In the past few years, the global biologics market has witnessed an impressive growth owing to development and launch of novel product varieties, breakthrough progress in treatment options for chronic diseases, and rising research and developmental activities. Globally, a vast rise in pharmaceutical giants’ operational setups and sponsorship directed towards the development of new and more effective drug varieties for rare diseases has been noted in the past few years. This trend is leading to an increasing focus on the development of biologics.
As per a report by market intelligence firm Transparency Market Research (TMR), the global biologics market is poised to expand at a 10.9% CAGR from 2016 to 2024, reaching a value of US$479, 752 mn by the end of 2024 from US$209, 779 mn in 2016.
Rising Demand for Result-oriented Drugs to Boost Adoption of Biologics
The process of experiment and approval of new product varieties often leads to high prices of biologics upon approval. Drug companies usually charge premium prices for innovative and clinically advanced biologics, with profit margins as high as 20-40%. Biologics are gaining popularity as an effective and result-oriented treatment for various critical diseases. As a result, despite their high costs, demand for biologics is demonstrating an upward trend, thus, driving the market.
North America to Lead Revenue Generation through 2024
Geographically, the global biologics market is classified into North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa (MEA). North America will continue to be the leading revenue contributor until 2024, accounting for nearly 40% of the overall market. The Asia Pacific market for biologics is expected to rise at a noteworthy CAGR of 15.6% during the same period. The growth of this region can be attributed to the presence of a large pool of patient, changing regulatory scenario, and rising funding by foreign investors. Moreover, with the increasing number of multi-national pharmaceutical companies escalating their manufacturing and sales capacities in the region, the Asia Pacific market is likely to witness robust growth in the forthcoming years.