Synthetic biology is a novel field that finds its origin at the intersection of biology and engineering. It involves designing and construction of biological systems or devices that can be applied in varied domains to get specified results. It’s a multidisciplinary effort made by scientists to understand the functioning of biological organisms, cells & genes and implementation of artificial genetic processes to give specific characteristics to an organism. It can even be used to develop a completely new biological system. Global synthetic biology market was valued at $3.0 billion in 2013 and it is estimated to reach $38.7 billion by 2020, growing at a CAGR of 44.2% during the forecast period.
Assistance from government and private organizations, rising number of entities conducting research and declining cost of DNA sequencing and synthesizing are key driving factors of the market. Governments are providing funds to research organizations, assisting them to find novel applications of synthetic biology. Bio-safety & bio-security issues, ethical issues and regulations are key retraining factors of the market. The fact that synthetic biology can be misused has raised concerns all around the world. Further, there are possibilities of accidental release of pathogens or genetically modified organisms into free atmosphere.
Synthetic Biology Product Market Analysis
Synthetic Biology product market is segmented into enabling products, enabled products and core products. In 2013, enabled product segment was the largest revenue generating segment and this segment would not experience substantial market change in the coming years. Enabling product is the fastest growing segment at a CAGR of 53.7% during the forecast period. Enabling products have many applications in various fields. Advancement in the technologies require lot of issues to be addressed such as high rate of error in the self-assembly, high cost of DNA, etc. Use of enabling products can overcome these hurdles. This factor is triggering the growth of enabling products.
Synthetic Biology Technology Market Analysis
Synthetic Biology technology market is segmented into enabling technology and enabled technology. In 2013, enabled technology had generated highest revenue and it is forecast that in the coming years, this segment would continue to dominate the other segment in revenue generation. Enabling technologies segment is growing at a faster rate, and growing at a CAGR of 48.6% during the forecast period. Recent advancement in the cellular and molecular biology requires monitoring and manipulation of biological system. Use of enabling technologies results in applying engineering principles to build, manufacture, and design new biological devices and systems. This factor is triggering the growth of enabling technologies.
Synthetic Biology Application Market Analysis
Synthetic Biology application market is segmented into research & development, chemicals, agriculture, pharmaceuticals & diagnostics, biofuels and others (biotechnology and biomaterials). In 2013, pharmaceuticals & diagnostics was the largest revenue-generating segment and it is forecast that this segment would continue to dominate the other segments in revenue generation. Biofuels is the fastest growing segment at a CAGR of 85.2% during the forecast period. There is high demand for energy security, food safety and fuel generated from agriculture, which is contributing to the growth of the Biofuels market.
Synthetic Biology Geography Market Analysis
Synthetic Biology geography market is segmented into North America, Europe, Asia Pacific and RoW. In 2013, Europe was the largest revenue-generating segment and it is forecast that it would continue to dominate the other segment in generating revenue. In Europe, there were many supporting government regulations due to which it was possible to invest a lot in the synthetic biology research. These researches resulted into application of synthetic biology in various fields such as medicine, energy, environment, biological nanomachines & biosensors, chemical industry, national security. Asia- pacific is the fastest growing segment experiencing a CAGR of 46.4% during the forecast period. Asia pacific brings lot of opportunities for the growth of the Synthetic Biology market. The factors that are driving the growth of the market are large number of under nutrition population that brings in the need for increased food production. This factor results in high demand for synthetically modified crops. Rising petroleum based fuel prices are resulting in high demand for bio-diesel, which is also contributing to the growth of the synthetic biology market. In addition, raised awareness about synthetic biology market such as generation of new life, manipulation of life, etc., are also some of the factors that are unlocking the doors for the growth of the market.
Synthetic Biology Market Competitive Analysis
The strategies followed by key players in this market present a clear understanding about the intensity of concentration they are giving to a specific business segment. Strategic analysis of the companies reveals that most of the companies are concentrating on agreements followed by product launch for the expansion of their business. The agreements among the companies would enhance their operations and services. Most of the agreements were related to development of product for chemical industries, followed biofuels and synthetic genes industries. Product launches were adopted by the companies to diversify their products and explore new areas of applications. Companies adopted strategies to launch new products to diversify its approach in the chemical industry and pharmaceuticals. Companies also adopted strategies such as collaboration, joint venture and acquisition for the expansion of their business. These strategies resulted in the advancement of the technology and diversification of the products in the untapped areas. These strategies were adopted by the companies to diversify their business in the industries such as pharmaceuticals, synthetic genes, biofuels and chemicals.
Synthetic Biology Market High-Level Analysis
Porter’s five-force analysis weighs the bargaining power of buyers and suppliers including the rivalry scenario in the market. As far as core products of the market are concerned, there are few suppliers; and this fact raises the bargaining power of the suppliers. However, declining prices of DNA sequencing and synthesis may lower their bargaining power in future. Being a novel field, threat of substitute is low, as it is far better than the conventional technologies. The value chain analysis reveals that enabling products such as DNA synthesis and oligonucleotide synthesis act as building blocks for the core products and the core products are used by various industries to manufacture enabled products such as chemicals and bio-fuels. Top investment pocket analysis reveals biofuels as the most promising sector for investments in future. This market possesses huge growth potential; however, cash flow in this sector at present is comparatively low. Various petroleum and chemical companies are expected to enter this market during the forecast period.
Reason for doing the study
Synthetic Biology is a relatively newer field, came into existence a decade ago. Many of its applications have recently entered the commercial market. Other potential applications would see commercialization in near future. As the market holds huge potential in future and has widespread applications, namely in industries such as chemical, pharmaceuticals, fuels, agricultural, healthcare, etc., the understanding of the market beforehand will give an upper hand to the stakeholders.
Market by Products
Market by Technology
Market by Application
Market by Geography
Number of entities conducting research in the field of synthetic biology is rising enormously. During 2009 to 2013, number of companies and universities conducting such researches has risen from 61 to 192 and 127 to 204 respectively. Since the last score, cost of DNA sequencing has seen a drastic and continuous fall. This is acting as a strong factor paving way for the synthetic biology market in developing countries. Further, rise in funding by government bodies and private organizations is propelling the market growth.
On the contrary, ethical, bio-safety and security concerns are giving a bumpy ride to the market. However, these issues would be resolved with rising awareness among people and technological advances to increase the safety in synthetic biology processes. In future, the impact of the key factors influencing the market is expected to experience a change in intensity; however, the pace with which the market is growing will be maintained during the estimation period.
Synthetic biology is a new trend in the field of biotechnology and molecular biology. This has raised the bargaining power of the suppliers of core products (DNA synthesis and oligonucleotide synthesis) due to rise in demand, favored by ongoing researches in this domain. However, declining DNA synthesis and sequencing prices would lower the bargaining power of the suppliers in the due course. The demand for enabled products such as bio-fuels, chemicals, drugs and fertilizers is expected to rise with increasing acceptance of synthetic biology products and this would give a thrust to the bargaining power of enabled product suppliers during the forecast period.
Supposedly, the bio-fuel industry would undergo a paradigm shift from the present fuel manufacturing technique to the synthetic biology processes. As per International Energy Agency (IEA), worldwide transportation fuel will have a 27% share from bio fuels by 2050. Bio-fuels are expecting tremendous growth due to rising inclination of governments and consumers towards bio-based products. In terms of geography, Asia Pacific is the fastest growing market that is assisted by improved economic conditions, which would allow investments in research and development. However, Europe would continue to lead the market throughout the analysis period due to due to huge investment in the research.