The global white biotechnology market size was USD 203.28 billion in 2015 and is expected to witness growth at a CAGR of 10.2% over the forecast period on account of its increasing use in the manufacturing of biofuels such as bioethanol and biodiesel. About 4% of the chemical products including organic acids, amino acids, ethanol and numerous vitamins are manufactured using this technology.
Increasing technology use across various industries on account of its various advantages such as environment friendliness, new raw material chains, efficient production methods, reduced manufacturing costs, low waste generation and raw material consumption is expected to have a positive impact on the market over the next eight years.
Rising consumer demand for green chemicals particularly in North America and Europe who are willing to pay a higher price or a green premium for numerous renewable products is expected to push manufacturers to employ white biotechnology process as opposed to traditional chemical manufacturing. In addition, rising need from various consumer industries including automotive and consumer goods to meet sustainability targets is expected to fuel technology demand over the forecast period.
The white biotechnology process is cost competitive as it has lower cost curves as opposed to numerous chemical processes that are primarily based on the use of fossil fuels and have a comparatively lesser number of production steps, low energy needs and generate lesser waste by-products. Also, this technology is not affected by price volatilities as it does not compete with oil or crop prices. The aforementioned advantages are expected to fuel market growth over the forecast period.
U.S. white biotechnology market volume, by application, 2013 - 2024 (USD Billion)
Traditionally, biotechnology enables the commercial manufacturing of a wide range of products using various microorganisms and natural metabolic pathways. In the past, these natural products were either not used in a wide range of industries or just employed in niche markets. However, as of today, numerous industries have started the use of these products to comply with various environmental standards which is expected to fuel its demand over the forecast period.
Pharmaceutical ingredients are expected to be one of the fastest growing applications of white biotechnology at a CAGR of 13.3% from 2016 to 2024. Rising technology use in the manufacturing of biopharmaceuticals particularly antibodies for cancer treatment, which cannot be manufactured via chemical synthesis is expected to fuel demand over the forecast period. In addition, enzymes used in this process enable the production of chiral compounds and other intermediates that are difficult to synthesize such as active pharmaceutical ingredients (API). Expansion of the pharmaceutical industry, particularly in Europe, is expected to fuel the market over the next eight years.
Bioenergy was the largest application segment estimated at over USD 80 billion in 2015. Continuous efforts by major companies in developed economies including North America and Europe to develop various clean energy sources to meet growth demand and reduce dependency on oil producing countries in order reduce the cost of fuel imports is expected to have a positive impact on the white biotechnology process over the next eight years.
The global market has been segmented by products into biofuels, biochemicals, and biopolymers. Biofuels processed from white biotechnology was valued at over 35% of the total revenue in 2015. Biofuel types include bioethanol and biodiesel. Rising use of biodiesel in its pure form in the automotive industry particularly in the U.S. and European countries to reduce level of particulates, hydrocarbons, and carbon monoxide is expected to fuel demand over the forecast period.
Bioethanol is widely manufactured using white biotechnology. It is primarily used as a fuel to improve vehicle efficiency and as a gasoline additive to improve the octane rating of a vehicle. The growth of the automotive sector primarily in Germany is expected to fuel process need over the forecast period.
North America is currently the largest regional market for this technology, accounting for over 35% of the overall market revenue in 2015. Considerable funds by the government for R&D in the field and rising demand for green products and chemicals from consumers are the key factors that have strengthened North America’s position in the global market.
Enzymes play a key role in ongoing efforts in Europe and the U.S. to exploit and use biomass as a feedstock for production of high-value biofuels, biopolymers, and biochemicals from renewable resources. Rising use of biomass is an effective alternative to petroleum and is expected to have a positive impact on the environment, fuel economic growth and reduce increased reliance on petroleum imports which in turn is expected to propel the technology demand over the forecast period.
Key players in the market include Amyris, BioAmber, Borregaard, Codexis, Deinove, Evolva, Fermentalg, Gevo, Global Bioenergies, Metabolic Explorer, Novozymes, and Solazyme
Most white biotech M&A transactions are small in size and privately held. In May 2014, Kaneka signed an agreement for collaboration with Terumo BCT Inc. to apply for US clinical trials for its new LDL Absorption System. In May 2014, Kaneka signed an agreement for collaboration with Terumo BCT Inc. to apply for US clinical trials for its new LDL Absorption System.
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