Protein Expression Market By Expression Systems (Prokaryotic, Mammalian Cell), By Product (Reagents, Competent Cells), By Application (Therapeutic, Industrial), By End-use, And Segment Forecasts, 2018 - 2025

Industry Insights

The global protein expression market size was estimated at USD 1.2 billion in 2016. Growing demand for novel biologic products for the treatment of severe chronic diseases such as cancer, anemia, and multiple sclerosis is a major factor contributing to the growth of the market.

Protein expression plays an important role in various applications including therapeutic protein production, biologics production, and research application. Various expression systems such as prokaryotic, mammalian cell, an insect cell, and yeast systems are used by manufacturers for proteomics research, genomics research, development, and manufacturing of biologics products. Thus, the demand for these products is expected to rise in the near future.

U.S. protein expression market, by expression systems, 2014 - 2025 (USD million)

The increasing prevalence of several chronic diseases such as cancer, arthritis, asthma, diabetes, and infectious diseases is expected to be the major factor driving market growth. According to WHO, around 8.8 million people died, worldwide, due to cancer in 2015. Thus, there is a high demand for advanced biologics such as therapeutic protein for the treatment of such chronic diseases. These products are widely used by manufacturers for the development and production of biologics. Thus, increasing demand for biologics is expected to drive the adoption of protein expression products.

There has been an increase in R&D activities by many pharmaceuticals, biopharmaceutical, and biotechnology companies to develop and manufacture advanced biologics such as vaccines, monoclonal antibodies, and therapeutic proteins. Investment in R&D for effective drug designing and development is an important policy of the companies that propel the long-term growth of the company. For instance, Merck & Co., Inc., a leading healthcare company, invested around USD 10,124 million in R&D in 2016.

Stringent government regulations for the development and production of biologics could hinder the growth of the market. The new biologics undergo rigorous preclinical and clinical trials prior to regulatory approval. Commercialization of biologics including insulin, hormones, therapeutic antibodies, rising and vaccines is depending on the successful completion of clinical trials, which is a long, expensive, and uncertain process.

Protein Expression Market Trends

Biological products are being increasingly used in various life sciences research since the past few decades and are expected to drive the growth of the protein expression market. Demand for biologics is increasing owing to rising trend of specialty drugs and personalized medicine. According to the Chemical Abstracts Service, a part of American Chemical Society, the number of biologics registered under the service has increased by 300-fold over the past few years. The U.S. is the major market of biologics and has exported 6,355 patents to China, 11,742 to Japan, and 72 to Germany in the past three decades.

Advancements in the fields of biotechnology, nanotechnology, and bioinformatics have provided a scientific structure and opportunities in associated fields. Increase in the number of biologics in pipeline of pharmaceutical companies has led to an increase in investments for development of new biologics and expansion of manufacturing facilities. For instance, in April 2022, Catalent announced an investment of USD 350 million for expansion of integrated biologics drug manufacturing at its Bloomington, Indiana site. The aim of the expansion was to expand the biologics drug substance portfolio. Such initiatives are expected to positively affect the market growth over the forecast period.

Furthermore, over the past two decades, research activities pertaining to the fields of genomics and proteomics have increased considerably, driving the market growth. These fields attain funding and research support from various government agencies. For instance, the Centre for Proteomic and Genomics Research in South Africa is one such organization that funds projects in proteomics and genomics for development of new drugs and biologics.

Genomics is also crucial in biomedical and disease-based research as it helps identify genetic factors associated with diseases. Furthermore, increasing research conducted by government institutions has led to a substantial growth in the field. Organizations such as National Institutes of Health (NIH), National Human Genome Research Institute (NHGRI), European Commission, and National Science Foundation (NSF) Biological Sciences Directorate are some of the top funding agencies contributing to research in this domain.

However, stringent government regulations for development and manufacturing of biologics can potentially hinder the market growth. New biologics are required to qualify preclinical and clinical stages of development, and commercialization of products can be a time- & cost-intensive, and uncertain process.

Furthermore, even a small variation in protein structure could result in differences in efficacy and safety of biologics. In addition, regulations pertaining to manufacturing and marketing of biosimilars are more stringent than those for generic medicines. Development of a biosimilar can take around 7 to 8 years with huge capital investment. These factors may limit the market growth in the near future.

Expression System Insights

The main expression systems used for synthesis, modification, and regulation of proteins in living organisms are prokaryotic, a mammalian cell, an insect cell, and yeast. Prokaryotic expression systems were the highest revenue-generating segment in 2016 due to its large application, high production capacity, and inexpensive production.

Manufacturers are focusing on mergers, acquisitions, and collaboration to expand their product portfolio and to strengthen their position in the industry. For instance, in January 2017, Bio-Rad Laboratories, Inc. entered into an agreement to acquire RainDance Technologies, Inc., a leading provider of ultra-sensitive genomic tools, and have strong distribution channel worldwide.

The mammalian cell expression systems segment is projected to showcase the highest growth rate during the study period. This is due to the rise in the popularity of these systems for the production of biopharmaceuticals and research applications. This system provides several advantages including the production of post-translational modified proteins and high efficiency in drug discovery and preclinical studies.

The insect cell and yeast systems segments are also expected to grow at lucrative CAGR during the forecast period, because of increasing focus on proteomics research and rising government support for research activities. The availability of advanced systems such as the BaculoDirect Baculovirus Expression System and Bac-to-Bac Baculovirus Expression System is another factor driving the growth of the segment.

Product Insights

The protein expression products such as reagents, expression vectors, competent cells, and instruments are widely used by research institutes, biotechnology, and pharmaceutical companies for research, development, and manufacturing of insulin, human growth hormone, therapeutic antibodies, vaccine, and other products.

In 2016, the reagents segment was the largest revenue grossing segment of the market due to the large application of these products for research and biopharmaceuticals manufacturing. The repetitive purchase of reagents for various applications including therapeutic, industrial, and research is expected to boost the market growth.

The services segment is anticipated to witness the fastest growth rate during the study period due to the escalating trend of services for custom optimization of protein expression. In addition, the service providers are equipped with advanced products and research specialists, which is expected to propel the demand for protein expression services by manufacturers and research laboratories.

The demand for vaccines and therapeutic proteins is high due to the increasing prevalence of chronic diseases such as cancer, anemia, hemophilia, infectious diseases, and multiple sclerosis. Thus, the manufacturers are using advanced products including reagents, vectors, and competent cells for the development and manufacturing of vaccines and therapeutic proteins.

Application Insights

Protein expression is used for various applications in research, diagnostics, and therapeutics. The therapeutic proteins such as insulin, monoclonal antibodies, growth factors, hormones, blood factors, anticoagulants, enzymes, interleukins, and interferons are widely used products for the treatment of chronic diseases.

The therapeutic application segment dominated the overall sector in terms of revenue in 2016. This is due to the large application of protein expression for the production of biologics. These products provide high accuracy, efficiency, and quality in biologics production. This segment is also projected to grow at the highest rate during the forecast period owing to the growing popularity of therapeutic proteins over other drugs.

The research applications segment is also expected to grow at lucrative CAGR during the study period owing to rising government funding for proteomics and genomics research. For instance, in June 2016, the French government announced a plan to invest around USD 760.8 million in personalized medicine and genomics program to enhance the prevention and diagnosis of chronic diseases including cancer, diabetes, and rare diseases.

The U.S., U.K., Germany, France, China, Japan, and India are projected to account for the largest application of protein expression. The presence of big biopharmaceutical and biotechnology companies, the presence of well-developed healthcare infrastructure, and the availability of advanced products in these countries are some major factors contributing to market growth.

Germany protein expression market share, by application, 2016 (%)

End-use Insights

The pharmaceutical and biotechnological companies accounted for the largest revenue share in the market due to rising demand for therapeutic proteins such as insulin, growth hormone, and vaccines. In addition, increased investment in new drug designing and development is also contributing to market growth.

The contract research organization segment is projected to showcase the highest growth rate over the study period owing to the rising outsourcing activities by biotechnology and pharmaceutical companies for research and development of new drugs and biologics.

Well-developed healthcare infrastructure in the U.S. and some European countries like UK, Germany, and France have spurred the demand for advanced therapeutic products for chronic disease treatment. In addition, rising disposable income and improving healthcare infrastructure in developing countries such as China, India, Argentina, and Brazil is expected to boost market growth.

The rising popularity of biopharmaceuticals and growing healthcare awareness in developing countries such as India, China, South Africa, and Argentina are expected to boost sector growth. The demand for vaccines and advanced biologics is increasing in these countries owing to the rising burden of chronic diseases including diabetes, cancer, and hepatitis. The focus of companies to develop and manufacture novel biologicals along with availability advanced technologies are projected to drive the application of protein expression in the healthcare industry.

Regional Insights

North America held the largest share accounting for over 40.20% of the market value in 2021. This can be attributed to the presence of several large biopharmaceuticals, pharmaceutical, and biotechnology companies such as Merck KGaA, Amgen Inc., and F. Hoffmann-La Roche Ltd in this region.

The U.S. dominated the overall North America protein expression market in terms of revenue share in 2021. The country witnesses an increasing research focus on stem cells and cancer, alongside a rising prevalence of chronic diseases, such as cardiovascular and blood diseases. As stem cell therapy has emerged as one of the most promising options for the treatment of such diseases, a rising number of biopharmaceutical companies are driving stem cell research with the help of advanced protein expression products. As a result, the demand for protein expression products is anticipated to rise during the forecast period.

Germany accounted for a dominant share of the Europe protein expression market. It is due to the intensive research activities conducted by global players to address the unmet clinical and research needs in the country. Germany is a major contributor to the European regional market for protein expression. According to German Center for Research and Innovation, over 800 publicly-funded research institutions are located in the country. Since protein expression products are widely used by researchers in R&D facilities & research laboratories, presence of a large number of research institutes and biotechnology companies is the foremost factor promoting the market growth in the country.

Competitive Insights

The market is highly fragmented with the presence of many small-, medium-, and large- scale vendors. Several leading players such as Agilent Technologies, Inc., Thermo Fisher Scientific Inc., Bio-Rad Laboratories, Inc., Merck KGaA, Promega Corporation, New England Biolabs, Qiagen, and Takara Bio, Inc. share market with local vendors.

The leading players are involved in collaborations, regional expansions, mergers, and acquisitions to gain maximum revenue share in the sector. Mergers and acquisitions support the vendors to expand their existing product portfolio and geographical reach. For instance, in February 2014, Thermo Fisher Scientific, Inc. completed the acquisition of Life Technologies Corporation to strengthen its life science business, which includes cutting-edge proteomics and genomics technologies.

Rising regulatory approval for biologics and technological advancements in the field of research and drug development has led to the high demand for innovative products. The vendors in the sector are investing a large amount of money in R&D to develop novel products that cater to the unmet needs of their customers. For instance, Thermo Fisher Scientific, Inc. invested around USD 754.8 million in R&D in the year 2016.

Report Scope

Segments Covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global protein expression market on the basis of systems, product, application, end-use, and region:

• Expression Systems Outlook (Revenue, USD Million; 2014 - 2025)

  • Prokaryotic expression systems

  • Mammalian cell systems

  • Insect cell systems

  • Yeast systems

  • Other systems

• Product Outlook (Revenue, USD Million; 2014 - 2025)

  • Reagents

  • Competent cells

  • Expression vectors

  • Services

  • Instruments

• Application Outlook (Revenue, USD Million; 2014 - 2025)

  • Therapeutic

  • Industrial

  • Research

• End-use Outlook (Revenue, USD Million; 2014 - 2025)

  • Pharmaceutical and biotechnological companies

  • Academic research

  • Contract research organizations

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • South Africa