Big demand for biochips

US demand for biochip products and services is forecast to increase almost 10% per year to $2.5 billion in 2012. Biochips (or microarrays) will account for $1 billion of this amount, with the remaining $1.5 billion divided among related reagents and other consumables, instruments, software and services. 

Growth will be led by uses in drug discovery and epidemiological research, with protein characterisation and analysis providing the fastest expanding technologies.

Since drug discovery will remain the leading application for microarray technology over the long term, pharmaceutical companies, biotechnology firms and major medical universities will continue to form the three largest markets served by the biochip industry.

DNA chips will continue to generate broad usage in genomic research. However, the shift of drug discovery and epidemiological research toward a greater focus on proteomics will create stronger growth opportunities for protein and laboratory biochips.

Advances in characterisation and analysis methods will expand the range of protein microarrays available for drug screening and optimisation and the identification of disease biomarkers.

The market for biochip instruments is projected to reach $225 million in 2012, up 6.1% annually from 2007. Based on convenience and efficiency advantages, workstations that combine sample preparation, hybridisation and detection will post the strongest gains in demand among biochip instruments. Software that interfaces with public genomic and proteomic databases will fare particularly well in the marketplace, as life science researchers continue to study HGP results.

The market for biochip-related services is projected to reach $780 million in 2012, up more than 11% annually from 2007. Contract research and outsourcing services, especially in the area of drug discovery, will post the strongest gains in demand, as proprietary pharmaceutical companies broaden the pursuit of new blockbuster therapies. Growth opportunities for biochip maintenance and technical support services will also increase favourably, spurred by upward trends in the number of microarray instruments and the continued aging of previously installed systems.

These and other trends are presented in Biochips, a new study available for purchase from The Freedonia Group.