Biological Drug Market

Biological Drug Market Outlook (2024 to 2034)

The global biological drug market is estimated to be valued at US$ 421.68 billion in 2024. the market is expected to register a CAGR of 10.2% from 2024 to 2034. The market is projected to reach US$ 1,111.5 billion by 2034. The global rise in chronic diseases is fueling the growth of the biological drug market.

Biological drugs are distinct from synthetic drugs and have carved out a space for themselves in the pharmaceutical industry. The rise of diseases like cancer, autoimmune problems, and blood disorders is necessitating the use of biological drugs. Biological drugs can be used in various treatments, including gene therapy and tissue regeneration, and thus, the scope of the market is vast.

Key Market Growth Drivers

• Manufacturers of biological drugs invest heavily in research and development to come up with new drugs and treatments, which contributes to the constantly evolving nature of the market.
• Biological drugs are finding a market outside of humans, as animals are also administered biological drugs.
• Government initiatives are encouraging the use of biological drugs and are also contributing grants to aid the research in the field of biological drugs.
• Biological drug demand is booming due to the rapidly aging population of the world, with the geriatric population highly prone to chronic diseases.
• With heavy investment in research and development, biomedical technology is improving, paving the way for more advanced treatments.

The launch of new biological drugs is regulated by various regulatory bodies. The rate of approval for new biological drugs is progressing rapidly, contributing to the market’s growth. Thus, companies in the market can launch and sell new products more frequently.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 421.68 billion
Forecasted Market Value (2034F)	US$ 1,111.5 billion
Global Market Growth Rate (2024 to 2034)	10.2% CAGR
Therapeutical Biological Drug Segment Growth Rate (2024 to 2034)	10.1%
North America Market Share (2024)	47.2%
East Asia Market Share (2024)	6.2%
Key Companies Profiled	Merck & Co., Inc. Abbott Laboratories Eli Lilly and Company Baxter International Inc. Novartis AG Pfizer Inc. Biogen Idec Bristol-Myers Squibb Company Amgen Inc. GlaxoSmithKline plc.

Which Aspects Are Surging the Demand for Biological Drugs?

“Heavy Investments in Research and Development of Drugs from Public and Private Sectors”

The development of novel biological drugs and treatments requires a significant amount of money to be poured into research and development. Research grants are being allocated by governments all over the world for biological drugs, to improve the healthcare facilities in their countries. Private funding is also being sought on an increasing basis in the market. Private institutions are making significant investments in the biological drug industry. Thus, continuous funding enables the launch of new drugs, making way for increased sales.

“Rising Rates of Cancer Around the World Necessitating Increased Use of Biological Drugs”

The incidence of patients afflicted with cancer worldwide is growing. Thus, biological drugs for cancer treatment are in high demand. Public and private healthcare institutions focus on research for developing biological drugs for treating cancer. Thus, cancer-related biological drugs represent significant growth opportunities in the market.

Which Factors Present Challenges to the Expansion of the Biological Drug Market?

“Negative Public Perception about the Side Effects of Biological Drugs and Price Constraints”

Biological drugs have their side effects. In most cases, the side effects of biological drugs are excused as a necessity for the improvement of conditions. However, for some portion of the population, the side effects associated with biological drugs make people apprehensive about the product. The high cost of the drugs also hinders market growth to some extent. The companies in the market thus face challenges.

Country-wise Insights

North America accounts for a significant portion of the market, as the affluence of the region makes consumers less hesitant to seek biological drugs. In 2024, the value of the market in North America is estimated to be US$ 199.06 billion, accounting for a market share of 47.2%. The market is expected to progress at a healthy CAGR of 9.7% in North America from 2024 to 2034. The market value is set to reach US$ 503.20 billion by 2034, with a market share of 45.3%.

East Asia is set to be one of the most lucrative regions in the market. Government encouragement and the booming pharmaceutical industry in the region are improving the prospects of the market in East Asia. For 2024, the market value in East Asia is anticipated to be US$ 26.04 billion, with a market share of 6.5%. However, East Asia’s prominence in the market is expected to grow over the forecast period, with the demand progressing at a remarkable CAGR of 10.4%. By 2034, the East Asia market value is forecasted to be US$ 69.88 billion.

What Makes China a Promising Country in the Biological Drug Market?

“Innovation is the Key Factor Making China One of the Leading Countries in the Market”

Attribute	Details
Market Value (2024)	US$ 13.69 billion
CAGR (2024 to 2034)	12%

China is one of the most promising countries for the market, with an expected 2024 market valuation of US$ 13.69 billion. The market is expected to register an incredible CAGR of 12.0% in China over the forecast period, at the end of which the market value for the country is projected to be US$ 42.65 billion.

China has one of the biggest pharmaceutical industries in the world, and thus, biological drugs have a pathway laid before them for growth. China has also modified the approval processes for biological drugs, allowing for more accurate labeling. With heavy investments into research, innovations in biological drugs are expected to fuel market growth. Thus, the rapid developments in the market keep the demand churning in China.

What is Propelling Sales of Biological Drugs in the South Korea Market?

“Proliferation of Biotech Companies Driving Market Demand”

Attribute	Details
Market Value (2024)	US$ 3.56 billion
CAGR (2024 to 2034)	9.8%

South Korea is another East Asian country that represents significant potential for market growth. The market is estimated to reach US$ 3.56 billion in 2024. The market is expected to register a promising CAGR of 9.8% over the forecast period. By 2034, the valuation of the biological drug market in South Korea is expected to scale to US$ 9.05 billion.

South Korea is proving to be a fertile ground for biologics and biotech companies. Innovative biotech companies like Cyrus Therapeutics and Gencellmed are ensuring biological drugs remain technically proficient. Thus, South Korea is at the forefront of technological innovation when it comes to biological drugs, ensuring the demand for the product in the country.

Category-wise Insights

Based on the drug type, therapeutic biological drugs are expected to account for 48.9% of the market share in 2024, with a valuation of US$ 206.18 billion. Monoclonal biological drugs are expected to take up the runner-up place, with 35.2% of the market share and a valuation of US$ 148.62 billion.

Why is the Therapeutic Drug Form Highly Preferred by Consumers in the Biological Drug Market?

“Ongoing Popularity of Therapeutic Drugs Ensures the Product Still Rules the Roost in the Biological Drug Market”

Attribute	Details
Market Share (2024)	48.9%

The therapeutic biological drug segment is expected to account for 48.9% of the market share by drug type in 2024. The segment’s demand is expected to progress at a CAGR of 10.1% over the forecast period.

Therapeutic drugs are the most common type of synthetic drugs available in the market. Consumers have become used to therapeutic drugs, in part due to their wide availability. Therapeutic drugs are also used in many diseases, ranging from common to severe, and have thus earned the trust of consumers. Therefore, while monoclonal biological drugs are also progressing at a rapid rate, therapeutic drugs remain the dominant drug type.

Competitive Landscape in the Biological Drug Market

The biological drug market is fairly fragmented. While the heavy investment required in the development of new drugs favors giant multinational corporations, small-scale players and start-ups are also carving a space for themselves in the market.

Government funding and investments are helping enterprises on a smaller scale to stay competitive and provide competition to big players. For market expansion, companies in the industry are teaming up to exchange technical know-how and collaborate for further advancements in the field of medicine.

Some of the key companies in the market are Merck & Co., Inc., Abbott Laboratories, Eli Lilly and Company, Baxter International Inc., Novartis AG, Pfizer Inc., Biogen Idec, Bristol-Myers Squibb Company, Amgen Inc., and GlaxoSmithKline plc.

Recent Developments in the Biological Drug Market

• In September 2023, Samsung Biologics invested in the South Korean firm AimedBio. The aim of AimedBio is to use artificial intelligence (AI) to analyze patient data.
• In September 2023, US brand Waters Corporation announced solutions that help with the prep and analysis of biological samples. The solutions aim to reduce the time taken for bioprocess development.
• In July 2023, South Korean player Lotte Biologics entered into an agreement with KANAPH Therapeutics to develop an Antibody-Drug Conjugate (ADC) technology platform.

Segmentation of Biological Drug Market Research

• By Drug Type:

  • Therapeutic
  • Monoclonal
  • Vaccine

• By Application:

  • Infectious Diseases
  • Cancer
  • Autoimmune Diseases
  • Rare Diseases
  • Others

• By Region:

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa