Peptide Synthesis Market Size, Share & Industry Analysis, By Offering (Products {Instruments [Peptide Synthesizers, Lyophilizers, Chromatography Systems, and Others] and Reagents & Consumables} and Services {Custom Research-Grade Peptide Synthesis, Peptide Library Synthesis, and Others}), By Method (Liquid-Phase Peptide Synthesis, Solid-Phase Peptide Synthesis, and Others), By Application (Therapeutics, Diagnostics, and Research & Development), By End User (Pharmaceutical & Biotechnology Companies, CROs & CDMOs, Academic & Research Institutes, and Others), and Regional Forecast, 2025-2032

The global peptide synthesis market size was valued at USD 699.5 million in 2024. The market is projected to grow from USD 746.7 million in 2025 to USD 1,330.4 million by 2032, exhibiting a CAGR of 8.60% during the forecast period. North america dominated the peptide synthesis market with a market share of 49.27% in 2024.

Peptide synthesis is the process of building short chains of amino acids (peptides) by forming peptide bonds in a chosen sequence. It can happen naturally in cells or can be done chemically in the lab to make custom sequences. In recent years, the market is witnessing a significant growth owing to the factors such as rising demand for peptide based drugs, advancements in solid-phase peptide synthesis (SPPS) and liquid-phase peptide synthesis, and others. Additionally, growing R&D investments are also fueling the market growth.

Furthermore, the market encompasses several major market players with Thermo Fisher Scientific Inc., Merck KGaA, and Agilent Technologies Inc., among others. Their dominance in the global market can be attributed to their broad product portfolio and strong geographic presence.

MARKET DYNAMICS

MARKET DRIVERS

Rising Demand for Peptide-Based Drugs to Propel Market Growth

One of the key drivers of the global peptide synthesis market growth is the rising demand for peptide-based drugs. This is owing to their several advantages such as high target specificity, low toxicity, and excellent safety profiles compared to conventional small molecules. Peptides act as natural signaling molecules and can modulate biological processes with minimal off-target effects, reducing adverse reactions and improving patient compliance. The growing prevalence of chronic diseases such as cancer, diabetes, and obesity has further accelerated their adoption in therapeutic pipelines. Additionally, the increasing number of peptide drugs in clinical trials for metabolic, oncology, and rare diseases continues to fuel demand for advanced synthesis technologies.

• For instance, in August 2025, BioMed X collaborated with Novo Nordisk for the innovation in oral formulations for peptide drugs such as GLP-1 receptor agonists.

MARKET RESTRAINTS

Technical Limitations in Large-Scale Synthesis to Restrict Market Expansion

Technical limitations in large-scale synthesis is one of the restricting factors for the market growth. This impacts overall yield, purity, and process efficiency. As peptide chains include complex modifications, issues such as incomplete coupling, aggregation, and racemization become more frequent, leading to lower production efficiency and higher purification costs. Scaling solid-phase synthesis from research to commercial levels remains challenging due to solvent consumption, resin loading constraints, and reaction uniformity issues. All these factors collectively limit the market growth to a certain extent.

MARKET OPPORTUNITIES

Technological Advancements in Synthesis Methods to Create Lucrative Growth Opportunities

One of the most promising growth opportunities in the market is technological advancements in synthesis methods, which are transforming efficiency, scalability, and purity outcomes. Innovations such as microwave-assisted solid-phase peptide synthesis (SPPS), hybrid SPPS–LPPS techniques, and continuous-flow synthesis have significantly reduced cycle times, solvent consumption, and side reactions. These technologies enable the production of longer and more complex peptides with higher yields and consistent quality, addressing traditional scalability challenges.

• For instance, in April 2022, CEM Corporation launched the Liberty Blue 2.0 microwave peptide synthesizer, offering faster coupling reactions and over 90% solvent reduction, supporting greener, and cost-effective peptide production.

PEPTIDE SYNTHESIS MARKET TRENDS

Growing Outsourcing to Specialized CDMOs is One of the Significant Market Trends

A key market trend in peptide synthesis is the growing outsourcing of production to specialized Contract Development and Manufacturing Organizations (CDMOs). As peptide drugs become longer, more complex, and highly regulated, pharmaceutical and biotechnology companies are increasingly relying on expert CDMOs with advanced synthesis, purification, and GMP capabilities. This shift enables faster time-to-market, cost efficiency, and regulatory compliance without the need for in-house infrastructure.

• For instance, in July 2024, Corden Pharma announced a €900 million (USD 1,047.2 million) investment to expand its global peptide production capacities.

MARKET CHALLENGES

High Production Cost and Purification Challenges to Hamper Market Growth

A major challenge in the market is the high production cost and purification complexity of long or structurally complex peptide chains. As peptide length increases, so do synthesis cycle times, reagent consumption, and side reactions; leading to reduced yields and significant purification burdens. Long peptides often require multiple synthesis and ligation steps, followed by extensive chromatographic purification to meet purity and regulatory standards, which substantially raises manufacturing costs.

• For instance, the production of tirzepatide (Mounjaro), a 39–amino acid dual GIP/GLP-1 agonist by Eli Lilly, demands multi-step solid-phase synthesis and large-scale HPLC purification, driving up production expenses. Such technical and economic challenges limit the market growth.

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Segmentation Analysis

By Offering

High Demand for Services Contributed to Growth of Segment

On the basis of the offering, the market is classified into products and services.

The services segment accounted for the leading global peptide synthesis market share in 2024. This can be attributed to factors such as increasing shift towards outsourcing services, growing number of specialized CDMOs, and rising demand for large-scale manufacturing of peptide based therapeutics. Furthermore, the growth is also fueled by major players launching new services along with increasing focus on capacity expansion by operating players.

• For instance, in October 2025, Cambrex Corporation announced the investment of USD 120 million for the expansion of peptide manufacturing capabilities in the U.S.

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By Method

Advantages of SPPS Contributed to Segmental Growth

In terms of method, the market is divided into liquid-phase peptide synthesis, solid-phase peptide synthesis, and others.

In 2024, the global market was dominated by the solid-phase peptide synthesis segment. Advantages offered by this method such as high efficiency, scalability, and automation compatibility make it a preferred method for research and commercial peptide production. Additionally, this method also reduces reaction time in turn providing more production. All these factors support the segment dominance. Moreover, presence of well-established players offering these services further supplement the segment growth.

• For instance, Bachem AG and CordenPharma are some of the leading players in the market that offer SPPS services.

The liquid-phase peptide synthesis segment is expected to grow at a CAGR of 6.45% over the study period. 

By Application

Increasing Focus on Drug Research Fuels Growth of Therapeutic Applications Segment

In terms of application, the market is categorized into therapeutics, diagnostics, and research & development.

The therapeutics segment captured the largest market share in 2024. In 2025, the segment is anticipated to dominate with 65.6% share. Rapidly increasing demand for peptide based therapeutics, rising number of commercialized products, and a strong pipeline for peptide drugs for various indications have significantly driven the segment growth.

• For instance, as per the article published by Drug Target Review in August 2025, Icotrokinra (JNJ-2113) is an orally administered peptide-based treatment for psoriasis, and is currently in Phase III clinical trials.

The diagnostics segment is expected to witness 7.35% growth over the forecast period.  

By End User

Focus on Innovative Therapeutic Development by Pharmaceutical & Biotechnology Companies Boosted Segment Growth

Based on end user, the market is segmented into pharmaceutical & biotechnology companies, CROs & CDMOs, academic & research institutes, and others.

In 2024, pharmaceutical & biotechnology companies held the dominating share of the global market in terms of end user. This dominance can be attributed to the increasing number of approved products based on peptide therapy, active involvement in innovative therapeutic development and strong focus on strategic initiatives to strengthen their market presence. Furthermore, the segment is set to hold 57.1% share in 2025.

• For instance, in July 2025, Sai Life Sciences opened a new peptide research center in Hyderabad, India to fulfill the growing demand for GLP-1 drugs in the market.

In addition, the CROs & CDMOs segment is projected to grow at a CAGR of 11.62% during the forecast period.

Peptide Synthesis Market Regional Outlook

By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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North America dominated the global market in 2023 with a revenue generation of USD 326.8 million and also took the leading share in 2024 with USD 344.7 million. This dominance is driven by advanced pharmaceutical R&D, strong CMO presence, and high therapeutic peptide adoption in the region. In 2025, the U.S. market is estimated to reach USD 335.7 million.  The biopharmaceutical companies in the U.S are actively involved in strategic collaborations and new offerings, in turn supporting the country’s market growth.

• For instance, in September 2024, Cambrex Corporation announced new liquid-phase peptide synthesis (LPPS) technology for peptide synthesis.

On the other hand, markets in the Europe and Asia Pacific regions are projected to grow at a notable rate in the near future. During the forecast period, the European region is anticipated to grow at a CAGR of 8.72%, which is the second largest region amongst all the regions and touch the valuation of USD 160.1 million in 2025. This is driven by increasing adoption of peptide-based therapies along with increasing R&D investments by the operating players. Backed by these factors, countries including Germany anticipate to reach the value of USD 33.5 million, U.K. to record USD 30.7 million, and France to record USD 24.1 million in 2025. After Europe, the market in Asia Pacific is valued to reach USD 140.4 million in 2025 and secure the position of third-largest region in the market. In the region, India and China both are estimated to reach USD 27.0 million and USD 45.6 million respectively in 2025.

Furthermore, Latin America and the Middle East & Africa regions would grow at a slower pace over the forecast years. The Latin America market in 2025 is set to record USD 35.0 million as its valuation. Increasing R&D associated with peptide based therapy is anticipated to drive the adoption of these products and services in these regions in the near future. In the Middle East & Africa, GCC is set to attain the value of USD 18.4 million in 2025.

COMPETITIVE LANDSCAPE

Key Industry Players

Advanced Synthesis Platforms Coupled With Strong CDMO Capabilities Strengthened Market Dominance of Key Players

The global market shows a semi-consolidated structure with the presence of leading product and service providers. Companies such as Thermo Fisher Scientific Inc., Merck KGaA, Danaher, and Bachem AG, are among the prominent entities in the global market. Their robust peptide manufacturing capacity, advanced synthesis technologies, and global customer base have supported their market dominance.

The other prominent players include GenScript, Bachem AG, PolyPeptide Group, and Danaher, among others. These companies are also expanding reagent portfolios and automation platforms to improve synthesis efficiency and purity outcomes.

• For instance, in June 2024, PolyPeptide Group partnered with a leading biotechnology company to develop long-acting peptide APIs, enhancing its hybrid SPPS-LPPS process capabilities.

LIST OF KEY PEPTIDE SYNTHESIS COMPANIES PROFILED

• Agilent Technologies Inc. (U.S.)
• Thermo Fisher Scientific Inc. (U.S.)
• Merck KGaA (Germany)
• GenScript (U.S.)
• Bachem AG (Switzerland)
• Waters Corporation (U.S.)
• Danaher (U.S.)
• PolyPeptide Group (Switzerland)
• Bio-Synthesis Inc. (U.S.)
• CordenPharma (U.S.)

KEY INDUSTRY DEVELOPMENTS

• May 2025: PeptiSystems signed partnership agreement with Asahi Kasei Bioprocess America (AKBA) for peptide synthesis. This partnership combines AKBA's high-performance column technology and PeptiSystems' flow-through instrument platform.
• January 2025: StrainChem, a French and EUROAPI signed collaboration agreement for Liquid Phase Peptide Synthesis (SLiPPS) proprietary technology.
• January 2025: Cytovance Biologics partnered with PolyPeptide for the development and manufacturing of Mammalian-and Microbial Expressed Peptide Drugs.
• May 2024: Donaldson Company, Inc. and PolyPeptide Group AG announced their collaboration to develop a solvent recovery system for peptide purification.
• March 2023: Bachem Group signed a new framework agreement for the development and supply of peptides.

REPORT COVERAGE

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Report Scope & Segmentation