Antibiotics Market is Estimated to Register a Revenue of $58,798.1 Million by 2027, at a Healthy CAGR of 4.0%Download Sample Reports Overview
Impact Analysis of COVID-19 on the Antibiotics Market
The global antibiotics market is projected to experience a boost in growth rate during the outbreak of the COVID-19 pandemic. The growth is mainly attributed to the significantly increasing infections by bacteria, combined with need for new drugs’ development for treatment amid the COVID-19 epidemic, and increasing awareness regarding health and hygiene. For example, according to WHO (world health organization), the results of research conducted in 9 European countries showed that the use antibiotics has increased with COVID-19 and evidence indicates that up to 15% COVID-19 patients develop bacterial infection and require medication of antibiotics. Such factors showcase that the demand for antibiotics has massively increased, which will eventually accelerate the market growth, during the pandemic period.
Antibiotics Market Analysis:
Rapid growth in the incidences of chronic disorders has boosted the necessity for new medicines. Hence, the R&D activities conducted by the key organizations including Sanofi, Abbott, and GSK, for manufacturing new antibiotics will boost the development of antibiotics market in the given timeframe. In addition, the governments’ implementation of laws and initiatives such as ‘Generating Antibiotic Incentives Now’ act shall bolster the development of treatments that use antibiotics for various diseases.
Furthermore, the dire need of faster treatment for illnesses due to pneumonia, tuberculosis, and malaria will also fuel the growth of the market during the projected time span. Innovations and additions in product line of companies as well as strategic alliances and collaborations will provide a boost to the market size in the coming years.
Enormously increasing drug approval costs, uncertain government policies, and rarer medical institutions involved in active research are restraining the global antibiotics industry, during the forecast years.
Due to growing number of patients with infections including TB and others combined with massive growth in drug resistance in various types of bacteria, the demand for new and advanced antibiotics is boosting in the developed and developing countries. Technologies like machine learning (ML), artificial intelligence (AI), and 3D printing are playing a crucial role in developing innovative antibiotics. In August 2018, HP Inc., an American multinational information technology company announced its official participation in the program run by the CDC (Centers for Disease Control and Prevention). The main objective of the program is boosting the awareness of new antibiotics developed to fight against evolved bacteria. Further, CDC has announced to install company’s new ‘HP D300e Digital Dispenser BioPrinters’ into 4 regional labs, in order to discover antimicrobial susceptibility tests for novel drugs. Such innovations are further projected to create enormous opportunities for the global antibiotics market, in the future.
The fluoroquinolones subsegment shall have the fastest market growth at a healthy CAGR of 5.2% and is further projected to surpass $10,143.1 million by 2027, rising from $6,823.1 million in 2019. The growth is mainly driven by the multiple beneficial pharmacokinetic properties, broad-spectrum antimicrobial activity, and large volume of distribution. Moreover, new and innovative product development and their government approvals is one of the significant factors propelling the sub-segment’s market growth. For instance, in March 2020, FDA-CVM (U.S. Food & Drug Administration’s Center for Veterinary Medicine) has granted approval for marbofloxacin based tablets, ‘Marboquin’, which is highly effective over infections in dogs and cats. Abovementioned factors are bolstering the sub-segment growth, in the analysis period.
The broad-spectrum sub-segment of the global antibiotics industry shall have magnificent market growth and is anticipated to generate a revenue of $52,366.7 million by 2027, with an increase from $38,018.1 million in 2019, at a remarkable CAGR of 4.2%. Extensive development of advanced antibiotics, the growing prevalence of infectious diseases worldwide, and growing focus on government healthcare programs in nations such as Singapore, India, Brazil, and Saudi Arabia are some of the key elements flourishing the sub-segment, during the projected period. For instance, in October 2020, the Indian government has proposed plan in order to increase the domestic production of raw material for manufacturing medicines in India. The government has approved the PLI (Production-Linked Incentive) scheme for minimizing the nation’s dependence on China for APIs (active pharmaceutical ingredients) to manufacture vital antibiotics and other medicines.
Asia-Pacific market for antibiotics is expected to surge at a CAGR of 4.7% by registering a revenue of $19,932.6 million by 2027. Increased need to cure infectious diseases like pneumonia TB and malaria will provide higher growth in the pharma industry. Also, innovation in products, joint ventures and private-public strategic alliances will spur the antibiotics market size particularly in the emerging countries such as India, China, Singapore, and Japan. On the other hand, North America antibiotics market generated a revenue of $15,132.8 million in 2019 and is further anticipated to register a revenue of $19,950.2 million by 2027. The growing prevalence of infectious diseases is projected to continue to foster the North America antibiotics market, during the forecast period. For example, as per research conducted by the CDC, 49,157 pneumonia deaths were reported in 2018, which accounted for 15:1 per 100,00 Americans. Also, owing to campylobacter, approximately 1.5 million people are suffering from illnesses each year in the U.S. These figures showcase that the demand for medications is expected to increase which may eventually drive the market in the region. In addition to this, strong presence of drug manufacturers and their successful launching of products are expected to increase the market growth.
Top Key Players
The key players operating in the antibiotics market include Abbott.
- Merck KGaA
- Bristol-Myers Squibb Company
- Janssen Global Services, LLC
- GlaxoSmithKline plc.
- Novartis AG
- Bayer AG
- Astellas Pharma Inc.
- Eli Lilly and Company
Antibiotics market players are focusing on business expansion, mergers & acquisitions, and advanced technological developments in order to acquire a prime position in the global market.
Porter’s Five Forces Analysis for Antibiotics Market:
- Bargaining Power of Suppliers: The suppliers of antibiotics market are high in number. Therefore, they have minimal negotiation power as compared with drug manufacturers.
Hence, there will be less threat from the suppliers.
So, the bargaining power of the supplier is LOW
- Bargaining Power of Buyer: A majority of the key drug manufacturers holds patents for specific antibiotics.
Therefore, the bargaining power of the buyer will be LOW.
- Threat of New Entrants: Entrants of the antibiotics market are coming up with integration of advanced technologies like AI and machine learning for discovering novel drugs.
Thus, the threat of the new entrant will be HIGH
- Threat of Substitutes: Increasing shift of developing as well as developed nations towards herbal & traditional medicines may pose threat to the antibiotics market.
Thus, the threat of substitutes is MODERATE
- Competitive Rivalry in the Market: The competitive rivalry in the giant drug manufacturers is rather intense, especially between world leaders including Abbott, Sanofi, and Merck. Such companies are releasing their advanced products/services worldwide for acquiring prime position worldwide.
Competitive rivalry in the market is HIGH