Biopharmaceutical Market - Growth Surge and Future Projections

According to the latest market research study published by P&S Intelligence, the biopharmaceutical sector generated a value of USD 448.1 billion in 2023, projected to grow to USD 745.1 billion by 2030, reflecting a robust compound annual growth rate (CAGR) of over 7.6%.

Key growth drivers include a rising elderly population, an increase in health issues associated with aging, and a growing demand for advanced biologic therapies. Additionally, heightened investment in research and development (R&D) and a growing acceptance of bio-based medications are fueling market expansion.

The introduction of biosimilars for anti-TNF products has led to an approximate 8% cost reduction in Europe, while biosimilars for G-CSF and erythropoietin have seen reductions of 33-34%. This trend has contributed to the widespread adoption of biopharmaceuticals, as their effectiveness and safety have garnered public trust.

Many companies are focusing on R&D for biological drugs, resulting in a significant increase in New Drug Applications (NDAs) and Biologics License Applications (BLAs) submitted each year. The escalating prevalence of infectious diseases, neurological disorders, and cancer underscores the growing significance of biopharmaceuticals.

These therapies are crucial for treating neurodegenerative conditions, many of which require bio-medications to be administered directly into the brain—something conventional synthetic drugs cannot achieve.

Download detailed report analysis on Biopharmaceuticals Industry Growth and Forecast Report, 2030

Market Insights:

In 2023, North America held the largest market share, approximately 45%, driven by substantial R&D investment, a preference for advanced technological solutions, and the presence of major international firms focused on innovation and new patents. The U.S. is at the forefront of the industry in this region.

The U.S. leads global biopharmaceutical R&D efforts, having conducted over 150,000 studies since 2008, owing to the size and influence of its pharmaceutical sector. California, with its robust tech landscape, accounts for the majority of these studies, driven by a strong commitment to innovation.

Oncology dominated the market in 2023, accounting for about 40% of the industry, with biopharmaceuticals showing greater prevalence in cancer trials compared to non-cancer conditions. Cell and gene therapies are expected to experience the fastest growth in the coming years, representing significant advancements in clinical research across various therapeutic areas.

In 2023, monoclonal antibodies (mAbs) held the largest market share at 35%, anticipated to grow at around 7.2% CAGR during this decade. mAbs are the most significant class of biologics, constituting over 20% of all FDA-approved therapeutic candidates, with many approved for anti-inflammatory, anti-cancer, and other therapeutic uses. Their extensive use in cancer treatment is driving their popularity in developed nations like the U.K. and the U.S.

The biopharmaceutical landscape is marked by intense competition among mid-sized, large global companies, and emerging biotech firms, fueled by innovative R&D, regulatory compliance, market access, and product differentiation.