Synthetic Biology Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Synthetic Biology Market is projected to register a CAGR of about 19.23%, during the forecast period with a revenue of approximately USD 32.40 billion in 2020 and is expected to reach USD 105.13 billion by the year 2026.
The market will have a positive growth during the pandemic due to the increasing demand and decreasing production due to lockdown and lack of labor situation. The prices are high than usual increasing the revenue of the market. The ongoing research for COVID vaccine and drugs furthermore boosts the market growth. According to the research article published titled "Synthetic Biology's role in fighting COVID-19", published in MolecularCloud, 2020, Synthetic biology addresses the requirement of vaccine development during the COVID-19 pandemic, by empowering drug discovery scientists to synthesize DNA fragments, clones, or entire variant libraries. Due to the wide application of synthetic biology in the vaccine and drug development against COVID-19, the studied market is expected to grow during the pandemic era.
There are certain factors propelling the growth of the market, including increasing support from the government and private institutions, increasing R&D investments in drug discovery, and the development and declining cost of DNA sequencing and synthesizing.
The growing involvement of government bodies, research institutes, and large organizations in synthetic biology research activities is likely to support the market in the next few years. Governments of various nations have been providing research support for synthetic biology, because of its extensive applications. There has been a lot of research studies and projects, running in various countries with respect to synthetic biology that has tried to tap various complexities in the genomes of organisms, and hence, has helped in creating more effective and efficient therapies to treat them.
There has also been a growing use of genetic engineering in agriculture. Therefore, with increasing support from the government and the private sector, the market is expected to increase during the forecast period. For instance, the Industrial Biotechnology Innovation and Synthetic Biology Accelerator (IBISBA) project under Horizon 2020, European Commission has allotted a grant of EUR 5,000,000 for a period of December 2017 to May 2022, to support and accelerate the uptake of industrial biotechnology as a key enabling technology for advanced manufacturing.
The synthetic biology technologies and products are also finding significant usage in various application areas. Since the organisms engineered with synthetic biology techniques are relatively reasonable, owing to their use in various industrial applications, which also translates in a reduction in the cost of research, the demand for these techniques is growing across the world.
However, the biosafety and biosecurity of developing synthetic biological products and the ethical issues concerning the market hinder the market growth. A different ethical concern about synthetic biology that could lead to the creation of particles that fall somewhere between organisms and machinery. It is not hard to see why some artificial biological products may fail to fit into our accurate dichotomy between living and non-living. Such concerns restrain the research and development and in turn the market growth.
The rapid development of synthetic biology has driven the healthcare industry with respect to the varied therapeutic approaches by using live bacteria, artificial cells, and engineered phages. For instance, it has enabled life technologies to design and manufacture antigens and variants with rapid results, high expression, & capacity. Synthetic biology has several applications starting from drug and vaccine development, applications manufacturing, and diagnostic tests.
Various initiatives taken by governments and other organizations are expected to positively influence the market studied in this segment. For instance, in November 2020, Australia's Morrison government announced plans to invest around AUD 3.8 million for establishing a cutting-edge synthetic biology research facility ''BioFoundry'' in order to accelerate research into areas, including human therapeutics and other new products. Such investments are further expected to enhance the synthetic biology field in the healthcare vertical.
In January 2021, AbSci, one of the leading synthetic biology company enabling drug discovery and biomanufacturing of next-generation biotherapeutics, announced the acquisition of Denovium, Inc., an artificial intelligence (AI) deep learning company. This acquisition represents the perfect synergy of groundbreaking synthetic biology and cutting-edge deep learning AI to create in silico predictive protein drug design and cell line development capabilities with the potential to completely change the paradigm of biopharmaceutical discovery and development.
North America is estimated to account for the largest share in the synthetic biology market due to factors, such as the increasing demand for bio-based products, increased investments in synthetic biology companies, and rising R&D funding for synthetic biology.
The United States contributes majorly to the research being done in the fields of drug discovery, genomics, and proteomics structure prediction, and soon in the region, thereby boosting the growth of the synthetic biology market. Various universities and research institutes received funding from governmental organizations, like the National Institute of Health (NIH), and private organizations, like Gates and Melinda Foundation, for developing various bioinformatics, DNA sequencing and biological components, and integrated systems devices, which can be widely used for various healthcare and other applications.
In February 2020, a new research team was formed in MIT Media Lab called Nano-Cybernetic Biotrek led by an Indian Engineer and physicist Deblina Sarkar that will focus on bridging the gap between nanotechnology and synthetic biology with various research activities.
In September 2020, United States based Synthetic biology startup Zymergen Inc received USD 300 million in a new funding round from Baillie Gifford & Co. to accelerate the company's R&D activities in Synthetic Biology
Furthermore, increasing support from the government and private institutions and increasing R&D investments in drug discovery and development are also major growth factors expected to drive the market during the forecast period.
The Synthetic Biology Market is consolidated in terms of competition. The competitive analysis of the companies reveals that most of the companies are concentrating on agreements followed by product launches for the expansion of their business. The value chain of the product manufacturing includes the steps that require collaborative efforts by two or more companies and this is the key reason for agreements among the companies. Some of the companies which are currently dominating the market are Thermo Fisher Scientific Inc, Amyris Inc., Du Pont De Nemours and Company, Genscript, Integrated DNA Technologies Inc. (Danaher Corporation), Precigen Inc (Intrexon Corporation), New England Biolabs Inc., Novozymes A/S, Koninklijke DSM N.V., and Synthetic Genomics Inc.