Live Cell Encapsulation Outlook (2023 to 2033)

The global live cell encapsulation market is expected to record a CAGR of 3.97% from 2023 to 2033. In 2023, the market size is projected to reach a valuation of USD 219.06 million. By 2033, the valuation is likely to be worth USD 323.33 million.

Target-specific therapies and increased awareness of their potential benefits are the key reason for market growth. As a result, there has been a surge in investments from both public and private partnerships to support this technology.

Following are the Market’s Growth Drivers:

Increasing Demand for Regenerative Medicine:

Regenerative medicine is an emerging field that aims to restore the normal function of damaged or diseased tissues and organs. Live cell encapsulation plays a crucial role in regenerative medicine. As it enables the delivery of live cells to targeted sites, where they can regenerate damaged tissues. The increasing growth of the regenerative medicine market is driving the demand for live cell encapsulation technology.

Growing Investments in Research and Development:

Governments and private organizations are investing heavily in research and development activities. The aim behind the investment is to improve the efficacy and safety of live cell encapsulation. These investments are expected to fuel the growth of the market in the coming years.

Technological Advancements:

The development of new technologies has enabled the production of more efficient and effective live cell encapsulation systems. For instance, the use of microfluidics and 3D printing has improved the precision and scalability of live cell encapsulation, making it more commercially viable.

Rising Prevalence of Chronic Diseases:

Chronic diseases such as diabetes, Parkinson's disease, and cancer are on the rise globally. Live cell encapsulation has emerged as a promising therapy for these conditions. As it can deliver live cells to targeted sites and promote tissue regeneration. The increasing prevalence of chronic diseases is expected to drive the demand for live cell encapsulation in the coming years.

Increasing Awareness about the Benefits of Live Cell Encapsulation:

As more research is conducted on live cell therapy and its potential applications, healthcare providers and patients are increasingly aware of its benefits.

Attributes Value
Live Cell Encapsulation Value (2022) USD 210.7 million
Live Cell Encapsulation Market Expected Value (2023) USD 219.06 million
Live Cell Encapsulation Market Forecast Value (2033) USD 323.33 million
Live Cell Encapsulation Market Expected CAGR (2023 to 2033) 3.97%

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Live Cell Encapsulation Market has seen Several Mergers and Acquisitions in Recent Years, which had led to Significant Impacts on the Market

Sernova Corp. Acquired Cell Pouch System:

In 2020, Sernova Corp., a clinical-stage company acquired the Cell Pouch System from a private firm, Sanwa Kagaku Kenkyusho Co. Ltd. This acquisition has enabled Sernova Corp. to expand its regenerative medicine product pipeline by integrating the Cell Pouch System, which is a live-cell encapsulation device.

Living Cell Technologies Limited Merged with Viacyte:

In 2019, Living Cell Technologies Limited, a biotechnology company that develops encapsulated cell therapies, merged with Viacyte. The company is focused on developing regenerative therapies for diabetes. This merger enabled the combined entity to expand its product portfolio and accelerate the development of encapsulated cell therapies for diabetes.

Evotec SE acquired Just Biotherapeutics:

In 2019, Evotec SE, a German drug discovery and development company, acquired Just Biotherapeutics. A company specializing in the development of engineered proteins for therapeutic use. This acquisition enabled Evotec SE to integrate Just Biotherapeutics' technology. This includes its live-cell encapsulation platform in its product portfolio and enhances its capabilities in the field of regenerative medicine.

These mergers and acquisitions have allowed companies to expand their product portfolios. Moreover, it leverages complementary technologies and strengthens its position in the live cell encapsulation market.

Considering the Live Cell Encapsulation Market's Anticipated Growth, Several Factors might impede that Growth

  • High Costs: Live cell encapsulation technology is a complex and expensive process that involves the use of specialized equipment and materials. As a result, the cost of live cell encapsulation products and therapies is often high, which may limit their adoption, particularly in developing countries.
  • Regulatory Challenges: Live cell encapsulation technology involves the use of live cells, which are subject to strict regulatory requirements. Obtaining regulatory approvals for live cell encapsulation products and therapies can be time-consuming and costly, which may impede the growth of the market.
  • Limited Availability of Skilled Professionals: Live cell encapsulation technology requires specialized skills and knowledge. Although, the limited availability of skilled professionals may hinder the adoption and growth of live cell encapsulation products and therapies.
  • Ethical and Safety Concerns: Live cell encapsulation technology involves the use of live cells, which raises ethical and safety concerns. For instance, there is a risk of immune rejection or transmission of infections from donor cells. These concerns may limit the adoption of live cell encapsulation products and therapies.
  • Lack of Reimbursement Policies: Many health insurance policies do not cover live cell encapsulation products and therapies. This may limit their adoption, particularly in regions where out-of-pocket expenses are high.

Overall, these factors may restrain the growth of the live cell encapsulation market. On that account, companies operating in this market might need to address these challenges to succeed.

Sabyasachi Ghosh
Sabyasachi Ghosh

Principal Consultant

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Segmentation - Method Insights

The Microencapsulation Market

The microencapsulation segment accounted for a significant market share of 64.17% in 2023. This technique involves the formulation of a bioactive substance into a particle size of 1 to 1000 μm in diameter.

Microencapsulation has several applications in therapeutic delivery for the treatment of various diseases, such as cancer, tuberculosis, diabetes, rheumatoid arthritis, and respiratory tract infection. For example, microencapsulated islets of Langerhans can be implanted in the body for long-term treatment of diabetes or other diseases that require organ transplantation.

The Nanoencapsulation Market

The growth of the microencapsulation segment is primarily driven by its therapeutic applications. On the other hand, the nanoencapsulation segment is projected to expand at a significant CAGR during the forecast period.

Nanoencapsulation technology is widely used in the development of drug delivery systems. The delivery of encapsulated diagnostic/therapeutic agents depends on the size of the nanoparticle. Therefore, the use of nanoencapsulation technology is considered crucial in designing effective drug delivery systems, which is expected to drive segment growth.

Application Insights

The Drug Delivery Market

In 2023, the drug delivery segment is expected to account for a significant revenue share of 44.60%.

The use of live cell encapsulation technology in the manufacturing of capsules, tablets, and parenteral dosage forms is crucial for effective drug delivery. Controlled drug delivery has enormous potential in diseases with progressive deterioration.

Live cell encapsulation provides advantages such as enhanced therapeutic effects, reduced drug dosage, lowered cytotoxicity, improved patient convenience, and compliance, which are driving the growth of this segment. Besides, the regenerative medicine segment is anticipated to record a rapid CAGR over the forecast period.

Regenerative Medicine Market

Regenerative medicine is an emerging field that uses stem cells as a cell-based therapy to regenerate or restore damaged tissues or organs. Stem cell encapsulation can provide various advantages in regenerative medicine, including improved cell viability, proliferation, and differentiation.

To support regenerative medicine, many industry players are implementing various strategies. For example, Invetech plans to deliver three GMP encapsulation devices in 2023 to support TreeFrog's in-house and partnered cell therapy programs in regenerative medicine and immuno-oncology. These types of initiatives are expected to drive the growth of the regenerative medicine segment during the forecast period.

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Regional - Insights

North America: The Live Cell Encapsulation Market

North America is expected to dominate the live cell encapsulation market, holding a market share of 36.72% in 2023. The region's significant market share can be attributed to several factors including:

  • Increased funding for private companies
  • Favorable regulations
  • Government assistance

North America's focus on research in the area of drug discovery is also contributing to the growth of the industry. The region is home to many innovators and key operating players, resulting in higher penetration of live cell encapsulation products and therapies. For example, ViaCyte, Inc. recently announced the initiation of phase 2 clinical study of encapsulated cell therapy. The clinical study is initiated to treat type 1 diabetes patients, highlighting the region's focus on innovation and advancing the field.

Additional Growth Factors Contributing to the Increasing Investment in North America:

A Rise in Chronic Diseases:

The high incidence of chronic diseases, such as diabetes, cancer, and cardiovascular diseases in North America. This is creating a strong demand for regenerative medicine and cell-based therapies, including live cell encapsulation. This trend is expected to fuel significant growth in the live cell encapsulation market in the region. As healthcare providers seek innovative solutions to address the increasing burden of chronic diseases.

Favorable Regulatory Environment:

North America has a favorable regulatory environment for regenerative medicine and cell-based therapies. This has encouraged the development and commercialization of live cell encapsulation products and therapies. The streamlined regulatory pathway is expected to drive the growth of the market in North America.

Growth Factors in Europe Include:

Increasing Awareness about Personalized Medicine:

The concept of personalized medicine is gaining traction in Europe, which is driving the demand for cell-based therapies. Live cell encapsulation allows for the customization of therapy based on the patient’s individual needs.

Growing Demand for Organ Transplantation:

The shortage of organs for transplantation is a crucial challenge in Europe. Live cell encapsulation offers a potential solution to this problem, as it enables the production of artificial organs and tissues.

Crucial Factors Driving the Growth of the Market in Asia Pacific:

Asia Pacific: The Live Cell Encapsulation Market

The live cell encapsulation market in Asia Pacific is expected to record a significant CAGR over the forecast period. This growth can be attributed to the advancements in the biotechnology and pharmaceutical industries in emerging economies, particularly in India and China. The continuous government support for developing the pharmaceutical sector in these countries is also contributing to the region's profitable expansion.

Growing Aging Population

The aging population in the Asia Pacific region is increasing rapidly, which is driving the demand for healthcare services. Live cell encapsulation is an effective approach for the treatment of age-related diseases such as Parkinson’s and Alzheimer’s disease. This in turn is driving the demand for this technology in the region.

Increasing Government Support

Governments in the Asia Pacific region are providing support for the development of the biotechnology sector, which includes live cell encapsulation. This is creating opportunities for companies in the region to develop and commercialize new products and technologies in this field.

Key Companies & Market Share Insights

The global live cell encapsulation market is witnessing rapid growth, thanks to the strategic initiatives being implemented by key players in the industry. BIO INX, a manufacturing company recently launched innovative and biocompatible high-resolution bioink HYDROBIO INX for live cell encapsulation. Notable companies operating in this market include:

  • AUSTRIANOVA
  • Merck KGaA
  • Sphere Fluidics Ltd.
  • ViaCyte, Inc.
  • Blacktrace Holdings Ltd. (Dolomite Microfluidics)
  • BIO INX
  • Living Cell Technologies Ltd.
  • Sigilon Therapeutics, Inc.
  • Isogen
  • Diatranz Otsuka Ltd.

Live Cell Encapsulation Industry Report Scope

Attribute Details
Forecast Period 2023 to 2033
Historical Data Available for 2018 to 2022
Market Analysis USD million for Value
Key Regions Covered Polymer Type; Application; Method; RegionNorth America; Latin America; Europe; East Asia; South Asia & Pacific; The Middle East & Africa (MEA)
Key Countries Covered United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, China, Japan, South Korea, India, Indonesia, Malaysia, Singapore, Australia, New Zealand, Türkiye, South Africa, GCC Countries
Key Market Segments Covered Polymer Type, Application, Method, Region
Key Companies Profiled AUSTRIANOVA; Merck KGaA; Sphere Fluidics Ltd.; ViaCyte, Inc.; Blacktrace Holdings Ltd. (Dolomite Microfluidics); BIO INX; Living Cell Technologies Ltd.; Sigilon Therapeutics, Inc.; Isogen; Diatranz Otsuka Ltd.
Pricing Available upon Request

Key Segments of Live Cell Encapsulation Industry Survey

Live Cell Encapsulation as a Polymer Type:

  • Live Cell Encapsulation as Natural Polymers
    • Alginate
    • Chitosan
    • Cellulose
    • Others
  • Live Cell Encapsulation as Synthetic Polymers

Live Cell Encapsulation as a Method:

  • Microencapsulation
  • Macroencapsulation
  • Nanoencapsulation

Live Cell Encapsulation as an Application:

  • Drug Delivery
  • Regenerative Medicine
  • Cell Transplantation
  • Others

Live Cell Encapsulation Market by Region:

  • Live Cell Encapsulation in North America Market
  • Live Cell Encapsulation in Latin America Market
  • Live Cell Encapsulation in Europe Market
  • Live Cell Encapsulation in East Asia Market
  • Live Cell Encapsulation in South Asia & Pacific Market
  • Live Cell Encapsulation in the Middle East & Africa Market (MEA)

Frequently Asked Questions

Which Application holds Lucrative Opportunities?

Drug delivery holds high revenue potential.

Which Countries Dominate the Global Market?

The United States, Canada, and China is estimated to dominate the global market.

What is the Growth Forecast for Live Cell Encapsulation Market?

The market is forecast to register a CAGR of 3.97% through 2033.

How is the Historical Performance of the Market?

During 2018 to 2022, the market registered a CAGR of 3.97%.

Which is the Top Trend in the Live Cell Encapsulation Market?

Rising frequent chronic diseases are the current market trends.

Table of Content
	1. Executive Summary
	2. Market Overview
	3. Market Background
	4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
	5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Polymer Type
		5.1. Natural Polymers
		5.2. Synthetic Polymers
	6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Method
		6.1. Microencapsulation
		6.2. Macroencapsulation
		6.3. Nanoencapsulation
	7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
		7.1. Drug Delivery
		7.2. Regenerative Medicine
		7.3. Cell Transplantation
		7.4. Other Applications
	8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
		8.1. North America
		8.2. Latin America
		8.3. Europe
		8.4. South Asia
		8.5. East Asia
		8.6. Oceania
		8.7. MEA
	9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	14. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	16. Key Countries Market Analysis
	17. Market Structure Analysis
	18. Competition Analysis
		18.1. AUSTRIANOVA
		18.2. Merck KGaA
		18.3. Sphere Fluidics Ltd.
		18.4. ViaCyte, Inc.
		18.5. Blacktrace Holdings Ltd.
		18.6. BIO INX
		18.7. Living Cell Technologies Ltd.
		18.8. Sigilon Therapeutics, Inc.
		18.9. Isogen
		18.10. Diatranz Otsuka Ltd.
	19. Assumptions & Acronyms Used
	20. Research Methodology
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