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Chemical Synthesis Peptide Drugs Market to Rise at 6.54% CAGR till 2034

Chemical Synthesis Peptide Drugs Market Insights and Innovations 2025

The chemical synthesis peptide drugs market is valued at US$ 2.74 billion in 2025 and is projected to reach US$ 4.82 billion by 2034, growing at a CAGR of 6.54%. Key segments include synthesis methods (chemical, non-chemical), technologies (SPPS, LPPS, hybrid), product types (reagents, consumables, services), end-users (pharma, CDMOs/CROs), and applications (therapeutics, diagnostics, research). North America leads with 39% revenue, while Asia Pacific is the fastest-growing region. Major players include Takeda, AstraZeneca, BMS, Merck, Amgen, Bachem, and Lonza, with trends in automation, AI-driven synthesis, and green chemistry.

Category: Pharmaceuticals Insight Code: 6361 Format: PDF / PPT / Excel

Chemical Synthesis Peptide Drugs Market Size, Key Players with Growth and Insights

The global chemical synthesis peptide drugs market size is calculated at US$ 2.57 billion in 2024, grew to US$ 2.74 billion in 2025, and is projected to reach around US$ 4.82 billion by 2034. The market is expanding at a CAGR of 6.54% between 2025 and 2034.

Chemical Synthesis Peptide Drugs Market Size 2024 to 2034

In the Asia Pacific, China and India are facing a huge burden of diverse chronic diseases, especially cancers, diabetes, as well as they are encouraging their R&D hubs through government support. The global chemical synthesis peptide drugs market is further bolstering automation in synthesis, green chemistry, with the reduction of solvent use, and is also exploring the application of numerous AI platforms to make a feasible peptide manufacturing process.

Key Takeaways

  • Chemical synthesis peptide drugs sector pushed the market to USD 2.57 billion by 2024.
  • Long-term projections show USD 4.82 billion valuation by 2034.
  • Growth is expected at a steady CAGR of 6.54% in between 2025 to 2034.
  • North America led the chemical synthesis peptide drugs market with approximately 39% revenue share in 2024.
  • Asia Pacific is expected to grow at the fastest CAGR during the forecast period.
  • By synthesis method, the chemical synthesis segment held nearly 85% share of the market in 2024.
  • By synthesis method, the non-chemical synthesis segment is expected to witness rapid expansion in the upcoming years.
  • By synthesis technology, the solid-phase peptide synthesis (SPPS) segment dominated with an approximate 72% share of the market in 2024.
  • By synthesis technology, the hybrid phase peptide synthesis segment is expected to be the fastest-growing during 2025-2034.
  • By product type, the reagents & consumables segment captured nearly 48% revenue share of the chemical synthesis peptide drugs market in 2024.
  • By product type, the services segment is expected to grow rapidly in the predicted timeframe.
  • By end-user, the pharmaceutical & biotechnology companies segment held a major share of approximately 55% of the market in 2024.
  • By end-user, the CDMOs/CROs segment is expected to grow at a rapid CAGR during the forecast period.
  • By application, the therapeutics segment registered dominance with an approximate 70% revenue share of the market in 2024.
  • By application, the diagnostics segment is expected to witness the fastest growth during 2025-2034.

Executive Summary Table

Table Scope
Market Size in 2025 USD 2.74 Billion
Projected Market Size in 2034 USD 4.82 Billion
CAGR (2025 - 2034) 6.54%
Leading Region North America by 39%
Market Segmentation By Synthesis Method, By Synthesis Technology, By Product Type, By End-User, By Application, By Region
Top Key Players Takeda Pharmaceutical Company Limited, AstraZeneca PLC , Bristol-Myers Squibb (BMS), Merck & Co., Inc. (MSD), Amgen Inc., PolyPeptide Group, Bachem AG, Lonza Group Ltd., CordenPharma (part of Novacap/contract pharma group), AmbioPharm Inc., CPC Scientific / Chinese Peptide Company (CPC), ScinoPharm Taiwan Ltd., Peptide Institute, Inc., GenScript Biotech Corporation, JPT Peptide Technologies GmbH.

What are the Chemical Synthesis Peptide Drugs?

Chemical-synthesis peptide drugs are therapeutic molecules made from short chains of amino acids that are produced using chemical (solid-phase or solution-phase) synthesis rather than biological expression systems. Demand is driven by peptides’ selectivity, favorable safety profiles, and expanding indications (endocrinology, metabolic disease, oncology, infectious disease, etc.), while supply is led by specialist CDMOs/peptide manufacturers and large pharma companies that develop or outsource peptide therapeutics. This chemical synthesis peptide drugs market covers the development, GMP manufacture, formulation, and commercial supply of synthetic peptide active pharmaceutical ingredients (APIs) and finished-dose peptide drugs for clinical and commercial use, including modified peptides (e.g., stapled, lipidated, PEGylated), peptide conjugates, and combination products.

Chemical Synthesis Peptide Drugs Market Outlook

  • Global Expansion: The market is impacted by the accelerating metabolic disorders and cancer, wider innovations in synthesis technologies, particularly solid phase peptide synthesis (SPPS), and automation. In February 2025, Bachem started a new large-scale peptide production site in Switzerland.
  •  Major Investors: In May 2025, ProteinQure, a Toronto-based biotechnology firm, secured an $11 million Series A funding round to advance the company's lead AI-created peptide candidate into clinical trials.
  • Startup Ecosystem: Orbis Medicines, a Copenhagen-based startup launched in early 2024 with €26 million in seed funding, and continued its development in 2025, for developing next-generation, orally delivered macrocyclic peptide drugs using its proprietary nGen technology. 
  • Day by day, a rise in demand for diverse kinds of peptides is supporting the well-developed and developing peptide manufacturing companies, to enhance their capabilities with the adoption of advanced technologies.
  • In August 2025, CDMO Cambrex announced that Snapdragon Chemistry, a Cambrex company, expanded its active pharmaceutical ingredient (API) facility in Waltham, Massachusetts, to further assist in the revolutionizing and manufacturing of peptide therapies.
  • In August 2025, Atombeat Inc., a leading force in AI for drug discovery, and BioDuro, a globally trusted Contract Research, Development, and Manufacturing Organization (CRDMO), collaborated on an AI-driven platform for boosted peptide drug discovery.
  • In May 2025, Asahi Kasei Bioprocess America (AKBA) and PeptiSystems entered into an exclusive partnership focused on the delivery of a simplified process to the peptide manufacturing industry.

What are the Major Technological Advances in the Market?

The global chemical synthesis peptide drugs market has been putting wider efforts into leveraging automation and AI solutions, which further enhance reproducibility.  Also, these sophisticated approaches will support designing and optimizing peptide sequences. Nowadays, the leading companies are exploring new chemical methods, coupled with significant techniques, like microwave irradiation, and the progress of novel building blocks (like thiocarbazate-based precursors) is further supporting synthesis.

Segmental Insights

Which Synthesis Method Led the Chemical Synthesis Peptide Drugs Market in 2024?

In 2024, the chemical synthesis segment captured approximately 85% share of the market. Certain catalysts, such as a growing demand for more specific and efficient treatments, technological breakthroughs in automation, and the rising pipeline of peptide therapeutics, are impacting the overall market expansion. Current developments are fostering innovations in the synthesis of longer and more complex peptides and optimizing drug-like properties, particularly oral bioavailability through chemical modifications. 

Besides this, the non-chemical synthesis segment is predicted to expand rapidly. This approach will accelerate with the vital benefits of biochemical and recombinant technologies for specific applications, such as producing biologics, especially insulin, which are also more efficient and scalable. In this era, it is explored by AI-enabled design and DNA/mRNA display technologies for discovery and libraries, with recombinant technology and site-specific modifications, including cyclization for large-scale manufacturing.

How did the Solid-Phase Peptide Synthesis (SPPS) Segment Dominate the Market in 2024?

The solid-phase peptide synthesis (SPPS) segment captured nearly 72% share of the chemical synthesis peptide drugs market in 2024. It has a major advantage, like streamlined purification, which expands the peptide chain remains attached to a solid support, enabling excess reagents and byproducts to be simply washed away. A recent innovation in sustainable ultrasound-assisted SPPS (SUS-SPPS) is used to substantially minimize solvent consumption and wash steps by applying ultrasound.

Whereas the hybrid phase peptide synthesis segment is anticipated to register rapid growth. It mainly combines the advantages of SPPS and LPPS to offer greater effectiveness and enhanced yield, specifically for complex and long-chain peptides. In 2025, the market is leveraging this approach in large-scale production of peptide polymers and polymerization methods to facilitate simple operation and reduced expenses. The widespread adoption of AI solutions is assisting in optimizing synthesis conditions, designing better synthesis routes, and managing automated platforms.

Which Product Type Dominated the Chemical Synthesis Peptide Drugs Market in 2024?

By capturing approximately 48% share, the reagents & consumables segment led the market in 2024. Primarily, it encompasses resins, amino acids, coupling reagents, and solvents, which are important for both small-scale research and large-scale manufacturing. Eventually, the market is shifting towards green solvents, like 2-methyltetrahydrofuran (2-MeTHF) and ethyl acetate. In the synthesis of cyclic peptides, specific reagents for on-resin or off-resin cyclization are required, which encourages the use of PyBOP/DIEA and pentafluorophenyl esters (FDPP).

Moreover, the services segment is estimated to register the fastest expansion. The contribution of peptide synthesis, purification, analysis, and library creation is supporting the overall market growth. Companies are implementing custom peptide synthesis services that create specific peptide sequences based on a client's needs, such as alterations and various scales from milligram to multi-gram quantities. Alongside, they are using automation, robotic solutions, hybrid synthesis, and an expanded emphasis on complex peptides.

Why did the Pharmaceutical & Biotechnology Companies Segment Lead the Market in 2024?

The pharmaceutical & biotechnology companies segment dominated with nearly 55% of the chemical synthesis peptide drugs market in 2024. Globally rising focus on custom peptides for research, diagnostics, and therapeutic applications, with companies facilitating combined solutions from design to commercial production. Additionally, they are transforming non-natural amino acids and lipidation for improved properties, employing automated and microwave-assisted synthesis for speed and scalability, and aligning continuous purification with techniques, such as MCSGP, to ensure high purity.

Eventually, the CDMOs/CROs segment will expand rapidly in the coming era. A rise in demand for complex APIs, especially for metabolic diseases, such as diabetes and obesity, and advancements in synthesis technologies are impacting the outsourcing of services. CDMOs are increasingly using automated, microwave-assisted SPPS to drastically escalate coupling reactions, lowering cycle times from hours to minutes. Also, the implementation of solvent recovery systems and the replacement of harmful solvents in both synthesis and purification steps are required to meet environmental mandates.

What Made the Therapeutics Segment Dominant in the Market in 2024?

In 2024, the therapeutics segment held nearly 70% revenue share of the chemical synthesis peptide drugs market. The increasing cases of various concerns, such as diabetes, obesity, cancer, and cardiovascular disorders, are fueling demand for efficient, targeted peptide-based treatments. Currently, the market has raised focus on stability, delivery, and manufacturing through techniques, including chemical modification (e.g., PEGylation, D-amino acid substitution), sophisticated delivery systems, and more sustainable synthesis methods. According to NCBI, there will be a rise to 643 million (11.3%) by 2030 and to 783 million (12.2%) by 2045 in the number of diabetes patients.

However, the diagnostics segment is estimated to expand rapidly. Specifically, numerous peptides are employed in advanced diagnostics as biomarkers, biosensors, and imaging agents with their greater specificity and affinity for disease-associated targets. Ongoing advances in lipidation, PEGylation, and glycosylation are bolstering peptide solubility, extending their circulation time in the body, and optimizing how they are delivered to target sites for diagnostic imaging. Whereas, synthetic peptides are utilized as antigens for developing highly sensitive and specific immunoassays, which fuel the detection of antibodies or biomarkers.

Regional Insights

Chemical Synthesis Peptide Drugs Market Share, By Region, 2024 (%)

Why did North America Dominate the Market in 2024?

North America’s chemical synthesis peptide drugs market captured an approximate 39% revenue share in 2024. The growing cases of chronic diseases, mainly cancer and diabetes, and developments in peptide therapeutics with high specificity and low toxicity are driving the regional market expansion. Also, this region possesses major key players, such as AmbioPharm, a full-service peptide manufacturer, and large pharmaceutical players, including Merck, Amgen, and Eli Lilly, who are increasingly investing in peptide R&D.

Enhancement in Synthesis Technologies: US Market Trend

Primarily, the major expansion of the US market is driven by the ongoing pipeline of peptide drugs in development, developments in peptide therapeutics & synthesis technologies. They are widely adopting high-throughput automation, such as diverse automated synthesizers, which are highly sophisticated and enable the faster, simultaneous synthesis of multiple peptides in parallel.

For instance,

  • In January 2025, Cytovance Biologics and PolyPeptide partnered to integrate Cytovance’s expertise in microbial and mammalian expression, process development, and cGMP manufacturing with PolyPeptide’s capabilities in complex peptide development and manufacturing.

Expanded Focus on Cyclic Peptides: Canadian Market Trends

The chemical synthesis peptide drugs market in Canada is mainly fueled by a robust, supportive ecosystem and the increasing demand for innovative treatments for chronic and complex diseases. Alongside, regional researchers are working on the development of constrained and cyclic peptides, with accelerated stability against enzymatic degradation and optimized target selectivity.

A Surge in Outsourcing Peptide Manufacturing is Driving the Asia Pacific

In the coming era, the Asia Pacific is anticipated to expand at a rapid CAGR. This region is experiencing a huge burden of several chronic conditions, like cancer, diabetes, and cardiovascular disorders, which are propelling the demand for peptide-based drugs in the region. Along with this, a rise in affordable and regional demand is fostering ASAP pharmaceutical companies to widen their outsourcing peptide production to ASAP CDMOs.

Number of Diabetic Patients in Major Countries of ASAP: 2021 Vs 2045 (Source- NCBI)

Country Name 2021 (In millions) 2045 (In millions) 
China 140.9 174.4
India 74.2  124.9

Encouragement of Automated Facilities: China Market Trend

China’s chemical synthesis peptide drugs market is increasingly stepping into automation to boost effectiveness and lower errors. A fully automated, kilogram-scale SPPS lab, like BioDuro, is created for the large-scale manufacturing of numerous peptides, such as cyclic peptides and peptide-drug conjugates (PDCs). Additionally, they are bolstering digital systems for operations and automated solvent delivery.

Transformations in Precision Medicine and R&D Hubs: Indian Market Trend

In ASAP, India is also facing a wider growth in chronic disease cases, which are further boosting demand for personalized medicine. For this, peptide therapeutics are highly suitable with their greater specificity, which allows targeting specific molecules. Moreover, India comprises strong R&D facilities, mainly in Bangalore & Hyderabad, which are greatly involved in the development of complex peptides and managing lab-scale synthesis.

For instance,

  • In April 2025, Sai Life Sciences Limited, an innovator-focused CRDMO, initiated a devoted Peptide Research Center at its integrated R&D Campus in Hyderabad, India.

Leveraging Innovations in Peptide Synthesis is Driving Europe

Europe’s chemical synthesis peptide drugs market is experiencing significant growth due to rising emphasis on novel synthetic methods, like the use of AI in designing peptides and expanding delivery technologies for better bioavailability. They are implementing these innovations in the treatment of metabolic diseases, cancer, and neurodegenerative disorders, with the application of chemical modifications and promoting new delivery platforms.

For instance,

  • In March 2025, CordenPharma made a >€1 billion strategic investment in peptide development and manufacturing. 

A rise in Focus on Complex & Modified Peptides: German Market Trend

The lucrative expansion of the German market is emphasizing the establishment of peptides with specialized modifications, which consist of unusual amino acids, labels, and peptide conjugates. JPT Peptide Technologies in Berlin has a crucial role in excellent modified peptides, peptide libraries, and microarrays for research and clinical applications. Also, they are focusing on developing innovations in peptide therapeutics.

For instance,

  • In August 2025, BioMed X, an independent biomedical research institute based in Heidelberg, Germany, collaborated with Novo Nordisk to highlight a robust oral delivery of therapeutic peptides.

The Market Value Chain Analysis

R&D

The chemical synthesis peptide drugs market is exploring the discovery and design, subsequently synthesis (including protection, coupling, and purification), and finally, structural modification and activity evaluation.

Key Players: Aragen Life Sciences, Bachem, GenScript Biotech Corporation, etc.

Clinical Trials and Regulatory Approval

After the successful phases of clinical trials for the study of efficacy, toxicity, potency, and adverse effects, applications follow the approval process of both the FDA and EMA.

Key Players: Cardiff University, Instituto de Medicina Regenerativa, Egymedicalpedia, etc.

Patient Support & Services

Companies are facilitating different financial assistance, programs, and educational programs, whereas healthcare providers are supporting weight management in diabetic patients.

Key Players: Eli Lilly, Novartis, Merck & Co., etc.

Key Companies and Their contributions and offerings

  • Novo Nordisk A/S- In September 2025, Novo Nordisk presented a paper introducing PepFuNN, an open-source Python package for in-silico analysis of peptides.
  • Eli Lilly and Company- In October 2025, it announced positive Phase 3 results for its oral peptide, orforglipron.
  • Sanofi S.A.- In July 2025, it fostered 82 clinical-stage projects, with wider emphasis on immunology and neurology, areas where peptide therapies are highly relevant.
  • Pfizer Inc – In September 2025, it was focused on the cardiometabolic space, especially through its acquisition of Metsera.
  • Novartis International AG- In May 2024, it accelerated its peptide discovery collaboration with Japanese biotech company PeptiDream.

Top Companies in the Market

  • Takeda Pharmaceutical Company Limited
  • AstraZeneca PLC 
  • Bristol-Myers Squibb (BMS)
  • Merck & Co., Inc. (MSD)
  • Amgen Inc.
  • PolyPeptide Group
  • Bachem AG
  • Lonza Group Ltd.
  • CordenPharma (part of Novacap/contract pharma group)
  • AmbioPharm Inc.
  • CPC Scientific / Chinese Peptide Company (CPC)
  • ScinoPharm Taiwan Ltd.
  • Peptide Institute, Inc.
  • GenScript Biotech Corporation
  • JPT Peptide Technologies GmbH.

Significant Developments in the Chemical Synthesis Peptide Drugs Market

  • In October 2025, Avacta unveiled data on the first dual-payload peptide drug conjugate at an international cancer conference.
  • In June 2024, Vapourtec launched the Peptide-ExplorerLT with a focus on exploring and optimizing linear peptide synthesis.

Segments Covered in the Report

By Synthesis Method

  • Chemical Synthesis
  • Solid-Phase Peptide Synthesis (SPPS) 
  • Liquid-Phase Peptide Synthesis (LPPS)
  • Hybrid Phase Synthesis
  • Non-Chemical Synthesis
  • Recombinant DNA Technology
  • Group-Assisted Purification Peptide Synthesis (GAP-PS)

By Synthesis Technology

  • Solid-Phase Peptide Synthesis (SPPS)
  • Liquid-Phase Peptide Synthesis (LPPS)
  • Hybrid Phase Peptide Synthesis

By Product Type

  • Reagents & Consumables
  • Amino Acids
  • Coupling Reagents
  • Equipment
  • Peptide Synthesizers
  • Automated Synthesizers
  • Services
  • Custom Peptide Synthesis
  • Analytical Services 

By End-User

  • Pharmaceutical & Biotechnology Companies
  • Pharmaceutical Companies
  • Biotechnology Startups
  • CDMOs/CROs
  • Large CDMOs
  • Mid-Sized CROs

By Application

  • Therapeutics
    • Cancer Therapeutics
    • Diabetes Treatments
  • Diagnostics
    • Infectious Disease Diagnostics
    • Cancer Biomarker Detection
  • Research
    • Neuroscience Research
    • Immunology Studies

By Region

  • North America
    • U.S.
    • Canada
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
FAQ's

The chemical synthesis peptide drugs market is worth USD 2.74 billion in 2025, and by 2034, it is forecasted to hit USD 4.82 billion, registering a CAGR of 6.54% over the decade.

North America is currently leading the chemical synthesis peptide drugs market share by 39% due to the increasing cases of chronic diseases and the development of peptide therapeutics.

The chemical synthesis peptide drugs market includes 6 segments such as by synthesis method, by synthesis technology, by product type, by end-user, by application, and by region.

Key trends include the rising demand for automated synthesis, growth in digital platforms, and innovations in green chemistry.

They offer customization, drug development approaches, and improved properties.

NIH, US FDA, EMA, CDC, ClinicalTrials.gov, USP, MedlinePlus.gov.

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Meet the Team

Rohan Patil is a seasoned market research professional with over 5+ years of focused experience in the healthcare sector, bringing deep domain expertise, strategic foresight, and analytical precision to every project he undertakes.

Learn more about Rohan Patil

Aditi Shivarkar is a seasoned professional with over 14 years of experience in healthcare market research. As a content reviewer, Aditi ensures the quality and accuracy of all market insights and data presented by the research team.

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