Expansion of International Life Sciences Markets Presents Opportunity for Europe

US markets count the most existing lab space, but London ranks fourth highest for space under construction; the UK made gains in patent applications and Cambridge surpassed London for venture capital funding in 2024

CBRE analyzed many of the key life sciences markets across the globe and found that, overall, most demand drivers are improving. Global venture capital investment in life sciences companies last year exceeded the 2019 total by 43%. In-progress construction of lab space globally totaled more than 35 million sq. ft. last year -- more than the entirety of San Diego’s existing lab space.

CBRE found different markets and countries moving to the forefront of various categories of the life sciences industry.

Existing Lab Space

The largest global markets by square footage of lab and research & development space are US dominated, with Boston at 56 million sq. ft., San Francisco at 43.6 million and San Diego at 27.3 million. The largest markets in Europe by comparison are Cambridge with 4.2 million sq ft and Paris with 2.9 million.

 Lab Construction

In Europe, London has emerged as the most active market. The 2.7 million sq. ft. under construction in the Capital ranks fourth-most globally (in a tie with San Francisco). Several years of robust venture capital funding helped to fuel London’s building activity, which stands to triple the size of that market if fully completed. Barcelona, Oxford and Cambridge complete the European top four.

Patent Applications

The U.S. generates the most patent applications for biotechnology, pharmaceuticals and medical technology at nearly 14,000 last year, up 10% over the previous decade. Five European countries sit within the top ten: Germany, Switzerland, the UK, France and the Netherlands. The UK in particular has gained momentum with patent growth of 54% since 2014, however this growth rate is from much smaller base amount than the U.S.

Venture Capital

The U.S. claimed 67% of global venture capital funding for life sciences in last year’s fourth quarter, up from 59% in 2023. Next are China at 8%, the U.K. at 7% and Switzerland at 3%. Historically, London has dominated venture capital funding across Europe but in 2024, was surpassed by a surge of funding in Cambridge.  Other notable European destinations for life sciences venture capital include Oxford, Paris and Basel.

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