The Great Transformation of the Biotechnology Industry in 2025: A New Chapter in AI Integration and Personalized Medicine
Editor
As of the end of 2025, the global biotechnology industry stands at an unprecedented inflection point. According to the latest report by market research firm Frost & Sullivan, the global biotech market size in 2025 is expected to reach $1.24 trillion, marking a 14.2% increase from the previous year. Notably, the accelerated integration of artificial intelligence and biotechnology is reducing the drug development period from the traditional 10-15 years to 7-10 years. This change signifies not just technological advancement but a paradigm shift in the entire healthcare ecosystem.
Korea’s bio industry plays a crucial role in this global trend. According to data released by the Korea Biotechnology Association for the fourth quarter of 2025, the total revenue of domestic bio companies reached 28.6 trillion won, growing 22.8% compared to the same period last year. In particular, Samsung Biologics (based in Incheon) achieved annual sales of 4.1 trillion won in the biopharmaceutical sector, capturing an 18.7% share of the global biopharmaceutical contract manufacturing (CMO) market. This surpasses the 16.2% share of Switzerland’s Lonza (based in Basel), making it the first Asian company to achieve global leadership.
In the field of AI-based drug development, the United States and China are engaged in fierce competition. According to a recent analysis by Deloitte, the investment in AI-based drug development is expected to reach $18.7 billion by 2025, with the U.S. accounting for 62% or $11.6 billion, and China 23% or $4.3 billion. Recursion Pharmaceuticals, headquartered in San Francisco, California, announced that its AI platform has reduced the discovery time for drug candidates from the traditional 3-5 years to six months. The company currently holds 15 clinical pipelines, eight of which are compounds discovered through AI.
Acceleration of Commercialization in Personalized Medicine and Precision Medicine
One of the most prominent trends in the biotech industry in 2025 is the full-scale commercialization of Personalized Medicine. The global precision medicine market has grown to $284.7 billion by 2025, with a compound annual growth rate (CAGR) of 11.8%. This growth is driven by the sharp decline in the cost of genome analysis. Through Next-Generation Sequencing (NGS) technology developed by Illumina (based in San Diego, California), the cost of whole genome analysis has dropped from $1,000 in 2020 to $300 in 2025.
These technological advancements are translating into actual treatment outcomes. Roche (based in Basel, Switzerland) achieved combined sales of $8.7 billion for its personalized cancer treatments Herceptin and Kadcyla in 2025, accounting for 8.3% of the total oncology market. Notably, the treatment success rates of these drugs are 40-60% higher than conventional standard therapies. In Korea, Celltrion (based in Incheon) has demonstrated global competitiveness with its biosimilar Herceptin, ‘Herzuma,’ generating annual sales of $1.2 billion in the European and U.S. markets.
In the field of gene therapy, even more dramatic changes are occurring. The CAR-T cell therapy market has grown to $8.9 billion by 2025, approximately three times the size of 2020. Novartis (headquartered in Philadelphia, Pennsylvania) with Kymriah and Bristol Myers Squibb (based in New York) with Breyanzi are leading the market, recording annual sales of $700 million and $520 million, respectively. These therapies show a complete remission rate of over 80%, a significant improvement compared to the 20-30% of traditional chemotherapy.
In Korea, innovation in the field of gene therapy is also accelerating. ToolGen (based in Seoul) is conducting three Phase 3 clinical trials with its CRISPR-based gene editing technology, which is expected to have an annual sales potential of $1.5 billion upon market entry. Particularly, the treatments for beta-thalassemia and sickle cell disease show a treatment success rate of over 95% compared to existing therapies, garnering attention from the medical community.
Digital Transformation and Automation Revolution in Bio Manufacturing
Another key trend in the biotech industry in 2025 is the digital transformation of manufacturing processes. Bio manufacturers are actively adopting Industry 4.0 technologies to significantly enhance productivity. According to a recent analysis by McKinsey, the productivity of bio manufacturing facilities that have adopted digital technologies has improved by an average of 25-35%, and product quality variance has decreased by 40%. These changes are particularly significant in the mass production of biopharmaceuticals.
Samsung Biologics is playing a leading role in this field. The company has a total production capacity of 364,000 liters across four plants in Songdo, Incheon, which accounts for about 20% of the global biopharmaceutical contract manufacturing capacity. Notably, the fully automated system introduced in the fourth plant has improved production yield from 85% to 94%, and reduced batch-to-batch quality variance from 2.3% to 0.8%. Based on this technological advantage, Samsung Biologics is conducting 62 projects as of the fourth quarter of 2025, with 18 in the commercial production stage.
In Europe, Novo Nordisk (based in Bagsværd, Denmark) is leading digital manufacturing innovation. The company has established a smart factory combining IoT and AI in its diabetes treatment production process, improving production efficiency by 32%. Particularly in the insulin production line, the introduction of a predictive maintenance system has increased equipment utilization to 96.7%, significantly exceeding the industry average of 89%. Through this innovation, Novo Nordisk achieved sales of 284.7 billion Danish kroner (approximately $42 billion) in 2025, maintaining a 32.4% share of the global diabetes treatment market.
Chinese bio manufacturers are also rapidly catching up. WuXi Biologics, headquartered in Shanghai, operates 22 production facilities in 13 countries with a total production capacity of 500,000 liters as of 2025. The company has introduced a modular production system, reducing the preparation period for new biopharmaceutical production from the traditional 18-24 months to 8-12 months. Through this innovation, WuXi Biologics recorded sales of 14.7 billion yuan (approximately $2 billion) in 2025, growing into Asia’s largest bio contract manufacturing company.
Automation in the bio manufacturing sector is creating new business models beyond mere efficiency improvements. The introduction of Continuous Manufacturing technology has reduced the production costs of biopharmaceuticals by 30-50%, contributing to improved accessibility of treatments for rare diseases. The U.S. FDA approved 17 continuous manufacturing-based biopharmaceuticals by 2025, a significant increase from three in 2020. These technological advancements are becoming a crucial driving force in the popularization of biopharmaceuticals.
Despite these rapid technological advancements and market expansion, the biotech industry still faces significant challenges. One of the major issues is the complexity of the regulatory environment. The differing approval standards and procedures for biopharmaceuticals in each country require considerable time and cost for global expansion. Particularly in AI-based drug development, the existing regulatory framework makes appropriate evaluation difficult. Although the U.S. FDA announced new guidelines for AI-based medical devices in 2025, there is still a strong call within the industry for clearer standards.
Additionally, the shortage of talent in the biotech field is at a critical level. According to Deloitte’s analysis, the global biotech industry is expected to require approximately 1.8 million additional personnel over the next five years, but the current education system is insufficient to meet this demand. Especially for experts who can integrate AI and bio, the supply is only 1:7 compared to the demand. This talent shortage is a major factor limiting the pace of innovation.
In terms of the investment environment, global biotech investment in 2025 recorded $42.7 billion, a decrease of 8.7% from the previous year. This is a significant drop from the peak of $68.7 billion in 2021, attributed to macroeconomic uncertainties and rising interest rates. However, there is a consensus that the qualitative aspect of investments has improved. The proportion of late-stage investments has increased, and funds are increasingly concentrated on projects with high commercialization potential. In Korea, the government is strengthening the industrial ecosystem by executing a total of 2.8 trillion won in bio sector investments through the K-Bio Grand Challenge program in 2025.
Looking at regional market trends, the Asia-Pacific region is experiencing the fastest growth. The biotech market in this region reached $423.4 billion in 2025, growing 18.3% from the previous year. Particularly, China and India recorded high growth rates of 31.2% and 24.7%, respectively, driving the market. In China, large-scale investments in the bio industry continue in line with the government’s Healthy China 2030 strategy, while India is making a mark in the biosimilar market by leveraging its generic drug production base.
As of the end of 2025, the biotechnology industry is at a new turning point centered on the dual pillars of technological innovation and market expansion. Innovations in drug development through AI integration, the commercialization of personalized medicine, and the digital transformation of manufacturing processes are expected to be key drivers of future industry development. Simultaneously, the organization of the regulatory environment, talent cultivation, and the establishment of a sustainable investment ecosystem are emerging as essential tasks for the healthy growth of the industry. The increasing share of Asian countries, including Korea, in the global bio-ecosystem suggests that changes in the global biotech industry landscape will be closely watched in the future.
In this wave of change, investors and industry participants must establish strategies from an integrated perspective of the entire value chain, beyond mere technological superiority. Particularly, the valuation methods of biotech companies are evolving from a pipeline-centric approach to one that comprehensively considers platform capabilities and data assets, necessitating a new approach.
This information is provided for industry analysis purposes and is not investment advice. Please consult a professional when making investment decisions.
