Demand for this industry's paternity testing rose with more babies born out of wedlock
Los Angeles, CA (PRWEB) November 08, 2012
In the five years to 2012, IBISWorld estimates that revenue for the DNA and DNA Forensic Laboratories industry will grow at an annualized rate of 11.7% to just under $2.0 billion, including growth of 12.6% in 2012. Over the past five years, the industry has benefited from improved accessibility and declining prices, which have made DNA testing more affordable and common, according to IBISWorld industry analyst Kevin Culbert. Furthermore, the industry has benefited from the long-term trend of an increasing number of babies being born outside of wedlock. Babies born outside of wedlock are more likely to need DNA paternity testing because proof is often required to make men financially responsible for their offspring under the law.
High profit margins have caused the number of firms operating in the DNA and DNA Forensic Laboratories industry to increase marginally over the past five years. IBISWorld estimates that the number of industry enterprises has grown at an average rate of just 1.0% annually to 128 in the five years to 2012, Culbert says. In spite of the overall growth, the industry has experienced some consolidation during that time. For example, major player Lab Corp acquired Orchid Cellmark Inc, one of the industry's largest DNA testing companies in April 2011.
IBISWorld estimates that industry revenue will increase in the five years to 2017. During that time, the industry is expected to continue to benefit from improved technology, which will increase productivity and revenue. Consistent investment in research and development has increased the throughput capacity of DNA laboratories, which has ultimately caused prices to decline. Although falling prices will limit profit margins on individual tests, an increase in the volume of DNA analysis performed, coupled with a decline in costs, will mitigate any associated declines with profit margins. Although the industry has high barriers to entry, the diverse nature of the products this industry offers keeps market concentration low. The top three firms are estimated to account for about one-fifth of the market. For more information, visit IBISWorld’s DNA & DNA Forensic Laboratories in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides DNA paternity testing, DNA forensic services, veterinary DNA testing, ancestry tracking and other services related to human genetics. It excludes not-for-profit, state-funded and state-owned institutions such as public university labs, and labs that are owned and operated by law enforcement entities and the court system. Although some operators have multiple patient service centers, the industry is composed of the laboratories to which samples are submitted.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.