A New Turning Point in the Biotechnology Industry: Analysis of AI Integration and Personalized Medicine Market Trends in 2026
Editor
In 2026, the biotechnology industry is undergoing the most dynamic changes in history, driven by three megatrends: the integration with artificial intelligence, the commercialization of personalized medicines, and the proliferation of next-generation bio-manufacturing platforms. According to the latest report from McKinsey, the global biotechnology market has grown to $1.24 trillion in 2026, marking an 18.5% increase from the previous year. Notably, the AI-based drug development market alone has formed a $89 billion segment, accounting for 32% of total biotech investments. This growth signifies a paradigm shift in the entire bio-industry, blurring the lines between traditional pharmaceutical companies and emerging biotech firms.
Korea’s biotechnology ecosystem has shown particularly remarkable achievements in 2026. Samsung Biologics, located in Songdo, Incheon, recorded sales of 895 billion KRW in the first quarter of this year, a 24% increase compared to the same period last year, significantly elevating the status of Korean companies in the global CDMO (Contract Development and Manufacturing Organization) market. Samsung Biologics is expected to secure approximately 2 trillion KRW in sales over the next five years through a recent mRNA vaccine production contract with Moderna in the U.S. Meanwhile, Celltrion, headquartered in Incheon, maintained its dominant position in the biosimilar sector, achieving sales of 1.32 trillion KRW in the first half of 2026. This is due to the continuous expansion of market share for its anticancer biosimilar products in Europe and the United States.
The fusion of AI and biotechnology is one of the most notable trends in 2026, driving overall innovation in the drug development process. Since the commercialization of DeepMind’s AlphaFold technology, headquartered in London, UK, there have been remarkable advancements in the field of protein structure prediction. Currently, 78% of major pharmaceutical companies worldwide have adopted AI-based drug development platforms, reducing the average drug development period from the traditional 12-15 years to 8-10 years. Genentech, based in San Francisco, California, announced that it secured 15 new pipelines in 2026 alone through its AI-driven antibody design platform. This AI-based approach not only accelerates development speed but also enables drug development for targets previously considered impossible.
Explosive Growth of the Personalized Medicine Market
The personalized medicine market has entered a full-scale commercialization phase in 2026, emerging as a new growth engine for the biotech industry. According to the latest analysis by Frost & Sullivan, the global personalized medicine market reached $432 billion in 2026, a staggering 67% growth compared to 2023. The CAR-T cell therapy market alone formed an $18 billion segment, driving overall market growth. Novartis, headquartered in Basel, Switzerland, reported $3.4 billion in sales in the first half of 2026 through its CAR-T therapies Kymriah and Breyanzi. This is because they offer the possibility of a cure for blood cancer patients, which was impossible with existing treatments.
The clinical application of gene editing technologies, particularly the CRISPR-Cas9 system, has rapidly expanded in 2026. Editas Medicine, based in Cambridge, Massachusetts, announced positive interim results from a Phase 3 clinical trial of EDIT-101, an in vivo gene editing therapy for LCA10 (Leber Congenital Amaurosis 10). This therapy uses an innovative approach of direct injection into the patient’s eye to restore vision, with 73% of clinical trial participants showing vision improvement. Meanwhile, CureVac, headquartered in Tübingen, Germany, is making significant progress in developing personalized cancer vaccines using mRNA technology. This vaccine, tailored to the genetic characteristics of individual tumors, showed enhanced immune responses in 78% of patients in early clinical trials.
The growth of the personalized medicine market in Asia, particularly in China and Japan, is remarkable. WuXi AppTec, headquartered in Shanghai, China, recorded $2.8 billion in sales in the first half of 2026 through its personalized cell therapy CDMO business, a 45% increase compared to the same period last year. In Japan, several biotech ventures linked to Kyoto University’s iPS Cell Research Institute are showing significant achievements in developing iPS cell-based regenerative therapies. Notably, Healios, located in Osaka, Japan, announced meaningful effects in a Phase 2 clinical trial of HLCN061, a stroke treatment using iPS cell-derived neural stem cells.
Innovation and Competitive Landscape in Bio-Manufacturing Platforms
The bio-manufacturing sector is undergoing fundamental changes in 2026 with the introduction of automation, continuous production, and digital twin technologies. The transition from traditional batch production to continuous production is accelerating, improving production efficiency by an average of 40% and reducing costs by 25%. Johnson & Johnson’s Janssen division, headquartered in New Jersey, USA, announced a 35% reduction in monoclonal antibody production costs by adopting continuous production methods at its new facility in Beerse, Belgium. This facility has the capacity to produce 2,000 kg of antibodies annually and can produce the same amount in 30% less space compared to existing facilities.
The introduction of digital technologies in bio-manufacturing is bringing innovative changes in quality control and process optimization. Merck KGaA, headquartered in Darmstadt, Germany, implemented AI-based Process Analytical Technology (PAT) in its bio-manufacturing facilities, enabling real-time quality monitoring and predictive maintenance. This significantly reduced batch failure rates from 3.2% to 0.8% and improved overall production efficiency by 28%. In Korea, Samsung Biologics’ smart factory system at its third plant in Incheon is gaining attention. This system integrates IoT sensors, AI analytics, and automated robots to establish an unmanned production line with minimal human intervention, improving productivity by 22% and reducing human error by 85%.
The competitive landscape in the bio-manufacturing sector is becoming more intense in 2026. Competition between existing large CDMO companies and emerging platform companies is intensifying, with next-generation modality (next-generation therapy types) production capabilities emerging as a key competitive factor. Lonza, headquartered in Basel, Switzerland, announced plans to expand its production capabilities for mRNA, cell and gene therapies, and ADCs (antibody-drug conjugates), expecting to record $4.5 billion in sales in this field alone in 2026. This accounts for 67% of total sales, reflecting the rapid growth of the next-generation therapy market.
The status of Asia as a bio-manufacturing hub is also significantly strengthening. Singapore, in particular, is building a bio-manufacturing cluster with active government support, with 12 major bio-manufacturing facilities operating as of 2026. The Singapore government announced plans to invest a total of $20 billion in the bio-manufacturing sector by 2030, aiming to establish itself as a bio-manufacturing hub in the Asia-Pacific region. Korea is also building a bio-cluster centered around Incheon, Osong, and Daegu through the K-Bio Belt project, with a total of 340 bio companies concentrated in this area as of 2026.
Looking at the investment trends in the biotechnology industry, 2026 is characterized by selective investments and strategic partnerships. According to PitchBook’s analysis, global biotech investment in the first half of 2026 totaled $34 billion, an 8% decrease compared to the same period last year, but the average investment size increased by 23% to $123 million. This indicates that investors are focusing on companies with more mature technologies and clear commercialization paths. Investments are particularly concentrated in companies with AI-based drug development platforms, with a total of $8.9 billion invested in this field.
Changes in the regulatory environment are also having a significant impact on the development of the biotechnology industry. The U.S. FDA began implementing new guidelines for AI-based drug development in January 2026, providing clear standards for clinical trial design and data analysis using AI. In Europe, the EMA (European Medicines Agency) has simplified the approval process for personalized medicines, reducing the average approval period from 18 months to 14 months. Korea’s Ministry of Food and Drug Safety is also expanding its fast-track approval system for advanced biopharmaceuticals, accelerating the market entry of innovative bio-therapies.
The major challenges facing the biotechnology industry in 2026 are also becoming clear. First, the shortage of talent is intensifying, with demand for interdisciplinary talent who understand both AI and bio far exceeding supply. According to a survey by the Boston Consulting Group, the biotech industry is currently facing a global shortage of approximately 150,000 skilled professionals. Second, the shortage of production capacity continues. The rapid increase in demand for next-generation therapies such as mRNA vaccines and cell therapies is causing a global shortage of production capacity. Third, the complexity and vulnerability of supply chains remain unresolved issues. Although efforts to diversify supply chains have continued since the COVID-19 pandemic, there is still a high dependence on specific regions or suppliers.
Looking to the future, the consolidation movement in the biotechnology industry is expected to become more active from the second half of 2026. Large pharmaceutical companies will continue their strategy of acquiring biotech firms with innovative technologies to strengthen their pipelines, leading to a restructuring of the entire industry. Additionally, the rapid growth of the biotech market in Asia, particularly in China and India, is expected to bring significant changes to the global competitive landscape. In China, the government has set a goal to expand the biotech market size to $400 billion by 2030, planning an annual investment of $50 billion to achieve this.
In conclusion, the biotechnology industry in 2026 is experiencing a dynamic period of simultaneous technological innovation and market growth. The three megatrends of AI integration, the commercialization of personalized medicines, and the proliferation of next-generation bio-manufacturing platforms are bringing fundamental changes to the industry, presenting new investment opportunities as well as challenges. The rapid growth of the biotech ecosystem in Asian countries, including Korea, is expected to bring significant changes to the global competitive landscape, and companies that adapt to these changes are likely to secure a competitive advantage in the future market.
