Market Trends of Restriction Endonucleases Industry
Genetic Engineering is Expected to Hold a Significant Market Share Over the Forecast Period
The practice of genetic engineering involves changing the DNA sequence in genomes using several methods and molecular biology techniques. The molecular biology tools such as restriction enzymes, DNA sequencing, and DNA cloning which help scientists quickly turn to experiments to change chromosomal DNA in cells and animals.
The factors propelling the segment growth are increasing investments in research and development by biotechnology and pharmaceutical companies to develop various gene therapies for diseases such as cancer, cystic fibrosis, hemophilia, AIDS, and other conditions.
According to the Engineering Biology Leadership Council report published in June 2022, the United Kingdom government has invested strongly in supporting basic research and early translation for transformative products of Engineering Biology (EB). The same source reported that within the next 5 to 10 years, engineering biology has the potential to revolutionize the chemical and material (industrial biotechnology), food and agriculture, and health-related development sectors. By 2030-2040, engineering biology is predicted to unleash an estimated USD 2-4 trillion in annual direct global economic impact. Hence the increased support from the government is expected to drive the segment growth over the forecast period.
Furthermore, the rising investments and funding by a governmental organization in the field of genetic engineering are expected to propel market growth. For instance, in December 2023, Tome raised USD 213.0 million in Series A and B funding from investors including Andreessen Horowitz Bio + Health, ARCH Venture Partners, GV, Longwood Fund, Polaris Partners, Bruker Corporation, FUJIFILM Corporation, and Alexandria Venture Investments. This funds will support Tome鈥檚 efforts to develop and commercialize programmable genomic integration (PGI) technology that was in-licensed from the Massachusetts Institute of Technology (MIT). Thus, such funding and rising research initiatives in genetic engineering utilizing the restriction endonucleases to develop therapies for genetic diseases are estimated to propel the segment growth during the forecast period.
North America is Expected to Hold a Significant Market Share Over The Forecast Period
North America is expected to hold a significant share in the restriction endonucleases market owing to factors such as the presence of key players, high investments, and growing research and development programs in the region's biotechnology and pharmaceuticals field. Furthermore, beneficial government initiatives and an increase in the number of research partnerships are some of the drivers expected to increase the market growth.
Restriction enzymes are useful tools for scientific research, such as genetics research which contributes to market growth. For instance, according to NIH, Estimates of Funding for Various Research, Condition, and Disease Categories (RCDC), 2022 update, the research spending in the United States on genetics projects was USD 10,544 million in 2020 and USD 11,010 million in 2021. The same source reported an estimated spending of USD 11,480 million in 2022. The rising spending on genetics research projects in the region is expected to utilize restriction endonucleases to develop therapies for genetic disease treatment.
The investments by the government in biotechnology research are increasing in Canada. In March 2022, the Minister of Innovation, Science and Industry invested USD 92 million in adware BioInnovations to drive company innovation and training activities in Canada's life sciences sector. This investment will help translate commercially promising health research into innovative new therapies and will drive the growth of Canada's biotechnology companies. Thus, such huge investments by the government are further expected to create opportunities for restriction endonucleases which is expected to fuel market growth.
Also, in March 2022, Colossal secured USD 60 million Series A Funding to advance genetic engineering and de-extinction technologies. The funding obtained will be utilized to enhance the application of genetics in human healthcare and the preservation of species. The rising developments are estimated to augment the market growth in the region during the forecast period.
