Transparency Market Research states that the global nanomedicine market, which had a valuation of US$111.10 bn in 2015, will expand at an excellent double-digit CAGR over the next few years and rise to a valuation of US$177.06 bn by 2019. In terms of application, the oncology segment is presently the dominant and is expected to retain its position over the next few years as well. Applications in the oncology field contributed US$42.34 bn to the global nanomedicine market’s revenues in 2015.
In terms of geography, North America presently leads the global market and is expected to retain dominance in the near future as well. The region is expected to contribute US$62.68 bn to the global market’s revenues by 2019.
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Rising Support from Government Bodies and Increased Private Investments Drive Market
The vast rise in prevalence of a number of chronic diseases globally is the primary factor stimulating the demand for new drug varieties and the development of novel and more effective drug delivery mechanisms. This factor has also played a central role in the advent of nanomedicine and nanotechnology-based drug delivery mechanisms in the past years. Of late, funds from government and non-profit organizations have immensely helped the market achieve notable growth. Funding by government bodies has also encouraged several companies and research institutes in investing a part of their operations in nanomedicine.
In the past few years, private investments have also significantly increased in the field of nanomedicine, allowing a vast rise in research activities and advancement in technologies such as nanorobots, molecular nanotechnology, and nanovaccinology. Increased investments in the market have also encouraged the introduction of new products. Collectively, these factors are expected to have a vast positive impact on the future growth of the global nanomedicine market.
Lack of Organized Regulatory Standards and Capital-intensive R&D Activities Hinder Market’s Growth
Presently, there are no specific testing requirements for nanomedicines across most regional markets. However, the general safety testing requirements of regulatory authorities such as the U.S. FDA and Center for Drug Evaluation and Research (CDER) for medical products are very stringent. As nanomedicines are associated with environmental and toxicological issues, they commonly undergo tests for safety evaluation such as pharmacology, toxicology, ADME, immunotoxicity, carcinogenicity, and genotoxicity.
As research and development activities in the field of nanomedicine amplify and product portfolio expands, regulatory hurdles may become stringent. In such case, companies in the market will be reluctant to risk developing innovative technologies, fearing the long-winded approval procedures. Along with this, the high costs involved in the research and development of nanomedicines, and the subsequent rise in end-product’s costs, is also a key challenge that could hinder the overall growth of the global nanomedicine market to a vast extent. The high costs of nanomedicines deter the penetration and expansion of nanomedicine market in emerging economies, which otherwise have vast growth opportunities for innovative medical specialties.
“As product development in the field of nanomedicine entails vast development and research costs and innovation in the market is technology driven, venturing into the market requires high capital investments. Thus, the threat of new entrants is low,” quoted a TMR analyst. Some of the key companies in the market are Celgene Corporation, Mallinckrodt plc, Abbott Laboratories, CombiMatrix Corp, Nanosphere Inc., GE Healthcare, and Johnson & Johnson.