Live Cell Encapsulation Market Size, Share & Trends Analysis Report By Polymer Type (Natural Polymers, Synthetic Polymers), By Method (Microencapsulation, Macroencapsulation, Nanoencapsulation), By Application (Drug Delivery, Regenerative Medicine, Cell Transplantation, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global live cell encapsulation market size was valued at USD 280 million in 2023 and is projected to reach USD 400 million by 2032, registering a CAGR of 4% during the forecast period (2024-2032). The primary factors fueling market growth and expansion are the increasing need for cell encapsulation techniques to enhance the success of clinical trials and the acknowledgment of its potential as a treatment option for neurological disorders. 

Live cell encapsulation is enclosing living cells in a safeguarding substance or framework. This technique can completely transform various fields of study and medicine by enabling the secure and regulated administration of cells and cell-based treatments. Live cell encapsulation offers the benefit of allowing precise and regulated release of cells or bioactive substances. Cell-based therapies benefit significantly from their application since they enable the targeted delivery of therapeutic cells to a specific region in the body while safeguarding them from the host's immune system.

Market growth is predicted to be boosted by various reasons, such as the expansion of research programs aimed at establishing the clinical efficacy of the cell encapsulation method. The increasing utilization of live cell encapsulation in developing treatment methods for prevalent chronic illnesses such as diabetes, malignancies, autoimmune diseases, etc., favors market growth.

Highlights

• Natural generates the highest revenue share based on polymer type.
• Microencapsulation accounts for the largest market share by method.
• Drug delivery accounts for the largest market share by application.

Market Dynamics

Global live cell encapsulation market drivers

Growing prevalence of target diseases

The increasing incidence of target illnesses necessitates replacing sick or damaged tissues. Due to the shortage of tissue grafts, regenerative medicine is increasing to meet the high demand. Hydrogel encapsulation creates a three-dimensional habitat for cells, preserving normal cellular function and generating tissues like those naturally occurring in the body. Furthermore, living encapsulation presents an alternative and superior approach in tissue engineering for addressing the issue of tissue transplant rejection. 

Furthermore, live-cell encapsulation is a precious method for treating neurological problems. It enables the sustained and prolonged delivery of the intended therapeutic substance directly to the afflicted tissues without penetrating the blood-brain barrier. NTCELL is a capsule covered with Alginate that includes groups of choroid plexus cells from neonatal pigs. NTCELL acts as a biological facility that produces growth factors to stimulate the development of the central nervous system and repair nerve degeneration caused by disease. Moreover, the technology has demonstrated its efficacy as a viable therapeutic approach for various ailments, including heart failure, anemia, diabetes, and cancer. Therefore, the growing use of live cell encapsulation in regenerative medicine is expanding the sector.

Global live cell encapsulation market restraints

High development costs

The costs associated with creating live-cell encapsulation technology are substantial. Startups or smaller enterprises may find these fees financially burdensome, impeding market competitiveness and stifling innovation. Encapsulation technologies necessitate significant investment in research and development, which involves enhancing encapsulation materials, techniques, and processes to guarantee the viability and functionality of enclosed cells.

In addition, strict regulatory requirements also contribute to the rise in development costs since businesses must prove the safety and effectiveness of their encapsulation products through costly preclinical and clinical trials. Financial obstacles can discourage industry investment and restrict encapsulation technologies' commercialization, hindering market growth. 

Global live cell encapsulation market opportunity

Technological advancements and novel product launches

The market is expected to benefit from significant industry participants' technical developments and innovative product releases, creating profitable prospects. In November 2022, BIO INX launched Hydrobio INX N400, the commercially available resin. This resin allows for the encapsulation of live cells using high-resolution fabrication techniques. Similarly, ViaCyte, Inc. has significantly advanced regenerative medicine platforms by developing two groundbreaking technologies. The Encaptra system is designed to encapsulate and implant cells and stem cell-derived cell replacement therapies. It aims to target a range of human ailments and diseases that may be effectively treated by replacing dysfunctional or missing cells.

Rising application of live cell encapsulation  for major chronic diseases

The increasing utilization of live cell encapsulation in developing treatment strategies for prevalent chronic illnesses such as diabetes, malignancies, autoimmune diseases, etc., is also anticipated to bolster the market's expansion during the projected timeframe. According to a study published in the NGP Asia Material in May 2022, blood glucose levels and body weights improved when cells were enclosed in live cell porosity microcapsules. These attributes indicate that porous microcapsules containing cells are efficacious in the treatment of diabetes, and scientists anticipate that due to their exceptional capabilities, this approach will be extensively employed in clinical settings. Therefore, the effectiveness of live cell encapsulation therapy in the treatment of diabetes is anticipated to stimulate the demand for live cell encapsulation, consequently enhancing the growth of the market throughout the projected timeframe.

Furthermore, the increasing global prevalence of diabetes is projected to stimulate the need for live-cell encapsulation to advance novel treatments, thereby fueling the expansion of the market. According to the September 2021 report from the International Diabetes Federation, almost 537 million persons between the ages of 20 and 79 were affected by diabetes in 2021. By 2030, the global prominence of diabetes is projected to reach 643 million individuals; by 2045, it is estimated to increase to 783 million. Consequently, the increasing number of instances presents a significant potential for market players to introduce a new live cell encapsulated medicine for treating individuals with diabetes, which is anticipated to enhance market growth. 

Regional Analysis

The global live cell encapsulation market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North america dominates the global market

North America is the most significant global live cell encapsulation market shareholder and is estimated to grow at a CAGR of 4.2% over the forecast period. Much of this can be ascribed to augmented funding for private enterprises, advantageous legislation, and governmental aid. The region primarily emphasizes research conducted in drug discovery, consequently driving business expansion. The presence of inventors and essential industry players has increased the market share of the items in the region. In February 2021, ViaCyte, Inc. commenced a phase 2 clinical trial to assess the efficiency of encapsulated cell therapy in treating individuals with type 1 diabetes. These measures are expected to enhance the company's market position in North America. 

In addition, in 2021, PhRMA published a report stating that biopharmaceutical companies have invested over one trillion dollars in research and development until 2021. Specifically, PhRMA member companies have invested approximately 91 billion dollars in research and development. In December 2021, the Government of Alberta announced a funding of USD 5.6 million to enhance the life sciences and pharmaceutical sector in Canada's Alberta province. Consequently, the market participants have a significant chance to develop new therapeutics using live cell encapsulation processes, thanks to increased research and development and substantial investments. This is projected to contribute to the market's growth. 

Asia Pacific is anticipated to exhibit a CAGR of 4.7% over the forecast period. The regional growth can be ascribed to the advancements in the biotechnology and pharmaceutical sectors of emerging economies, notably India and China. The profitable growth of this region can also be attributed to the continuous government backing for developing the pharmaceutical industry in developing nations. Furthermore, constant research in cancer and infectious diseases, including COVID-19, is anticipated to strongly contribute to expanding the live cell encapsulation market in the region.

The European market for live cell encapsulation is driven by various significant variables. The increasing investments in regenerative medicine and cell therapy research drive the demand for encapsulation technology. Furthermore, the rising incidence of long-lasting illnesses requires more sophisticated treatment methods, which drives the use of encapsulation techniques for cell-based therapies. In Europe, legal structures and financing efforts foster innovation and market expansion.

Furthermore, partnerships among academic institutions, research organizations, and industry stakeholders facilitate technical progress and commercial expansion. Moreover, the increasing recognition of the advantages of cell encapsulation in improving the effectiveness of therapy and minimizing immunological rejection significantly boosts market demand in Europe.

Segmental Analysis

The global live cell encapsulation market is segmented based on polymer type, method, and application. 

The market is segmented into Natural Polymers and Synthetic Polymers based on polymer type.

The natural polymers segment dominated in 2023. Encapsulation mainly relies on natural polymers. Natural polymers are high-molecular-weight macromolecules obtained from natural sources. They are selected for their capacity to degrade naturally, low levels of toxicity, compatibility with living organisms, renewable nature, and adaptability to modifications. Derived from natural sources, including microorganisms, animals, and plants, these substances possess qualities that allow them to interact with cells and tissues in a manner that the body recognizes and does not perceive as foreign. Therefore, lipids, proteins, polysaccharides, and natural polymers have been used to encapsulate hydrophobic or hydrophilic active substances. These chemicals can be in solid, liquid, or gaseous forms and are transported and delivered to specific locations. The capabilities of natural polymers are enhancing segment growth. 

The synthetic polymers segment is anticipated to grow at the fastest CAGR during the forecast years. Synthetic polymers, like covalently cross-linked polyacrylates and PEG, offer numerous benefits. These include enhanced chemical and mechanical stability, decreased nonspecific binding, adjustable characteristics, ease of modification, and improved repeatability due to reduced batch-to-batch variance. Therefore, synthetic polymers show potential for future use in live cell encapsulation as immune-isolated cell treatments are slowly becoming more prevalent in clinical settings.

Based on the method, the market is segmented into Microencapsulation, Nanoencapsulation, and Macroencapsulation. 

The microencapsulation segment dominated in 2023. Microencapsulation is a process that involves enclosing a bioactive substance within particles ranging in size from 1 to 1000 μm in diameter. This technique aims to achieve continuous and regulated release of the encapsulated bioactive molecule while protecting the surrounding environment. Microencapsulation is used in therapeutic administration to treat several ailments, including tuberculosis, cancer, diabetes, rheumatoid arthritis, and respiratory tract infections. For example, islets of Langerhans are enclosed in tiny capsules and surgically placed inside the body to provide long-term treatment for conditions like diabetes or other diseases that require organ transplantation. Therefore, using microencapsulation in therapy is causing the segment to expand. 

The nanoencapsulation segment is the fastest growing.  Nanoencapsulation technology is mainly utilized in developing efficient drug delivery systems, as the administration of encapsulated diagnostic or therapeutic substances is contingent upon the nanoparticle's size. Nanoencapsulation outperforms microencapsulation in enhancing passive/active targeting of bioactive molecules to the desired location, increasing drug solubility, improving bioavailability, and regulating drug release. Therefore, the benefits linked to nanoencapsulation are anticipated to stimulate the expansion of this particular market.

The macroencapsulation segment also exhibited significant growth. Macroencapsulation is essential in the live cell encapsulation industry as it is a protective barrier for encapsulated cells, enabling transplantation and therapeutic application. This method utilizes semi-permeable membranes to enclose cells, allowing protection from the host defense system while helping to pass nutrients, oxygen, and waste products. 

Based on application, the market is segmented into Drug Delivery, Regenerative Medicine, Cell Transplantation, and Others.

The drug delivery segment dominated in 2022. Live cell encapsulation technology produces capsules, tablets, and parenteral dosage forms to facilitate efficient medication delivery. Controllable medication delivery has significant promise in treating diseases characterized by a progressive decline. The segment is driven by the advantages of regulated drug administration using live cell encapsulation, including excellent therapeutic effects, reduced medication dose, decreased cytotoxicity, improved patient comfort, and improved compliance. Moreover, the regenerative medicine sector is expected to grow significantly at a quick compound annual growth rate (CAGR) throughout the projected timeframe.

The regenerative medicine segment is the fastest growing. Regenerative medicine is a growing field of science that utilizes stem cells to treat damaged tissues or organs by restoring or renewing them. Encapsulation of stem cells can provide several advantages in regenerative medicine, such as enhanced cell viability, differentiation, and proliferation. Various stakeholders in the market are using tactics to promote the advancement of regenerative medicine. In 2023, Invetech will provide three GMP encapsulation machines to assist TreeFrog's in-house and collaborative cell therapy activities in regenerative medicine and immuno-oncology. These initiatives are anticipated to propel the segment forward within the predicted period.

The cell transplantation segment is the second largest. Cell transplantation using live cell encapsulation is crucial in regenerative medicine and tissue engineering. Cell transplantation is a potentially practical approach for treating various diseases, such as diabetes, Parkinson's, and cardiovascular ailments. It involves replacing damaged or dysfunctional tissues with healthy cells. Cell transplantation is crucial in developing therapeutic interventions within the live cell encapsulation sector.

Recent Developments

• April 2024– Merck, a prominent scientific and technology corporation, allocated over 300 million Euros towards establishing a state-of-the-art research facility at its worldwide headquarters in Darmstadt, Germany. The Life Science business sector of the Advanced Research Center will focus on researching solutions for manufacturing antibodies, mRNA applications, and other necessary items for biotechnological production.
• December 2023– Sphere Fluidics, a company specializing in single-cell analysis systems based on its patented pico droplet technology, announced that FairJourney Biologics, a global leader in antibody services, chose the Cyto-Mine® platform to enhance its cell line development capabilities. FairJourney Biologics offers comprehensive services in antibody discovery, engineering, and production.