to the same source, the funding for Genetic Testing research is expected to rise from USD 214 million this year to USD 237 million next year. Furthermore, the allocation of funds for gene therapy research is projected to increase from USD 516 million in the present year to USD 540 million in the following year. Therefore, substantial investment in research and development in genetics and gene therapy is expected to boost the growth of the regional red biotechnology market in the foreseeable future. 

Asia Pacific is anticipated to exhibit a CAGR of 10.5% over the forecast period. Countries in the Asia-Pacific region, particularly India and China, play a key role in driving the expansion of emerging economies in this area. These countries are engaged in private-public collaborations and government initiatives that are driving the expansion of the Asian market.

Europe holds a significant market share. Government initiatives and financing are essential for promoting research and development in this European industry. Moreover, the existence of a robust pharmaceutical sector, together with progress in biotechnology research, drives expansion. The market expansion is further fueled by Europe’s robust healthcare infrastructure and growing demand for innovative medical solutions. In addition, partnerships among academic institutions, research organizations, and biotech enterprises promote creativity and enhance market competitiveness. Investment and commercialization efforts are encouraged by regulatory backing and favorable legislation. Moreover, consumer and healthcare experts' increasing recognition and approval of biotech products contribute to expanding market reach. 

Segmental Analysis

The global red biotechnology market is segmented based on product, application, and end user. 

Based on product, the market is segmented into Monoclonal Antibodies, Polyclonal Antibodies, Vaccines, Cell-Based Immunotherapy Products, Gene Therapy Products, Stem Cells, Cell Therapy Products, Recombinant Proteins, Tissue-Engineered Products, Animal models, Cell Culture, Viral Vectors, Enzymes, Kits and Reagents, Molecular diagnostics, and Others.

Monoclonal antibodies dominated the market in 2023. The increasing incidence of chronic illnesses like CVD, cancer, and others is leading to a greater need for biologics. This is anticipated to be a significant driver in driving the expansion of this sector. Moreover, the COVID-19 pandemic has stimulated the creation of several monoclonal antibodies (mAbs) explicitly targeting the SARS-CoV-2 virus. This has resulted in enhanced opportunities for market growth. Monoclonal antibodies (mAbs) show great potential as a viable option for mitigating COVID-19 due to their high level of safety and effectiveness. The U.S. FDA has granted emergency use authorizations for several of these antibodies.

Gene therapy products are the fastest-growing segment. The rise can be ascribed to expanding gene delivery technologies and sophisticated medicines and intense competition among leading market players focusing on commercializing their therapies. The American Society of Gene and Cell Therapy (ASGCT) reports that over 1,986 gene therapy products are being developed, encompassing genetically modified and CAR T-cell therapies.

The market is segmented based on applications such as genetic testing, pharmacogenomics, gene therapy, and biopharmaceutical production. 

Pharmacogenomics dominated the market in 2023. The expansion of pharmacogenomics can be attributed to the increasing prevalence of genetic illnesses and autoimmune disorders and the expanding biotechnology industry in emerging countries.

Gene therapy is a crucial component of modern biotechnology, providing cutting-edge solutions for treating genetic abnormalities and diseases. Within biomedical biotechnology, gene therapy has the potential for creating customized medications that can specifically target genetic alterations that are the root cause of diseases such as cancer, genetic disorders, and rare diseases. Gene therapy can transform healthcare by providing novel therapeutic options and enhancing patient outcomes in biomedical biotechnology through gene editing technologies and viral vectors.

Based on end users, the market is segmented into Research Institutes, CMOs and CROs, Pharmaceutical and biotechnology companies, and Others.

Pharmaceutical and biotechnology companies dominated the market in 2023. Pharmaceutical and biotechnology industries are grappling with a multitude of complex trends. The sector faces an escalating demand for COVID-19 vaccines and treatments worldwide, creating an additional burden. The company’s capacity to discover a novel approach to deliver COVID-19 vaccines while simultaneously fulfilling overall demand is commendable.

Nevertheless, the increasing worldwide demand continues to pose a substantial long-term issue for the business. These businesses are currently undergoing a surge of innovation, encompassing novel methods of treatment, sophisticated data analysis, intelligent machinery, and digital interconnectivity.

CMOs and CROs are the fastest-growing sub-segment. Prominent companies in the biotechnology business are investing more to improve their efficiency and production, which has led biopharmaceutical manufacturers to prioritize outsourcing services. Mergers and acquisitions enable Chief Marketing Officers (CMOs) to provide comprehensive bioprocessing services, making CMOs/CROs a viable choice for expeditious product introductions. The market for Contract Manufacturing Organizations (CMOs) and Contract Research Organizations (CROs) is still nascent.

However, the emergence of innovative treatments, advancements in bioprocessing equipment, and product priorities within the bio/pharmaceutical industry have intensified the demands placed on contract bio manufacturers.

Recent Developments

• March 2024– AstraZeneca formally agreed to purchase Fusion Pharmaceuticals Inc., a biopharmaceutical business in the advanced stages of developing radioconjugates (RCs) for medical use. The acquisition represents a significant advancement for AstraZeneca in achieving its goal of revolutionizing cancer treatment and improving patient outcomes. This will be accomplished by substituting conventional treatment methods, such as chemotherapy and radiotherapy, with more precise and focused therapies.
• March 2024– AstraZeneca officially agreed to buy Amolyt Pharma, a biotechnology business in the clinical stage specializing in developing innovative therapies for rare endocrine disorders.