Pharmaceutical and Biotechnology Market Size, Share, By Product (Biotechnology and Pharmaceutical), Age Group (Children & Adolescents, Adults, and Geriatric), Technology (Nanotechnology, Tissue Engineering & Regeneration, PCR & Sequencing, Artificial Intelligence (AI), Personalized Medicine, and Others), Therapeutic Application (Oncology, Inflammatory and Infectious Diseases, Autoimmune Disorders, Metabolic Disorders, Hormonal Disorders, Disease Prevention, Cardiovascular Diseases, Neurological Diseases and Others), End User (Pharmaceutical Companies, Biotechnology Companies, Healthcare Providers, Research and Government Institutes, and Others), and Region - Trends, Analysis and Forecast till 2035

• By 2035, the target market size is expected to develop at a valuation of USD 6.5 Tn.
• Pharmaceutical and biotechnology market size was calculated at USD 3.12 Tn, in 2024.
• Target market is developing at a CAGR of 7.8%.

Pharmaceuticals are medicinal drugs, while biotechnology is the use of biological research to develop products from living organisms. Pharmaceutical biotechnology is the application of biotechnology to develop drugs. Drugs used for medicinal purposes, such as cough syrup or sleeping pills are pharmaceuticals, while, the use of biological research techniques to develop products and processes derived from living organisms is called biotechnology. The key advantages of pharmaceutical and biotechnology include, improved healthcare, faster drug delivery, new and better products, better quality assurance, stronger patents, and higher FDA approval rates.

The rising prevalence of chronic diseases, growing acceptance of biologics and biosimilars, increasing investment by governments globally in research and development to address unmet medical needs and promote innovation, expanding of product portfolios by companies, emerging research and development hubs, growing demand for synthetic biology, and the increasing focus on advanced therapies, are factors driving the pharmaceutical and biotechnology market growth.

Technological breakthroughs in areas such as genomics, proteomics, and bioinformatics are accelerating drug discovery and development, personalized medicine, which tailors treatments to individual patients based on the genetic makeup of the patients, is gaining traction, and the use of artificial intelligence (AI) and machine learning in drug discovery and development is also accelerating the process and improving efficiency, thus further contributing in the target market expansion.

Impact of Generative AI on Pharmaceutical and Biotechnology Market:

• By speeding up drug development, improving clinical trial design, and facilitating tailored therapy, generative AI is revolutionizing the biotechnology and pharmaceutical industries.  It speeds up the identification of possible medication candidates, improves data processing, and forecasts molecular interactions—all of which save research expenses and time.  Furthermore, in biotechnological applications, AI-driven insights enhance accuracy and decision-making.  Increased creativity, efficiency, and a shorter time to market for novel treatments and biotechnological breakthroughs are driving market expansion as businesses embrace AI-driven solutions.

Key Drivers of Target Market:

The Rising Prevalence of Chronic Diseases is expected to pitch the Market Growth

The growing number of chronic illnesses is boosting the expansion of the pharmaceutical and biotechnology market by raising demand for cutting-edge medicines and novel treatments.  Chronic disorders including diabetes, cancer, and heart disease require ongoing study and development of new medications and biotechnological treatments.  This increase in healthcare demands drives investments in gene treatments, biologics, and customized medicine.  As a result, pharmaceutical and biotech firms profit from growing patient populations by promoting market expansion with cutting-edge treatments and focused medical solutions.

• For Instance, in December 2024, according to the data published by WHO, in 2021, non-communicable diseases (NCDs), also known as, chronic diseases, accounted for at least 43 million deaths worldwide, or 75% of mortality not attributable to pandemics. 18 million persons died from an NCD before turning 70 in 2021; low- and middle-income nations account for 82% of these premature fatalities. 73% of fatalities from NCDs occur in low- and middle-income nations.

Restrains:

The High Cost of Drug Development is Hindering the Market Growth

Extensive research, clinical studies, regulatory clearances, and manufacture are all part of the process of developing novel drugs. This procedure takes a long time (10 to 15 years on average) and costs an extensive amount of money, which frequently results in high medicine prices that prevent patients from accessing it, particularly in low- and middle-income nations.

• Counterbalance Statements: Drug prices can be reduced by governments and nonprofit organizations working with biotech companies to share R&D expenses and risks. Affordability and accessibility may be further improved by utilizing AI and promoting the manufacturing of generic medications.

Opportunities:

Integration of Artificial Intelligence with Pharmaceutical and Biotechnology is Unlocking Growth Opportunities in the Future

AI's integration with pharmaceutical and biotechnology fuels market expansion by improving drug development, streamlining clinical trials, and customizing treatment.  Predictive analytics powered by AI expedites R&D procedures while cutting expenses and time.  It facilitates the analysis of large amounts of biological data, the identification of possible medication candidates, and the prediction of patient reactions.  Healthcare delivery is made more accurate and efficient by automation and AI-powered diagnostics.  Pharmaceutical and biotech firms benefit from a competitive edge as AI use rises, spurring innovation and opening up new markets.

• For instance, according to the facts stated by Ema, Insilico Medicine used artificial intelligence to design a new drug candidate for fibrosis in 46 days, reducing time and costs by millions. This innovative approach disrupts traditional drug development and patient care, reducing processes by up to 50%. As the industry continues to embrace AI, new trends and applications are shaping its future, with challenges and opportunities shaping the pharmaceutical and biotechnology industry's future.

The pharmaceutical and biotechnology market is classified into product, age group, technology, therapeutic application, end user, and region.

By Product:

On the groundwork of product, the market is bifurcated into biotechnology and pharmaceutical. The biotechnology segment is attributed to rule over the pharmaceutical and biotechnology market share. This is due to the high demand for biotechnology instruments in laboratories for disease diagnosis and drug identification.

The pharmaceutical segment is the fastest growing product, in the target market. This is due to the emergence of novel and seasonal diseases, alongside annual vaccination drives.

By Age Group:

Contingent to age group, the market is trifurcated into children & adolescents, adults, and geriatric. The adult segment is leading the target market growth. This is due to the high prevalence of chronic diseases and lifestyle-related conditions in adults, coupled with their greater focus on health management and higher healthcare spending.

The geriatric segment is the second leading age group, in the pharmaceutical and biotechnology market. This is due to the increasing aging population, which leads to a higher prevalence of age-related diseases and a greater need for specialized treatments and care.

By Technology:

Appertaining from technology, the market is categorized into nanotechnology, tissue engineering & regeneration, PCR & sequencing, artificial intelligence (AI), personalized medicine, and others. The PCR & sequencing segment is dominating the pharmaceutical and biotechnology market share. This is due to its crucial role in genomics, personalized medicine, and diagnostics. The rise of next-generation sequencing (NGS) has also made DNA sequencing more affordable and accessible, further expanding its applications.

The tissue engineering & regeneration segment is the second dominating technology, in the target market. This is due to the growing demand for personalized therapies and the therapeutic potential of tissues and cells.

By Therapeutic Application:

The market is pigeonholed into oncology, inflammatory and infectious diseases, autoimmune disorders, metabolic disorders, hormonal disorders, disease prevention, cardiovascular diseases, neurological diseases, and other diseases, on the basis of therapeutic application. The oncology segment holds the highest pharmaceutical and biotechnology market share due to the increasing number of cancer cases, the growing investment in the research and development of cancer therapies, and increased expenditure in the research of cancer cells.

The inflammatory and infectious diseases is the therapeutic application which is growing with the fastest growth rate in the target market. This is due to the high prevalence of these conditions and the development of effective treatments, particularly monoclonal antibodies.

By End User:

Based on the end user, the market is divided into pharmaceutical companies, biotechnology companies, healthcare providers, research and government institutes, and others. The pharmaceutical companies is in charge of the target market due to the large number of medication in use, the large number of medications in use, the maturity of the regulatory landscape, and the established practices of the pharmaceutical industries.

Regional Insights:

Geographically, the market is studied across into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America: This is the region with the governing pharmaceutical and biotechnology market share by approximately 38.2%, in the recent years. This is due to this region’s robust research and development infrastructure, significant investment in healthcare, a high prevalence of chronic diseases, and the presence of major pharmaceutical and biotechnology companies. Moreover, North America has a high healthcare spending, a large demand for novel therapeutics, a favorable regulatory environment, and the adoption of advanced technologies such as AI, machine learning, and big data analytics in drug discovery and development is accelerating innovation.

• U.S. Pharmaceutical and Biotechnology Market Insights:

The pharmaceutical and biotechnology market of United States is the dominating market, in the recent years. This is due to this country’s increasing aging population, high prevalence of chronic diseases such as cancer and diabetes, presence of major pharmaceutical and biotechnology companies, and the rising number of biotechnology instrument approvals by the FDA. Furthermore, U.S. accounts for almost half of the global R&D spending and has a robust innovation ecosystem, supported by venture capital, research institutions, and a regulatory environment conducive to biotech development.

Europe: This is the region which has the fastest growing pharmaceutical and biotechnology market, during the forecast period. This is due to this region’s presence of robust research institutions and universities, strong regulatory frameworks, such as, European Medicines Agency (EMA), and substantial public and private investments. Additionally, the presence of skilled workforce, strong collaboration between academia, industry, and healthcare institutions, and favorable government support and funding also promote market growth in Europe.

• Germany Pharmaceutical and Biotechnology Market Insights:

The pharmaceutical and biotechnology market of Germany, is growing rapidly, in the recent years, during the forecast period. This is due to Germany’s economic strength, and its well-funded and equipped latest technology, making it an ideal location for pharmaceutical and medical technology research and development. In addition to this, Germany has firmly established itself as an international medical biotechnology hub, with a large number of biotech companies, world-class research infrastructure, and internationally renowned scientists.

Asia Pacific: The region which is growing at a considerable growth rate, in the recent years, is Asia Pacific. This is region’s large and diverse population, rapid economic growth, leading to increased disposable incomes and a greater demand for healthcare products and services, rising healthcare spending, emerging biotechnology hubs, and technological advancements in areas, such as, AI, machine learning, and big data. Additionally, this region is a major destination for pharmaceutical and biotechnology outsourcing, offering lower costs and a skilled workforce.

• China Pharmaceutical and Biotechnology Market Insights:

The pharmaceutical and biotechnology market of China, is experiencing significant amount of growth, in the recent years. This is due to this country’s significant investments in biopharma and genetic engineering, supported by government initiatives and a large patient pool due to its population size and growing chronic disease prevalence. In addition to this, China is a major destination for pharmaceutical and biotechnology outsourcing, and it has technological advancements in areas, such as, AI, machine learning, and big data, which are driving innovation in the pharmaceutical and biotechnology market.

Pharmaceutical and Biotechnology Market Report Scope:

Attribute	Details
Market Size 2025	USD 3.3 Trillion
Projected Market Size 2035	USD 6.5 Trillion
CAGR Growth Rate	7.8% (2025-2035)
Base year for estimation	2024
Forecast period	2025 – 2035
Market representation	Revenue in USD Trillion  & CAGR from 2024 to 2034
Regional scope	North America - U.S., and Canada Europe – U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe Asia Pacific – China, India, Japan, Australia, Indonesia Malaysia, South Korea, and Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa – GCC, Israel South Africa, and Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Product:

• Biotechnology
  • Instrument
  • Consumables
• Pharmaceutical
  • Biologics & Biosimilars (Large Molecules)
    • Monoclonal Antibodies
    • Vaccines
    • Cell & Gene Therapy
    • Others
  • Conventional Drugs (Small Molecules)

By Age Group:

• Children & Adolescents
• Adults
• Geriatric

By Technology:

• Nanotechnology
• Tissue Engineering & Regeneration
• PCR & Sequencing
• Artificial Intelligence (AI)
• Personalized Medicine
• Others

By Therapeutic Application:

• Oncology
• Inflammatory and Infectious Diseases
• Autoimmune Disorders
• Metabolic Disorders
• Hormonal Disorders
• Disease Prevention
• Cardiovascular Diseases
• Neurological Diseases
• Others

By End User:

• Pharmaceutical Companies
• Biotechnology Companies
• Healthcare Providers
• Research and Government Institutes
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The companies operating in the pharmaceutical and biotechnology market are Novartis AG, GSK plc., Merck KGaA, AstraZeneca, Siemens Healthineers AG, and others. These companies are applying plan of action including strategic partnerships, emphasis on research and development, robust regulatory compliance, building relationships, increasing innovation and research and development, and leveraging digital platforms for outreach. 

Pharmaceutical and Biotechnology Market Companies:

• Novartis AG
• GSK plc.
• Merck KGaA
• AstraZeneca
• Siemens Healthineers AG
• Parexel International (MA) Corporation
• Eli Lilly and Company
• Aragen Life Sciences Ltd.
• Pfizer Inc.
• Johnson & Johnson Services, Inc.
• Amgen Inc.
• Genentech, Inc.
• UCB S.A.
• Sai Life Sciences Limited

View an Additional List of Companies in the Pharmaceutical and Biotechnology Market

• In January 2025, The U.S. health authorities has given the pharmaceutical company Lupin permission to sell a generic HIV drug in the US market. Under the US President's Emergency Plan for AIDS Relief (PEPFAR), the US Food and Drug Administration (USFDA) granted the business a provisional clearance for tablets containing abacavir, dolutegravir, and lamivudine.
• In August 2024, a new single-stain oral cholera vaccine (OCV) called Hillchol (BBV131) was introduced by the biotechnology company Bharat Biotech International Ltd.  It was created under license from Hilleman Laboratories, with funding from the Wellcome Trust in the UK and Merck in the USA.
• In June 2024, Elisa, a new large language model (LLM)-powered research assistant, was introduced by Scientist.com, the top biopharma research marketplace in the world.  Elisa was the most recent in a series of exclusive AI-powered applications designed for scientists working in the biotechnology and pharmaceutical sectors.
• In May 2024, in order to expedite the development of novel drugs and cosmetics, Boston Micro Fabrication (BMF) established BMF Biotechnology Inc., which was committed to creating and marketing cutting-edge BioChips (organ-on-a-chip platforms) by growing large-scale tissues in vitro. This business also contributed to the development of biotechnology and pharmaceuticals.
• In March 2024, the pharmaceutical business SCHOTT Pharma was set to grow in the United States in order to produce the prefillable polymer syringes needed to fulfill the demand for the transportation and deep-cold storage of mRNA drugs. It was also anticipated that the location will be able to manufacture glass prefillable syringes for GLP-1 treatments.

Analyst View:

The pharmaceutical and biotechnology market is growing due to a number of factors, including the increasing prevalence of chronic diseases, the growing acceptance of biologics and biosimilars, the increased investment made by governments worldwide in research and development to address unmet medical needs and promote innovation, the expansion of product portfolios by companies, the emergence of research and development hubs, the growing demand for synthetic biology, and the growing emphasis on advanced therapies.  Drug discovery and development are being accelerated by technological advancements in fields such as genomics, proteomics, and bioinformatics; personalized medicine, which customizes treatments for each patient based on its genetic composition; and the application of artificial intelligence (AI) and machine learning in drug discovery and development, which is speeding up the process and increasing efficiency, all of which are helping to expand the target market.

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Company Name	Siemens Healthineers AG
Headquarter	Erlangen, Germany
CEO	Mr. Bernd Montag
Employee Count (2024)	72,000 Employees