A New Turning Point in the Biotechnology Revolution: The Rapid Growth of AI-Bio Convergence and Personalized Medicine in 2026
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Paradigm Shift in AI-Based Drug Development
As of 2026, the biotechnology industry is undergoing fundamental changes through its integration with artificial intelligence. McKinsey & Company predicts that the global biotech market size will grow by 22.4%, from $980 billion in 2025 to $1.2 trillion in 2026, with AI-based drug development accounting for 35% of this growth. Notably, the traditional drug development period is being reduced from an average of 10-15 years to 7-9 years through the use of AI. This transformation goes beyond mere technological advancement, reshaping the entire business model of the pharmaceutical industry.
Roche, headquartered in Basel, Switzerland, announced an investment of $3.5 billion in AI-based drug development platforms by the end of 2025, reporting the discovery of 12 new candidate substances in the first half of 2026 alone. This figure represents a 340% increase compared to the same period last year, demonstrating the direct impact of AI adoption. Johnson & Johnson, based in New Jersey, USA, is showing similar results, with three drug candidates discovered through its AI platform ‘Janssen AI’ currently in Phase 2 clinical trials. A commonality among these companies is their use of AI as a core R&D infrastructure rather than a mere auxiliary tool.
Korea’s biotech ecosystem is also experiencing rapid growth in line with these global trends. Samsung Biologics, headquartered in Incheon, recorded an order backlog of $14.7 billion as of January 2026, a 28.7% increase from the previous year, with 60% of these contracts involving AI-based biopharmaceutical production. Samsung Biologics’ Plant 4 in Songdo is the world’s largest biopharmaceutical production facility, with an annual production capacity of 240,000 liters. Celltrion, headquartered in Yeonsu-gu, Incheon, is solidifying its dominant position in the biosimilar market, achieving sales of 3.2 trillion won in 2025 and aiming to surpass 4 trillion won in 2026.
Acceleration of Commercialization in Personalized Medicine and Gene Therapy
The field of personalized medicine is entering the commercialization phase in 2026. The global personalized medicine market is expected to grow by 31.8%, from $85 billion in 2025 to $112 billion in 2026, significantly outpacing the overall biotech market growth rate. The growth in the gene therapy sector is particularly notable, with the number of FDA-approved gene therapies increasing from 27 in 2025 to 34 as of January 2026, and expected to exceed 50 by the end of the year.
Novartis, headquartered in Basel, Switzerland, recorded global sales of $850 million for its CAR-T cell therapy Kymriah in 2025, with a strong likelihood of surpassing $1.2 billion in 2026. This demonstrates that personalized medicine is no longer an experimental treatment but a commercially successful therapeutic option. AbbVie, based in North Chicago, Illinois, USA, is also showing strength in the personalized treatment sector with its blood cancer treatment Venclexta, achieving sales of $2 billion in 2025.
The commercialization of CRISPR-Cas9 gene editing technology is also accelerating. As of January 2026, 147 global companies are participating in the development of CRISPR-based therapies, a 34% increase from the previous year. Among the 312 CRISPR-based therapies under development, 23 are in Phase 3 clinical trials. With the proven effectiveness of CRISPR technology in treating sickle cell disease and beta-thalassemia, new opportunities are emerging in the rare disease treatment market.
Korean biotech companies are also making a mark in the personalized medicine field. ToolGen, headquartered in Daejeon, possesses world-class technology in developing gene therapies using CRISPR technology and received orphan drug designation from the U.S. FDA for a rare disease treatment in 2025. Macrogen, based in Seongnam, has built Asia’s largest genomic database through its personal genome analysis service and aims to secure genomic data from 1 million individuals by the first half of 2026.
The spread of personalized medicine is closely linked to advancements in diagnostic technology. The liquid biopsy market is expected to grow by 37.8%, from $4.5 billion in 2025 to $6.2 billion in 2026, bringing innovative changes in early cancer diagnosis and treatment monitoring. Guardant Health, headquartered in California, USA, is leading the market with its blood-based cancer diagnostic technology, and similar technology-developing startups are rapidly increasing in Korea.
Remarkable growth is also continuing in the regenerative medicine field. The global stem cell therapy market is projected to grow by 30.6%, from $18 billion in 2025 to $23.5 billion in 2026. Particularly, therapies using mesenchymal stem cells (MSCs) are proving effective in various diseases and entering the commercialization phase. Korean companies such as Antrogen, Pharmicell, and BioSolution are actively conducting R&D in this field, with some advancing to overseas clinical trial stages.
The advancement of personalized medicine highlights the importance of medical data. The core of personalized medicine is to comprehensively analyze a patient’s genetic information, lifestyle, and environmental factors to propose the optimal treatment. Consequently, the value of companies with medical data management and analysis technologies is soaring, and big tech companies are accelerating their entry into healthcare.
These changes in the biotech industry are also influencing investment patterns. Global biotech venture investment in 2025 increased by 15.7% from the previous year, reaching $48.7 billion, with AI-based drug development and personalized medicine accounting for 52% of total investments. Notably, biotech investment in Asia has increased significantly, with Korea attracting $2.3 billion, a 67% increase from the previous year, and China maintaining its position as the largest market in Asia with $7.8 billion.
However, several challenges are emerging alongside this rapid growth. Key issues include the rising medical costs associated with the spread of personalized medicine, safety concerns in gene therapy, and the protection of privacy in medical data. Additionally, in AI-based drug development, issues of algorithm bias and transparency are continuously raised, necessitating the urgent establishment of related regulatory frameworks. How these challenges are addressed will determine the future growth trajectory of the biotech industry.
In 2026, the biotechnology industry stands at a turning point where technological innovation and commercial success are achieved simultaneously. The enhanced efficiency of drug development through AI convergence, the full-scale commercialization of personalized medicine, and the rapid expansion of the gene therapy market are driving the overall growth of the industry. Particularly, Korean biotech companies are securing competitiveness in the global market and creating new growth engines, making the future changes in the industry ecosystem even more noteworthy.
This analysis is intended for general informational purposes and is not an investment solicitation or stock recommendation. Investment decisions should be made at the individual’s discretion and responsibility, and thorough review and expert consultation are recommended before investing.
