PROTEIN ENGINEERING MARKET ANALYSIS

Market Size and Trends

The protein engineering market is estimated to be valued at USD 3.61 Billion in 2024 and is expected to reach USD 10.4 Billion by 2031, growing at a compound annual growth rate (CAGR) of 16.3% from 2024 to 2031.

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The protein engineering market is expected to witness significant growth over the forecast period. Increasing R&D investments by pharmaceutical and biotechnology companies and the rising prevalence of chronic diseases are some key factors driving the demand for protein engineering solutions. Additionally, the growing focus on structure-based drug design and the influx of new technologies are further expected to propel the market forward. Advanced protein engineering platforms help streamline the development of improved therapeutics such as antibodies, vaccines, and enzymes. This is anticipated to boost the volume of research activities done using protein engineering techniques over the coming years.

The escalation in chronic disease prevalence and the growing demand for targeted therapies are on the rise

The rising prevalence of chronic diseases across the world coupled with the growing demand for targeted therapies is one of the major factors driving the growth of the protein engineering market. With lifestyle changes and aging population, non-communicable diseases like cancer, diabetes, and cardiovascular disorders have become one of the leading causes of mortality and morbidity worldwide. The increasing prevalence of chronic diseases in North America is expected to drive the demand for protein-engineered therapies, leading to market growth. For instance, in November 2023, an article from the American Diabetes Association reported approximately 1.2 million new cases of diabetes were diagnosed annually in the U.S. Consequently, the rising burden of diabetes is likely to elevate the demand for insulin, including protein-engineered artificial insulin, thereby stimulating market expansion.

Market Concentration and Competitive Landscape

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Advancements in Agricultural Biotechnology

There is immense scope for advancing agricultural biotechnology and crops through protein engineering techniques. Proteins play a vital role in various agricultural applications including crop protection, yield improvement, nutrient quality enhancement, and abiotic stress tolerance. Protein engineering provides tools to modify plant proteins involved in key biological pathways and introduce novel traits of agronomic importance. For instance, enzymes can be engineered to alter metabolic pathways enhancing photosynthetic efficiency, biomass production, and nutrient uptake in crops. Stress-responsive proteins from extremophiles may confer drought, cold, saline, and pest/disease tolerance when transferred to crop plants. Designing better binding or catalytic properties in proteins can help develop herbicide- and pest-resistant transgenic crops. Engineering plant storage proteins can help enhance their nutritional profile making staple crops more nutritious.

Key Takeaways of Analyst:

The protein engineering market is poised to grow rapidly in the coming years. Major drivers of this market include increasing R&D investments by biopharmaceutical companies and growing demand for biologics in therapeutic areas such as oncology. The rising prevalence of chronic diseases worldwide is increasing the demand for novel biologics, thereby positively impacting the protein engineering market. However, high costs associated with R&D and lack of skilled professionals in this domain remain key restraints to the market's growth. North America, particularly the U.S., currently dominates the global protein engineering market owing to the presence of major players and rising expenditure on healthcare and life sciences research in the region. Asia Pacific is expected to be the fastest growing market in the coming years supported by increasing government funding for protein-based research in countries such as China and India.

Opportunities for players in the protein engineering market lie in the customization of existing protein technologies for specific applications and collaborations with contract manufacturing organizations and research institutes. Companies are exploring applications of protein engineering in industrial enzymes, biosensors, and development of vaccines which is anticipated to present new avenues for growth over the forecast period.

Market Challenges: High costs of protein engineering techniques

The anticipated hindrance to the growth of the global protein engineering market stems from the high production costs associated with therapeutic proteins. For example, the development expenses for therapeutic proteins are considerable, and the computational expenses can deter some experts from utilizing this approach in the design process. Consequently, alternative methods are often employed for therapeutic protein development. Moreover, the scarcity of proficient professionals is expected to impede the expansion of the global protein engineering market. Despite substantial investments in the protein engineering sector, there remains a shortage of skilled workforce in both developed and developing nations. Advanced protein engineering technologies, for instance, demand adept technicians to navigate them effectively.

Market Opportunities: Growing focus on protein-based drug development

The growing focus on protein-based drug development offers significant growth opportunities in the protein engineering market. Collaborations like that between Amgen and Generate Biomedicines demonstrate this potential. Additionally, government funding and initiatives, such as those by NIST, further bolster market growth by ensuring safe and cost-effective drug manufacturing. Proteins can also be designed for industrial applications in agriculture, manufacturing, and materials science. As biotechnology continues advancing, the potential uses for engineered proteins across many sectors are growing rapidly.

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Insights By Product Type: Growing therapeutic applications drive monoclonal antibodies forward

In terms of product type, monoclonal antibodies is expected to contribute 25.2% in 2024of the market share owing to its expanding therapeutic applications across various disease areas. Manufactured through cell fusion, these antibodies are highly specific and effective, with minimal side effects. They are widely used in cancer therapy and treating autoimmune disorders, among other medical conditions. Key drugs like Rituxan and Herceptin have generated significant revenues, with the oncology segment expected to see further uptake due to rising cancer rates and advancements in antibody-based therapies. Additionally, monoclonal antibodies are increasingly utilized in novel treatments for immunological disorders. Ongoing research and development, coupled with expansion into emerging markets, are expected to drive growth in this product segment.

Insights By Technology: Rational protein design accelerates industrial innovations

In terms of technology, rational protein design is expected to contribute 65.50%  in 2024 of the market share owing to its ability to accelerate industrial innovations. Rational protein design is a structural biology approach used for modification and engineering of proteins and enzymes for specific industrial, medical and research applications. It facilitates precise structural modifications in proteins through computational modeling and analysis of structure-function relationships. Rational protein design provides a faster and more efficient route for engineering proteins as compared to traditional techniques involving random mutagenesis or directed evolution. Using computational protein design techniques, scientists can predictively introduce point mutations, insertions, or deletions in protein backbone to alter its properties according to the intended purpose. This gives protein engineers better control over modifications at molecular level and helps create tailor-made proteins exhibiting novel or enhanced attributes. Advancements in computational power, machine learning algorithms, and structural bioinformatics are making rational protein design an increasingly potent technology for industrial biotech innovations. Some major applications of rational protein design include the development of improved industrial enzymes, generation of lignin-degrading enzymes for biofuel production, creation of high-yield microbial strains, and engineering of novel therapeutic proteins.

Insights By End User: Pharmaceutical companies lead demand as major end users

In terms of end user, pharmaceutical and biotechnology companies is expected to contribute 45.10% in 2024 of the market share owing to their extensive research investments and new product pipelines. Pharmaceutical and biotech firms constitute the largest end-user segment for protein engineering technologies due to their extensive R&D activities and need for specialized protein solutions. Drug developers extensively employ protein engineering tools at various stages of drug discovery, preclinical research, and clinical development. Protein engineering platforms are leveraged by pharma companies to develop novel biologics, biosimilars, cell and gene therapies as well as screening libraries for high-throughput assays. CROs and academic labs also represent notable demand streams. CROs provide specialized protein engineering services to support pharma R&D as well as work on contract research programs for academia and government agencies. Research institutes extensively utilize protein design approaches for basic research in life sciences. Overall, pharmaceutical and biotechnology companies will continue dominating the protein engineering end-user spectrum in view of product pipelines, clinical trial needs, and commercialization requirements.

Regional Insights

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North America has historically led the global protein engineering market due to its robust pharmaceutical and research sectors, particularly in the U.S. and Canada with high share 40.2%in 2024. The region hosts numerous top biotech and pharma firms that have heavily invested in protein engineering, making it a hub for innovation in the field. Government funding has further supported protein engineering in healthcare. However, Asia Pacific, particularly countries like China, India, Japan, and South Korea, is now the fastest-growing market for protein engineering. Government initiatives, skilled labor, and lower operating costs have attracted both multinational corporations and local startups to establish research centers in Asia Pacific. This growth is driving advancements in protein design and production across industries. While North America has a strong foundation, Asia Pacific's expanding market and investment in R&D suggest it will play a larger role in the global protein engineering industry in the future.

Market Report Scope

Key Developments

• In January 2024, Agilent Technologies Inc., life sciences, diagnostics company introduced a novel automated parallel capillary electrophoresis system designed for protein analysis
• In January 2024, Biognosys , proteomics company expanded its presence in the U.S. by establishing a new proteomics CRO facility in Massachusetts. This expansion enabled Biognosys to offer proteomics services to its biopharma clients in the U.S. Biognosys was acquired by Bruker Corporation, American manufacturer of scientific instruments for molecular and materials research in January 2023.
• In December 2023, Thermo Fisher Scientific, Inc. global supplier of analytical instruments, life sciences solutions disclosed a distribution agreement with AESKU.GROUP GmbH, research-focused supplier of innovative and efficient products and services to facilitate the support, marketing, and sale of its array of U.S.FDA-cleared automated instruments, IFA products, and software across the U.S.
• In April 2024, the Laboratory for Bioengineering Research and Innovation, funded by Northpond, made an investment in the Wyss Institute for the AmnioX project. This initiative aims to advance the development of protein-based drugs, thereby enhancing patients' access to medications.
• In March 2023, Arzeda , industry-leading Protein Design Company partnered with Takeda, apanese multinational pharmaceutical company. to utilize artificial intelligence-based protein design technology. This collaboration seeks to optimize protein biologics more effectively, potentially improving the development process and resulting products in therapeutic protein development.

*Definition: The protein engineering market involves research and development of protein therapeutics through recombinant DNA technology techniques such as directed evolution, rational design, and molecular cloning. Protein engineering delivers novel proteins and peptides with desirable structures and functional properties. The engineered proteins find applications as biocatalysts, vaccines, antibodies, and enzyme inhibitors. This emerging field aims to design new proteins for pharmaceutical, biomedical, industrial, and agricultural purposes.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Modified Enzymes
  • Insulin
  • Monoclonal Antibodies
  • Coagulation Factors (Blood Factors + Tissue Plasminogen)
  • Vaccines
  • Growth Factors (Hormones + Cytokine)
  • Other Product Types
•  Technology Insights (Revenue, USD Bn, 2019 - 2031)
  • Irrational Protein Design
  • Rational Protein Design
  •  End User Insights (Revenue, USD Bn, 2019 - 2031)
  • Pharmaceutical and Biotechnology Companies
  • Contract Research Organizations (CRO)
  • Academic Institutions
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Agilent Technologies Inc.
  • Amgen Inc.
  • Bruker Corporation
  • Bio-Rad Laboratories Inc.
  • Eli Lilly and Company
  • Merck KGaA
  • Novo Nordisk AS
  • PerkinElmer Inc.
  • Thermo Fisher Scientific Inc.
  • Waters Corporation
  • GenScript Biotech Corporation
  • GE Healthcare
  • Absci
  • ElevateBio
  • Ingenza
  • Anima Biotech
  • Ventus Therapeutics
  • Aether Biomachines, Inc.