Global AI Powered Enzyme Design Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2024-2030: Technological advancements and increasing demand of enzymes from different industries is driving the growth of Global AI Powered Enzyme Design market.
Global AI Powered Enzyme Design Market is valued at USD 2.2 Billion in 2024, and it is expected to reach USD 8.0 Billion by 2030 with a CAGR of 24.2% over the forecast period.
Enzymes are proteins with a chain of amino acids linked with peptide bond. Enzymes are of different types varying with respect to their structure and role in normal physiology. Enzymes essentially attach themselves to molecules of substrate at specific points in their structure called "active sites". Enzymes stabilize the transition state after binding, lowering the activation energy required for a chemical reaction to happen. This stabilization further speeds up the reaction rates and physiology run in their way. This is how generally the enzymes work. Extending it to enzyme design, it means designing of a protein molecule that would bind strongly a molecule of choice.
Several conventional methods are there in designing of enzymes such as structure-based enzyme design, ML-accelerated enzyme design. With a revolutionization in chemical industry, many advancements came into existence like Enzyme modelling via computational approaches. With this, a new approach is arising with proficiency and efficiency named as “AI Powered Enzyme Design”. It typically involves artificial intelligence technologies to revolutionize protein engineering. For example, an AI model called AlphaFold3 was created in 2020 to predict the structure and interactions of molecules. It was further used in designing enzymes.
Although traditional methods are there, they are time consuming and costly where there is necessity of trial and error via experimental work. These AI driven computational methods not only save time but also save the cost required in designing enzymes. With a wide variety of applications, AI powered enzyme design is turning out to be an impactful approach. And with this the market for AI powered enzyme design is going to reach a peak level in the upcoming years.
AI powered enzyme design basically accommodates in the service industry. It involves development of AI platforms and then providing the license of those platforms to pharmaceutical, biotechnology industries. Generally, companies generate their revenue through licensing of the AI platforms and custom solutions development. By providing services regarding the software they have developed, revenue is generated.
Ginkgo Bioworks, Inscripta, Arzeda, Creative Biogene, Anodyne, Biomatter, GenScript, Exazyme, Aminoverse, Almac Group are some of the major key players in AI powered enzyme design market and contributing to the market growth with technological advancements.
When looking at the pharmaceutical and chemical industries, there are sequences of the chemical reactions that are often time-consuming and can probably do with some industrial biocatalysts. For example, in the case of a pharmaceutical industry, it is useful for the synthesis of active pharmaceutical ingredients and in the chemical industry it is useful for the synthesis of different kinds of chemicals. It can therefore be said that enzymes perform the task of bringing about the chemical reaction in biological processes without any undue increase in energy levels.
Since the advent of AI for biological enzymes, there is a more precise approach to the engineering of the enzymes. It has made it easy to develop an enzyme as per the requirements of chemical reaction i.e. substrates involved in that reaction. For instance, in December 2023, biocatalysis breakthrough enabled synthesis of lactam building blocks for drugs. The work involved the creation of an enzyme from an iron-containing muscle protein to catalyze lactam synthesis. It offered a simpler, cheaper and more efficient way to synthesize drugs. These biocatalytic requirements are fostering the demand for more specific enzymes which can be driven by Artificial intelligence.
Generally, enzymes are protein molecules which are formed from a long and specific order of amino acids. With favorable segments, enzymes are having application in many different types of end user industries such as pharmaceutical, chemical, food and agriculture. Each industry has its own specificity regarding their products, and they are making the use of enzymes in their product development. In pharmaceutical industry, enzymes are used as biocatalysts for synthesizing drugs whereas in chemical industry for synthesizing different kind of chemicals.
Moreover, in the agriculture industry, enzymes are applicable in synthesizing different kinds of nutrition providing fertilizers whereas in food industry for manufacturing of bread, wine, beer, juice and dairy processing and likewise. As these industries are specific with their products, they need specificity in enzymes they are going to utilize while manufacturing, and AI is providing specificity in enzymes as per the requirement. Dutch-Swiss startup Cradle raised US$ 23.9 Mn for pioneering Generative AI in protein design in November 2023. So, with such a wide variety of applications over different industries with more specificity, AI powered enzyme design market is going to capture the highest share across different industries. For instance, in August 2024, Lallemand, a food and beverage manufacturing company has done a strategic investment in Turkish enzyme company Livzym. This suggests that businesses are spending more money with enzyme-related businesses.
AI technology is a very advanced technology when it comes to application across different industries. As enzymes come under biologics, it becomes complex & costly when these both things come together in scenario. The initial development needs high investment. For instance, in August 2024, Biomatter raised US$ 7.2 Million for AI powered enzyme design. Also, in March 2024, NSF has funded US$ 40 Million for AI powered enzyme design. These funds raising as well as funding numbers are indicating that how much amount is necessary for development of AI powered enzyme design.
Raising such a large amount is not possible for small scale companies. So, these companies restrict themselves from spendings and the access becomes limited. Additionally, the services provided by companies are expensive, and some companies do not opt for AI-driven enzyme design. So, collectively high development cost ultimately results in high service cost and creates problems in growth of market.
Enzyme designing specifically deals with structural design of enzymes. It specifically involves designing of the structure of enzyme, knowing the activity aspects related to structure. Predictions related to enzyme structure, binding affinity, interactions with different molecules, and activity, all these aspects have a key role in designing of enzymes. This is what exactly the whole design process involves. All these things can be done with the help of AI tools. But AI is being utilized for additional applications also. AI is also used to decode the enzyme catalysis, and it is creating an evolutionary change in enzyme catalysis. Some researchers from Department of Chemical and Biomolecular Engineering at KAIST have developed an enzyme discovering AI in November 2023.
Collaborations: With high-cost spending in AI powered enzyme design, companies are unable to access the initial development. So, companies are collaborating with different other companies. For instance, in June 2023, Unilever & Arzeda collaborated to use AI to develop performance-boosting enzymes. The new enzymes were developed to fight stains in cleaning and laundry products with effective cleaning performance.
Technological Developments: With trending technologies companies are developing innovative and advanced platforms for enzyme design. Basecamp Research just revealed an open-source AI tool for enzyme design in June 2024. Basecamp Research has achieved this milestone in collaboration with the Ferruz Laboratory at the Institute of Molecular Biology of Barcelona.
AI is an innovative and advanced technology in the field of enzymes. Being an advanced technology it has wide variety of applications across different industries. Moreover, enzyme is considered as an integral part in reactions as a biocatalyst. So, companies have developed AI technologies for designing of these enzymes with more specificity. Combination of these two has remarkably increased the cost to develop such platforms for enzyme design. But as a financially strong region, many of the countries with different companies have invested in this market.
Companies such as Aminoverse, Exazyme, Arzeda are from European region. For instance, in 2024, Enzymit has raised US$ 10 Million for this technology. Such high investments and presence of most of the companies providing AI powered enzyme design service is making path for the growth of market and Europe is leading the market with all these crucial elements.
North America is going to be the second dominating region in AI powered enzyme design market. Some of the companies like Creative Biogene are from USA contributing the market with advancements. Mostly biotech companies deal with AI powered enzyme design. According to NAICS Biotechnology US, there are around 6,653 biotech companies in the US only. As the US is one of the major countries in North America, it significantly contributes to the biotech sector worldwide.
With such a high number of biotech companies, there are opportunistic factors for the growth of the market in North America. Also, the economically strong countries can invest more in the market to develop their own platform. So, regarding sale of service as well as development of new innovative platforms, North America stand out to be the second dominating region.
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