Table Of Contents
- Digital transformation and integration of AI-based tools opening new avenues for growth in the industry
- Growing adoption of smart wearables improving the revenue share of the domain
- Increased transition toward patient-centric and personalized medicine transforming the life sciences domain
- Rising number of FDA approvals for novel drugs and medications impacting the industry positively
- Resurgence in IPOs, venture capital funding, and mergers and acquisitions (M&A) helping the industry flourish
- The gradual shift toward advanced manufacturing technologies contributing to the expansion of the sector
- The final word
Roshan Deshmukh
Koyel Ghosh
Life Sciences Domain in 2025: A Comprehensive Industry Outlook Highlighting the Advancements, Trends, and Strategies
The life science domain has been on the rise in the last few years primarily due to the growing R&D activities in biotechnology, pharmaceutical manufacturing, and microbiology. Furthermore, the increasing investments in vaccine testing and drug development by multinational companies have impacted the sector positively. Apart from these factors, this newsletter highlights certain trends and advancements that are expected to broaden the scope of the domain in the coming year, 2025. Moreover, the intuitive strategies adopted by leading businesses are projected to maximize the revenue share of the domain in 2025.
Digital transformation and integration of AI-based tools opening new avenues for growth in the industry
The emergence of advanced digital technologies such as artificial intelligence, machine learning, and data analysis has created numerous opportunities in the life science domain. For instance, AI-based programs are widely used in drug development and discovery processes to improve testing accuracy, thereby enhancing the efficacy of the final medication. Similarly, ML algorithms are being deployed in genomics studies and research activities to analyze large volumes of data sets. Many biotech companies are using software programs powered by AI to accelerate the identification of disease-causing genomic variants and reduce the chances of human-induced errors.
The increasing utilization of AI in cancer diagnostics has led to the emergence of a new field of medicine, viz., precision oncology. This medical science mainly deals with the discovery and development of personalized cancer drugs based on the various characteristics of the patient’s tumor, thereby enhancing the possibility of curing the disease. Due to these developments, the AI in cancer diagnostics market is expected to gather a revenue of $1.7 billion by 2033, rising at a CAGR of 23.6% during 2024-2033.
Growing adoption of smart wearables improving the revenue share of the domain
Smart wearables are electronic devices that are designed to be worn on the body, either as accessories such as watches, jewelry, or clothing. These gadgets are powered by microprocessors, sensors, and other components that help the device receive and transmit data from a wireless network. While smart wearables are used in various end-use sectors, these gadgets are primarily used in the healthcare industry to improve medical outcomes at all stages, including diagnosis, treatment, and rehabilitation.
Smart wearables are primarily used in medical applications to help doctors monitor and track patients’ different parameters efficiently. In case of emergencies, these gadgets send alerts to medical practitioners, thus improving response times significantly. Moreover, these devices collect data regarding the patient’s various body parameters such as temperature, heart rate, blood sugar levels, etc., regularly. Thus, doctors are able to access the latest medical data seamlessly, which ultimately helps them to understand how the patient is responding to their prescribed treatment. Due to these advantages, the rate of adoption of smart wearables is expected to rise substantially in 2025.
Increased transition toward patient-centric and personalized medicine transforming the life sciences domain
An important development witnessed in the life sciences sector is the increasing demand for precision medicine to treat several chronic diseases and ailments. It is a medical approach wherein the genetics, environment, and lifestyle habits of a patient are considered to develop a tailored drug or medication. Thus, the patient’s medical history, genetic variations, and other biomarkers are also considered in designing personalized medical treatment plans.
As per the report published by Allied Market Research, the personalized medicine market is expected to gather a revenue of $869.5 billion by 2031. The industry accounted for $300 billion in 2021 and is anticipated to surge at a CAGR of 11.2% during 2022-2031. The increasing prevalence of chronic ailments such as cancer, diabetes, etc., is expected to be the main reason behind the growing adoption of personalized medical approaches. Furthermore, technological innovations and R&D activities funded by multinational corporations such as ARIEL Precision Medicine, Inc., BASF SE, Aadi Bioscience, Inc., etc., have created numerous growth opportunities in the sector.
Rising number of FDA approvals for novel drugs and medications impacting the industry positively
The United States Food and Drug Administration is a federal agency operating under the Department of Health and Human Services in the U.S. government. The organization is mainly responsible for ensuring public health and regulating the supply and marketing of different drugs, food products, biologics, and medical devices. The high operational standards and professional ethics maintained by the US FDA over the years have helped it gain a reputation as one of the premier public healthcare institutions across the globe. Approval given by the US FDA hence improves the credibility and brand image of the drug manufacturing company.
In the last few years, the US FDA has approved certain novel drugs which are primarily developed for the treatment of rare diseases. In 2023, for example, the agency approved the sale and marketing of 55 drugs, the second-highest count in the last 30 years. Apart from enhancing the brand image, the US FDA’s consent helps the company gain access to foreign markets and sell its products across the globe, thus expanding its customer base globally. Thus, a surge in the number of FDA approvals is estimated to impact the sector positively in 2025.
Resurgence in IPOs, venture capital funding, and mergers and acquisitions (M&A) helping the industry flourish
The life science domain is a highly dynamic sector with several multinational corporations competing for dominance in the landscape. To strengthen their position in the domain, many companies have even established strategic alliances, including mergers, acquisitions, partnerships, and collaborations with their peers in the sector. In November 2023 alone, the deal value for M&A reached $128 billion, thus signifying the growing investments by leading players in the landscape.
At the same time, new industry participants are expanding their footprint in the domain by securing venture capital funding from investors interested in capitalizing on the opportunities offered by the introduction of AI in drug discovery. As per a survey, the life science venture capital funding reached $34 billion by November 2024 and is expected to grow even further in 2025. Moreover, as per many industry experts, the predicted increase in the number of IPOs in the coming period is a strong signal of growing investor confidence in the sector.
The gradual shift toward advanced manufacturing technologies contributing to the expansion of the sector
A major trend that is expected to influence the life science domain greatly in 2025 is the gradual transition toward innovative processing techniques. For instance, additive manufacturing methodologies such as 3D printing have become quite popular in the healthcare sector. This technology is now being used in oncology, orthopedics, radiology, and pediatrics to improve the pace of manufacturing and reduce wastage and input costs.
Recently, Allied Market Research published a report on the 3D printing in healthcare market which highlighted that the industry is expected to gather a revenue of $5,846.74 million by 2030. The landscape accounted for $1,036.58 million in 2020 and is predicted to surge at a CAGR of 20.10% during 2021-2030. The growing preference for personalized medicine is projected to create new investment opportunities in the sector in 2025. Along with this, the increasing use of bioprinting techniques to develop tissues and organs is anticipated to maximize the revenue share of the domain in the coming year.
The final word
The life sciences sector is expected to witness huge growth in 2025 due to the rising investments in the domain from various multinational corporations. Furthermore, the growing adoption of AI-based tools and increasing of personalized medicine is predicted to offer numerous opportunities to the landscape in the near future. Additionally, the surge in the number of IPOs and M&A deals is anticipated to create favorable conditions for the growth of the sector.
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