Synthetic Biology Market Analysis by Technology (Genome Engineering, and Bioinformatics); and by Application (Non-healthcare, and Healthcare) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4810 | Published Date: Apr 11, 2023
The global synthetic biology market is estimated to garner a revenue of ~USD 288 Billion by the end of 2035 by growing at a CAGR of ~29.50% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 13 Billion in the year 2023. The market growth is mainly owing to the increasing demand for sustainable and renewable energy sources, rising investments in research and development activities, and advancements in synthetic biology technologies. Startups in the synthetic biology industry was noted to raise nearly USD 7.8 billion in investment in the year 2020 and USD 19 billion in the year 2021. Companies like Arbor Biotechnologies and DNA Script have each raised about USD 215 million and USD 168 million. The heavy investment is expected to increase the circulation of funds in the market and support the growth of the market throughout the supply chain.
In addition to this, rising demand for energy efficient systems coupled with increasing demand for sustainable and renewable energy sources is expected to fuel market growth in the near future. It was noted that global energy demand increased by 2.3% in the year 2019, with buildings and industry accounting for 80% of the increase. Energy efficiency improvements accounted for 40% of the reduction in global energy demand in the year 2019. Synthetic biology can be used to create biofuels and other renewable energy sources. This has been assessed as a key factor that is estimated to create lucrative opportunities for the market over the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~29.50% |
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Base Year Market Size (2023) |
~ USD 13 Billion |
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Forecast Year Market Size (2035) |
~ USD 288 Billion |
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Regional Scope |
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Growth Drivers
Elevating Growth in Urbanization – The population movement from rural to urban regions, the concomitant decline in the number of individuals living in rural areas, and the manner in which societies adjust to this transition are also included as a major growth factor. Urbanization is significantly increasing all over the world and is estimated to increase more over the forecast period. Globally, 55% of people lived in cities in the year 2018, and 68% are expected to do so by the year 2050. The urbanization rate is rising as more individuals are showing the tendency of moving to urban areas. As a result, the demand for sustainable and renewable energy sources has been growing, which has increased the usage of synthetic biology for different activities.
Increasing Healthcare Spending – According to the latest spending data, global healthcare spending has increased over the past two decades, effectively doubling from 8.5% in the year 2000 to USD 8.5 trillion in the year 2019, increasing GDP reached 9.8%. The boom is estimated continue during the forecast period.
Rising Investments in Synthetic Biology Sector: Governments and private companies are investing heavily in research and development activities in the field of synthetic biology. According to a report, the global synthetic biology industry is expected to attract investments worth nearly USD 17 billion by the year 2025.
Rising Focus on Renewable Energy: The world is moving towards renewable energy sources, and synthetic biology can be used to create biofuels and other renewable energy sources. The increasing focus on renewable energy is expected to boost the global synthetic biology market. The world has seen a significant increase in renewable energy generation capacity in recent years. As of the end of the year 2020, renewable energy had a total installed capacity of 2,799 GW, which represents an increase of 45% compared to 2015.
Growth in Research Spending – Growth in the global market during the forecast period can be further attributed to increased investment in research and development activities to continuously find more viable solutions for synthetic biology. Research reports show that global R&D spending has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in the year 2019.
Challenges
The global synthetic biology market is segmented and analyzed for demand and supply by application into non-healthcare, and healthcare. Out of the two types of applications, the healthcare segment is estimated to gain the largest market share of about ~60% in the year 2035. The growth of the segment can be accredited to the presence of large number of patients requiring treatment in the healthcare industry. The hospitals in the industry are also growing rapidly in number, which is estimated to positively influence the segmental growth. For instance, by the year 2022 there was noted to be approximately 6,100 hospitals in the United States. Hospitals provide a wide range of medical care. Physicians, called hospital doctors, typically specialize in internal medicine, pediatrics, or general practice. They have the knowledge to solve common problems and the resources to solve more complex medical problems. Hospitals may also offer specialized care, such as neurology, obstetrics and gynecology, and oncology. By definition of a hospital, a county hospital is typically a primary medical facility in a region with numerous intensive care and mobile beds for patients requiring long-term care. These factors are predicted to boost the growth of the market in the forecast period.
The global synthetic biology market is also segmented and analyzed for demand and supply by end user into genome engineering, and bioinformatics. Amongst these two segments, the genome engineering segment is expected to garner a significant share of around ~45% in the year 2035. The growth of the segment can be accredited to the advancements in genome editing technologies. The development of genome editing technologies such as CRISPR-Cas9, TALENs, and zinc-finger nucleases has revolutionized the field of genome engineering. These technologies enable precise and efficient editing of DNA, which has led to the development of new applications in areas such as agriculture, healthcare, and biotechnology. Genome engineering can be used to develop personalized medicines by modifying genes and cells. With the increasing focus on precision medicine, the demand for genome engineering is expected to grow in the coming years. Genome engineering can be used to develop crops with improved traits such as disease resistance, drought tolerance, and higher yields. The growing demand for sustainable agriculture and the need to feed a growing population is expected to drive the growth of genome engineering in the agriculture sector. Genome engineering can be used to correct genetic mutations that cause genetic disorders. With the increasing prevalence of genetic disorders, the demand for genome engineering is expected to grow in the healthcare sector.
Our in-depth analysis of the global synthetic biology market includes the following segments:
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By Technology |
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By Application |
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The market share of synthetic biology in the North America region, amongst the market in all the other regions, is projected to hold the largest market share of about ~35% by the end of 2035. The regional growth can be majorly attributed to the growing population and research activity, health insurance covering various synthetic biology treatments and other related genome editing. Rising economic status and affordability of advanced treatments for patients are estimated to boost the growth of the market in the region during the forecast period. According to the U.S. Bureau of Economic Analysis, personal income in the U.S. in August 2022 grew at a rate of 0.3% to reach USD 71.6 billion, while personal spending was observed to grow at a rate of 0.4% to reach USD 6.75 billion. Moreover, the insurance companies in North America offer efficient reimbursement policies to the patients going through genome editing treatment, which encourages the patients to opt for advanced treatment methods such as genome engineering for genetic disorders. Hence, this is also estimated to add to the regional market growth significantly.
The synthetic biology in the Asia Pacific region, amongst the market in all the other regions, is projected to hold the second largest share of about ~24% during the forecast period. The growth of the market in this region can primarily be attributed to the constantly growing aged population throughout the region. The elderly people are more prone to genetic diseases that require genome editing for their treatment. Asia Pacific's population is aging faster than any other region in the world. Among the total aged population of the world, Asia Pacific accounts for 60 per cent, or 630 million, that are 60 years of age or older. The geriatric population in the region is projected to reach 1.3 billion by the year 2050. Additionally, the government's role in raising awareness regarding the use of the synthetic biology is expected to boost the market growth in the region. Moreover, increasing number of patients and deaths, increased funding for medical infrastructure is expected to affect the growth of the market in the region.
Further, the synthetic biology market in the Europe region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the favorable government initiatives in the region. Governments in Europe have been supportive of synthetic biology research and development activities, providing funding and other incentives to promote innovation in the field. Synthetic biology has applications in healthcare, such as the development of personalized medicine and the engineering of microbes to produce therapeutic molecules. The increasing demand for personalized medicine and the rising prevalence of chronic diseases are expected to drive the growth of synthetic biology in the healthcare sector in Europe. The development of genome editing technologies such as CRISPR-Cas9 has enabled precise and efficient editing of DNA, which has led to the development of new applications in areas such as agriculture, healthcare, and biotechnology. The increasing adoption of genome editing technologies in Europe is expected to drive the growth of synthetic biology in the region. Synthetic biology can be used to create biofuels and other renewable energy sources. With the increasing focus on sustainability and the transition to a low-carbon economy, the demand for synthetic biology in the energy sector is expected to grow in Europe.
Thermo Fisher Scientific announced its acquisition of Mesa Biotech, a developer of point-of-care molecular diagnostic tests for infectious diseases, including COVID-19.
Merck KGaA announced a strategic collaboration with Artios Pharma, a company focused on DNA damage response therapies, to develop precision oncology treatment
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In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Radhika Gupta, Shivam Bhutani
Ans: Favorable government initiatives, and growing focus on energy efficiency systems are the major factors driving the market growth.
Ans: The market size of synthetic biology is anticipated to attain a CAGR of ~29.50% over the forecast period, i.e., 2023 – 2035.
Ans: The intellectual property rights, and regulatory challenges is estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North America region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Thermo Fisher Scientific Inc., Merck KGaA, GenScript Biotech Corporation, Twist Bioscience Corporation, Intrexon Corporation., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by application, technology, and by region.
Ans: The healthcare segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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