Global Biotechnology Industry Market Research Report Now Available from IBISWorld

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Revenue in the Global Biotechnology industry as grown strongly since 2007, despite subdued gains during the global economic recession. Many of the major players reported slower growth in the US compared with other parts of the world; this is expected to continue as standards of living and healthcare access improves across developing nations. As stock prices dropped during the recession, investors scaled back their contributions. This trend has since reversed, but any economic weakness could restart investor reluctance. For these reasons, industry research firm IBISWorld has added a report on the Global Biotechnology industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Strong growth from developing nations will continue to bolster industry revenue.

There are a large range of firms engaged in biotechnology activities. On one end are small, dedicated biotechnology companies that are research and development (R&D) intensive and operate primarily with venture capital, grants, initial public offerings and collaborative agreements. On the other end are large, diversified companies with significant in-house R&D resources and well-established production, commercialization and distribution processes. IBISWorld estimates that Global Biotechnology industry revenue will reach $228.6 billion in 2012, having increased at an average rate of 10.4% per annum over the past five years. Growth in 2012 is expected to continue its recovery, with revenue rising by 9.9%. According to IBISWorld industry analyst Craig Shulman, this follows a relatively modest 8.7% rise in 2009 as the global recession eroded demand for non-essential health products, and easing fuel prices tempered the biofuels craze. The greater effect of the global recession on the industry in 2009, however, was the reluctance of private investors to provide capital as the collapse in stock prices prompted increased risk aversion. This investor reluctance eased in 2010, although investors will remain highly sensitive to any economic weakness. Any prolonged lack of funding would result in reduced R&D spending, which, if not reversed, will jeopardize the industry's future revenue growth.

The vast majority of revenue is generated in the European Union and the United States, where the industry showed growth over the past five years. The industry's major players reported recent slower growth rates for US sales compared with other parts of the world. This trend is expected to continue over the next five years as standards of living and healthcare access improve in developing nations. “Over the five years to 2017, the industry is expected to continue to prosper, with the Asia-Pacific region investing significant amounts of capital in order to gain a strong foothold in the industry, particularly China, South Korea, Taiwan and Singapore,” said Shulman. Larger players emerging as profitable entities following the global recession will continue pursuing low-risk strategies of success, including buying out smaller firms in order to collect successful research for commercial-ready technologies, and partnering with academic institutions.

Industry concentration indicates the extent to which major players dominate the industry; IBISWorld determines industry concentration by such measures as the proportion of industry revenue earned by the four largest industry players, the geographic spread of establishments, and the size of company by employee numbers. IBISWorld believes that the Global Biotechnology Industry exhibits a low level of industry concentration. Factors that contribute to a low level of concentration in this industry include: (1) specialization in certain diseases or products that are not transferable across other industry segments; (2) access to patents for anyone that can accurately prove the worth of their discovery; (3) the fact that the industry is in the "growth" stage of its economic life cycle and new players are constantly entering the market to provide niche services; (4) the rapid rate of technological change that increases industry capabilities; (5) the rapid growth of new markets (for instance, the move away from oncology products to drugs for non-chronic illnesses and for selective procedures); and (6) the speedy development of the industry in many emerging markets that have cheap labor costs and a more liberal regulatory environment. Over the medium to long term, the industry is expected to experience growing industry concentration. For more information, visit IBISWorld’s Global Biotechnology industry report page.

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IBISWorld industry Report Key Topics

Biotechnology is the application of science and technology to living organisms as well as parts, products and models thereof, to alter living or non-living materials for the production of knowledge and biotechnology products and services. The definition of biotechnology as used by the US Census Bureau and the National Science Foundation is the application of molecular and cellular processes to solve problems, conduct research, and create goods and services.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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