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Biotechnology Research & Development in Germany - Market Research Report (2014-2029)

Clara-Camille Schneider Clara-Camille Schneider Frankfurt, Germany Last Updated: July 2024 WZ M72.11DE

Revenue

€3.1bn

2024

€3.1bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

22,639

Businesses

1,048

Wages

€X.Xbn

Biotechnology Research & Development in Germany industry analysis

In the search for vaccines against the coronavirus, the biotechnology research and development (R&D) sector has attracted a great deal of public attention and set financing records over the past two years in the form of venture capital, IPOs and convertible bonds. Accordingly, turnover and expenditure on R&D by German biotechnology companies have risen significantly. However, sentiment has deteriorated over the past two years. In addition to high energy costs, the shortage of skilled labour and a decreasing number of financing options are slowing down the business situation and sales development of companies in the sector. In 2022, only a third of the amount of equity from 2020 was raised. In 2023, venture capital, which is raised in the early phase when a company is founded, fell by a third. In contrast, capital raised has improved again overall.The industry recorded an average annual growth rate of 3.2% between 2019 and 2024. In the current year, industry turnover is expected to amount to 3.1 billion euros. This corresponds to an increase in turnover of 2.8% compared to the previous year. Investments are currently particularly high in companies specialising in cancer therapies. However, biotechnology companies focussing on nutrition and industrial topics are also able to conclude large financing rounds.However, the difficult recruitment situation and the negative trend in R&D investments are likely to continue. Only a third of companies are planning to invest more in R&D this year. This development shows that companies have started the new year with great uncertainty despite positive sales development, and the current political climate for biotechnology companies is rated correspondingly poorly.Over the next five years, IBISWorld expects industry turnover to increase at an average annual growth rate of 5.6% and is expected to reach 4.1 billion euros in 2029. In addition to the medical sector, industry players also see great growth potential in agricultural biotechnology and industrial biotechnology. Solutions for sustainable industrial production as well as environmental, energy and nutritional issues could generate significant sales in the coming years. There are also great opportunities in the field of artificial intelligence. This makes the calls from politicians to strengthen Germany as a business location in the long term and, for example, to create framework conditions that also make financing attractive for smaller companies all the louder.

Trends and Insights

  • The industry has been thrust into the public spotlight by the pandemic. BioNTech and CureVac in particular received large sums of funding for their vaccine research efforts. However, with the focus on test systems, vaccines and drugs to combat the pandemic, other therapeutic areas suffered.
  • Companies from the pharmaceutical industry are the most important customers in the sector. However, tightening economic policy conditions and a declining need for vaccines have slowed demand from this customer market in previous years.
  • The biotech cluster BioCon Valley, an initiative for life sciences and the healthcare industry, is located in Greifswald. Such an agglomeration of industry companies leads to a local supply of qualified labour and reduced transaction costs thanks to access to industry-specific infrastructure and industry-relevant expertise.
  • The industry is characterised by increasing competition, intensive research activities and rapid technical changes. Product development cycles are becoming shorter and shorter. New competitors see this as an opportunity and are entering the market.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 3.2 % over the past five years, to reach an estimated €3.1bn in 2024.

Trends and Insights

More clinical trials are currently being conducted in Germany again

  • Despite current challenges and cautious investors, more clinical studies are in the development pipeline of German biotechnology companies than in previous years.
  • Additional trends and insights available with purchase
Biotechnology Research & Development in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Biomanufacturing and bioprinting support sustainable agriculture and food production

  • In addition to the medical and pharmaceutical sectors, the agricultural and food industries are also interested in the innovations in the development pipeline.

Biggest companies in the Biotechnology Research & Development in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Qiagen N. V.
239.4
BioNTech SE
171.7
Rentschler Biopharma SE
131.0

To view the market share and analysis for all 6 top companies in this industry, view purchase options.

Products & Services Segmentation

Biotechnology Research & Development in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Medical biotechnology, Industrial biotechnology and Bioinformatics. Medical biotechnology is the largest segment of the Biotechnology Research & Development in Germany.

Trends and Insights

Combination therapy opens up growth potential in the field of medical biotechnology

  • The Health and Medicine service area comprises the development of therapeutics and diagnostics for human medicine, the development of instruments and active ingredients for drugs and tissue transplants as well as veterinary R&D applications.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The industry comprises research and development activities in the field of biotechnology. This includes basic research, applied research and experimental development, particularly in the fields of genetic engineering, bioinformatics and nanobiotechnology as well as in connection with methods of bioprocess engineering, gene therapy and tissue engineering. The sector consists exclusively of dedicated biotechnology companies.

What's included in this industry?

Medical biotechnologyIndustrial biotechnologyBioinformaticsAgrobiotechnology

Companies

Qiagen N. V.BioNTech SERentschler Biopharma SE

Purchase this report to view all 6 major companies in this industry.

Related Terms

BIOMARKERDEOXYRIBONUCLEIC ACID (DNA)DIAGNOSTICSGENOMREAGENCERIBONUCLEIC ACID (RNA)

Industry Code

WZ 2008

WZ 72.11 - Biotechnology Research & Development in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The industry has been thrust into the public spotlight by the pandemic. BioNTech and CureVac in particular received large sums of funding for their vaccine research efforts. ...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Companies from the pharmaceutical industry are the most important customers in the sector. However, tightening economic policy conditions and a declining need for vaccines ha...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The biotech cluster BioCon Valley, an initiative for life sciences and the healthcare industry, is located in Greifswald. Such an agglomeration of industry companies leads to...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The industry is characterised by increasing competition, intensive research activities and rapid technical changes. Product development cycles are becoming shorter and shorte...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

At the beginning of 2023, Qiagen completed the acquisition of Verogen. The acquisition strengthens the Group's market position in the growing segment of personal identificati...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Qiagen N. V.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of BioNTech SE's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Rentschler Biopharma SE's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 3 additional companies

Detailed analysis

  • Description and key data for Qiagen N. V., and factors influencing its performance in the industry
  • Description and key data for BioNTech SE, and factors influencing its performance in the industry
  • Description and key data for Rentschler Biopharma SE, and factors influencing its performance in the industry
  • Description, key data and performance trends for 3 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The Research Allowance Act passed in November 2019 provides for the introduction of a tax allowance that allows industry players to deduct 25% of their R&D personnel costs fro...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Personnel expenses represent the largest cost item. R&D activities in the field of biotechnology can only be carried out by employees with expertise in certain research areas...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Biotechnology Research & Development industry in Germany in 2024?

The market size of the Biotechnology Research & Development industry in Germany is €3.1bn in 2024.

How many businesses are there in the Biotechnology Research & Development in Germany industry in 2024?

There are 1,048 businesses in the Biotechnology Research & Development industry in Germany, which has grown at a CAGR of 4.3 % between 2019 and 2024.

Has the Biotechnology Research & Development industry in Germany grown or declined over the past 5 years?

The market size of the Biotechnology Research & Development industry in Germany has been growing at a CAGR of 3.2 % between 2019 and 2024.

What is the forecast growth of the Biotechnology Research & Development industry in Germany over the next 5 years?

Over the next five years, the Biotechnology Research & Development industry in Germany is expected to grow.

What are the biggest companies in the Biotechnology Research & Development market in Germany?

The biggest companies operating in the Biotechnology Research & Development market in Germany are Qiagen N. V., BioNTech SE and Rentschler Biopharma SE

What does the Biotechnology Research & Development in Germany include?

Medical biotechnology and Industrial biotechnology are part of the Biotechnology Research & Development industry.

Which companies have the highest market share in the Biotechnology Research & Development in Germany?

The company holding the most market share in Germany is Qiagen N. V..

How competitive is the Biotechnology Research & Development industry in Germany?

The level of competition is moderate and increasing in the Biotechnology Research & Development industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Basic Pharmaceutical Product Manufacturing in Germany
  • Pharmaceutical Preparations Manufacturing in Germany

Complementors

  • Pharmaceutical Preparations Manufacturing in Germany
  • Third-Level Education in Germany
  • Medical Laboratories in Germany

International industries

  • Global Biotechnology
  • Biotechnology in the US
  • Scientific Research & Development in Canada
  • Research on Natural Sciences & Engineering in the UK
  • Medical Research in China

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.