Current buoyant market situations in the field of biotechnology might make one think that it was immune to the recession. The truth is far from it though, as the global biotechnology market had fallen hard during one of the global economy’s worst of decades. Despite receiving massive government funding in the U.S. and other developed regions, the global biotechnology market did not see the light of day till after 2010. The industry kept shrinking and jobs were still being lost. For example, the biosciences industry in Illinois had been reduced by 3.3% between 2001 and 2008, which made only a little more than 57,000 jobs available in biotech.
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Getting back to the current scenario, which is much more uplifting, the global biotechnology market is progressing at a whirlwind 11.6% CAGR between 2012 and 2017. In 2011, this market was valued at US$216.5 bn, which will be almost doubled to US$414.5 bn by the end of this financial year of 2017.
Explaining this phenomenal comeback are the solutions to three critical questions, as answered by market analysts from Transparency Market Research:
Have Funding and Investments Increased Over the Years?
They have. The global biotechnology market is one of the most promising ones we have today, in terms of both returns on investments as well as producing major means of manufacturing, food production, and medicine. This can be witnessed in the U.S. biotech market the most, especially in California. It is the leading state in biotech across the country, but is currently being closely chased by other states such as Maryland, which has shown a 27% jump in employment from 2006 to 2008.
Are Developing Economies in on the Action Too?
They are now. The recent advancements in technology in the global biotechnology market have all made it a lot easier for developing economies such as India, Thailand, and China to adopt biotech processes and research at a faster rate. Other factors that are promoting the proliferation of this market in the Asia Pacific and Latin America regions include the large and ready labor force, the sharp increase in both government and private funding, and the need to increase agricultural yield due to rapidly increasing population densities.
Is There a Way to Peak the Growth Rate Soon?
While the time duration cannot be accurately calculated, it is possible to have near-peak growth rate in major segments of the global biotechnology market in the near future. To do so, the industry needs to take care of several high priority restraints. The topmost factor hindering the growth of the global biotechnology market currently, is the time-to-market taken for biopharmaceutical drugs. It can take as many as 12 years for a drug in the global biotechnology market to reach from the laboratories to the market shelves. Another issue in the global biotechnology market pertains to the unethical methods of conducting clinical trials, as experienced by quite a few biotech firms.
The future of the global biotechnology market can be seen to be based around nanotechnology, stem cell technology, and cell cloning technology. Each field has a major need for biotech experts and is expected to drive this market even faster.
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