Market Trends of Microbial Fermentation Technology Industry
The Bio-pharmaceutical Companies Segment Expected to Hold a Significant Market Share Over the Forecast Period
The goal of fermentation is to produce the necessary biopharmaceutical therapeutic material that is pure and active and released by the necessary quality standards and specifications. This is accomplished through upstream and downstream good manufacturing practice (GMP) multi-stage processes. With the widening importance of biopharmaceuticals, the segment is expected to drive market growth over the forecast period.
The growing investments in research and development and the production of biopharmaceuticals by these companies are expected to be the key driving factors for the high demand for fermentation by bio-pharmaceutical manufacturers over the forecast period. For instance, in April 2023, the Engineering and Physical Sciences Research Council (EPSRC), a part of the UK Research and Innovation (UKRI), granted a fund of GBP 12 million (~USD 15 million) to fund the Future Vaccines Manufacturing Hub for the next seven years, up to 2030. Further, the hub wants to make the United Kingdom the global center for vaccine discovery, development, and manufacture, which is expected to increase investments in the region further and drive demand for microbial fermentation technology in the pharmaceutical industry, thereby boosting segment growth.
Pharmaceutical companies are engaged in the development of advanced microbial fermentation technology, which is anticipated to boost the segment’s growth over the forecast period. For instance, in November 2022, BiondVax Pharmaceuticals Ltd, a biopharmaceutical firm, showcased its products at the Recent Advances in Fermentation Technology (RAFT) 14 conference, organized by the Society for Industrial Microbiology and Biotechnology (SIMB) in Orlando, Florida. RAFT serves as a platform for both academic and industrial scientists to delve into the latest advancements in fermentation technology. By participating in such events, companies are becoming more aware of the latest technologies or innovations in the biopharmaceutical market and taking action accordingly.
Additionally, in March 2024, Aurisco Pharmaceutical completed its investment in cGMP peptide manufacturing capacity at its USFDA-inspected facility in Yangzhou, China. In addition to its current fermentation and synthetic capabilities, the new advanced manufacturing and purification workshops add multi-metric ton capacity for producing Aurisco's generic GLP-1 peptides. Such expansion in peptide manufacturing capabilities is expected to increase demand for microbial fermentation technology and is likely to spur segment growth over the projected period.
Thus, growing demand for biotech-based drugs, increasing research and development activities by the pharmaceutical industry, and strategic activities by market players are expected to drive the segment’s growth over the forecast period.
North America Expected to Hold a Significant Market Share Over the Forecast Period
North America is expected to hold a major share in the market studied over the forecast period due to factors such as increasing demand for biotech-based drugs, rising research and development activities, and growing expenditure for developments in biopharmaceutical fermentation and technological advancements.
The rising prevalence of diseases, such as diabetes, rheumatoid arthritis, and cancer, in North American countries is contributing to the regional market’s growth due to the growing use of biopharmaceutical fermentation technology in manufacturing biotech drugs and biological drugs. For instance, as per the Canadian Cancer Statistics 2023 report, about 239.2 thousand new cancer cases were reported in 2023 in Canada, compared to 233.9 thousand in 2022. Thus, the growing burden of cancer is expected to create demand for biotech-based drugs, which is likely to contribute to the segment’s growth.
Moreover, the strategic initiatives adopted by market players, such as technological advancements leading to product launches, approvals, fundraising, and partnerships to expand their offerings in the biopharmaceutical industry, are expected to drive the growth of the market studied. For instance, in January 2024, WuXi Biologics in the United States enhanced the capabilities of its newly constructed facility located in Worcester, Massachusetts. This augmentation is expected to increase the facility's planned capacity for commercial drug substances from 24,000 liters to 36,000 liters, aligning with the escalating demand for its services. The increasing commercial drug substance capacity is expected to boost the use of biopharmaceutical fermentation technology over the forecast period.
The advances in scale-up technologies, such as modular and flexible production systems, facilitate the transition from laboratory-scale to industrial-scale fermentation with greater consistency and efficiency. For instance, in June 2024, Hydrosome Labs, a Chicago-based company, developed an innovative technology that addresses several challenges in precision fermentation. This process customizes yeast and bacteria to produce specific molecules for diverse applications, ranging from food ingredients and biofuels to industrial enzymes and pharmaceuticals. Furthermore, this groundbreaking technology could alleviate a global bottleneck in fermentation capacity and equipment, enabling significantly higher yields from tanks that were either the same size or previously deemed unsuitable. Such advancements will bolster market growth over the forecast period.
Hence, the growing burden of chronic diseases leads to increased demand for biotech-based drugs and strategic activities by market players, and technological advancements in microbial fermentation technology are expected to bolster segment growth over the forecast period.
