Market Trends of Upstream Bioprocessing Industry
Bioreactors/Fermenters is Expected to Witness Growth Over the Forecast Period
- The use of bioreactors/fermenters in upstream bioprocessing is expected to experience strong growth due to their widespread application in small and large-scale bioproduction. Bioreactors/fermenters play an essential role in any bioprocess, whether it involves degrading pollutants or producing substances such as food, feed, chemicals, drugs, and tissues/organs for biomedical purposes. These devices provide an optimal environment for cells to proliferate while also maintaining precise pH, temperature, and adequate gas supply and adding nutrients for successful growth maintenance.
- Several factors are driving the growth of this market segment over the forecast period. Increasing R&D expenditure and research activities worldwide are key drivers, along with the numerous benefits associated with bioreactors/fermenters. For instance, in March 2022, Insud Pharma announced an agreement with Fresenius Kabi, under which Fresenius Kabi will acquire 55% of mAbxience, the fully-fledged global biotech company of the Spanish group. This alliance is expected to accelerate the biotech unit of Insud Pharma, providing opportunities to mAbxience customers and increasing its research activities. In May 2022, Insud Pharma was expected to open a new R&D facility in Spain, further demonstrating the significant investments in R&D activities anticipated to drive growth in this market segment.
- Moreover, partnerships, mergers, acquisitions, and collaborations by leading players in the market will boost growth. For example, in May 2022, Lonza and Adva Biotechnology entered into a license agreement, with Lonza providing Adva with access to core intellectual property to enable the expansion of automated bioreactors globally. Through the agreement, Lonza also granted Adva a non-exclusive license to certain patents related to intelligent automation and bioreactor control. Such developments are expected to propel the growth of the bioreactors/fermenters market segment.
- Overall, due to factors such as increasing R&D expenditure, global research activities, and the various advantages associated with bioreactors/fermenters, this market segment is anticipated to experience significant growth over the forecast period.
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North America is Expected to Dominate the Upstream Bioprocessing Market Over the Forecast Period
- Over the forecast period, North America is expected to dominate the upstream bioprocessing market. This growth is attributed to several factors, including increasing research and development spending, the presence of large-scale manufacturing units, the growing popularity of disposables, increasing healthcare expenditure, and a well-established healthcare infrastructure.
- For example, according to the Federal Research and Development (R&D) Funding: FY2022 report released in January 2022, funding for R&D is concentrated in a few federal departments and agencies. In FY2021, five agencies received 93.0% of total federal R&D funding, with the Department of Health and Human Services receiving 27.6%. The most significant dollar increases in R&D funding would be made to Health and Human Services, up to USD 7.7 billion (17.8%). Upstream bioprocessing is an essential step in developing vaccines, drug development, and clinical trials, making such a scenario expected to boost the market growth.
- Additionally, according to the Canadian Institute for Health Information (CIHI) November 2022 update, healthcare expenditure in the Canada is expected to reach USD 331 billion in 2022 compared to USD 308 billion in 2021. This increasing healthcare expenditure is expected to drive the demand for drugs, leading to growth in the demand for upstream bioprocessing and thereby driving the market growth.
- Furthermore, the initiatives of players in the region are also driving the growth of the upstream bioprocessing market. For instance, in November 2021, Bionova opened a USD 25.0 million single-use plant in Fremont, California, equipped with a 1,000 L Cytiva XDR upstream train. The company is also planning to add a 2,000 L Cytiva system by Q3'2022. Such developments are expected to drive market growth.
- Therefore, North America's growth in the upstream bioprocessing market is anticipated due to factors such as increasing research and development spending, the presence of large-scale manufacturing units, the growing popularity of disposables, increasing healthcare expenditure, and well-established healthcare infrastructure.
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