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The increasing prevalence of target diseases is supplementing the demand for replacing damaged or diseased tissues. The demand for tissue grafts is outpacing the supply, thus regenerative medicine is increasing rapidly to meet the demand. For instance, the 3D environment offered by hydrogel encapsulation for cells enables the maintenance of normal cells to build tissues identical to those seen in the body. Additionally, live cell encapsulation gives a novel and superior route in tissue engineering to overcome the rejection of transplanted tissues. As a result, the growing use of live cell encapsulation in regenerative medicine is expected to boost the market growth. Furthermore, the live cell encapsulation has proven to be an appropriate treatment strategy for various diseases, such as anemia, diabetes, heart failure, and cancer. Thus, the increasing prevalence of such diseases will accelerate the market expansion.