Real-Time PCR Revs Up Nucleic Acid Analytical Instrumentation Market

(PRWEB) January 23, 2002

A new study by healthcare analysts Frost & Sullivan reveals an exciting development in the analytical instrumentation market in real-time polymerase chain reaction (PCR) systems.

These systems enable the online monitoring of PCR reactions and eliminate the need for post reaction analyses of PCR cycles. Frost & Sullivan believes this is likely to be the fastest growing area in the market and competition is likely to intensify as companies strive for a toehold in this profitable segment.

Though costlier than traditional instruments, real-time PCR instrumentation is perceived as having certain competitive advantages over quantitative PCR, such as reproducible results, the elimination of post-reaction analyses, online monitoring, full automation of process, and simplification of quantitation.

Today, many applications—such as measuring gene expression, detecting bacterial or viral load within samples, and allelic discrimination—are suited to real-time analysis. Real-time PCR is also expected to become more important in the analysis of gene chips, which require such high-capacity instruments to analyse the vast quantity of available data within a limited time-frame.

The study showed the European Nucleic Acid Analytical Instrumentation market - comprising nucleic acid sequencers, synthesisers, and thermal cyclers - is buoyant, with much scope for expansion. Frost & Sullivan (http://biotech.frost.com) valued the market at over $440 million in 2001, estimating it to reach $880 million by 2007.

“Increased throughput demand on laboratories is likely to drive the need for nucleic acid analytical instruments. Work overflow in laboratories is likely to necessitate the use of instruments with higher throughput capacities, especially that of lower priced thermal cyclers,” states the author of the study, Annabel Entress.

An expanding and more divergent end-user base is also expected to be a major market driver in the future. Currently, end-users include academic research departments, private research, industry, hospitals, clinical and diagnostic labs, teaching labs, forensic, farming, and chemical and food industries. Of these, diagnostic, pharma and biotech industries are expected to play a key role in creating new growth opportunities in the future.

Major European initiatives to support life science research and biotech that have been implemented in most EU countries over recent years are also strong supporting factors that encourage future growth of this exciting market.

“New technology, entrepreneurialism, and ground-breaking non-profit research drive this market and need to be well funded in order to thrive. Governments, which have supported such initiatives, show the benefits,” notes Entress. This is evidenced by current market leaders Germany, the UK, and France that have pioneered proactive governmental policies in the arena of bioscience research. Scandinavia, Benelux, and Switzerland are gaining ground, while Spain and Italy are attempting to encourage funding in this crucial area.

“However, funding for life science research continues to remain insufficient. Academic research groups often have to take recourse to sharing instruments in order to cut costs. This bleak scenario of inadequate funding is expected to continue and is likely to be a major restraining factor for market expansion in the future,” Entress predicts.

Currently, the synthesisers and sequencers market is dominated by large multinational companies such as Applied Biosystems and Amersham Pharmacia Biotech.

In contrast, however, the overall thermal cycler market is much more competitive. This market is less saturated due to a higher number of competitors and the wide product range available, ranging from low-cost, bench-top instruments to high-cost, high-throughput thermal cyclers with real-time capabilities. Therefore, it is in this market that the market-share distribution of players is most likely to change.

Selective mergers and acquisitions with companies having synergistic product lines are expected to be positive responses to this market landscape. “These can also help product development where smaller companies are concerned, which often do not have adequate funds to see a product successfully through R&D to completion“, adds Entress.

Frost & Sullivan recognises outstanding industry achievements by presenting market engineering awards to top companies in a variety of regional and global markets. The 2001 Market Engineering Award for Strategic Alliance Innovation is awarded to Applied Biosystems.

Report Code: 3744

Publication Date: January 2002

Background

Frost & Sullivan is an international marketing consulting company that monitors a comprehensive spectrum of markets for trends, market measurements and strategies. This on-going research is utilised to complement a series of research publications to support industry participants with customised consulting needs. Interviews and free executive summaries are available to the press.

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