Protein Engineering Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Insulin, Monoclonal Antibodies, Coagulation Factors {Blood Factors + Tissue Plasminogen}, Vaccines, Growth Factors {Hormones + Cytokine}, and Other Product Types), By Technology (Irrational Protein Design and Rational Protein Design), By End User (Pharmaceutical and Biotechnology Companies, Academic Institutions, and Contract Research Organizations {CROs}), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.14 Billion
CAGR (2026-2031)	12.66%
Fastest Growing Segment	Academic Institutions
Largest Market	North America
Market Size (2031)	USD 6.42 Billion

Market Overview

The Global Protein Engineering Market will grow from USD 3.14 Billion in 2025 to USD 6.42 Billion by 2031 at a 12.66% CAGR. Protein engineering involves the systematic modification of protein structures to generate novel molecules with enhanced properties, such as improved stability, specificity, or catalytic activity. The market is primarily propelled by the escalating demand for monoclonal antibodies and recombinant therapeutics to treat chronic conditions including cancer and autoimmune disorders. Furthermore, the transition toward sustainable biomanufacturing processes is encouraging the adoption of engineered enzymes over traditional chemical catalysts. This robust commitment to innovation is reflected in substantial sector activity; according to the European Federation of Pharmaceutical Industries and Associations, in 2024, the research-based pharmaceutical industry invested an estimated €55 billion in research and development in Europe.

Despite these drivers, the market faces a significant impediment regarding the high operational costs and technical complexity associated with developing novel biologics. The intricate requirements to ensure protein stability and prevent immunogenicity often result in prolonged development timelines and elevated capital expenditures. Additionally, navigating the rigorous and evolving regulatory frameworks for approval can further delay commercialization, presenting a formidable barrier to entry for smaller biotechnology entities and potentially slowing the overall pace of market expansion.

Key Market Drivers

The integration of artificial intelligence and machine learning is fundamentally reshaping the protein engineering landscape by enabling de novo design with greater speed and accuracy. These computational technologies allow scientists to predict complex protein structures and optimize functional properties, such as binding affinity and stability, before physical synthesis occurs. This capability significantly reduces the reliance on traditional, labor-intensive screening methods, allowing for the rapid development of molecules tailored to specific biological targets. The commercial potential of this technical synergy is driving massive capitalization within the sector. According to Xaira Therapeutics, April 2024, in the 'Xaira Therapeutics Launches' press release, the company secured more than $1 billion in committed capital to develop an AI-driven platform specifically for redesigning drug discovery. This influx of resources accelerates the creation of novel proteins that were previously difficult to engineer using conventional techniques.

Simultaneously, the escalating global demand for monoclonal antibodies and recombinant proteins to address chronic pathologies is necessitating substantial expansion in manufacturing infrastructure. As the prevalence of metabolic disorders and autoimmune diseases rises, pharmaceutical developers are prioritizing the scalable production of engineered biologics that offer superior specificity over small-molecule drugs. This trend is evident in major industrial expansions aimed at securing supply chains. According to Novo Nordisk, June 2024, in the 'Novo Nordisk to Expand Manufacturing' announcement, the firm plans to invest $4.1 billion to construct a new facility in Clayton, North Carolina, dedicated to injectable treatments. Such investments are critical for maintaining the availability of engineered therapeutics. According to AstraZeneca, in 2024, the entity committed $300 million to a new facility focused on next-generation cell therapy and biologics, ensuring robust capacity for future market needs.

Download Free Sample Report

Key Market Challenges

The Global Protein Engineering Market faces a substantial impediment driven by the high operational costs and technical complexities associated with developing novel biologics. Ensuring protein stability and preventing immunogenicity requires extensive research and specialized infrastructure, resulting in elevated capital expenditures and prolonged development timelines. This capital-intensive environment creates a high barrier to entry, making it difficult for smaller biotechnology entities to compete or sustain operations through the lengthy regulatory approval process.

This financial pressure directly hampers market growth by restricting the number of innovative projects that can proceed to commercialization. The impact of these financial constraints is highlighted by recent investment trends which show a contraction in resources for emerging players. According to the Biotechnology Innovation Organization, in 2025, biotech startup funding dropped from $2.6 billion in the first quarter to $900 million in the second quarter. This significant reduction in available capital for emerging companies limits the industry's capacity to bring new engineered protein therapies to market, effectively slowing the overall expansion of the sector.

Key Market Trends

The focus on engineering bispecific and multispecific antibodies is rapidly becoming a dominant trend, effectively differentiating the market from traditional monoclonal antibody development. Developers are increasingly utilizing protein engineering to create complex modalities, such as T-cell engagers, that can simultaneously bind to two or more distinct antigens, thereby enhancing therapeutic precision against heterogeneous solid tumors. This shift toward multi-targeting architectures allows for improved efficacy in oncology by redirecting immune effector cells directly to tumor sites, a capability lacking in conventional biologics. The intense industry valuation of these specialized platforms is evident in recent strategic consolidations; according to Merck, January 2024, in the 'Merck to Acquire Harpoon Therapeutics' press release, the company entered a definitive agreement to purchase the T-cell engager developer for an approximate equity value of $680 million to integrate its trispecific antibody technologies.

Simultaneously, the market is undergoing significant diversification into industrial and environmental enzyme applications, moving the sector's utility beyond pharmaceutical boundaries. Protein engineering is now pivotal in advancing the circular economy, particularly through the design of high-performance enzymes capable of depolymerizing plastics and synthetic fibers for recycling. This application contrasts with standard biomanufacturing by focusing on waste valorization and material degradation rather than synthesis, addressing critical sustainability goals for consumer goods and packaging industries. This industrial pivot is supported by major capital projects; according to Carbios, April 2024, in the 'Fiscal Year 2023 Financial Results' announcement, the company is advancing the construction of the world's first industrial PET biorecycling plant with an estimated investment of €230 million, underscoring the commercial viability of engineered enzymes in environmental management.

Segmental Insights

The Academic Institutions segment represents the fastest-growing category in the Global Protein Engineering Market, fueled by rising government investments and grants for fundamental research. Major institutions and funding agencies, such as the National Institutes of Health, are increasingly supporting academic initiatives to advance proteomics and genomics. This surge in financial backing enables universities to adopt advanced technologies for early-stage drug discovery. Consequently, these institutions are evolving into critical innovation hubs, bridging the gap between basic science and clinical application through strategic collaborations with the pharmaceutical industry.

Regional Insights

North America maintains a dominant position in the global protein engineering market, driven by substantial investments in pharmaceutical research and development. This leadership is reinforced by the high adoption of protein-based drugs and the presence of major biotechnology firms within the United States and Canada. Furthermore, government organizations such as the National Institutes of Health (NIH) provide essential funding and grants that accelerate drug discovery initiatives. The region’s established healthcare infrastructure and increasing focus on personalized medicine continue to support the expansion of protein engineering applications across therapeutic and diagnostic sectors.

Recent Developments

• In January 2025, Absci Corporation entered into a strategic partnership with Owkin to combine their respective artificial intelligence technologies for the discovery of potential first-in-class therapeutics. The collaboration integrated Absci’s generative AI drug creation platform, which designs novel antibodies de novo, with Owkin’s predictive AI diagnostics and target discovery capabilities. The companies aimed to co-develop therapeutic candidates focusing on immunology and inflammation, as well as immuno-oncology targets. By merging wet-lab biological data with advanced computational models, the partnership sought to streamline the drug development process and improve the probability of clinical success for complex biological targets.
• In September 2024, Generate:Biomedicines announced a multi-target collaboration with Novartis to discover and develop novel protein therapeutics using generative artificial intelligence. This partnership aimed to leverage the company's proprietary platform, which integrates machine learning with high-throughput experimental validation, to create potentially first-in-class molecules across various disease areas. Under the agreement terms, the company received a total upfront payment of $65 million, including an equity investment, and became eligible for more than $1 billion in performance-based milestone payments plus tiered royalties. The collaboration highlighted the growing role of generative biology in accelerating the design of optimized protein-based medicines.
• In September 2024, Ginkgo Bioworks launched a new protein large language model and a model application programming interface in partnership with Google Cloud to advance drug discovery. This release provided researchers with access to a model trained on proprietary data, enabling the generation of novel protein sequences and functional insights. The collaboration integrated Google Cloud's computational infrastructure with Ginkgo's biological data assets to democratize access to advanced artificial intelligence tools for biological engineering. This initiative allowed scientists to accelerate the development of new therapeutics by utilizing machine learning to predict protein behavior and structure more effectively.
• In January 2024, Isomorphic Labs established strategic research collaborations with Eli Lilly and Novartis to leverage its digital biology platform for drug discovery. The partnership with Eli Lilly focused on discovering small molecule therapeutics against multiple targets and included an upfront cash payment of $45 million, with potential milestones of up to $1.7 billion. The collaboration with Novartis aimed to identify therapeutics for three undisclosed targets, involving an upfront payment of $37.5 million and eligibility for up to $1.2 billion in milestone payments. These agreements marked the company's first pharmaceutical partnerships, utilizing its next-generation technology to predict molecular structures.

Key Market Players

• Agilent Technologies Inc.
• Amgen Inc.
• Bruker Corporation
• Bio-Rad Laboratories Inc.
• Eli Lilly and Company
• Merck KGaA
• Novo Nordisk AS
• PerkinElmer Inc.
• Thermo Fisher Scientific Inc.
• Waters Corporation

By Product Type	By Technology	By End User	By Region
Insulin Monoclonal Antibodies Coagulation Factors {Blood Factors + Tissue Plasminogen} Vaccines Growth Factors {Hormones + Cytokine} and Other Product Types	Irrational Protein Design and Rational Protein Design	Pharmaceutical and Biotechnology Companies Academic Institutions and Contract Research Organizations {CROs}	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Protein Engineering Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Protein Engineering Market, By Product Type:

• Insulin
• Monoclonal Antibodies
• Coagulation Factors {Blood Factors + Tissue Plasminogen}
• Vaccines
• Growth Factors {Hormones + Cytokine}
• and Other Product Types

• Protein Engineering Market, By Technology:

• Irrational Protein Design and Rational Protein Design

• Protein Engineering Market, By End User:

• Pharmaceutical and Biotechnology Companies
• Academic Institutions
• and Contract Research Organizations {CROs}

• Protein Engineering Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE