Microarray Market Forecast at $937 Million in 2010

The global market for DNA microarrays is poised to grow at an annual average rate of 6.7%, from U.S.$596 million in 2003 to $937 million in 2010, according to a new analysis from Frost & Sullivan (London, UK), the international consulting firm. Despite a slowdown in instrument sales, the sale of research consumables continues to show marked growth due to a strongly installed base.

The market currently includes both commercial and "homebrew,” or self-printed, products. However, commercial products will dominate the future market. For both segments to succeed, companies need to anticipate the trends in the market, counter any threats, and develop solutions that meet customers' needs.

Accompanying the rising popularity of microarrays as diagnostic tools, there has been a constant demand from consumers for standardized and integrated solutions. Thus, vendors are offering solutions that incorporate multiple products, such as arrayers, readers, software, slides, and content. Future solutions are expected to integrate a scanner, software, and hybridization equipment.

"Standardization of content is also likely to overcome the difficulty of comparing data across varied platforms,” says Isaac Meek, an industry analyst at Frost & Sullivan. This process will be aided by the development of arrays that identify and monitor the transcriptional profile of different splice variants.

The use of DNA microarrays in pharmaceutical and biotechnology segments, especially in clinical studies, is being challenged by the slow growth of the pharmaceutical markets. This can be overcome by forming mutually beneficial partnerships with pharmaceutical and biotech companies and chalking out effecting marketing strategies, which explain potential benefits to potential new users. Sales can also be boosted by offering convenient price breaks, attractive packages, and services.

The commercial DNA market now accounts for about 57% of market revenues and is projected to grow faster than the self-printed segment as a result of increased adoption of standardized platforms. Although the U.S. market continues to be the largest in terms of volume and revenues, the European market is experiencing substantial growth in the commercial array segment. A significant amount of research is being conducted in Europe, creating market growth opportunities.

As the market matures, ample opportunities exist in clinical trials and diagnostics. The uptake of microarrays as a diagnostic tool is also likely to be encouraged by increasing availability and validity of content, the success of the technology in offering high throughput capabilities that enable comprehensive studies, and the promise of personalized medicine and enhanced knowledge of disease.

"The success of gene expression analysis has also sparked the employment of microarrays in nontraditional research areas such as agriculture and environmental science,” notes Mr. Meek.

From a competitive viewpoint, consolidation of this highly competitive and fragmented market is likely to help larger microarray companies boost revenues. Competitive success will hinge on the ability to offer complete solutions and develop open platforms.




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