Genetically Modified Seeds Market size is set to grow by USD 12.80 bn from 2024-2028,rising adoption of gm seeds in biofuels boost the market- Technavio

Date:04-09-2024

The Genetically Modified (GM) Seeds Market size is forecast to increase by USD 12.80 billion, at a CAGR of 7.08% between 2023 and 2028. 

Moreover, the market in North America experiences rapid growth due to extensive adoption and innovative advancements in agricultural biotechnology. BASF SE provides genetically modified seeds, offering benefits such as mitigating soil erosion and preserving biodiversity. This market shows promising trends with a focus on convenience, consumer preferences, and global consumption patterns. Forecasts and analysis indicate a steady rise in market demand and highlight the significant role of biotechnology in shaping the agricultural sector.

Market Overview

Key Market Driver 

The rising adoption of GM seeds in biofuels is notably driving the market. The global market is experiencing a rise in adoption driven by the growing demand for biofuels. In addition, with an increasing emphasis on reducing greenhouse gas emissions and mitigating climate change, biofuels derived from GM crops such as corn, soybean, and sugarcane are gaining prominence as renewable energy sources.

Moreover, GM seeds engineered for higher yields and enhanced traits such as oil content and biomass are driving the expansion of biofuel production worldwide. For example, bioethanol derived from GM corn is widely used as a fuel additive, while biodiesel from GM soybean and canola provides an alternative to fossil fuels in transportation and industrial sectors. Hence, such factors are driving the market during the forecast period.

Significant Market Trends 

Integration of digital agriculture and data analytics in the GM seeds industry is an emerging trend in the market. The integration of digital agriculture and data analytics emerges as a significant driver in the global market, transforming agricultural practices and improving the value proposition of GM seeds. In addition, digital agriculture leverages advanced technologies such as satellite imaging, drones, sensors, and precision farming equipment to collect vast amounts of data related to soil health, weather patterns, crop growth, and pest infestations.

Moreover, data analytics algorithms then process this information to provide actionable insights and optimize decision-making processes for farmers. In addition, in the context of GM seeds, digital agriculture facilitates the efficient management and monitoring of GM crops throughout their lifecycle. Furthermore, farmers can utilize data-driven insights to tailor cultivation practices, optimize input usage, and maximize the performance of GM seed varieties. Hence, such factors are driving the market during the forecast period.

Significant Market Challenge 

The emergence of new technologies poses a threat to traditional technologies used in GM seeds and is a major challenge hindering the market.  The usage of GM seeds will be limited when new technologies emerge, including vertical farming. In addition, all that is needed for plants to grow on tall vertical towers is to control moisture and continuous light. Furthermore, vertical farming is a new idea that avoids the need for pesticides, synthetic fertilizers, herbicides, and GM organisms (GMOs).

Moreover, the process of growing food on vertically inclined surfaces is known as vertical farming. In addition, instead of growing vegetables and other crops on a single level such as in a field or a greenhouse, this approach grows them in vertically stacked layers, which are frequently integrated into other buildings such as skyscrapers, shipping containers, or converted warehouses. Hence, such factors are hindering the market during the forecast period.

Market Segmentation by Type

The advantage of the herbicide tolerance segment will increase the market. Herbicide tolerance is a main trait in the global market, allowing crops to withstand applications of specific herbicides while suppressing weed growth. In addition, this trait is typically achieved through genetic modification, where crops are engineered to produce enzymes that detoxify or resist the herbicides active ingredients.  Moreover, glyphosate-resistant crops, notably offered by Monsanto and operated by Bayer AG, are among the most widespread herbicide-tolerant varieties. In addition, these crops can withstand glyphosate-based herbicides such as Roundup, facilitating effective weed control without harming the cultivated plants. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Segmentation by Product

The market is a dynamic landscape shaped by advancements in Agricultural Sciences and genetic engineering techniques. GM seeds offer numerous benefits such as High yield and Insect resistance, making them increasingly popular among farmers. GM crops like Soybean, Corn, and Cotton are engineered to exhibit traits like Herbicide tolerance and Insect resistance, providing farmers with effective solutions to combat Insect pests and Weeds while boosting crop yield. Techniques like Gene Splicing and Gene Silencing are utilized in labs to modify the Genetic Makeup and enhance Genetic Features in organisms. GM seeds are often designed to withstand herbicides through Herbicide tolerance, reducing the need for manual weed control and contributing to higher yields. This is achieved through methods like gene gun technology and utilizing viral carriers such as agrobacterium tumefaciens for genetic modification.

The corn segment is estimated to witness significant growth during the forecast period. Corn dominated the global market due to increased demand for corn, which is mainly used in the production of ethanol as well as livestock feed. In addition, corn is used as a primary feedstock for ethanol production; according to USDA estimates, the United States produced 15.1 billion bushels of corn in the 2022 harvest year, which was 7% higher than the 2020 harvest year.

Moreover, corn yield in the United States in 2022 reached a record high of 177.0 bushels per acre, 5.6 bushels higher than the 2020 yield of 171.4 bushels per acre. In addition, corn is also used for industrial purposes such as medicines, plastics, and biofuels. Furthermore, corn's multifaceted nature has boosted its production on the second-most acreage in the world after wheat. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Key Regions for the Market

The US and Canada are the main contributors to GM seed production and utilization in North America. In addition, in the US, GM crops such as soybeans, corn, cotton, and canola dominate agricultural landscapes, with the majority of these crops being genetically engineered for traits such as herbicide tolerance and insect resistance. Moreover, the widespread adoption of GM seeds in the US is driven by factors such as the need for enhanced crop productivity, weed, and pest management solutions, and the desire for reduced environmental impact through decreased chemical usage. In addition, Canada also plays a significant role in the regional market, particularly in canola production. Furthermore, GM canola varieties, engineered for traits such as herbicide tolerance, have become a staple crop in Canadian agriculture, contributing to increased yields and profitability for farmers. Hence, such factors are driving the market in North America during the forecast period.