The global peptide therapeutics market was valued at USD 21.5 billion in 2016 and is expected to grow at CAGR of 9.4% over the forecast period.Increasing prevalence of cancer and metabolic disorders such as osteoporosis, obesity, & diabetes are the key factors contributing toward the adoption of peptide therapeutics over the forecast period. The demand for efficient and low-cost drugs is very high due to growing base of affected pediatric population and prevalence of target diseases in low-income countries.
The growth is directly associated with rising investments in drug discovery. R&D activities in peptide therapeutics are primarily focused on the development of drugs pertaining to oncology followed by infectious diseases, metabolic disorders, and diabetes. Presence of strong product pipeline in this segment is also one of the factors expected to drive market growth in the near future. In addition, advancements in the processes of manufacturing peptidesis expected to enhance further development of therapeutics.
U.S. peptide therapeutics market, by drug type, 2014 - 2025 (USD Million)
The market is estimated to showcase lucrative growth in the forecast period due to the initiatives undertaken by many companies for investigating the development of new drug candidates. In an effort to retain their position in the market, companies engage in extensive R&D initiatives to develop novel drugs exhibiting higher efficiency in the treatment of target diseases.Clinical trials for these drugs have also significantly increased over the past decade. This is also expected to propel growth over the forecast period.
Manufacturers and suppliers are focusing on adoption of novel technologies for synthesis of peptides. Improvement in purification process coupled with automation and less generation of waste is one of the factors contributing toward growth. In addition, rising adoption of hybrid technology for manufacturing efficient drugs is estimated to boost production over the forecast period.
The cancer segment dominated in 2016 with revenue generation of over USD 1.85 billion. Increasing prevalence of cancer worldwide and increasing prescription of peptide therapeutics for cancer treatment are the key factors responsible for dominance in this segment.
Increasing demand for efficient and rapid-acting therapeutics is further anticipated to accentuate growth. Increased awareness amongst patients & healthcare professionals regarding adverse effects of chemotherapy and radiation therapy is a high rendering factor for growing focus toward alternative therapeutics such as peptide-based drugs. The aforementioned reason is expected to push cancer as an application with fastest growth rate. Moreover, presence of strong product pipeline is anticipated to affirm progress.
The incidence of metabolic disorders is increasing at a fast rate. Increasing adoption of sedentary lifestyle, unhealthy food habits, and consumption of a high amount of alcohol has led to increased occurrence of these disorders. Moreover, increasing base of geriatric population susceptible to metabolic disorders is estimated to provide the market with potential growth platform.
The market is classified on the basis of type of drugs into generic and innovative drugs. The innovative peptides dominated in 2016 and held a share of around 66.93%, owing to the increasing investments by large pharmaceuticals in R&D for the development of novel drugs and high prescription rate.
However, generics are anticipated to witness lucrative growth over the forecast period. Rising expenditure on healthcare and increasing healthcare expenditure by the federal government are expected to propel the adoption of generics.
Loss of patents of many branded drugs is also estimated as a key factor responsible for the growth of the generics segment. Patent loss is considered as a big opportunity for generic players to enter the market with low-cost alternatives for blockbuster drugs. However, brand loyalty in case of some innovative drugs may impact the segment flourishment
The in-house manufacturing segment held the largest share accounting for over 60.0% in 2016. Most of the key players are involved in developing peptide therapeutics in-house owing to stringent regulations and high cost of outsourcing. As large pharmaceutical companies have proper infrastructure for large-scale production and advanced technology, these companies prefer in-house manufacturing.
The outsourcing activities for manufacturing is also estimated to boom during the forecast period due to difficulties in manufacturing therapeutics with high-quality standards. The companies prefer to outsource the Active Pharmaceutical Ingredient (API) from companies having high-end technology and expertise for manufacturing various types of peptides.
Peptide manufacturing is a complex procedure and it requires advanced technology such as Solid-Phase Peptide Synthesis (SPPS), Liquid-Phase Peptide Synthesis (LPPS), or Hybrid for purification and synthesis of high-quality products, which results into high cost of manufacturing. In addition, increasing R&D funding and capital investments by key players by entering into strategic agreements is anticipated to result in market growth over the forecast period.
The biopharmaceuticals giants are continuously exploring new methods of drug delivery pertinent to peptides. Novel drug delivery technologies are now being assessed for efficacy with engineered molecules having advanced PEGylation, in an attempt to improve drug delivery performance and patient compliance through better modes of drug delivery.
Patient compliance and acceptability are major advantages of oral route of drug administration. However, enzymatic degradation that inhibits blood absorption of these drugs holds a major disadvantage. Parenteral route of administration dominated in 2016 with a substantial amount of share. This dominance is attributed mainly to the high adoption rate, faster delivery of drug, and ease of application.
Pulmonary route is acknowledged for peptide and proteins administration owing to the physiological characteristics of respiratory system. Several proteins and peptides are currently undergoing clinical trials and awaiting approval via pulmonary usage. However, low bioavailability and lower molecular weighing molecules crossing alveolar epithelium causing inflammation are major usage barriers.
However, other routes such as intradermal and nasal are expected to grow at a lucrative CAGR of over 14.0% over the forecast period. The bioavailability of nasal route was found to be over 4.0%, giving it an edge over oral route. In addition, enzymatic degradation of peptide is also avoided by transdermal and nasal route.
The LPPS segment dominated with share of over 45.0% in 2016 owing to presence of rising demand for pure peptides for development of efficient therapeutics. However, issues such as higher consumption of time are responsible for shifting consumers’ preference to faster and effective methods such as SPPS.
SPPS lowers the synthesis time and is used in a wide range of production procedures. Moreover, higher efficiency during synthesis of longer peptides is another driver for the market. Furthermore, associated automation, scalability, and enhanced control over physiochemical properties of peptides are expected to drive the market over the forecast period.
Hybrid technology is expected to spearhead growth owing to associated benefits such as compatibility with both liquid-phase synthesis and solid-phase synthesis. Companies are investing in R&D to incorporate the benefits of both LPSS & SPSS and to provide a cost-effective and sustainable solution. Advanced hybrid technology is expected to grow at a lucrative CAGR of over 12.0% owing to high adoption rate.
Global peptide therapeutics market, by application, 2016 (USD Million)
North America dominated the market in 2016. Rise in awareness levels pertaining to peptide therapeutics products, increasing demand for diagnostics in cancer & other diseases, and growing biotechnology industry are the factors contributing toward the dominance. Increasing R&D expenditure by government is also estimated to help peptide therapeutics maintain dominance over the coming years. A well-established biopharmaceutical & pharmaceutical industry in this region is a major factor responsible for growth.
On the other hand, Asia Pacific is expected to register considerable growth over the forecast period owing to high untapped opportunities, low cost of raw material, growing base of companies providing outsourcing services, flourishing biotech industry, and increasing investments in R&D sector.Cheaper cost of raw materials and patent expiration of blockbuster drugs boosting generic market are expected to provide significant growth opportunities in the near future.
The key players of this industry include Eli Lilly and Company; Pfizer, Inc.; Amgen, Inc.; Takeda Pharmaceutical Company Limited; Teva Pharmaceuticals Industries Ltd.; Lonza Inc.; Sanofi; Bristol-Myers Squibb (BMS); AstraZeneca PLC; GlaxoSmithKline plc (GSK); Novartis AG; and Novo Nordisk A/S
Development of new products and implementing technological advancements are key strategies undertaken by the companies to gain market position. Moreover, increasing collaborations for undertaking trials of new drugs is estimated to increase competitive rivalry. For instance, Cancer Research UK has entered into an agreement with Bicycle Therapeutics to fund Phase Ia and Ib clinical trial of drug candidate BT1718, for the treatment of solid tumors.
Base year for estimation
Actual estimates/Historic data
2014 - 2016
2017 - 2025
Revenue in USD Million & CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, & MEA
U.S., Canada, UK, Germany, China, Japan, India, Brazil, Mexico, & South Africa
Revenue, company share, competitive landscape, growth factors, trends
15% free customization scope (equivalent to 5 analysts working days)
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This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the peptide therapeutics market based on application, type, type of manufacturers, route of administration, synthesis technology and region:
Application Outlook (Revenue, USD Million; 2014 - 2025)
Type Outlook (Revenue, USD Million; 2014 - 2025)
Type of Manufacturers Outlook (Revenue, USD Million; 2014 - 2025)
Route of Administration Outlook (Revenue, USD Million; 2014 - 2025)
Synthesis Technology (Revenue, USD Million; 2014 - 2025)
Solid Phase Peptide Synthesis (SPPS)
Liquid Phase Peptide Synthesis (LPPS)
Regional Outlook (Revenue, USD Million; 2014 - 2025)
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