INTRODUCTION
STUDY GOALS AND OBJECTIVES
BCC’s goal for this study is to determine the status of current and newer generation DNA (deoxyribonucleic acid) sequencing technologies, products and services and to assess their worldwide growth potential over a 5-year period from 2010 to 2015. Our particular interest is to characterize and quantify the DNA sequencing products market by application, technology, analysis type, geography, and end user. Sequencing applications market segments that will provide substantial future growth opportunities for next-generation DNA sequencing companies include research, drug discovery and development, bacterial genomics, agricultural genomics, clinical diagnostics, and personal genomics. Applications providing growth opportunities for genomics suppliers include sequence capture and bioinformatics.
Our main objective is to present a comprehensive discussion of DNA sequencing technologies; industry structure; key applications; major sequencing initiatives; global markets; intellectual property (IP) and patenting status; and sequencing companies. This discussion will assist life-science companies in strategic planning to meet the challenges and opportunities of this dynamic industry.
REASONS FOR DOING THE STUDY
The Human Genome Project (HGP) moved DNA sequencing technology to the forefront of life-science research as a genetic analysis tool. The HGP relied heavily on Sanger sequencing by capillary electrophoresis to decipher the DNA sequence of the bases in the human genome. A significant outcome of the HGP was improvements in the efficiency and costs of DNA sequencing. During this time period, the DNA sequencing industry consolidated, resulting in one dominant company, Applied Biosystems.
Beginning in 2005, new DNA sequencing technologies have emerged that are radically changing the structure of the industry and opening up exciting new market applications. Contributing to the rise of these new sequencing technologies are advances in nanotechnology, microfluidics, imaging, enzymology, and bioinformatics. Based on these market and technology dynamics, it is timely to examine the future DNA sequencing markets.
Ongoing discoveries in nanotechnology, bioinformatics, microfluidics, imaging, enzymology, and bioinformatics are revolutionizing many life-science fields, and providing novel platforms for next-generation DNA sequencing. At the same time this is occurring, there is a growing market demand for analysis of the genomes of many species and cancers and for understanding the role of genetic variation among individuals in disease. The genetic analysis industry seeks to meet these needs with tools such as microarrays, real-time polymerase chain reaction (RT-PCR), and DNA sequencing instruments.
Next-generation sequencing has created new opportunities to compete with traditional genetic analysis tools, and this report examines this trend and its significance for companies supplying DNA sequencing products and services.
Next-generation, and follow-on, third-generation DNA sequencing technologies will continue to change the dynamics of the DNA sequencing industry and create novel market opportunities. This report analyzes these trends and their impact on the future markets for DNA sequencing technologies.
Given the evolving nature of this industry, it is particularly timely to gain an understanding of these technological and competitive forces and the impact on the genetic analysis markets.
INTENDED AUDIENCE
We have compiled a study of next- and third-generation technologies that will be commercially important in the major end-user segments of life-science research, drug discovery and development, forensics and human identification, bacterial genomics, agricultural genomics, clinical diagnostics, and personal genomics. We present both Sanger sequencing and follow-on-generation technologies as well as market growth driving forces, major sequencing initiatives, product formats, market applications, industry alliances, future market potential, and product sales forecasts for the period 2010 through 2015. We forecast the use of sequencing products for these end-user segments: major sequencing centers, academic genome centers, government labs, pharmaceutical/biotech labs, small to mid-size labs, and sequencing service labs.
This study will be of particular interest to life-science research tools suppliers, pharmaceutical, diagnostics, nanotechnology, bioinformatics, semiconductor, and biotechnology companies. It will also be valuable to companies involved in genome sequencing projects, sequencing centers, manufacturers of microarrays, suppliers of molecular diagnostics assays, bioinformatics companies, and cancer researchers and clinicians.
SCOPE OF REPORT
The study scope includes DNA sequencing technologies likely to be commercialized within the next 5 years. Sanger, next-generation, and third-generation technologies are included. Each technology is analyzed to determine its market status, impact on future market segments, and forecast growth from 2010 through 2015. Advantages and limitations of each technology together with market driving forces are discussed.
BCC examines the sequencing industry structure, strategic industry alliances and acquisitions, and sequencing patents. The strategies of the main sequencing companies are discussed. The markets for sequencing applications, including de novo whole-genome sequencing, resequencing, ChipSeq, MethylSeq, and RNASeq, are analyzed.
METHODOLOGY
BCC surveyed key users and producers in each of the market applications that will be commercially important during the next 5 years: research, drug discovery and development, forensics and human identification (ID), bacterial genomics, agricultural genomics, clinical diagnostics, and personal genomics. Based on our industry discussions and market analysis, we project the future applications of sequencing platforms and forecast sales revenues for 2010 through 2015.
The sequencing market is analyzed by technology, product type, application, customer, analysis type, geography, and genome type, with forecasts of market demand from 2010 through 2015. We analyze which applications and analyses will be important to the future of DNA sequencing, and the customer groups that will be consumers of the technologies. We also analyze the impact of other genetic analysis technologies like microarrays on the growth of sequencing.
INFORMATION SOURCES
BCC surveyed leading DNA sequencing, biotechnology, and nanotechnology companies as well as core sequencing facilities and laboratories to obtain data for this study. Included were research tools, drug, biotechnology and nanotechnology firms, and leading life-science research institutions. We also spoke with leading industry thinkers. In addition, we compiled data from secondary sources, including industry, trade, and government.
ANALYST CREDENTIALS
The author, John Bergin, has written previous BCC Research biotechnology reports, titled Epigenomics: Emerging Opportunities in Biomarkers, Diagnostics and Therapeutics; Global Biochip Markets: Microarrays and Lab-on-a-Chip; RNA Interference in the Post-Genomics Era: Markets and Technologies; Synthetic Biology: Emerging Global Markets; Biologic Imaging Reagents: Technologies and Global Markets. Mr. Bergin has held business development, sales, and marketing positions with a Fortune 500 advanced materials company as well as executive management positions with a nanotechnology company. Mr. Bergin holds the following degrees: B.S. Chemistry, M.S. Biotechnology, and Masters of Business Administration.
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DISCLAIMER
The information developed in this report is intended to be as reliable as possible at the time of publication and of a professional nature. This information does not constitute managerial, legal, or accounting advice; nor should it serve as a corporate policy guide, laboratory manual, or an endorsement of any product, as much of the information is speculative in nature. The author assumes no responsibility for any loss or damage that might result from reliance on the reported information or its use.
Report Code: BIO045C, Published: July 2010, Analyst: John Bergin
