Industrial Biotechnology Market Size:
The industrial biotechnology market is expected to increase at a CAGR of 11.36% during the forecasted period (2025-2030).
Industrial biotechnology is starting to pick up steam as companies look for smarter, cleaner ways to make products like chemicals, materials, and fuels. More businesses want to cut down on waste and carbon emissions, so demand for bio-based solutions is gaining traction. Additionally, advances in bioprocessing and a big push for greener manufacturing are helping the market grow even faster. As more countries invest to become bio-based economies and hubs for sustainable tech, the demand for industrial biotech will show an upward trajectory. Additionally, the ongoing product launches and acceptance to align with the growing requirements in the biotechnology sector are also expected to boost the market during the projected period.
Industrial Biotechnology Market Overview
| Report Metric |
Details |
| Study Period |
2021 to 2031 |
| Historical Data |
2021 to 2024 |
| Base Year |
2025 |
| Forecast Period |
2026 – 2031 |
& Scope:
The industrial biotechnology market is segmented by:
- Technology: Fermentation currently holds a bigger share compared to genetic engineering in the industrial biotech market because fermentation is already widely used and commercially scalable for producing things like enzymes, dairy proteins, and food ingredients. It’s seen as more cost-effective and faster to bring products to market.
- Raw Material: Enzymes dominate the market as they are used everywhere, from making biofuels and detergents to food processing and textiles. Their ability to speed up reactions under mild conditions makes industrial processes faster, cheaper, and greener.
- Application: Biofuels hold a major share in industrial biotech. They are derived from organic matter and used as an alternative to fossil fuels. With the global push for cleaner energy sources, biofuels, such as bioethanol and biodiesel, are seeing increasing adoption in the transportation and energy sectors.
- End-User: The pharmaceutical industry holds a significant share in industrial biotechnology. Biotechnology innovations, such as genetic engineering, fermentation, and protein-based production, are crucial for drug development. The demand for biopharmaceuticals, including vaccines, antibodies, and gene therapies, continues to rise, driving the market in this sector.
- Region: The Asia-Pacific region is predicted to hold a growing share of the industrial biotechnology market. This is due to an increase in domestic manufacturing focus in the regional countries, along with the rise in the adoption of biotech technologies, contributing to the growth of the market during the projected period.
Top Trends Shaping the Industrial Biotechnology Market:
- Growing Adoption of Bio-based Production Methods - More industries are shifting toward bio-based manufacturing methods to reduce reliance on fossil fuels and minimize environmental impact. Industrial biotech helps create biofuels, bioplastics, and bio-based chemicals, offering cleaner production processes and improving sustainability across sectors like energy, agriculture, and manufacturing.
- Integration with Synthetic Biology and AI - Industrial biotech solutions are increasingly being combined with synthetic biology and AI to optimize strain development, boost production efficiency, and streamline bioprocessing. These advancements make it easier to scale up bio-manufacturing for applications in pharmaceuticals, food, and materials while cutting costs and improving yields.
Industrial Biotechnology Market Growth Drivers vs. Challenges:
Drivers:
- Rising Demand for Sustainable Solutions: The awareness regarding environmental ramifications of industrial operations is growing which created a shift towards a much more sustainable approach. Industrial biotechnology offers solutions that help businesses create products that are both effective and environmentally friendly. Instead of relying on heavy resources, biotech helps companies reduce their environmental impact, cutting down on things like water use and carbon emissions. As consumers have become more conscious of product quality, the demand for sustainable products is growing, and biotech is helping meet that demand. According to the World Bioenergy Association’s “Global Bioenergy Statistics Report 2024”, the global FAME biodiesel production reached 50 billion liters in 2023, while ethanol production reached 116 billion liters.
- Advancements in Technology: Industrial biotech is going through a serious tech upgrade, owing to things like genetic engineering, synthetic biology, and AI which have increased the overall progression in output. With AI, companies are now able to speed up production and improve the quality of what they’re making without draining too many resources. Biotech is also making it possible to design microorganisms that can create products more efficiently. It’s making industries inclusive of food & beverage, healthcare, and energy not only more sustainable but also way more productive. Such advancements have established a new framework for industrial biotechnology.
Challenges:
- High Cost of Research and Testing- One of the major hurdles in the industrial biotech market is the high capital-intensive approach the companies have to adopt. Developing new biotech solutions, whether it’s a drug, a therapy, or an industrial process, takes years of research, testing, and going through regulatory platforms which is not only time-consuming but also costly due to regulatory charges and standard fees. Such an expensive nature of product development via biotech followed by regulatory approval can hinder market expansion.
Industrial Biotechnology Market Regional Analysis:
- North America: The region is experiencing steady growth in the industrial biotechnology market, driven by increasing interest in sustainable manufacturing and bio-based products. Key industry players and research institutions are advancing innovations in areas such as enzymes, biofuels, and bioplastics. In addition, government incentives and supportive policies are encouraging companies to invest in biotechnology solutions, further accelerating market expansion.
Industrial Biotechnology Market Competitive Landscape:
The market is fragmented, with many notable players, including Novonesis Group, DSM Firmenich, Brain Biotech AG, Zytex Corporation, Amgen Inc., Sana Biotechnology, Capra Biosciences, and BioVeritas, LLC, among others.
- Product Launch: In October 2024, BRAIN Biotech and Biodiscovery forged a strategic alliance geared toward collecting and digitizing biological data with a view to enzyme development. The MetXtra database is to be rejuvenated to tap unexplored biodiversity; new functionalities would be identified through rational bioprospection of cold deep-sea metagenomes for the further production of even finer industrial enzymes. The partnership also assists its customers in building strong IP and FTO positions and is usable in pharmaceutical, food, feed, beverage, and industrial enzyme applications.
Industrial Biotechnology Market Segmentation:
By Technology
- Fermentation
- Genetic Engineering
- Others
By Raw Materials
- Enzymes
- Microorganisms
- Bacteria
- Yeast
- Others
By Application
- Biofuel
- Biopolymer
- Biochemicals
- Biomedicines
- Others
By End-User
By Region
- North America
- South America
- Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Others
- Middle East & Africa
- Saudi Arabia
- United Aran Emirates
- Others
- Asia Pacific
- China
- India
- Japan
- South Korea
- Taiwan
- Thailand
- Others