Protein Engineering Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Protein Engineering Market is projected to expand significantly, rising from a valuation of USD 3.14 Billion in 2025 to USD 6.42 Billion by 2031, reflecting a compound annual growth rate of 12.66%. This field centers on the systematic modification of protein structures to create novel molecules with optimized traits, such as enhanced catalytic activity, specificity, or stability. Growth is largely fueled by the rising need for recombinant therapeutics and monoclonal antibodies to manage chronic diseases like autoimmune disorders and cancer, alongside a shift toward sustainable biomanufacturing using engineered enzymes. This strong commitment to innovation is evidenced by the European Federation of Pharmaceutical Industries and Associations, which reported that the research-based pharmaceutical sector in Europe invested approximately €55 billion in R&D during 2024.

Despite these positive indicators, the market encounters substantial obstacles related to the high technical complexity and operational costs inherent in developing new biologics. Ensuring protein stability while avoiding immunogenicity necessitates intricate processes that prolong development schedules and increase capital requirements. Furthermore, navigating strict and changing regulatory landscapes for product approval poses additional delays, creating significant barriers to entry for smaller biotechnology firms and potentially retarding the overall pace of market growth.

Market Drivers

The incorporation of machine learning and artificial intelligence is transforming the protein engineering sector by facilitating de novo design with unprecedented accuracy and speed. These computational tools enable researchers to forecast complex protein structures and refine functional characteristics, such as stability and binding affinity, prior to physical synthesis. By diminishing the reliance on conventional, labor-heavy screening techniques, this technology expedites the creation of molecules designed for specific biological targets. The commercial promise of this synergy is driving significant investment; for instance, Xaira Therapeutics announced in April 2024 that it had secured over $1 billion in committed capital to establish an AI-centric platform dedicated to redesigning drug discovery.

Concurrently, the rising global requirement for recombinant proteins and monoclonal antibodies to treat chronic conditions is driving a major expansion in manufacturing capabilities. As metabolic and autoimmune diseases become more prevalent, pharmaceutical developers are focusing on the scalable production of engineered biologics that provide better specificity compared to small-molecule drugs. This trend is highlighted by substantial infrastructure investments to secure supply chains, such as Novo Nordisk's June 2024 announcement of a $4.1 billion investment in a new injectable treatment facility in Clayton, North Carolina. Similarly, in 2024, AstraZeneca committed $300 million to a new site dedicated to next-generation biologics and cell therapy to ensure adequate future capacity.

Market Challenges

The Global Protein Engineering Market is significantly hindered by the substantial operational expenses and technical intricacies involved in creating novel biologics. Achieving necessary protein stability and preventing immunogenicity demands specialized infrastructure and extensive research, leading to prolonged development timelines and steep capital expenditures. This resource-intensive environment establishes a formidable barrier to entry, making it challenging for smaller biotechnology companies to compete effectively or maintain operations throughout the rigorous and lengthy regulatory approval process.

These financial constraints directly impede market expansion by limiting the volume of innovative projects that successfully reach commercialization. The severity of this pressure is illustrated by recent trends in investment, which indicate a sharp contraction in funding available for emerging industry players. According to the Biotechnology Innovation Organization, biotech startup funding fell precipitously from $2.6 billion in the first quarter of 2025 to just $900 million in the second quarter. This reduction in accessible capital for startups restricts the industry's ability to introduce new engineered protein therapies, thereby slowing the overall growth trajectory of the sector.

Market Trends

There is a growing industry focus on engineering multispecific and bispecific antibodies, a trend that distinguishes the current market from standard monoclonal antibody development. Developers are increasingly leveraging protein engineering to construct complex modalities, such as T-cell engagers, capable of binding simultaneously to two or more distinct antigens to improve therapeutic precision against heterogeneous solid tumors. This move toward multi-targeting architectures enhances oncological efficacy by directing immune effector cells straight to tumor sites, a function not found in traditional biologics. The high value placed on these specialized platforms is reflected in strategic acquisitions, such as Merck's January 2024 agreement to acquire Harpoon Therapeutics for an equity value of approximately $680 million to incorporate its trispecific antibody technologies.

In parallel, the market is diversifying significantly into environmental and industrial enzyme applications, extending the sector's relevance beyond pharmaceutical uses. Protein engineering is becoming essential for the circular economy, particularly in designing high-performance enzymes that depolymerize synthetic fibers and plastics for recycling. This approach shifts the focus from synthesis to material degradation and waste valorization, supporting sustainability objectives in packaging and consumer goods. This industrial shift is backed by substantial capital projects, such as Carbios' advancement in April 2024 of the world's first industrial PET biorecycling plant, representing an estimated investment of €230 million and highlighting the commercial potential of engineered enzymes in environmental management.

Key Players Profiled in the Protein Engineering Market

• 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

Report Scope

In this report, the Global Protein Engineering Market has been segmented into the following categories:

Protein Engineering Market, by Product Type:

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

Protein Engineering Market, by Technology:

• Irrational Protein Design
• Rational Protein Design

Protein Engineering Market, by End User:

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

Protein Engineering Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Protein Engineering Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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