Global biochip market was valued at USD 7.63 billion in 2015. Presence of strong demand for proteomics - and genomics research-oriented products along with a comprehensive drug development pipeline is expected to drive growth in revenue.
A growing need to reduce turnaround time and miniaturize biological and clinical tests used for research & diagnosis has increased demand for biochip and bio-array techniques. Rapid technical developments related to these techniques and a wide product portfolio on offer, due to new product launches, are anticipated to provide researchers with a range of choices to specifically suit their requirements.
U.S. biochip market, by type, 2013 - 2024 (USD Million)
Biochips have applications ranging from disease marker identification to accelerated drug development, including a number of research applications in fields of genomics, genotyping, and proteomics. Increase in spending on the clinical research along with substantial resource allocation for genomic and proteomic research are factors that further reinforce growth potential of the market.
However, as biochip systems comprise probes formatted in micro scales on glass surfaces, they require automated robotic tools for handling and scanning of micro-scale samples. In addition, bioinformatics tools are also needed for data analysis. Need for such specific tools and techniques for implementation of this technology is expected to make biochips a highly sophisticated and considerably expensive technology, along with the expansion of the product range for the market.
Simultaneous and specific profiling of biological markers is a major application of biochips. In addition, they are also critical components in studies investigating multiple parameters simultaneously, as they hold chemical sites providing specific and sensitive analysis. Furthermore, these integrated systems involve exhaustive physical and chemical analysis for studies related to optimal selection, activation, and stabilization for the development of new platforms of clinical systems.
Biochips have become an attractive market segment for mature to emerging players. Owing to increasing drug development, high adoption of precision medicines, along with next-generation sequencing and rapid technological advances. Following advancements in Lab-on-a-chip (LOC) technology, the biomedical application for microfluidic-based devices has developed in past few years, and micro engineered cell culture platforms have been designed. LOC devices are considered to be a rapid and early diagnosis of infectious diseases. The technology is widely employed in epidemiological studies.
The integration of biochips in various applications is anticipated to boost the market. For instance, Nutcracker, a U.S.-based startup raised USD 167 million in funding through series C to advance biochip-based RNA manufacturing. The biochips along with nanoparticle delivery technology are anticipated to assist in developing comprehensive automated and isolated manufacturing.
Similarly, the increasing use of its applications, such as drug development, compelled various R&D institutions and players to innovate the efficient and cost-effective process. In 2021, over 700 drugs are in progress for targeting over 8,000 rare diseases. Biochips are employed for testing drugs before their clinical trials. In May 2022, TU Wien, Vienne University of Technology developed biochip technology to produce tissue beads in accurate sizes and supply them with drugs via a thin channel. The patent for this technology has already been filed.
Genomics played a vital role in developing precision medicines and evolving the biochips market. A biochip platform designed by Rensselaer for personalized immunotherapy. The innovative platform assists in identifying the specific treatment for particular cancer. The platform is a small two0piece plastic chip with 330 tiny pillars. The innovation in biochip technology is expected to increase its adoption rates amongst pharmaceutical companies.
However, the cost of manufacturing biochips can hamper the growth of the market. The majority of microfluidic devices are made of ultraviolet lithography, a highly complex and expensive technique that needs skilled professionals and specialized instruments. The high cost of manufacturing restraints players to enter the market and develop a range of alternatives for the end-users.
The lack of awareness in the emerging market about the usage of biochips is also a restraining factor for the market. In the past few years, the number of research on biochips by academic and research institutes in emerging countries has reduced. Hence, a lack of knowledge amongst the emerging players in the drug development and precision medicine market is anticipated to prevent the market to grow at its optimal growth rate.
The biochip market is segmented based on types into DNA chips, lab-on-a-chip (LOAC), protein chips, and tissue/cell arrays. DNA chips accounted for the largest share of revenue, as a result of high spending on research pertaining to genomics and next-generation sequencing along with rising demand for detection and diagnosis of genetic disorders.
Progress in the development of protein microarrays coupled with emerging classes of tissue- and cell-based biochips for various applications are factors anticipated to drive demand for biochips. Also, the competitive dynamics prevalent are greatly influenced by next-generation sequencing applications. Rapid DNA analysis and diagnostic LOAC are rapidly being adopted in new drug discovery as well as in point-of-care diagnostics. Applications to enhance information support and lower the cost of miniaturized bioanalysis are anticipated to enhance biochip demand over the forecast period. Diagnostic and clinical applications of tissue- and cell-based biochips and usage in new drug discovery from ongoing R&D over the forecast period are also expected to fuel growth.
The protein and DNA biochips and LOACs have widespread applications for gene expression, single nucleotide polymorphism genotyping, expression profiling, in vitro diagnosis, high throughput screening, point-of-care, drug discovery, tissue arrays, and agricultural biotechnology. Probable commercialization of products in company pipelines are expected to be instrumental in further enhancing market potential of biochips.
North America dominated the biochips market and accounted for the largest revenue share of 48.43% in 2021. The region is anticipated to continue its dominance over the forecast period. This growth can be attributed to the increasing government initiatives for encouraging R&D through tax credits. The high presence of biotechnology companies coupled with academic and research institutions in the country results in further technology advancements in the applications of biochips.
In the U.S. the R&D tax credit is a monetary benefit offered by the federal by offering companies dollar-for-dollar cash saving for conducting research activities to develop, design, or improvise products, formulas, processes, or software. On average, a company can receive around 12-16% of the tax credits for every dollar.
The Asia-Pacific market has witnessed the fastest CAGR in the forecasted period, the majority driven by India and China. The key growth determinants in the Asian-pacific market are a large patient pool, improving accessibility to the technologies, and enhancement in healthcare infrastructure. The increasing outsourcing of biochips technology to emerging markets by the big players to cut down the overall cost of production is also a significant growth factor.
Some major entities operating in this sector include Abbott Laboratories; PerkinElmer, Inc.; GE Healthcare; Sigma-Aldrich Corporation; Agilent Technologies, Inc.; Illumina, Inc.; Bio-Rad Laboratories, Inc.: Fluidigm Corporation; Thermo Fisher Scientific, Inc.; and Merck Millipore.
In order to enhance their presence, they are involved in strategic collaborations and mergers & acquisitions where it is necessary to enhance portfolios to gain entry into untapped territories. For instance, in January 2016, PerkinElmer, Inc. announced the acquisition of Vanadis Diagnostics, a Sweden-based developer of digital analysis of cell-free DNA-based noninvasive prenatal testing (NIPT). This is expected to extend PerkinElmer’s health product and services portfolio.
Similarly, in September 2015, Illumina, Inc. announced the acquisition of the GenoLogics Life Science Software, Inc. It is a developer of information management systems for life sciences and clinical research & manufacturing laboratories. This acquisition is projected to provide and expand the company’s innovative and informatics solutions for life science organizations, thus provide a revenue-generating growth to the market.
Similar developments from a number of key market players are expected to positively influence biochip development over the forecast period and enhance competitiveness factor in this sector.
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