The DNA Sequencing Business

Report Highlights

• Projected sales for the worldwide DNA sequencing and proteomics markets are expected to rise at an AAGR (average annual growth rate) of 17.6% from $7.8 billion in 2004 to $17.5 billion in 2009.
• Drug discovery and healthcare currently are two of the largest market sectors, representing respectively, some 46% and 20% of revenues in 2004.
• The food and renewable resource sector will grow at a modest pace motivated by the production of genetically altered food products offering better nutritional benefits and lower product costs.
• The environment market sector has only begun to tap into the technology benefits and this basic research sector will grow given the possibility of new research fields that may emerge.

INTRODUCTION

Although the origins of DNA sequencing, as we know it today, date back to the 1970s, it is only in the last eight years that the field has gone through one of the most amazing transformations ever seen in science. Most people recognize that completion of the Human Genome Project was one of the key events that stimulated this phenomenon. However, the Project only acted to define what the real barriers were to fully using genetic knowledge. The concurrent invention of microarrays and biochips allowed scientists to rapidly unravel DNA codes.

DNA sequencing is only the beginning and the task of determining the functionality of genes is far more daunting. One of the key practical questions is the role each gene has in synthesizing specific proteins within cells. This field of study, called proteomics, is crucial to almost all the ultimate long-range applications of DNA sequencing including gene therapy and drug discovery. Other applications include diagnostic tools to identify the risk of individuals to specific diseases, genetically altered food products and biological or chemical warfare sensing devices.

This important BCC study captures a technology and snapshot of the industry as it exists in 2004 and projects where it is going in the next five years. This picture is framed in the context of a history of how the field developed and who is responsible for many of the technology breakthroughs.

SCOPE OF STUDY

The report contains:

• A historical overview of the industry and a description of the market structure
• Identification of the key market industrial players along with a listing of government and university research centers
• Reference sources, patents and key R&D issues
• Product forecasts through 2009, including DNA sequencing and amplification equipment, microarrays, analysis platforms, reagents and probes, software analysis tools, databases and proteomics research products
• Appendices including lists of conferences, patents and references.

METHODOLOGY

The material presented is based on information gathered from discussions with participants within the DNA sequencing industry in conjunction with a thorough review of the technology gathered from technical papers, patents and industry conferences. Final analyses and projections are based on a combination of factors, but are primarily based on a consensus of opinion among the primary contacts and an interpretation of market trends from a historical perspective. Given that this is such a new market, the growth rates stated by interviewees were conservatively weighted to allow for a more objective perspective.

INFORMATION SOURCES

Additional data was obtained from extensive reviews of secondary sources such as journals, trade publications, trade associations, company literature, and internet databases. All dollar projections presented in this report are in 2004 constant dollars.

ANALYST'S CREDENTIALS

Ralph Hensler, the analyst for this report, is an independent consultant specializing in the areas of energy, sensors, micromachining and automotive technology. He has over 30 years of industrial experience including projects related to nuclear fusion, solar energy, applied superconductivity and automotive sensors. Mr. Hensler served as contributing editor to BCC's Microtechnology News and has been with BCC for 4 years. He has a B.A and a Ph.D. in physics from Rutgers University.