U.S. Biotechnology Market Supported by Rising Chronic Disease Incidence

The U.S. biotechnology market was valued at USD 552.40 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 12.4% from 2024 to 2030. Government initiatives are playing a critical role in this growth by modernizing regulatory frameworks, streamlining approval and reimbursement processes, and standardizing clinical trials. Key institutions such as the National Science Foundation (NSF) and the Synthetic Biology Engineering Research Center (SynBERC) are actively involved in evaluating synthetic biology developments. The surge in personalized medicine and orphan drug development is significantly increasing market revenues, spurring the launch of numerous innovative biotech startups and contributing to overall industry expansion.

In 2023, the U.S. represented over 35.6% of the global biotechnology market. The rising demand for agricultural commodities such as wheat, rice, and beans—driven by population growth—underscores the growing reliance on biotechnology-based solutions. Researchers are investing heavily in advanced agricultural technologies to combat challenges like pest infestations, limited arable land, and water shortages. Examples include investments by companies such as Loopworm and the USD 101 million commitment by Unilever and partners toward regenerative agriculture. Supportive governmental policies, especially in synthetic biology, along with the declining costs of DNA sequencing, are also key drivers of market growth.

The COVID-19 pandemic had a positive impact on the biotechnology sector, accelerating innovation and opening new opportunities, particularly in vaccine development and production. The success of mRNA vaccines and accelerated regulatory approvals boosted vaccine-related revenues, with Moderna, Pfizer/BioNTech, and Johnson & Johnson generating approximately USD 31 billion in 2021. Additionally, the application of biotechnology tools in agriculture—such as micropropagation, molecular breeding, tissue culture, traditional breeding methods, and the development of genetically modified crops—continues to drive market expansion.

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There is also a growing acceptance of genetically modified crops and herbicide-resistant seeds, which significantly contributes to market expansion. The availability of robust clinical trial pipelines and increased funding in areas such as tissue engineering and regenerative medicine further support this growth. The rising prevalence of chronic diseases, including cancer, diabetes, age-related macular degeneration, and various forms of arthritis, is expected to heighten the demand for advanced clinical solutions. Leading biotech firms are advancing pipeline products for conditions such as diabetes, neurological disorders (including Parkinson's and Alzheimer's diseases), various cancers, and cardiovascular diseases. As of January 2021, data from clinicaltrials.gov reported 126 therapeutic agents in development for Alzheimer's disease, with 28 in phase III clinical trials.

Technology Insights DNA sequencing led the biotechnology market in 2023, holding the highest revenue share at 17.52%. This dominance is driven by declining sequencing costs and the widespread adoption of advanced sequencing technologies. DNA sequencing plays a pivotal role in personalized oncology by identifying genetic mutations and is extensively used in comparative genomics research. Continuous improvements in sequencing platforms are enhancing efficiency and cost-effectiveness, offering vast potential in healthcare. Government support, including a USD 10.7 million NIH grant in May 2021 for Alzheimer’s research, continues to boost the growth of sequencing technologies for disease investigation.

Application Insights In 2023, the healthcare segment held the largest share of market revenue at 44.3%. Biotechnology is revolutionizing healthcare with advancements in genomics, molecular biology, tissue engineering, bio-imaging, and innovative drug discovery and delivery systems. This segment's growth is fueled by the increasing prevalence of diseases, greater availability of agricultural biotech and bio-services, and rapid technological progress in bio-industrial processes. Furthermore, developments in Artificial Intelligence (AI), machine learning (ML), and big data analytics are accelerating innovation and adoption in both healthcare and the food and beverage sectors.

Key U.S. Biotechnology Companies:

• AstraZeneca
• Gilead Sciences, Inc.
• Bristol-Myers Squibb
• Sanofi
• Biogen
• Abbott Laboratories
• Pfizer, Inc.
• Amgen Inc.
• Novo Nordisk A/S
• Merck KGaA
• Johnson & Johnson Services, Inc.
• Novartis AG
• F. Hoffmann-La Roche Ltd.
• Lonza

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