Biochip Demand to Increase Nearly 10 Percent Annually Through 2012

US demand for biochip products and services is forecast to increase almost ten percent 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 characterization 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.  These and other trends, including market share and product segmentation, are presented in US Biochips, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

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 characterization and analysis methods will expand the range of protein microarrays available for drug screening and optimization and the identification of disease biomarkers. 

The market for biochip instruments is projected to reach $225 million in 2012, up 6.1 percent annually from 2007.  Based on convenience and efficiency advantages, workstations that combine sample preparation, hybridization 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 eleven percent 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 favorably, spurred by upward trends in the number of microarray instruments and the continued aging of previously installed systems. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.