Biotechnology Revolution: The Rapid Growth of Precision Medicine and Personalized Therapeutics Market by 2025
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Paradigm Shift in the Biotechnology Market
As of 2025, the global biotechnology market is experiencing an unprecedented wave of innovation. Industry analysis forecasts that the global biotechnology market size will grow from $1.38 trillion in 2024 to $1.55 trillion in 2025, marking a 12.3% increase. The key drivers of this rapid growth include AI-based drug development, the widespread commercialization of CAR-T cell therapies, and the expansion of mRNA platform technologies into various disease areas. Particularly, the precision medicine sector is expected to grow at a high annual rate of 12.8%, reaching $349 billion by 2030, according to McKinsey & Company.
South Korea’s bio ecosystem is also showing remarkable achievements. According to data released by the Korea Biotechnology Industry Organization for the first half of 2025, the total revenue of domestic bio-health companies increased by 18.7% year-on-year, reaching 24.3 trillion won. This suggests that the effects of the K-Bio Belt creation project and the Bio-Health Innovation Fund are becoming evident. Samsung Biologics in Songdo, Incheon, achieved an annual production capacity of 360,000 liters by the third quarter of 2025, solidifying its unrivaled position in the global CDMO (Contract Development and Manufacturing Organization) market.
The investment patterns of global pharmaceutical giants are also noteworthy. Switzerland’s Roche invested $12.4 billion in biotechnology research and development in the first half of 2025 alone, a 15.2% increase from the same period last year. Johnson & Johnson, based in New Brunswick, New Jersey, USA, announced a $60 billion investment plan over the next five years for the development of innovative biopharmaceuticals. Such large-scale investments reflect the technological complexity and high entry barriers in the biotechnology field, as well as the enormous profit potential if successful.
AI-Based Drug Development and the Digital Bio Revolution
The most innovative change in the biotechnology industry in 2025 is the comprehensive adoption of artificial intelligence and machine learning technologies. Traditionally, drug development required an average of 10-15 years and $2.6 billion, but analyses suggest that utilizing AI-based platforms can reduce this to 5-7 years and cut costs by 30-40%. The AlphaFold system developed by the UK’s DeepMind has improved protein structure prediction accuracy to over 90%, revolutionizing the drug target discovery process.
Domestically, SK Biopharmaceuticals is actively building an AI-based drug development platform. Headquartered in Pangyo, Gyeonggi Province, SK Biopharmaceuticals announced the preclinical entry of three epilepsy treatment candidates through its self-developed AI drug development platform ‘EDISON’ in the second half of 2025. This platform automates the entire process from molecular design to toxicity prediction, significantly enhancing drug development efficiency. The company stated that the EDISON platform can reduce development time by 40% compared to existing methods and increase the success rate from 25% to 45%.
Examples of AI adoption in American biotech companies are also notable. Genentech, headquartered in San Francisco, California, successfully used machine learning algorithms to discover biomarkers that predict cancer patients’ treatment responses. Their AI model identifies patient groups whose response rate to immuno-oncology drugs for lung cancer can be increased from the existing 20% to 65%. Meanwhile, Moderna in Cambridge, Massachusetts, announced that it has established a system to develop vaccines for new variant viruses within 100 days, down from the previous six months, by integrating AI technology into its mRNA vaccine platform.
Another pillar of the digital bio revolution is the advancement of bio big data analysis platforms. The global healthcare data market grew to $68.7 billion by 2025, with the bio data analysis sector accounting for 35%, or $24 billion. In South Korea, the government-led K-Bio Lagus project, which began full operation in 2025, is gaining momentum in building a domestic bio big data ecosystem. This project is a platform that integrates and analyzes clinical data and genomic information from major domestic hospitals, with the capacity to process 2 million clinical data annually.
In the field of cell and gene therapies, the use of digital technology is rapidly expanding. Kite Pharma, acquired by Gilead Sciences in Foster City, California, introduced AI and robotic automation systems into the CAR-T cell therapy manufacturing process, reducing manufacturing time from the existing 3-4 weeks to 10 days. This directly contributes to reducing patient waiting times and improving treatment accessibility. Domestically, Celltrion announced plans to introduce a smart factory system at its Incheon Songdo Bio Campus from the second half of 2025, improving biosimilar production efficiency by 30%.
The convergence of biotechnology and digital technology is opening new possibilities for personalized treatment. Systems that analyze real-time collected biometric data through wearable devices and IoT sensors using AI to propose optimal treatment methods for individuals are becoming a reality. Roche’s digital health division in Switzerland commercialized a personalized insulin delivery algorithm for diabetes patients in the third quarter of 2025, reporting an improvement in blood sugar control rates to 85%.
As the commercialization of precision medicine becomes full-fledged, the cost of genomic analysis is also dropping sharply. The cost of whole genome sequencing fell to $600 by 2025, a 5-million-fold decrease compared to the $3 billion cost at the completion of the Human Genome Project in 2003. This cost reduction is accelerating the popularization of genome-based precision medicine. Domestically, companies like Macrogen and Theragen Etex are expanding their genomic analysis services, aiming to capture the personalized medical market. Macrogen expects the annual number of genomic analyses to exceed 500,000 cases by 2025.
Venture investments in the biotechnology sector are also focusing on AI and digital technologies. According to CB Insights data, 42%, or $7.8 billion, of global biotech startup investments in the first half of 2025 were concentrated in AI-based drug development and digital healthcare, a 7 percentage point increase from 35% in the same period last year. This suggests that investors see high growth potential in the convergence of biotechnology and digital technology. In South Korea, the government-led K-Bio Innovation Fund expanded to a total of 1.2 trillion won in 2025, invigorating the domestic biotech startup ecosystem.
The acceleration of this digital bio revolution is also accompanied by changes in the regulatory environment. The US FDA announced new guidelines for AI-based medical devices and digital therapeutics in 2025, and the European Medicines Agency (EMA) also established clinical trial utilization standards for digital biomarkers. Domestically, the Ministry of Food and Drug Safety introduced a fast-track system for the rapid approval of AI-based medical devices, supporting the market entry of innovative biotechnology products. The improvement of this regulatory environment is expected to further accelerate the pace of innovation in biotech companies.
The future of the biotechnology industry is entering a golden era where technological innovation and market expansion are progressing simultaneously. The introduction of AI and digital technologies is fundamentally changing the paradigm of drug development, which is expected to bring dual effects of improving patient treatment outcomes and reducing medical costs. As the commercialization of personalized treatment becomes full-fledged, biotechnology is expected to establish itself as a key driver in reshaping the entire healthcare ecosystem beyond simple drug development. As major countries, including South Korea, foster bio-healthcare as a future growth engine, technological innovation and market growth in this field are expected to accelerate further over the next five years.
*This analysis is intended to provide information on general market trends and technological developments and does not constitute specific investment advice or medical recommendations. It is recommended to consult with experts when making investment decisions.*
