Targeted Protein Degradation Market

Market Definition

The market focuses on technologies designed to selectively degrade disease-causing proteins, offering a new therapeutic approach beyond traditional inhibition. It covers modalities such as PROTACs (Proteolysis Targeting Chimeras), molecular glues, LYTACs (Lysosome Targeting Chimeras), and other emerging mechanisms leveragign the cell's natural degradation systems.

The report examines critical driving factors, industry trends, regional developments, and regulatory frameworks impacting market growth through the projection period.

Targeted Protein Degradation Market Overview

The global targeted protein degradation market size was valued at USD 447.9 million in 2023 and is projected to grow from USD 532.8 million in 2024 to USD 1808.3 million by 2031, exhibiting a CAGR of 19.07% during the forecast period.

This growth is fueled by the rising prevalence of chronic diseases, increasing investments in R&D, and advancements in protein degradation technologies. Companies are focusing on the discovery of novel degraders that can address previously undruggable targets, thereby expanding applications in cancer, neurodegenerative diseases, and immunological disorders.

Major companies operating in the targeted protein degradation industry are Hybrigenics Services, Foghorn Therapeutics, LifeSensors Inc., Thermo Fisher Scientific Inc., C4 Therapeutics, Inc., Evotec SE, Proxygen, Arvinas, Merck KGaA, Nurix Therapeutics, Inc., Bayer AG, Kymera Therapeutics, Inc., Bio-Techne, Zymeworks, and Ambagon.

Moreover, the market is benefiting from growing collaboration between biotech companies, pharmaceutical firms, and academic institutions. Strategic partnerships are enabling the development of new therapies, accelerating the translation of TPD research into clinical applications.

Additionally, advancements in artificial intelligence and machine learning are enhancing the drug discovery process, enabling faster identification of potential targets for degradation.

• In October 2024, Biogen Inc. and Neomorph Inc. formed a research collaboration to develop molecular glue degraders targeting Alzheimer’s, rare neurological, and immunological diseases. This collaboration combines Neomorph's molecular glue discovery platform with Biogen’s drug development expertise to create innovative therapies for complex diseases.

Key Highlights:

1. The targeted protein degradation industry size was recorded at USD 447.9 million in 2023.
2. The market is projected to grow at a CAGR of 19.07% from 2024 to 2031.
3. North America held a market share of 33.24% in 2023, with a valuation of USD 148.9 million.
4. The molecular glues segment garnered USD 159.1 million in revenue in 2023.
5. The drug discovery segment is expected to reach USD 1113.0 million by 2031.
6. The pharmaceutical & biotechnology companies segment is projected to generate a revenue for USD 642.9 million by 2031.
7. Asia Pacific is anticipated to grow at a CAGR of 20.18% over the forecast period.

Market Driver

"Growing Prevalence of Chronic Diseases"

A major factor propelling the expansion of the targeted protein degradation market is the growing prevalence of chronic diseases. The rising global incidence of chronic conditions such as cancer, cardiovascular diseases, and diabetes is boosting demand for more effective therapeutic approaches.

Traditional treatments often show limited efficacy, creating significant opportunities for innovative approaches such as targeted protein degradation.  These therapies, which focus on eliminating disease-causing proteins, offer a more precise and effective method of managing these conditions, propelling market expansion.

• As of February 2024, the Centers for Disease Control and Prevention (CDC) reported that approximately 129 million individuals in the U.S were living with at least one major chronic disease, such as heart disease, cancer, diabetes, obesity, or hypertension. These conditions are linked to five of the ten leading causes of death nationwide.

Market Challenge

"Extended Timelines of Clinical Development"

A significant challenge influencing the targeted protein degradation market is the high cost and extended timelines of clinical development. These therapies often require extensive preclinical studies, specialized assays, and customized clinical trial designs, which increase financial risk and delay commercialization.

This makes it difficult for smaller companies to sustain development and for investors to commit long-term capital. This challenge can be addressed through the formation of strategic partnerships and public-private collaborations. These alliances can help share development costs, pool expertise, and accelerate the transition from early-stage research to market-ready therapies.

Market Trend

"Integration of AI in Drug Development"

The key trend in the targeted protein degradation market is the integration of AI in drug development. Companies are increasingly adopting artificial intelligence to streamline and enhance drug development processes.

AI technologies enable more accurate predictions of protein interactions, faster identification of potential drug candidates, and improved optimization of therapeutic strategies.

By integrating AI, pharmaceutical companies can expedite the discovery of effective protein degraders, reduce time-to-market, and increase the success rate of clinical trials. This trend is fostering innovation in the field, particularly in the development of more precise and personalized treatments.

• In February 2025, the Institut Pasteur and Argobio launched Enodia Therapeutics, a French biotech company developing treatments for cancer, inflammatory diseases, and viral infections by targeting and degrading disease-causing proteins. The company uses generative AI to design selective inhibitors of the Sec61/translocon molecular complex.

Targeted Protein Degradation Market Report Snapshot

Segmentation	Details
By Type	PROTAC, Molecular Glues, LYTACs, Others
By Application	Drug Discovery, Therapy Development
By End Use	Pharmaceutical & Biotechnology Companies, Academic & Research Institutes, Hospital & Clinical Laboratories, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (PROTAC, Molecular Glues, LYTACs, and Others): The molecular glues segment earned USD 159.1 million in 2023 due to their ability to target previously undruggable proteins using simplified chemical structures.
• By Application (Drug Discovery and Therapy Development): The drug discovery held a share of 62.15% in 2023, propelled by increased investment in early-stage research and the adoption of TPD technologies in preclinical pipelines.
• By End Use (Pharmaceutical & Biotechnology Companies, Academic & Research Institutes, Hospital & Clinical Laboratories, and Others): The pharmaceutical & biotechnology companies segment is projected to reach USD 642.9 million by 2031, fostered by strategic collaborations and a growing pipeline of TPD-based therapeutics.

Targeted Protein Degradation Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America targeted protein degradation market share stood at around 33.24% in 2023, valued at USD 148.9 million. The regional market benefits from well-established research institutions and high adoption of advanced therapeutic platforms.

Regulatory bodies such as the FDA provide structured approval pathways that facilitate the clinical translation and commercialization of novel TPD therapies. Regional market growth is further supported by a robust pipeline of investigational drugs, rising demand for precision medicine, and sustained academia–industry collaborations.

• In February 2024, Arvinas, Inc. and Pfizer Inc. received Fast Track designation from the U.S. FDA for vepdegestrant (ARV-471) as a monotherapy for adults with ER+/HER2- locally advanced or metastatic breast cancer previously treated with endocrine-based therapy. Vepdegestrant is an investigational oral PROTAC protein degrader targeting the estrogen receptor, jointly developed to accelerate treatment options in hormone-driven cancers.

Asia Pacific targeted protein degradation industry is poised to grow at staggering CAGR of 20.18% over the forecast period. This growth is fueled by increased healthcare spending, a surge in biotechnology startups, and proactive government initiatives aimed at promoting biopharmaceutical innovation. Countries such as China, Japan, and South Korea are strengthening their infrastructure for drug discovery and clinical research.

Academic institutions in the region are playing a major role in protein degradation studies, supported by cross-border partnerships and a rising number of clinical trials. Expanding access to healthcare and increasing awareness of next-generation therapies are further contributing to regional market expansion.  

Regulatory Frameworks

• In the U.S, the development and approval of targeted protein degradation therapies fall under the oversight of the Food and Drug Administration (FDA). These therapies are regulated as new molecular entities through the Center for Drug Evaluation and Research (CDER). Developers must submit an Investigational New Drug (IND) application before initiating human clinical trials, followed by a New Drug Application (NDA) or Biologics License Application (BLA) for market approval.
• In India, the Central Drugs Standard Control Organization (CDSCO) regulates new drug development. Targeted protein degradation therapies follow the New Drugs and Clinical Trials Rules, 2019, which outline provisions for investigational drugs and clinical trial approvals. CDSCO is increasingly aligning with global regulatory standards to foster biopharmaceutical innovation.

Competitive Landscape

Prominent players in the targeted protein degradation industry are focusing on expanding their proprietary technology portfolios through internal R&D and exclusive licensing deals. Strategic partnerships with academic institutions and contract research organizations are being used to accelerate pipeline development and gain access to novel targets.

Companies are securing multi-year collaboration agreements to co-develop degraders and share development costs while retaining commercialization rights in select markets. Many are entering joint ventures to co-explore next-generation modalities such as molecular glues and LYTACs.

To support commercialization, companies are strengthening clinical development infrastructure and seeking fast-track regulatory designations for high-priority indications. Some are adopting milestone-based out-licensing strategy to fund internal development while leveraging external partners for global expansion.

• In March 2024, C4 Therapeutics, Inc. entered into a collaboration and license agreement with Merck KGaA to exclusively develop two targeted protein degraders from C4T’s internal discovery pipeline. Under the agreement, C4T will receive a USD 16 million upfront payment, with the potential for up to USD 740 million in milestone payments.

List of Key Companies in Targeted Protein Degradation Market:

• Hybrigenics Services
• Foghorn Therapeutics
• LifeSensors Inc.
• Thermo Fisher Scientific Inc.
• C4 Therapeutics, Inc.
• Evotec SE
• Proxygen
• Arvinas
• Merck KGaA
• Nurix Therapeutics, Inc.
• Bayer AG
• Kymera Therapeutics, Inc.
• Bio-Techne
• Zymeworks
• Ambagon

 Recent Developments (Investment)

• In March 2025, Cambridge Innovation Capital (CIC) co-led a USD 31 million seed financing round for TRIMTECH Therapeutics, which develops targeted protein degradation (TPD) therapies for neurodegenerative diseases. Leveraging its proprietary TRIMTAC technology, the company targets protein aggregates associated with conditions such as Alzheimer’s and Huntington’s diseases. The funding will support pipeline advancement and  clinical progression.