The global peptide synthesis industry is undergoing strong expansion driven by rising demand for peptide-based therapeutics, advancements in synthesis technologies, and growing adoption across pharmaceutical research, diagnostics, and precision medicine. The market was valued at US$0.78 billion in 2023, increasing to US$0.81 billion in 2024, and is expected to reach US$1.41 billion by 2029, exhibiting a robust CAGR of 11.7% during the forecast period. With peptides emerging as highly targeted, safe, and versatile therapeutic agents, investments from pharmaceutical, biotechnology, and contract research organizations (CROs) continue to accelerate, positioning the industry for sustained growth.
Market Drivers: Expanding Use of Therapeutic Peptides & Advancements in Synthesis Technologies
The primary driver of the peptide synthesis market is the increasing use of therapeutic peptides to treat chronic diseases such as cancer, diabetes, obesity, cardiovascular disorders, and autoimmune conditions. Peptides offer significant advantages over traditional small molecules, including:
- High selectivity and potency
- Lower toxicity
- Better tissue penetration
- Improved biocompatibility
These features make peptides an essential component of next-generation therapeutic pipelines and precision medicines.
Technological advancements—especially in solid-phase peptide synthesis (SPPS), solution-phase synthesis, and hybrid methodologies—have significantly improved production efficiency, yield, and purity. SPPS, in particular, has revolutionized peptide manufacturing by enabling rapid, automated, and scalable synthesis, making it the preferred method in both commercial and academic applications.
The integration of automation, machine learning, and AI-driven process optimization in modern peptide synthesizers is a notable trend. Automated platforms reduce labor, minimize errors, and support high-throughput and large-scale peptide production. The launch of innovative instruments such as Activotec’s Activo-Darwin Semi-Automated Peptide Synthesizer (2024) highlights ongoing advancements aimed at enhancing synthesis speed, accuracy, and quality.
The rise of personalized medicine is another major driver, boosting demand for tailored peptide sequences used in immunotherapies, targeted drug delivery, biomarker research, and peptide-based vaccines.
Market Segmentation by Offering: Products Remain the Largest Segment
1. Products Segment (Dominant Segment in 2023)
The products segment includes consumables and instruments, with consumables accounting for the largest share.
Consumables (Largest Sub-Category)
This category includes:
- Amino acids
- Resins
- Coupling reagents
- Cleavage and deprotection agents
- Dyes and fluorescent labeling reagents
- Other specialized reagents
The recurring nature of consumable usage, combined with increasing research activity and peptide production, ensures strong, steady demand. High-purity reagents and next-generation resins are particularly essential for synthesizing complex peptide structures, driving revenue growth in this segment.
Instruments
The instruments market includes:
- Automated peptide synthesizers
- Manual peptide synthesizers
- Chromatography systems
- Lyophilizers
- Supporting purification and analysis tools
Automated peptide synthesizers are witnessing the fastest growth due to their ability to handle complex sequences with precision and scalability. As research expands into long-chain peptides, constrained peptides, and peptide–drug conjugates (PDCs), advanced instruments with enhanced automation capabilities are becoming increasingly vital.
Services Segment: Fastest-Growing Category (2024–2029)
The services segment is projected to grow at a significant CAGR and consists of:
- Custom peptide synthesis
- Peptide library synthesis
- Peptide purification services
- Peptide analysis services
Custom peptide synthesis dominates the services market, driven by increasing requirements for highly modified peptides used in drug development, immunology research, and diagnostic assays.
Industry leaders such as Bachem, GenScript, and Thermo Fisher Scientific provide comprehensive peptide synthesis services, including:
- GMP-grade manufacturing
- Long-chain peptide synthesis
- Peptide cyclization and conjugation
- Stable isotope labeling
- Large-scale commercial batch production
As more pharmaceutical companies outsource complex peptide manufacturing to CDMOs and CROs, the services segment is expected to capture a substantial market share.
Technique Analysis: SPPS Continues to Lead the Market
Peptide synthesis techniques are broadly classified into chemical and biological approaches.
Chemical Synthesis
Chemical synthesis remains the most widely used modality, divided into:
- Solid-phase peptide synthesis (SPPS)
- Solution-phase synthesis
- Hybrid chemical methods
SPPS dominates the technique segment due to its:
- High efficiency and reproducibility
- Compatibility with automated platforms
- Ability to synthesize long and complex sequences
- Streamlined purification
SPPS continues to be the gold standard for manufacturing peptides for therapeutics, research applications, and screening libraries.
Biological Synthesis
This includes:
- Recombinant DNA technology
- Enzyme-mediated synthesis
While biological approaches are gaining attention for producing long peptides and peptide–protein hybrids, chemical methods—particularly SPPS—still account for the majority of commercial market revenue.
Application Insights: Cancer Leads the Therapeutics Segment
Based on application, the market is segmented into:
- Therapeutics
- Diagnostics
- Research & Development
Within therapeutics, the cancer segment recorded the highest share in 2023 and is expected to expand further, driven by:
- Growth in peptide-based cancer vaccines
- Rising adoption of peptide–drug conjugates
- Increased emphasis on tumor-targeting peptides
- Expansion of immunotherapy applications
Peptide-based oncology therapeutics and diagnostics are quickly becoming central to precision oncology strategies.
End-User Insights: Pharmaceutical & Biotechnology Companies Dominate
Key end-users include:
- Pharmaceutical and biotechnology companies
- CDMOs & CROs
- Academic and research institutes
- Medical device companies
- Hospitals and diagnostic centers
Pharmaceutical and biotechnology companies lead due to their heavy investments in peptide-based therapeutic pipelines and the increasing need for GMP-grade peptide production.
CDMOs and CROs are also witnessing rapid growth, fueled by the global trend of outsourcing drug development and analytical workflows.
Regional Analysis: North America Leads, Asia Pacific Emerging as a High-Growth Region
North America
North America dominated the global market in 2023 owing to:
- Advanced manufacturing and automation technologies
- High R&D investments in peptide therapeutics
- Presence of leading global suppliers
- Strong biopharmaceutical pipeline growth
Asia Pacific
The Asia-Pacific region is expected to register the highest CAGR between 2024 and 2029, supported by:
- Increasing healthcare and R&D investments
- Expansion of biopharmaceutical manufacturing infrastructure
- Growing prevalence of chronic diseases
- Supportive government initiatives in China, India, Japan, and South Korea
Competitive Landscape
Key players in the peptide synthesis market include:
- Thermo Fisher Scientific (US)
- Merck KGaA (Germany)
- GenScript Biotech Corporation (China)
- Bachem Holding AG (Switzerland)
- Kaneka Corporation (Japan)
These companies are actively investing in technological innovation, automation, scalable manufacturing technologies, and strategic partnerships to strengthen their market footprint.
