Published By : 24 May 2016 | Published By : QYRESEARCH
The current buoyant situation in the biotechnology market might make one ponder that it is immune to recession. Nevertheless, the truth is far from it as the global biotechnology market had fallen hard during the last economic recession of 2009. Despite receiving massive government funding from governments of developed regions, the global market for biotechnology had not seen the light of the day till after 2010. As such, the industry kept shrinking and jobs were being cut. For example, between 2001 and 2008, the biosciences industry in Illinois shrunk by 3.3%, resulting a little more than 57,000 jobs available in biotech in the region.
Coming back to the present scenario, which is much more encouraging, the global biotechnology market is developing at a healthy 11.6% CAGR from 2012 to 2017. The market that stood at US$216.5 bn in 2011 is expected to reach a valuation of US$414.5 bn by the end of 2017.
The phenomenal comeback of this market is credited to some major activities that happened over the years:
Increased Funding and Investments: The global biotechnology market is viewed to hold immense promise, in terms of returns on investments as well as developmental aspects of manufacturing, production, food, and medicine sectors. This is showcased in the biotech market in the U.S. the most, particularly in California. It leads in biotechnology across the country, but is closely chased by other states such as Maryland that has shown a 27% increase in employment between 2006 and 2008.
Developing Economies in Action Too: The recent technological advancements in the global market for biotechnology has made it much easier for developing economies such as Thailand, India, and China to adopt biotechnology processes and conduct research at a faster rate. Other than this, the availability of skilled labor in large numbers, sharp increase in funding from both public and private sectors, and need to increase agricultural productivity to feed the increasing population are reasons of proliferation of the biotechnology market in developing regions.