Peptide Synthesis Market Size & Trends:

The Peptide Synthesis Market size was valued at USD 718.66 million in 2024 and is expected to reach USD 1450.53 million by 2032, growing at a CAGR of 9.22% over the forecast period of 2025-2032.

The global peptide synthesis market is expected to grow at the fastest rate due to increasing applications of peptide-based therapeutics development of oncology, metabolic disorders, and infectious diseases. Synthesis technologies, including SPPS and hybrid methods, are continually improving for better efficiency and scalability. Furthermore, the increase in R&D expenditure, the growth of custom peptide services, and the increasing utilization of automated synthesizers are driving the growth of the market. This growth is being further propelled by supportive regulations and an industry-wide pivot toward green and sustainable modes of manufacturing across the life sciences sector, especially in pharmaceuticals and biotechnology sectors globally.

The U.S. peptide synthesis market size was valued at USD 219.42 million in 2024 and is expected to reach USD 435.49 million by 2032, growing at a CAGR of 8.99% over the forecast period of 2025-2032.

North America has the largest peptide synthesis market, and the U.S., in particular, can count on a large biopharmaceutical and biotech industry, high R&D investments per capita, and a dense network of CROs and CDMOs. That strong ecosystem has made the U.S. the regional leader in peptide synthesis.

Liraglutide was recently approved by the FDA for pediatric Type 2 diabetes in June 2025, an advance in therapeutic options for Type 2 diabetes in the young. This new approval represents the expansion of known glucose-regulating peptides, such as liraglutide, into the treatment of metabolic disease. 

Global Peptide Synthesis Market Dynamics:

Drivers:

• Market Growth is Attributed to the Increasing Demand for Peptide-Based Therapeutics

The growing burden of cancer, diabetes, and cardiovascular disorders boosts the development of peptide-based drugs. Peptides have specific advantages of high selectivity and low toxicity, and can be used to target difficult drug targets, such as protein–protein interactions. Their ability positions them as relevant targets for targeted therapies, regulation of hormones, and immunomodulators. The growing trend of biologics and precision medicine within the pharmaceutical market will continue to drive the expansion of the peptide synthesis market as the demand for synthetic peptides increases.

Four peptide or oligonucleotide drugs were approved by the FDA in 2024, highlighting the continued importance of these therapeutic modality classes (NIH). Two additional peptides and two oligonucleotides have been approved, demonstrating their therapeutic potential in complex disease, although modest success for gene-based therapy in genetic indications.

• Expansion of Contract Manufacturing and Research Services (CDMOs/CROs) Driving the Market Growth

Outsourcing of peptide synthesis to CDMOs and CRO is increasingly being adopted by pharmaceutical and biotechnology companies. The need for operational cost savings, fast turnaround time, and access to specialized expertise in peptide chemistry and GMP-compliant production have driven this trend. Due to the ability for scalability, state-of-the-art equipment, and regulatory know-how, CDMOs and CROs are key partners to the peptide supply chain. This would largely influence the overall growth of the global market, owing to the expanding global presence and service offerings.

CordenPharma will put 1.17 billion behind a large-scale expansion of solid-phase peptide synthesis (SPPS) for peptide APIs. The facility is to be ready by March 2025. This expansion will add 30,000 L of reactor volume and another 26,000 m² of manufacturing space, mainly for commercial and clinical peptide manufacturing. Proceeds will be utilized to build a new, world-class peptide manufacturing facility in Switzerland and to expand its current facility in Colorado.

Restraints:

• High Cost of Peptide Synthesis is Restraining the Market Growth

The process of peptide synthesis is resource-intensive, particularly for high-purity or complex peptides constrains the peptide synthesis market trends. This is due to the need for specially charged reagents (acids, for instance, masked amino), costly solvents, and cutting-edge equipment, such as computer-controlled peptide assemblers and fractionation units. In addition, the total synthesis of long-chain or modified peptides is usually a stepwise process involving multiple synthetic and purification steps, all of which are labor- and time-consuming and material-intensive. For most small biotech, academic laboratories, or start-ups, these costs may be prohibitive, preventing access to larger market-driven peptide research and therapeutics and slowing innovation in peptide-based research and therapeutics.

Peptide Synthesis Market Segmentation Insights:

By Product

The reagents & consumables segment dominated the peptide synthesis market with a 46.29% market share in 2024, owing to the frequent usage of reagents & consumables in various cycles of peptide production, Such as amino acid derivatives, resins, solvents, and other chemical synthesis reagents used in solid-phase and liquid-phase synthesis. They account for the largest share in the market as the superior purity of the reagents is always needed in research and in commercial manufacturing. Moreover, the rising number of peptide-based drug discovery and custom synthesis orders has further increased the demand for these substances among labs and manufacturing centers.

The equipment segment is estimated to grow at the fastest CAGR over the forecast period on account of the increasing use of automated peptide synthesizers and sophisticated purification systems. Companies are investing in such high-throughput and precision synthetic equipment, both for internal laboratories and CDMOs, as peptide complexity increases and with it the need for broad scales of GMP manufacturing. Emerging and evolving technologies, microwave-assisted SPPS and flow chemistry, are also driving the renewal and replacement of existing hardware. Such a trend of automating and having scalable capabilities is driving the equipment segment to grow at a rapid pace.

By Technology

The liquid phase peptide synthesis (LPPS) segment accounted for the largest share of the peptide synthesis market in 2024, with a 46.2% market share, as LPPS is a well-established technology for producing large amounts of high-purity peptides on a commercial scale. In contrast, LPPS permits rapid synthesis of shorter peptides while also being relatively inexpensive at scale, allowing for its industrial production. The quality of performance with fewer purification steps associated with it has also made it a go-to system for bulk API production, and its viability still dominates the peptide synthesis market growth.

The hybrid technology is expected to exhibit the fastest growth during the forecast period, owing to its advantages over LPPS and SPPS. With this pathway, it is possible to achieve longer and more complicated peptides with higher yield and scalability. As the least complex and most versatile of all methods, the hybrid method is rapidly gaining traction in academic and commercial settings as the most favorable approach for lowering production costs and optimizing challenging sequence synthesis efficiencies. With increasing interest in more complex and/or modified peptide therapeutics, hybrid synthesis represents an attractive strategy for next-generation peptide therapeutics.

By Application

The therapeutics segment dominated the peptide synthesis market share in 2024 with a 68.24%, as most of the peptides are used in depletion for chronic disorders, such as cancer, diabetes, and others are common. The leading position of this segment can be attributed to the growing approval of peptide-based drugs and the increasing pipeline of therapeutic peptides. Due to their high specificity and low toxicity, and the feasibility of modifying biological pathways, peptides are promising candidates for targeted therapy. The peptide drug development winds are blowing more strongly than owing to heavy investments by pharmaceutical companies in the peptide drug development, and as a result, the demand for synthesized peptides for research and therapeutic use indicates no sign of decline.

The diagnosis segment is poised to be the fastest growing over the forecast period due to the rising adoption of peptides that are used as imaging agents and biomarkers for disease detection. Due to their stability, high binding affinity, and ease of modification, peptides are increasingly being used for the development of diagnostic assays. Increasing focus on specific and early disease detection, coupled with advancements in diagnostic platforms, is expected to accelerate the growth of this market, especially in the field of peptide-based diagnostics used in oncology and infectious disease screening. As a result, this segment is expected to grow at a fast pace in the next few years.

By End-Use

The pharmaceutical & biotechnology companies held the largest share of the peptide synthesis market in 2024, with a 65.3% market share, due to these companies being directly involved in drug discovery and drug development, and commercialization. These generate high-volume demand for custom peptides that are used in preclinical research, clinical trials, and therapeutics manufacturing. Increases in peptide utilization have also been driven by a growing pipeline of peptide-based therapeutics for indications ranging from cancer to diabetes and cardiovascular diseases. In most cases, due to in-house R&D capabilities with pharma and biotech firms have an ample financial clout, they have retained a monopoly over peptide synthesis activities.

The CDMOs & CROs segment is anticipated to be the fastest-growing segment over the forecast period, as peptide manufacturing and development tasks are increasingly being outsourced. Pharmaceutical and biotech companies are increasingly depending on CDMOs and CROs to lower costs, speed up timelines, and obtain specialized skills for complex peptide synthesis. Increasing demand for GMP-compliant, scalable, and high-purity peptides has prompted increased capacity and service offerings for contract development and manufacturing organizations (CDMOs) and contract research organizations (CROs) alike, making them a key enabler of future growth in the peptide synthesis market.

Peptide Synthesis Market Regional Analysis:

North America dominated the peptide synthesis market with a 40.11% market share in 2024, owing to the established pharmaceutical and biotechnology sector, lucrative investments in research and development, and the presence of key leaders in peptide manufacturing and contract development and manufacturing organizations (CDMO). The region has some of the most advanced healthcare systems, suitable regulatory frameworks, and demand for peptide-based therapeutics is increasing rapidly in oncology and metabolic disorders. Particularly, the U.S. is a front-runner in custom synthesis services and clinical peptide development, as a result of multiple research institutions and government and private sector funding.

The peptide synthesis market in the Asia Pacific region is experiencing the fastest growth, with a 9.87% CAGR over the forecast period as pharmaceutical manufacturing hubs in countries such as China, India, and South Korea take off at a rapid pace. The demand for both research- and GMP-grade peptides is driven by a rise in clinical trial activity, increased investment in biotech startups, and supportive government initiatives. Moreover, a low-cost labor force, infrastructure advancements, and growing awareness regarding peptide-based therapies are supporting domestic development and offshoring in the region, thereby expediting market growth across Asia Pacific.

Europe is estimated to experience substantial growth in the peptide synthesis market owing to solid pharmaceutical and biotechnology infrastructure. Robust R&D investments and regulatory policies of nations such as Germany, the UK, and France enable this growth, facilitating innovation and the highest standards for manufacturing.

Market momentum is buoyed by European governments' support for personalized medicine and peptide-based drug development via programs, such as EIT Health, in addition to growth in contract manufacturing capabilities. The combination of public support, academic scientific prowess, and industrial investment provides Europe with the elements necessary to become an emerging player in global peptide synthesis.

Latin America exhibits significant growth in the peptide synthesis market analysis, aided by the gradual growth of the global pharmaceutical manufacturing and capital expenditure in healthcare facilities. Peptide-based research and custom synthesis services are gaining momentum at an increasing rate, but regulatory and technological obstacles are preventing quicker development. The Middle East & Africa demonstrate a steady growth owing to increasing awareness regarding peptide therapeutics coupled with governmental initiatives to facilitate biotechnology innovation.

Key Players in the Peptide Synthesis Market:

The peptide synthesis market companies, Bachem Holding AG, Thermo Fisher Scientific Inc., Merck KGaA (Sigma-Aldrich), GenScript Biotech Corporation, CEM Corporation, Biotage AB, PolyPeptide Group, Syngene International Ltd., AAPPTec LLC, CPC Scientific Inc., and other players.

Recent Developments in the Peptide Synthesis Market:

• August 2024 – Bachem and U.K. Company SpheriTech have developed a new water-based solid-phase peptide synthesis (SPPS) technique. This new method substitutes conventional organic solvents such as DMF with water, with the goal of minimizing toxic waste, greenhouse gas emissions, and overall environmental footprint in peptide production.

• August 2023 – GenScript Biotech Corporation, a global leader in life-science research tools and services, revealed its upgrade of cGMP peptide manufacturing capabilities at its state-of-the-art facility in Zhenjiang, China. The company introduced an end-to-end, one-stop solution for the synthesis of complex and modified peptides, such as neoantigen and peptide APIs, designed for large-scale pharmaceutical production.