Gene therapy: Growing demand for medical applications will support revenue

The Biotechnology industry is growing quickly, with revenue increases over the past five years driven by rising use of ethanol, demand for improved crop yields and the increasing medical needs of an aging population. Although the industry has grown, a consolidation trend has emerged as large pharmaceutical makers have increasingly targeted industry firms for acquisition, attempting to expand their product portfolios ahead of impending patent expirations. Continued spending on research and development, including by the federal government, will benefit the industry over the next five years, driving growth in both revenue and profit...read more.

Industry Statistics & Market Size
Revenue
$107bn
Annual Growth 12-17
1.6%
Forecast Growth 17-22
Profit
Employment
308,827
Businesses
2,865
What Our Customers Say

Industry Threats & Opportunities

  • Major patent expirations have created opportunities for new entrants
  • Growing federal regulation generally slows down the process to approve a new therapy or crop
  • Merger and acquisition activity is expected to continue, if not accelerate, over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Biotechnology industry continues to be composed of hundreds of small companies, alongside a few giant pharmaceutical, chemical and agricultural companies. The top four industry players generate 72.3% of industry revenue, representing a high level of market share concentration. Although the industry's large players generate a significant portion of revenue, the industry has been characterized by persistent fragmentation since its inception, and the majority of biotechnology companies still employ fewer than 50 workers.The industry's fragmentation and moderate concentration are at least partly a result of the cutting-edge nature of industry research and development (R&D) processes. Sin...purchase to read more.

    Additional Insights for the Biotechnology Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Biotechnology Industry are

  • Ability to raise financing
  • Ability to educate the wider community
  • Concentration on core business
  • IBISWorld analysts also discuss how external factors such as Investor uncertainty and Research and development expenditure in the Biotechnology industry impact industry performance..

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    What is the Biotechnology Industry?

    Companies in this industry primarily use living organisms or molecular and cellular techniques to provide chemicals, food and services that meet human needs. The industry excludes companies involved in developing small-molecule pharmaceuticals, performing contract research or manufacturing biological equipment.

    Industry Products
  • Human health technologies
  • Animal health, marine and terrestrial microbial technologies
  • Environmental remediation and natural resource recovery
  • Agriculture and aquaculture technologies
  • Industrial technologies
  • Industry Activities
  • DNA coding, mapping and sequencing
  • Processing biotechnologies
  • Subcellular organisms engineering
  • Cell and tissue culture engineering
  • Protein sequencing, synthesis and engineering
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Investor uncertainty
  • Research and development expenditure
  • Number of adults aged 65 and older
  • Price of corn
  • Trade-weighted index

  • Current Performance
  • Funding and regulation
  • Robust M&A activity
  • Chart: Revenue Growth

  • Industry Outlook
  • Consolidation continues
  • Healthcare drives growth
  • Table: Biotechnology Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Biotechnology Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Animal Food Production
  • Petroleum Refining
  • Fertilizer Manufacturing
  • Brand Name Pharmaceutical Manufacturing
  • Generic Pharmaceutical Manufacturing
  • Veterinary Services
  • Diagnostic & Medical Laboratories
  • Public Administration

  • Key Selling Industries
  • Chemical Wholesaling
  • Electrical Equipment Manufacturing
  • Glass Product Manufacturing
  • Glasses & Contact Lens Manufacturing
  • Hose & Belt Manufacturing
  • Inorganic Chemical Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Organic Chemical Manufacturing
  • Plastic Pipe & Parts Manufacturing

  • Products & Services
  • Human health technologies
  • Industrial technologies
  • Animal health, marine and terrestrial microbial technologies
  • Environmental remediation and natural resource recovery
  • Agriculture and aquaculture technologies
  • Chart: Biotechnology Industry Products and Services Segmentation

  • Demand Determinants
  • Prompting innovation
  • Driving demand

  • Major Markets
  • Pharmaceutical and medical manufacturers
  • Government grants and payments
  • Agriculture and food sectors
  • Exports
  • Resource industries
  • Other
  • Chart: Major Market Segmentation for the Biotechnology Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesResearch and developmentPurchases and depreciation
  • Chart: Cost Structure Benchmarking – Sector vs Biotechnology

  • Basis of Competition
  • Intellectual property
  • Pricing and customer service
  • Product performance
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Biotechnology Industry

  • Industry Globalization
    Gilead Sciences Inc.Amgen Inc.AbbVie Inc.Genentech Inc.Monsanto Co.
  • Table: Gilead Sciences Inc. - financial performance
  • Table: Amgen Inc. - financial performance
  • Table: AbbVie Inc. - financial performance
  • Table: Genentech Inc. - financial performance
  • Table: Monsanto Co. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Biotechnology Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Biotechnology Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Research and development expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Biofuel
  • A fuel that contains energy produced from living organisms, such as algae or plants.
  • Biologic
  • A pharmaceutical product derived from biological matter or processes. (Traditional pharmaceuticals are instead referred to as chemical drugs).
  • Biorefinery
  • A facility that produces fuels, power, heat, and value-added chemicals from biological material
  • Biosimilar
  • The biologic equivalent of a generic drug, although a biologic formulation can never be exactly identical to the same drug created using a different cell line.
  • Biotechnology Trait
  • A gene in agricultural biotechnology that has been inserted into a seed in order to convey a special characteristic or trait, like the ability to resist certain insects.
  • Gene Therapy
  • A technique that involves the insertion of genes into a person's cells and tissues for medical purposes, such as to treat disease.
  • Genetic Modification (Gm)
  • A technique where specific changes are introduced into a plant or animal's DNA by genetic engineering techniques, such as altering plant DNA to increase crop yield and resistance.
  • Intellectual Property (Ip)
  • A work or invention that is the result of creativity or innovation to which one has rights and for which one may apply for a patent, copyright or trademark.
  • Venture Capital
  • Funding provided to early-stage, potentially high-growth companies, often offered concurrently with an active role in the company's management and direction.
  • Why buy this report?

    IBISWorld’s industry research report on Biotechnology contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Biotechnology:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Biotechnology market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Biotechnology, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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