The market is gaining traction due to advances in PROTACs, molecular glues, and next generation degrader designs that offer higher specificity, improved safety, and durable therapeutic outcomes. Increasing clinical trial activity, investments from biotechnology and pharmaceutical companies, and strategic research partnerships across the globe are accelerating the adoption of targeted protein degradation technologies.

AI accelerated drug discovery, computational modeling, and high throughput screening platforms are enabling faster, more predictive identification of degrader candidates. Personalized medicine is another key driver, as TPD based therapies can be matched to protein expression profiles and patient specific molecular signatures.

Segmentation Analysis:

By Therapeutic Area

The oncology segment accounted for the highest revenue share of approximately 61.38% in 2024, driven by the completely new mechanisms of action offered by PROTACS and molecular glues, together with established, well-characterized clinical pipelines, billions in R&D investment, regulatory tailwinds, and broader strategic collaboration activity. The neurological disorders segment is anticipated to achieve the highest CAGR of nearly 20.87% during 2025–2032 due to brain-penetrant PROTACS and increasing R&D investments, along with technological advancements in targeted protein degradation, are likely to continue to accelerate the current pace of innovation.

By Application

The therapy development segment held the largest revenue share of approximately 57.57% in 2024, fueled by strong R&D pipelines and high clinical volumes. The drug discovery segment is predicted to grow at the strongest CAGR of approximately 19.75% during 2025–2032, with novel screening and detection methods, rising R&D investments in biotech pharma collaborations, and expanding non-cancerous pipelines.

By Type

The PROTAC segment accounted for the largest share of the Targeted Protein Degradation Market with about 48.98%, owing to improved efficacy, specificity, and catalytic proteolytic decay of proteins with lesser doses more safely. Molecular Glues segment is slated to grow at the fastest rate with a CAGR of around 19.98% throughout the forecast period of 2025–2032, driven by their capability of stabilizing protein–ligase interactions and thereby degrading hitherto undruggable proteins.

By End-User

The Pharmaceutical & Biotechnology Companies segment held the largest revenue share of around 40.80% in the Targeted Protein Degradation Market in 2024, as a result of their deep R&D, almost unlimited funds, and some very shrewd alliances. Hospital & Clinical Laboratories segment is projected to register the highest CAGR of around 20.30% during the forecast period of 2025-2032, owing to a rise in the acceptance of TPD-based diagnosis and treatment services.