The Europe recombinant protein manufacturing services market is expected to reach a value of USD 3.26 billion by 2030, growing at a compound annual growth rate (CAGR) of 14.88% from 2023 to 2030. Recombinant proteins play a crucial role in biotechnology research and medicine, and the manufacturing of these proteins is a vital procedure in the life sciences sector. The increasing government initiatives and investment in the field of life sciences are driving the expansion of the Europe recombinant protein manufacturing services industry.
Outsourcing of manufacturing and packaging models is becoming more prevalent due to the growing demand for recombinant proteins and the complexity of manufacturing laws and regulations. Companies are opting to outsource their manufacturing processes to cut overhead costs and release capital. Additionally, the biotech companies in the UK are outperforming their European counterparts in terms of securing early-stage funding, indicating significant growth potential in the R&D services landscape in the country.
Several leading companies in Europe offer recombinant protein production services, including Lonza, GenScript, Merck KGaA, Kaneka Eurogentec S. A., ExcellGene SA, and others. These companies are expanding their manufacturing capabilities to meet the increasing outsourcing demand in Europe. For example, Merck KGaA recently opened a new commercial facility in France for producing drug substances, including recombinant proteins. Fujifilm also acquired Biogen’s biologics manufacturing site in Denmark in 2019.
While strong regulations help ensure patient health and safety, they can also lead to delayed approvals, high manufacturing costs, and compliance challenges, which may hinder the development of recombinant protein-based products and limit the growth of manufacturing services.
In terms of market segmentation, the commercial production services segment accounted for the largest share (58.82%) in 2022. Mammalian cells were the most widely used host cell type (54.70%), and pharmaceutical and biotechnology companies were the largest end-use segment (78.79%) in 2022. Germany held a significant share of total revenues in 2022 due to the presence of major market participants, increased research spending, and a well-established healthcare infrastructure.
Overall, the Europe recombinant protein manufacturing services market is poised for significant growth in the coming years, driven by increasing demand, outsourcing trends, and advancements in biotechnology research and medicine. However, stringent regulations and compliance challenges may pose barriers to market expansion.