The Biotechnology Revolution: Market Restructuring Driven by AI-Based Drug Development and Precision Medicine in 2026
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A New Paradigm in AI-Based Drug Development
In 2026, the biotechnology industry is undergoing an unprecedented transformation with the introduction of artificial intelligence and machine learning technologies. The global biotechnology market is expected to reach $1.285 trillion, a 14.2% increase from 2025, with the AI-based drug development sector accounting for approximately $34 billion, or 2.6% of the total market. A key point of interest is that while traditional drug development processes typically take 12-15 years, industry analysis suggests that AI technology can reduce this period to 7-10 years.
Leading companies like Genentech, based in California, have already succeeded in using AI algorithms for protein structure prediction and molecular design optimization, increasing the success rate of discovering new drug candidates from the traditional 5-10% to 25-30%. In Korea, Samsung Biologics, headquartered in Songdo, Gyeonggi Province, began operating an AI-based biosimilar development platform in the fourth quarter of 2025, announcing a 40% reduction in development costs and a 2-3 year reduction in development time.
Significant growth is also observed in the field of Precision Medicine. As of 2026, the global precision medicine market has grown by 18.7% from the previous year, reaching $289 billion, driven by increased demand for personalized treatments and advancements in genomic analysis technologies. Roche, headquartered in Basel, Switzerland, reported that its Foundation Medicine platform performed approximately 450,000 tumor genomic profilings in 2025, raising the success rate of providing personalized treatments to 78%.
In Korea’s biotechnology ecosystem, investments linked to the government’s K-Bio Belt project are actively underway. In 2025, total investment in the Korean bioindustry increased by 23% from the previous year to 4.26 trillion won, with AI-based drug development and precision medicine accounting for 35% of this investment. Celltrion, headquartered in Incheon, introduced the AI-based antibody design platform ‘CelltrionAI’ in the second half of 2025, significantly enhancing biosimilar development efficiency and securing three new biosimilar candidates by the first half of 2026.
Global Competitive Landscape and Market Dynamics
The competitive landscape of the biotechnology market in 2026 is characterized by intense competition between traditional big pharma companies and innovative biotech startups. Johnson & Johnson, headquartered in New Jersey, maintained its global leadership position with $54.3 billion in biopharmaceutical sales in 2025, although its growth rate slowed to 8.3% compared to the previous year. In contrast, Gilead Sciences, based in California, achieved rapid growth with $28.7 billion in sales, a 22.4% increase from the previous year, through focused investments in CAR-T cell therapies and mRNA vaccine technologies.
In the Asian market, the rise of Korean and Chinese companies is notable. Samsung Biologics recorded an annual revenue of 3.42 trillion won in 2025, growing by 19.7% from the previous year, and secured an 8.3% global market share in the mRNA vaccine contract manufacturing sector. This positions it as the third-largest production capacity globally, following Germany’s BioNTech and the United States’ Moderna. In China, WuXi Biologics, headquartered in Shanghai, recorded $4.7 billion in revenue in 2025, establishing itself as the largest biopharmaceutical CDMO (Contract Development and Manufacturing Organization) in Asia.
Investment trends show that global venture capital investment in the biotechnology sector increased by 15.8% from the previous year to $28.9 billion in 2025. AI-based drug development startups received $6.7 billion, accounting for 23.2% of the total, a significant increase from 18.7% in 2024. Notably, overseas investments in Korean biotech startups increased by 41% from the previous year to $1.2 billion, attributed to the Korean government’s regulatory easing, tax benefits, and the establishment of the K-Bio Belt infrastructure, attracting foreign investors’ interest.
In terms of market segmentation, the oncology sector remains the largest. In 2026, the oncology-related biopharmaceutical market is expected to reach $289 billion, accounting for 22.5% of the total biopharmaceutical market, with immuno-oncology representing 45.2% of this segment. Amgen, based in California, reported $12.6 billion in sales from its BiTE (Bispecific T-cell Engager) platform-developed cancer drugs in 2025, accounting for 48.3% of its total sales.
The rare disease treatment market is also experiencing rapid growth. The global rare disease treatment market is expected to grow to $234 billion by 2026, reflecting an average annual growth rate of 12.8%. Innovations in gene and cell therapies are driving this growth. Sarepta Therapeutics, headquartered in Massachusetts, recorded $1.5 billion in sales in 2025 from its gene therapy for Duchenne muscular dystrophy, a 67% increase from the previous year.
Technological Innovations and Future Prospects
The most notable technological innovations in the biotechnology field in 2026 are next-generation gene editing technologies beyond CRISPR-Cas9. Prime Editing and Base Editing technologies have entered clinical application stages, significantly improving the precision and safety of gene therapies. Editas Medicine, based in Boston, began human gene editing clinical trials for LCA10 (Leber Congenital Amaurosis) in the second half of 2025, reporting vision improvement effects in over 90% of patients in early results.
The application scope of mRNA technology platforms is also expanding beyond vaccines to therapeutics. BioNTech, headquartered in Mainz, Germany, announced groundbreaking achievements in the personalized cancer vaccine sector in 2025. Their BNT122 program, which analyzes patient-specific tumor neoantigens to create personalized mRNA cancer vaccines, showed a 65% extension in progression-free survival compared to standard treatments in Phase 2 clinical trials. Based on these results, BioNTech’s oncology division sales in 2025 increased by 156% from the previous year to $870 million.
In Korea, drug screening and toxicity evaluation platforms utilizing organoid technology are gaining attention. Theragen Etex, headquartered in Seoul, commercialized an Alzheimer’s disease treatment screening platform using brain organoids in 2025, achieving over 80% cost savings and over 70% time reduction compared to traditional animal testing. This technology is currently used by 15 pharmaceutical companies domestically and internationally, with a sales target of 45 billion won set for 2026.
The convergence of artificial intelligence and quantum computing is also opening new possibilities in drug development. A collaboration project between IBM and Roche is enabling complex protein interaction analysis through molecular simulations using quantum computers, which was previously impossible with supercomputers. This has improved the blood-brain barrier penetration rate of Alzheimer’s disease drug candidates from 5% to 23%, with clinical trials targeted for the first half of 2026.
Changes in the regulatory environment are also having a significant impact on the industry. The US FDA announced new guidelines for AI-based drug development in December 2025, emphasizing the transparency and verifiability of AI algorithms. The Korean Ministry of Food and Drug Safety also began implementing the ‘AI-Based Medical Device and Drug Approval Guidelines’ in January 2026, expected to accelerate the adoption of AI technologies by domestic biotech companies.
On the global supply chain front, the regionalization trend continues post-COVID-19 pandemic. This is particularly leading to strengthened biomanufacturing capabilities in the Asian region, with Samsung Biologics and Celltrion in Korea, Lonza in Singapore, and WuXi Biologics in China emerging as major beneficiaries. As of 2026, the Asian region’s market share in the biopharmaceutical contract manufacturing sector has significantly increased to 35.7% from 28.4% in 2023, reflecting a strategic shift by global pharmaceutical companies to reduce dependence on Western countries.
Looking ahead, the biotechnology market is expected to record an average annual growth rate of 11.3% from 2026 to 2030. AI-based drug development, cell and gene therapies, and precision medicine are analyzed to be the main growth drivers. In terms of investment, there is a growing preference for biotech companies that meet ESG (Environmental, Social, and Governance) criteria, creating a favorable environment for companies that prioritize sustainable biomanufacturing processes and improved patient accessibility. The Korean biotechnology industry is also expected to continue its growth in line with these global trends, with government-focused investments in the biohealth sector and regulatory innovations supporting this growth.
This analysis is based on publicly available market data and industry reports, and additional due diligence and expert consultation are recommended when making investment decisions. Biotechnology investments involve high risks, so careful consideration is necessary.
