The global biotechnology services market reached a value of nearly $92,560.8 million in 2021, having grown at a compound annual growth rate (CAGR) of 7.9% since 2016, and is expected to grow at a CAGR of 10.0% to nearly $149,164.7 million by 2026. Also, the market is expected to grow to $ $240,999.4 million in 2031 at a CAGR of 10.1%.
Market Growth Drivers
Growth in the historic period resulted from strong economic growth in emerging markets, increased collaborations with other research institutes and companies, and increased demand for food. Factors that negatively affected growth in the historic period were decrease in government funding and lack of strong intellectual property (IP) protection laws.
Going forward, the rapid advancements in technology, rising non-communicable diseases, emphasis on innovation, rising demand for agriculture-based biotechnology services, growing demand for synthetic biology, developments and improvements in drug research, growth in personalized treatment, and collaboration and partnership are expected to drive the market. Factors that could hinder the growth of the biotechnology services market in the future include skilled workforce shortages, decreasing reimbursements for research activities, and risk related to genetic data.
Global Top Ten Competitors
The biotechnology services market is fairly fragmented, with a large number of small players. The top ten competitors in the market made up to 18.19% of the total market in 2021. Major players in the market include Parexel International Corporation, Thermo Fisher Scientific, Laboratory Corporation of America Holdings, IQVIA, and PRA Health Sciences.
Market Segmentation
The biotechnology services market is segmented by service into prevention and disease control, public engagement activities, health education and research, food biotechnology services, donor recruitment, tissue collection, cell processing and isolation, and research and development. The research and development market was the largest segment of the biotechnology services market, accounting for $45,553.6 million or 49.2% of the total market in 2021. It is also expected to be the third fastest growing segment going forward at a CAGR of 10.2% during 2021-2026.
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Segmented by Industry
The biotechnology services market is also segmented by industry into clinical research organizations (CROs), contract manufacturers organizations (CMOs), and contract research and manufacturing services (CRAMS). The contract manufacturers organizations (CMOs) was the largest segment of the biotechnology services market, accounting for $36,302.7 million or 39.2% of the total market in 2021. It is also expected to be the second fastest-growing segment going forward at a CAGR of 9.2% during 2021-2026.
Segmented by Area of Application
The biotechnology services market is also segmented by area of application into pharmaceutical, biotechnology, academic, clinical trial, healthcare sectors and others. The pharmaceuticals was the largest segment of the biotechnology services market, accounting for $37,024.3 million or 40.0% of the total market in 2021. It is also expected to be the third fastest-growing segment going forward at a CAGR of 10.0% during 2021-2026.
Market Regional Growth
Asia Pacific was the largest region in the biotechnology services market, accounting for 37.5% of the global market in 2021. It was followed by North America, Western Europe, and the other regions. Going forward, the fastest growing regions in the biotechnology services market will be Asia Pacific, and Middle East, where growth will be at CAGRs of 11.7% and 11.3% respectively from 2021-2026.
Opportunities in The Biotechnology Services Market
The top opportunities in the biotechnology services market segmented by service will arise in the research and development segment, which will gain $28,527.8 million of global annual sales by 2026. The top opportunities in the biotechnology services market segmented by industry will arise in the Clinical Research Organizations (CROs) segment, which will gain $22,065.5 million of global annual sales by 2026. The top opportunities in the biotechnology services market segmented by area of application will arise in the pharmaceuticals segment, which will gain $22,641.5 million of global annual sales by 2026. The biotechnology services market size will gain the most in China at $15,678.6 million.
