A New Turning Point in Biotechnology: Global Biotech Trends in 2025 and an Analysis of Korea’s Competitiveness
Editor
As of December 2025, the global biotechnology industry is experiencing an unprecedented inflection point. The acceleration of AI and biotechnology convergence is fundamentally reshaping the traditional paradigm of new drug development. The global biopharmaceutical market is projected to reach approximately $750 billion by 2025, reflecting a 12.8% growth compared to the previous year. Particularly, the precision medicine sector is emerging as a new growth driver for the industry, recording an annual growth rate of 15.2%.
Korea’s biotech ecosystem is rapidly growing in alignment with these global trends. As of the first half of 2025, the domestic biohealth market size surpassed 18 trillion won, marking an increase of over 80% compared to 2020. The synergy between the government’s K-Bio policy and expanded private investment has significantly enhanced the global competitiveness of Korean biotech companies. Notably, in the biopharmaceutical production sector, Korea has secured the world’s third-largest production capacity, with Samsung Biologics boasting an annual production capacity exceeding 360,000 liters, establishing itself as the world’s largest biopharmaceutical contract manufacturing organization (CMO).
AI-based drug development is emerging as a game-changer in the biotech industry. Unlike the traditional drug development process, which takes an average of 10-15 years and costs about $2.6 billion, AI-driven drug development can reduce development time by 30-50% and cut costs by over 40%. DeepMind’s AlphaFold from the UK has increased protein structure prediction accuracy to over 90%, unveiling more than 200 million protein structures worldwide, revolutionizing drug development research. Domestically, SK Biopharm is accelerating the development of neurological disorder treatments using AI platforms, with over 70% of its pipeline comprising AI-integrated projects as of the second half of 2025.
The investment patterns in the global pharmaceutical industry are also undergoing significant changes. In the first half of 2025, global biotech investment reached $42 billion, a 35% increase from the same period the previous year, with over 60% focused on AI-based platform companies and personalized therapy developers. Johnson & Johnson in the U.S. has set its 2025 biotech investment budget at $12 billion, a 45% increase from the previous year, with a substantial expansion of investments in Asian biotech firms. Switzerland’s Roche Holding is also investing over $8 billion annually in personalized diagnostics and therapies, highlighting the Asian market, including Korea, as a key growth driver.
Changes in the Global Competitive Landscape of Biomanufacturing
The rise of the Asian region in the biopharmaceutical manufacturing sector is notable. The global biopharmaceutical contract manufacturing market is projected to grow to approximately $28 billion by 2025, with Asia accounting for over 35% of the share. Samsung Biologics in Korea solidified its position as the leader in the global CMO market with a 17.2% market share, expanding its production capacity by 50% with the completion of its fourth plant in November 2025. This serves as a key infrastructure for achieving annual sales of 4 trillion won and plays a decisive role in securing long-term contracts with global pharmaceutical companies.
Celltrion has achieved remarkable results in the biosimilar sector. As of 2025, it holds a 12.8% share of the global biosimilar market, with over 20% market share in Europe. Celltrion’s flagship product, the Herceptin biosimilar ‘Trastuzumab,’ achieved annual sales of 1.2 trillion won, accounting for 15% of the global Trastuzumab market. The company plans to expand its biosimilar portfolio from the current 12 to 20 by 2026, aiming to achieve a 20% share of the global biosimilar market.
The rapid growth of China’s biomanufacturing industry is also noteworthy. WuXi Biologics in China recorded an 8.3% share of the global CMO market by 2025, ranking third, with an annual production capacity expanded to 280,000 liters. However, due to the impact of U.S.-China technological rivalry, Western pharmaceutical companies are limiting their use of Chinese CMO firms, opening new opportunities for third-country CMO firms such as those in Korea and Singapore. These geopolitical changes are leading to increased orders for Korean biomanufacturers, with Samsung Biologics recording new orders worth 8 trillion won in 2025, a 65% increase from the previous year.
Changes in the outsourcing strategies of global pharmaceutical companies are also impacting the industry landscape. Pfizer announced that by 2025, over 80% of its biopharmaceutical production will be outsourced, significantly reducing its internal production share from 60% in 2020 to less than 20%. This strategic shift aims to reduce fixed costs and secure production flexibility, offering large-scale order opportunities for CMO firms. Johnson & Johnson also plans to outsource over 70% of new biopharmaceuticals by 2026, particularly strengthening partnerships with Asian CMO firms.
The Rise of Personalized Medicine and Innovative Therapies
The personalized medicine sector has emerged as the fastest-growing area in the biotech industry as of 2025. The global personalized medicine market size is projected to reach approximately $185 billion by 2025, with an annual growth rate of 15.2%. The growth in gene and cell therapy sectors is particularly notable, with the CAR-T cell therapy market growing to about $12 billion by 2025, a fourfold increase from 2020. The U.S. FDA approved 23 cell and gene therapies in 2025 alone, marking a record high.
In Korea, the growth of the personalized medicine sector is also accelerating. The domestic precision medicine market size reached approximately 2.5 trillion won by 2025, growing 28% from the previous year, driven by the government’s precision medicine commercialization projects and private investment. Ilyang Pharmaceutical is focusing on developing personalized cancer treatments, with over 40% of its pipeline comprising companion diagnostics-based targeted therapies as of the second half of 2025. The company plans to invest 150 billion won in the personalized medicine sector by 2026, actively pursuing entry into the global precision medicine market.
The commercialization of CRISPR gene editing technology is creating a new turning point in personalized therapy. As of 2025, over 450 CRISPR-based clinical trials are underway globally, with about 30% in phase 3 trials. Notably, Casgevy, a treatment for sickle cell anemia and beta-thalassemia, recorded global sales of $800 million in the first half of 2025, demonstrating the commercial success of gene editing therapies. Domestically, several companies, including ToolGen, are accelerating the development of CRISPR-based therapies, with 12 gene editing therapy clinical trials underway in Korea as of the second half of 2025.
Innovation in the immuno-oncology sector continues. The global immuno-oncology market is projected to grow to approximately $120 billion by 2025, with next-generation immunotherapies accounting for over 45% of the share. The growth in bispecific antibodies and antibody-drug conjugates (ADC) is particularly notable, with the ADC market alone forming a $18 billion market by 2025. Korean biotech companies are also achieving results in this field, with LegoChem Biosciences’ ADC technology gaining attention from global pharmaceutical companies. The company achieved the largest overseas technology transfer deal among domestic biotech firms by signing a $1.5 billion technology transfer agreement with Merck in the second half of 2025.
The growth of the digital therapeutics market is also noteworthy. As of 2025, the global digital therapeutics market size is projected to reach approximately $8.5 billion, growing 32% from the previous year, with high growth rates in mental health and chronic disease management sectors. The U.S. FDA approved 8 digital therapeutics in 2025 alone, a significant increase from 3 in the previous year. In Korea, companies like Welt are focusing on developing digital therapeutics, with the domestic digital therapeutics market size reaching approximately 120 billion won as of the second half of 2025.
The future outlook for the global biotechnology industry is highly positive. The global biopharmaceutical market is expected to grow at an annual rate of 10.5% to reach $1.2 trillion by 2030, with personalized medicine and AI integration projected to be key growth drivers. The Korean biotech industry is also expected to maintain an annual growth rate of over 12% by 2030, supported by continuous government support, expanded private investment, and enhanced global competitiveness. Particularly in the biomanufacturing sector, Korea aims to achieve a global market share of 25%, a significant increase from the current 17%.
For investors, the biotechnology sector is expected to offer attractive long-term investment opportunities. However, it is essential to consider risk factors such as the high uncertainty of new drug development, long development periods, and changes in regulatory environments when constructing a portfolio. Korean biotech companies, in particular, are evaluated to have high potential for medium to long-term growth based on accelerated global market entry and technological advancement, which is expected to attract continued interest from domestic and international institutional investors.
*This analysis is provided for informational purposes only and is not an investment solicitation or advice. Investment decisions should be made at one’s own discretion and responsibility.*
