Protein Engineering Market

Market Overview

The global protein engineering market size was valued at USD 2.04 billion in 2022. It is estimated to reach USD 3.88 billion by 2031, growing at a CAGR of 7.42% during the forecast period (2023–2031).

The protein engineering market is growing due to the increasing prevalence of lifestyle and chronic diseases. Increasing investments in synthetic biology and a growing focus on protein-based drug development by pharmaceutical and biotechnology firms are the primary factors driving the growth of the market.

Protein engineering is creating useful or valuable proteins by designing and producing unnatural polypeptides, frequently by altering the amino acid sequences found in nature. It employs recombinant deoxyribonucleic acid (DNA) technology to modify amino acid sequences for novel and improved functions. It is a new field, with much research devoted to comprehending protein folding and identifying protein design principles.

Protein engineering has been utilized to enhance the industrial catalytic performance of numerous enzymes. Two general approaches exist, i.e., rational protein design and directed evolution. These techniques are not mutually exclusive; researchers frequently use both. Future advances in high-throughput screening and a deeper understanding of protein structure and function could significantly expand protein engineering capabilities.

Market Dynamics

Global Protein Engineering Market Drivers

Increasing Prevalence of Chronic Diseases

Therapeutic proteins are highly successful in treating diseases and have tremendous demand. As per a report published in March 2021 by La Merie Publishing (Germany), the sales for proteins and biosimilar antibodies reached USD 240 billion in 2020, a 7.5% increase from 2019. Similarly, as per the National Institutes of Health, US, in January 2020, monoclonal antibodies (mAbs) accounted for more than 45% of the total therapeutic proteins sold in the EU and have applications in the treatment of several chronic illnesses like cancer, diabetes, multiple sclerosis, and asthma.

According to GLOBOCAN 2020 estimates, approximately 19.31 million new cancer cases and 11 million cancer-related deaths were registered in 2020. Female breast cancer has become the most prevalent diagnosed type, with an anticipated 2.3 million new cases in 2020. Engineered monoclonal antibodies such as Trastuzumab (Herceptin) are commonly used to treat breast cancer. Therefore, the surging prevalence of chronic diseases will drive the market in the forecast period.

Increasing Investments in Synthetic Biology

In biotechnology, protein engineering has long been a reliable technique for creating a wide range of useful enzymes for use in industry. Protein engineering has now become crucial for advancements in the synthetic biology field. It can be employed in synthetic biology to improve biocatalytic properties in host systems and achieve high titer production of the desired molecules.

The growing investments in the field of synthetic biology are expected to contribute to the expansion of the protein engineering industry. According to AGTC Ventures LLC (US), in January 2021, investments in synthetic biology companies reached an all-time high of USD 7.8 billion through private and public financing investments, even as the global GDP plummeted due to COVID-19.

Global Protein Engineering Market Restraint

Lack of Trained Professionals

The field of protein engineering is very complex and requires a lot of expertise to get the desired results. Protein engineering processes necessitate proper interpretation of results, and researchers must also be able to analyze experimental results and test them with the experiment's hypothesis. In addition, the proteins produced by engineering serve specific purposes such as making a vaccine, utilizing gene therapy, drug delivery, antibody modifications, and enzyme modification. These tasks of engineering proteins to do the desired function require modifying DNA and amino acid sequences, which are very complex. Hence, there is a significant need for highly qualified professionals and researchers in this field. However, the lack of such expertise hinders the market's growth.

Global Protein Engineering Market Opportunities

Emerging Markets of Protein Engineering

Emerging markets such as Asia-Pacific are expected to drive the global market. This is due to factors such as improving healthcare infrastructure, many Contract Research Organizations (CROs), and government programs and funding for protein-based drug development. Furthermore, many investments are being made in the research for COVID-19 treatments in the region, which will supplement the market's growth.

Moreover, as per the American Cancer Society, Inc. (US), in Southern, Eastern, and South-Eastern Asia, 8.2 million fresh cancer cases and 5.2 million cancer fatalities were estimated in 2018. Similarly, according to the Journal of Diabetology (August 2018), an estimated 80 million people had diabetes in Southeast Asia in 2017, which is to rise to 151 million by 2045. Such an increased prevalence of chronic diseases in the region is expected to create opportunities for market growth in the forecast period.

Regional Analysis

Based on region, the global market is bifurcated into the Americas, Europe, Asia-Pacific, and the Middle East and Africa. 

Americas Dominates the Global Market

Americas is the most significant global protein engineering market shareholder and is anticipated to exhibit a CAGR of 4.56% during the forecast period. The dominance of the Americas can be attributed to an increase in biotechnology and pharmaceutical companies, increased R&D capabilities, the concentration of the major market players, and the availability of the most recent techniques and instruments for drug use discovery research. North America and South America are the two continents that make up the Americas. Further, the market in North America has been divided into the US and Canada. The US contributes the most significant market share in the North American market. In the US, the availability of technologically advanced devices and instruments and the concentration of the major market players are the drivers for the market in the region.

Furthermore, increased research and development funding in Canada is fueling the growth of the market. The growing pharmaceutical industry in the region is a key driving factor for the market in South America. In addition, the high prevalence of lifestyle diseases and increased government support for R&D further drive the market growth. According to Statista, in 2019, Brazil had the highest pharmaceutical market value in South America, reflecting the rapid growth of the pharmaceutical industry in this region.

Europe is estimated to exhibit a CAGR of 6.94% over the forecast period. Europe has also evolved as a notable market for protein engineering with the growth of the research and development sector in major countries such as Germany, the UK, France, Italy, and Spain, as well as increasing demand for methods and technologies. Europe offers considerable growth potential for market players, which can help expand the market in the coming years. In addition, protein engineering aids in developing useful or valuable proteins with an extensive range of industrial and health-related applications. It is a rapidly growing segment of CE mark-approved drugs that will help improve clinical outcomes over the long run. Europe has the world's best and most established healthcare systems. This well-established healthcare system is also fueling the growth of the market in the region.

The Asia-Pacific region represents lucrative opportunities for players operating in the market, attributed to the surging prevalence of chronic diseases like heart disease and diabetes, increasing healthcare IT spending, and the increasing presence of contract research organizations. Consulting with over 400 hospitals in the Asia-Pacific region suggested that Asia-Pacific Patient Engagement 65% of hospitals in Asia-Pacific are increasing spending on digitalization. This report involves data collected from hospitals in China, Australia, India, Indonesia, Japan, Singapore, South Korea, and Thailand. In addition, healthcare firms in the region are planning to surge IT spending to prepare for the next normal. The number of contract research organizations that provide services such as clinical trials to pharmaceutical, drug development, and biotech customers is also increasing in Asia-Pacific.

In the Middle East and Africa, the market is primarily driven by factors such as improved healthcare infrastructure and rising demand for novel drugs and medical devices to diagnose and treat disease. Countries in the Middle East and North Africa, such as Algeria, Egypt, and Iraq, have made substantial improvements in developing their healthcare systems. The number of hospitals and diagnostic centers is increasing in the region; this creates a demand for new drugs and devices for diagnosing and treating diseases.

Segmental Analysis

The global market is segmented by type, application, methods, and end-user.

Based on type, the global market is bifurcated into instruments, reagents, and services and software. 

The reagents segment dominates the global market and is projected to exhibit a CAGR of 6.66% over the forecast period. The complementary use of genetic and chemical techniques has yielded a large toolbox that enables the fabrication of nearly limitless protein constructs with naturally or artificially modified residues. The chemical modifications in protein include acylation, methylation, phosphorylation, sulfation, farnesylation, ubiquitination, and glycosylation. Methionine is an attractive target for functionalization since it is one of the rarest amino acids. Engaging in a more discerning approach to making improvements. Extensively used enzymes include trypsin, collagenase, papain, nucleases (DNase and RNase), hyaluronidase, elastase, and protease XIV. Glycosidases and glycobiology reagents, kits, and resources support glycoprotein analysis, preparation, modification, glycomics, and glycobiology workflow needs.

Based on application, the global market is divided into food and detergent industries, environmental, medical, biopolymer production, and nanobiotechnology. 

The medical segment is the largest revenue contributor to the protein engineering market share and is expected to exhibit a CAGR of 6.76% over the forecast period. The use of protein engineering in cancer treatment studies is one of the major applications. It is used in pretargeted radioimmunotherapy, where radiation toxicity is reduced by separating the cleared radionuclide and the long-circulating antibody. The application of targeted radioimmunology will rise due to developments in recombinant DNA technology and protein engineering, which will expand the market for protein engineering. Protein engineering can also produce multifunctional and smart drug vehicles at the nanoscale. It helps improve the pharmacokinetic properties of antibodies, which are further used for imagining target tissues.

Based on methods, the global market is divided into rational protein design and directed evolution. 

The rational protein design segment contributed the highest protein engineering market share and is expected to exhibit a CAGR of 6.79% over the forecast period. The rational design attempts to create improved protein molecules based on the 3D structure and the relationship between structure and function. It is the classical method in protein engineering involving "site-directed mutagenesis" of proteins. This mutagenesis allows the introduction of specific amino acids into a target gene. There are two common methods for site-directed mutagenesis, i.e., overlap extension method and whole plasmid single round polymerase chain reaction.

In addition, computational methods have been developed for rational design based on known protein sequences and structures, namely, sequence-based protein design and structure-based protein design. When the structure and mechanism of the protein of interest are known, rational design is effective. In many instances of protein engineering, however, the structure and mechanisms of the protein of interest are poorly understood. Hence, the rational design approach is not extensively used.

Based on end-users, the global market is segmented into pharmaceutical and biotechnology companies, contract engineering organizations, and academic research institutes. 

The pharmaceuticals and biotechnology companies segment owns the highest market share and is estimated to exhibit a CAGR of 6.63% during the forecast period. New concepts for cancer treatments such as cell therapy, Provenge, and modular protein engineering have hit the market, which is likely to increase focus on pharmaceuticals and biotechnology companies. Increasing funding through alliance investment in start-up biotechnology companies in line with adopting new and advanced products contributes to market growth. Moreover, changing government initiatives towards modernizing the drug regulatory pathway, standardizing clinical studies, improving reimbursement policies, and speeding up the product approval process will likely create growth opportunities in the global market.

Recent Developments

• April 2023- Adaptyv Bio begins construction on the world's first complete stack protein engineering foundry, paving the way for protein engineers to create new medicines, novel enzymes, and sustainable materials.
• May 2023- Burcon NutraScience Corporation announced that it would expand its protein development and innovation business by providing pilot plant processing and scale-up validation to our partners and customers.