The rising demand for biofuel and transgenic crops, growing population, regulatory support in Brazil and the U.S., and increasing per capita income are driving the agricultural biotechnology market. It generated a revenue of $28.5 billion in 2016, and it is expected to advance at a CAGR of 10.1% during the forecast period (2017–2023). The utilization of molecular biology tools and techniques, such as molecular markers, plant tissue culture, genetic engineering, and recombination, for the development of genetically superior crops and plants is termed as agricultural biotechnology.
The key factor driving the agricultural biotechnology market size is the surging demand for transgenic crops. The advantages of these crops are low requirement for harmful pesticides and improved agricultural productivity. Despite the higher cost of transgenic seeds, the overall production cost of crops is lowered, as less fuel, chemical pesticides, and machinery is used. The U.S., India, Brazil, Canada, and Argentina are the major genetically modified (GM) crop-producing countries. In the coming 10 years, the commercial GM-crop profile is expected to diversify to include fruits and staples, such as rice and cassava.
Another factor contributing to the agricultural biotechnology market growth is the increasing demand for biofuel. To tackle the economic challenges associated with petroleum dependency, biofuels have emerged as a promising solution in the past decade. As compared to conventional fossil fuels, such as coal and natural gas, biofuels are environment-friendly and provide fuel security. A decline in the use of traditional fuels is being observed in the developed countries of North America and Europe. The demand for renewable fuel is witnessing a rise every year, and it is expected to reach 36 billion gallons in 2022.
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The technology segment of the agricultural biotechnology market is subdivided into biochips, genome editing tools, synthetic biology, deoxy ribonucleic acid sequencing, and ribonucleic acid interference. Till 2023, synthetic biology is predicted to witness the fastest growth in demand at a 10.9% CAGR. The advance of this category can be ascribed to its ability to generate large gene and gene-part clusters in a single genome of a seed, which is more advantageous than traditional approaches.
Therefore, the market for agricultural biotechnology has a bright future, aided by the rising need to fulfill the growing demand for biofuels and create nutrient-fortified crops.
Source: P&S Intelligence