Synthetic Biology Reshaping the Bioindustry Landscape: Market Outlook and Investment Opportunities for 2026
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Synthetic biology is emerging as a new growth driver in the bioindustry by 2026. The global synthetic biology market size is expected to grow from $35 billion in 2025 to $45 billion in 2026, a 28.6% increase, with an annual growth rate of over 25% projected until 2030. This significantly surpasses the traditional biotechnology market’s growth rate of 8-12%, drawing attention from investors and the industry. In particular, South Korea has designated synthetic biology as a core area under the government’s ‘K-Bio Belt 2.0’ policy, leading to a rise in stock prices of related companies.
The core of synthetic biology is the technology that programs the DNA of organisms to produce desired substances. This allows for the design and control of biological systems, much like writing computer software. Ginkgo Bioworks, based in Boston, USA, is a leader in this field, recording a 340% increase in revenue to $120 million in Q4 2025 compared to the same period the previous year. This growth is primarily due to increased contracts for developing customized microorganisms with pharmaceutical companies. The company is currently valued at $4.5 billion and plans to establish a local subsidiary in the Netherlands for European expansion in the first half of 2026.
Accelerating Commercialization in Biomanufacturing
The most significant achievements of synthetic biology are evident in the biomanufacturing sector. Amyris, based in California, uses synthetic biology to produce fragrances, cosmetic ingredients, and biofuels, achieving an annual revenue of $850 million in 2025, a 45% increase from the previous year. Notably, the synthetic squalene developed by the company is replacing the traditional method of extraction from shark liver oil, receiving a positive response in the cosmetics industry. The production cost per ton is 60% cheaper than the traditional method, while maintaining more consistent quality, which acts as a competitive advantage.
Novozymes, based in Copenhagen, Denmark, is actively utilizing synthetic biology in enzyme production. The company announced that revenue from synthetic biology-based products accounted for 35% of total sales, amounting to $800 million in 2025. The company is particularly strong in the detergent and biofuel enzyme sectors and is planning to establish a research and development center in Ochang, Chungcheongbuk-do, South Korea, to enter the Asian market. This strategy aims to leverage South Korea’s robust bio infrastructure and government support policies.
South Korean companies are also actively participating in this trend. Samsung Biologics completed the construction of a dedicated synthetic biology production line at its Songdo Plant 4 by the end of 2025, with full-scale operations set to begin in the first half of 2026. This facility can produce 50,000 liters of biopharmaceuticals annually and is expected to reduce production costs by 40% compared to the traditional mammalian cell culture method. The company’s stock price rose by 12% in the week following the announcement, with a current market capitalization of 35 trillion won.
Innovative Changes in the Medical Field
The impact of synthetic biology on the medical field is even more disruptive. Innovations are occurring in various areas, from developing personalized therapeutics to producing orphan drugs. SK Bioscience successfully developed a COVID-19 variant response vaccine using synthetic biology in 2025, reducing production time by 50% compared to existing vaccines. This is significant for rapid response in pandemic situations. The company plans to enter the influenza vaccine market in 2026, aiming for a 5% global market share.
In the U.S. market, the use of synthetic biology in the CAR-T cell therapy sector is rapidly expanding. The approach is shifting from extracting and modifying individual patient cells to mass-producing standardized synthetic immune cells. As a result, treatment costs are expected to drop significantly from $500,000 to $150,000. Market research firm McKinsey predicts that the synthetic biology-based cell therapy market will grow to $18 billion annually by 2030.
Notable achievements are also emerging in the orphan drug sector. Previously, the development of orphan drugs was delayed due to low economic feasibility because of the small number of patients. However, synthetic biology has significantly reduced production costs, leading to commercialization. For example, the production cost of idursulfase, a treatment for Hunter syndrome, was reduced by 70% using synthetic biology, lowering the annual treatment cost from $500,000 to $150,000.
However, challenges remain in the field of synthetic biology. The most significant issue is the uncertainty of the regulatory environment. The U.S. FDA released new guidelines for synthetic biology products at the end of 2025, but many aspects remain unclear. Particularly, GMO (genetically modified organisms) regulations vary by country, posing challenges for global market entry. The European Union applies stricter regulations, resulting in an additional 2-3 years on average for products approved in the U.S. to enter the European market.
Technical limitations also persist. For complex compounds, production using synthetic biology often results in low yields or difficulty in maintaining quality consistency. For example, the yield of paclitaxel, an anticancer drug, produced using synthetic biology remains at 30% of the traditional plant extraction method. To address this, optimization technologies using AI and machine learning are actively being developed, with significant improvements expected in the second half of 2026.
From an investment perspective, the synthetic biology field remains a high-risk, high-reward area. It takes an average of 7-10 years to launch a successful product, with a development failure rate of over 70%. However, the potential returns are very high, attracting the interest of venture capitalists. In 2025, global synthetic biology startups raised a total of $8.5 billion in investment, a 40% increase from the previous year. More than half, $4.5 billion, was concentrated in U.S. companies, with Asia receiving $1.5 billion and Europe $2.5 billion.
The South Korean government is also expanding its investment in this field. In 2026, the government allocated 1.2 trillion won to the synthetic biology sector from its R&D budget, a 60% increase from the previous year. Policies are being pursued to establish synthetic biology research centers at major universities such as KAIST and POSTECH and to support joint research with industry. Thanks to this policy support, South Korea ranked 4th globally in synthetic biology patent applications in 2025, a significant rise from 8th place two years earlier.
From a global supply chain perspective, the importance of synthetic biology is growing. Due to the instability of traditional chemical raw material supply chains caused by the COVID-19 pandemic and the Ukraine war, demand for bio-based alternatives is surging. In particular, the development of synthetic biology-based alternatives is active in the rare earth and chemical intermediate sectors, which had high dependence on China. The U.S. Department of Defense announced the ‘Bio-Manufacturing National Strategy’ at the end of 2025, aiming to replace 30% of key chemicals with bio-based alternatives by 2030. This acknowledges the importance of synthetic biology from a national security perspective.
The growth of the synthetic biology market is expected to continue in 2026. In particular, demand for eco-friendly products such as biofuels and bioplastics is expected to increase significantly in line with carbon neutrality policies. The International Energy Agency (IEA) forecasts that the biofuel market will grow by 25% year-on-year to $120 billion in 2026, with synthetic biology-based products accounting for 40% of this. Additionally, with the growth of the personalized medicine market, demand for customized biopharmaceuticals is expected to increase significantly. Market research firm Grand View Research predicts that the personalized medicine market will grow from $780 billion in 2026 to $1.5 trillion by 2030, with a significant portion expected to be occupied by synthetic biology-based products.
This article is intended for informational purposes only and should not be interpreted as investment advice or recommendations. All investment decisions should be made at one’s own discretion and after consulting with a professional.
