The Turning Point of the Biotechnology Industry in 2025: New Growth Drivers Led by AI Integration and Personalized Therapies
Editor
Paradigm Shift in Biotechnology Triggered by AI Integration
As of the end of 2025, the global biotechnology market is undergoing fundamental changes through integration with artificial intelligence. According to market research firm GlobalData, the AI-based drug development market is projected to grow from $7.8 billion in 2025 to $40 billion by 2030, with an average annual growth rate of 40.8%. This rapid growth is noteworthy as it goes beyond mere technological advancement, redefining the entire process of biopharmaceutical development.
A particularly notable change is the reduction in time and improvement in success rates for drug development processes. Traditionally, drug development required an average of 10-15 years and $2.6 billion in costs, but the industry predicts that the introduction of AI technology will reduce this period to 5-7 years. U.S.-based biotech company Atomic AI announced in the third quarter of 2025 that they identified RNA-based therapeutic candidates 70% faster than before using an RNA structure prediction AI model. This achievement is acting as a catalyst for accelerating AI adoption across the biotech industry.
Korea’s biotech ecosystem is also rapidly evolving in line with these global trends. According to the 2025 Biotech Industry Status Report released by the Korea Biotechnology Association, the adoption rate of AI technology among domestic biotech companies increased by 45% from the previous year, reaching 67%. Notably, Samsung Biologics, headquartered in Seongnam, Gyeonggi Province, reported a 25% improvement in biopharmaceutical production efficiency by introducing an AI-based process optimization system in the second half of 2025. This not only enhances productivity but also demonstrates that bio-manufacturers can pursue both quality control and cost efficiency through AI.
Widespread Expansion of the Personalized Therapy Market
One of the most prominent trends in the 2025 biotechnology industry is the accelerated commercialization of personalized therapies (Precision Medicine). According to the latest report from market research firm Frost & Sullivan, the global personalized medicine market is expected to grow from $124 billion in 2025 to $225 billion by 2030, with an average annual growth rate of 12.8%. The key drivers of this growth are the reduction in costs and improvement in the accuracy of genomic analysis technologies.
As of 2025, the cost of genomic analysis has dropped to an average of $600 per person, a 40% decrease from $1,000 in 2020. Illumina, headquartered in California, announced the launch of the next-generation sequencing platform ‘NovaSeq X Plus’ in the fourth quarter of 2025, which can reduce the cost of whole-genome analysis to $200. This cost reduction is a decisive factor enabling the popularization of personalized therapies.
In the Korean market, investment and interest in personalized therapies are also surging. Celltrion, headquartered in Incheon, announced a 120 billion won investment plan in the first half of 2025 for the development of personalized antibody therapies. This investment will focus on developing customized biopharmaceuticals tailored to the genetic characteristics of individual patients, with a particular emphasis on therapies considering the unique genetic variations of Koreans. Celltrion Chairman Seo Jung-jin emphasized, “Developing personalized therapies that reflect the genetic characteristics of Asians, especially Koreans, is the key competitive edge that can differentiate us in the global market.”
There is also a noticeable increase in the actual application of personalized therapies. Roche, headquartered in Basel, Switzerland, reported a 35% improvement in survival rates compared to standard treatments in the third quarter of 2025 with the clinical phase 3 results of the personalized breast cancer therapy ‘Phesgo.’ This achievement is recognized as evidence that personalized therapies can provide tangible benefits in actual patient treatment, beyond a mere conceptual approach. Notably, this therapy determines the optimal treatment protocol by comprehensively analyzing the patient’s HER2 expression levels and genetic variations.
Significant progress has also been made in the field of gene-editing technology. Editas Medicine, headquartered in Cambridge, Massachusetts, announced in the second quarter of 2025 that they confirmed the vision improvement effects of the CRISPR-based gene-editing therapy ‘EDIT-101’ in patients with hereditary blindness in clinical phase 2. Among the treated patients, 78% showed vision improvement, with 45% recovering vision to a level that allows for daily activities. These results suggest that gene-editing technology can provide a practical breakthrough in the treatment of rare diseases.
In Korea, the development of gene-editing technology is also actively underway. The Korea Research Institute of Bioscience and Biotechnology, located in Daejeon, announced in the second half of 2025 the development of a CRISPR platform technology targeting genetic variations specific to Koreans. This technology is particularly capable of precisely editing the genetic causes of gastric and liver cancers, which are prevalent among Koreans, and basic research for clinical application is ongoing. The research team predicts, “The development of customized gene-editing technology considering the genomic characteristics of Koreans will play a crucial role in securing global competitiveness for the domestic biotech industry.”
The cell therapy sector is also emerging as a key area for personalized treatment. The global cell therapy market is estimated to be $18 billion in 2025 and is expected to grow at an average annual rate of 15.3% to reach $37 billion by 2030. Particularly, the CAR-T cell therapy market is driving overall growth. Johnson & Johnson, headquartered in New Jersey, received FDA approval in the fourth quarter of 2025 for the next-generation CAR-T cell therapy ‘Carvykti’ for first-line treatment of multiple myeloma. This therapy, a fully personalized treatment that extracts and genetically modifies the patient’s T cells before reinfusion, showed a 76% extension in progression-free survival compared to standard treatments.
The competition among biotech companies to develop personalized therapies is significantly impacting the investment and mergers and acquisitions (M&A) market. In the 2025 biotech M&A market, transactions related to personalized therapies accounted for 42% of the total, with a total transaction value of $78 billion. This represents a 28% increase from the previous year, indicating that large pharmaceutical companies are actively investing to secure capabilities in personalized therapies. Novartis, headquartered in Basel, Switzerland, announced a $4.5 billion investment in the first half of 2025 to introduce the CAR-T platform technology of U.S.-based gene therapy specialist Avexis Biotechnologies.
However, there are still considerable challenges in the widespread adoption of personalized therapies. The biggest issue is the burden of treatment costs. Currently, the treatment cost for CAR-T cell therapies ranges from $450,000 to $600,000 per patient, which is difficult for most patients and insurance systems to bear. Additionally, the complexity of manufacturing personalized therapies and the difficulty in quality control also act as obstacles to commercialization. Industry experts point out that automation and standardization of manufacturing processes, as well as improvements in insurance reimbursement systems, are essential to address these issues.
Changes in the regulatory environment also significantly impact the development of the personalized therapy market. The U.S. FDA announced new approval guidelines for personalized therapies in the second half of 2025, introducing a fast-track program that can shorten the approval process by 30% compared to existing procedures. The European Medicines Agency (EMA) is pursuing similar policies, and these improvements in the regulatory environment are expected to significantly reduce the market entry time for personalized therapies. The Korean Ministry of Food and Drug Safety also announced the ‘Personalized Therapy Approval Guidelines’ in the third quarter of 2025, aiming to establish a regulatory system aligned with global standards.
Market experts predict that personalized therapies will enter a full commercialization phase starting in 2026. According to a recent report by McKinsey & Company, it is anticipated that 35% of all new therapies by 2030 will be based on personalized approaches. This change requires fundamental shifts in the research and development strategies and business models of biotech companies, and companies are focusing on strengthening their capabilities to respond to this shift.
Investors are also increasing their interest in companies related to personalized therapies. In 2025, companies related to personalized therapies attracted a total of $12.5 billion in venture investment, accounting for 38% of total biotech investments. This represents a 52% increase from the previous year, indicating that investors highly value the long-term growth potential of personalized therapies. Particularly, investments in early-stage companies are actively being made, which is expected to support the sustained growth of the personalized therapy market over the next 5-10 years.
As of the end of 2025, the biotechnology industry is at the center of a paradigm shift driven by AI integration and personalized therapies. With technological advancements, cost reductions, and improvements in the regulatory environment occurring simultaneously, treatments that were previously impossible are becoming a reality. However, challenges such as high treatment costs, manufacturing complexity, and limitations in insurance reimbursement systems still remain. The future success of biotech companies will depend on their ability to transform these technological innovations into commercially viable solutions. Particularly, Korean biotech companies are building differentiated competitiveness in the global market through the development of therapies tailored to Asians and the utilization of AI technology, and if these efforts bear fruit, it is expected to be a new leap forward for the domestic biotech industry.
*This analysis is based on publicly available market information and industry reports, and additional research and expert consultation are recommended for investment decisions.*
