Key Findings
Industry 4.0 transforms manufacturing
Industry 4.0 is gradually entering the world of pharmaceutical production and is expected to steadily transform the way the industry operates. Companies already embrace Industry 4.0 solutions, including intelligent factories, highly integrated, flexible IT and manufacturing systems.
Production of biologics to drive future growth
Ageing societies are expected to ensure continuous consumption of high-value-added drugs, especially in areas such as oncology and diabetes. Thus, biologics is set to be among the fastest growing pharmaceutical categories.
Biosimilars gain ground
Production of biosimilars is expected to be spurred by the loss of patent protection for bestselling biologics, government support programmes, and strong Asian biosimilar companies entering the competitive landscape.
Rising importance of drug-device combination products
Rising demand for biologics and increasing need for patient- friendly solutions are anticipated to drive the strong growth of drug-device combination products.
Pricing pressures are to persist
Rising government pressure to curb healthcare costs will continue to manifest in regulatory pricing pressures for the pharmaceuticals industry.
Scope
Four trends shaping the pharmaceuticals and medical equipment industry
COVID-19: impact on pharmaceuticals and medical equipment
Pharmaceuticals and medical equipment among the least affected industries by COVID-19
Following stable development in 2020, the industry is set for higher growth in 2021
China and the US continue to dominate global industry
Producers’ profits under pressure due to prevailing cost containment measures
Western Europe leads pharmaceuticals and medical equipment exports
Strong healthcare markets in Europe and the US drive imports growth
Increasing consumer demand for healthcare facilitates global market expansion
Johnson & Johnson leads, but competition remains intense
Total number of companies increases, driven by the expanding biotech sector
Industry concentration to remain low despite ongoing consolidation
China, the US and Western Europe to drive future production value growth
Major countries continue to grow, despite the COVID-19 crisis
Key future trends shaping the global industry
China : Industry continues to grow due to healthy domestic demand
China aims to transform from cost-efficient producer to innovation developer
USA : Industry witnesses slower growth in 2020 due to pandemic-related disruptions
Production localisation in the US to spur long-term industry development
Ireland : strong exports continue to support higher production output
Investments in Ireland’s biotech sector to facilitate future industry growth
Switzerland : The industry to see solid recovery following COVID-19 downturn
Biotech innovation to support Swiss industry’s swift recovery
Germany : Industry recovers in 2020 amid solid domestic and foreign demand
Germany to remain one of the top global producers and exporters
Japan : Industry set for slow yet steady future growth
Outlook clouded by Japanese Government’s efforts to curb healthcare spending
France : Producers see slower growth due to weaker domestic demand
French industry to pick up in 2021, backed by reviving demand from the healthcare sector
United Kingdom : Industry proves resilient to the shock of COVID-19
UK producers withstand the crisis amid strong domestic demand
Puerto Rico : Local producers take a hit amid the COVID-19 crisis
Puerto Rico’s manufacturers to remain under pressure due to economic and social crisis
Italy : Industry set to pick up in 2021 backed by overall economic recovery
After a strong rebound in 2021, Italian industry poised for stable future growth