Oligonucleotide Synthesis Market Size, Share & Trends Analysis Report By End Use, By Product (Column-based, Array-based, Services), By Application (PCR Primer, FISH), And Segment Forecasts, 2020 - 2025

Report Overview

The global oligonucleotide synthesis market size was estimated at USD 1.5 billion in 2019. The declining cost of sequencing has resulted in rising demand for custom-made nucleotides for the desired sequence across research, genetic testing, drug development, and forensic applications. This, in turn, has fostered the demand for oligonucleotide synthesis across various life science industries.

Oligonucleotide synthesis is an integral part of several ongoing genetic research studies. Rising investments in genetic research are anticipated to boost demand for a custom synthesis of different classes of oligos including decoys, aptamers, immunostimulatory, antisense, siRNA, and miRNA.

Several major and emerging oligonucleotides manufacturers are expanding their businesses through collaboration with pharmaceutical manufacturers. For instance, in June 2017, CordenPharma International signed a strategic collaboration with GE Healthcare Dharmacon Inc. for the development of an end-to-end oligonucleotide-based drug discovery solution.

A substantial number of oligos are under late phase clinical trials targeting various conditions such as cancer, cardiovascular diseases, muscle dystrophies, and ocular disorders. This anticipated regulatory approval for multiple oligonucleotide-based therapies is expected to propel the market.

Marketing approaches implemented in this market include direct selling and selling via distributors in specific countries. The market is expected to benefit from the constant growth of genomics and gene editing markets, as advancement in genetic tools would simplify the synthesis of oligonucleotides.

Oligonucleotide Synthesis Market Trends

Antisense oligonucleotides are currently being preferred on larger scale for cancer therapy. Despite challenges such as unclear mode of action and targeted delivery for their adoption in clinical applications, antisense oligonucleotides are rapidly advancing as anticancer drugs. Ongoing investigations regarding several chemical modifications that provide superior properties to these nucleotides are expected to improve the results of these molecules in trials.

Since the completion of the Human Genome Project, investments in genomic research have significantly increased. Recognizing this potential, researchers are being encouraged to conduct studies based on artificial gene synthesis. Furthermore, advances in companion diagnostic studies and advance medicine initiatives have increased the adoption of expression analysis. High number of such expression studies are expected to have positive impact on the demand of oligonucleotide synthesis.

Apart from developed economies, countries such as Canada, China, and New Zealand amongst others are reported to invest largely in genomic studies in recent years. For instance, in March 2022, the Canadian government invested USD 20.7 million in Ontario project in order to boost advances in genomics research, which will eventually drive the oligonucleotide synthesis market during the forecast period.

Clinical applications of genomics involve stringent monitoring and restriction in most countries, while some allow genetic research in sectors other than human use. Moreover, many developed and emerging countries have recently amended their regulatory policies related to gene editing and genetic engineering. For instance, in March 2022, the Indian Ministry of Environment, Forest and Climate Change exempted products derived from gene editing techniques, SDN1 and SDN2. Such exemptions on genetic products is likely to increase the manufacturing of genetic products, which will in turn offer a favorable opportunity for growth of oligonucleotide synthesis market.

Although identified with high potential applications, oligonucleotide synthesis faces challenges and problems in practical applications. One of the most critical parameters to get high yield from synthesis is monitoring its coupling efficiency. Even the slightest rate of failure in average coupling causes dramatic effects in long sequences. Minor change in average coupling failure leads to a substantial net effect. Thus, real-time monitoring of each custom synthesis becomes essential for every platform which is estimated to deter the market growth during the forecast period.

Further, the changing pricing structure of sequencing is expected to influence the developments in genomics and bioinformatics approaches. Currently, efficient planning of downstream analysis is an appropriate way to minimize the expenses of the overall process. Development of efficient algorithms for data processing that reduce the average cost of processing is expected to lower the impact of this barrier. Emerging investment in R&D for computational and analytical tools is observed; however, it is on a low scale. The effect of high overall cost of genomic analysis is anticipated to limit market growth.

Products Insights

Introduction of novel and robust synthesizers that enable rapid and large-scale production of long oligonucleotide sequences is driving the segment. However, there has been an increase in uptake of contract manufacturing services and consulting owing to various advantages associated with contract service providers, such as improved efficiency, cost-effective services, and rapid development of products. This is anticipated to foster the growth of the services segment.

The presence of a wide array of reagents for deacetylation/deblocking, oxidation, cleavage, purification/desalting, labeling, and modification of oligonucleotides has significantly contributed to the dominant share of this segment in 2017. The segment is also fueled by the need for specific reagents at each step of synthesis and high cost.

Application Insights

PCR primers are widely used in drug development for target screening and identification. The presence of a robust pipeline of oligonucleotides-based therapeutics, including antisense therapeutics, DNA vaccines, and anti-viral agents, in various phases of clinical development, has allowed PCR primers to enjoy the largest revenue share in the oligonucleotide synthesis market.

An increase in focus on targeted gene therapies has revolutionized the treatment of incurable conditions caused by genetic mutations. An increase in demand for sequencing applications by clinical, diagnostic, academic, and drug development is witnessed by manufacturers.

End-use Insights

Pharmaceutical industries and biotechnology companies are focused on seeking alternative approaches for disease treatment. As a result, these companies are making significant use of oligonucleotides, as it offers an effective mode of action for the treatment of various indications at comparatively lower development costs.

Furthermore, oligonucleotides play a vital role in overcoming challenges about the efficient route of drug administration. This, in turn, is projected to increase the manufacturing of oligonucleotide therapeutics, thereby enhancing the share of pharmaceutical and biotechnology companies in the global market.

Government and private entities are investing in the development of academic and research infrastructure in emerging economies. This factor is expected to positively boost oligonucleotide adoption in academic research institutes. The surge in genomic research projects conducted by academic research institutes has enabled this segment to account for the dominant share in the market. Moreover, collaboration among major players and universities for the development of novel approaches to curing chronic conditions through genetic medicine is expected to contribute to the growth of this segment.

Regional Insights

Asia Pacific is the fastest growing market with increasing adoption of sequencing, array technology, and PCR products due to its rapid progress in genomic studies. Japan and China are the most lucrative markets in the region with high investments in genomics. In addition, rising number of products launches and approvals are also projected to have positive impact on the market growth. For instance, in December 2020, Illumina Inc’s NextSeq 550Dx, received approval for clinical use in China, for their diagnosis and genetic testing purposes.

The growth in genomic studies and research is majorly attributed to increase in government support & investments, economic development, and expanding healthcare infrastructure. For instance, in January 2020, the Department of Biotechnology, the Government of India started a project to collect genetic samples from citizens to create a reference genome. This Genome India Project, focuses on mutation spectrum of complex and genetic diseases, and rare genetic disorders. Increase in number of genomic studies and researches are expected to leverage the adoption of associated products, which will eventually boost the market growth.

UK is anticipated to register CAGR of 13.40%, owing to rapid adoption of gene expression studies, growing industrial collaborations, diagnostics, & research. For instance, in February 2021, UK Research and Innovation (UKRI) invested 1 million euros to collaborate with Exactmer, AstraZeneca, and Novartis. This collaboration will help them to scale up the process development alongside the analytics to transform the oligonucleotide supply chain. Moreover, government involvement through funding and support is also projected to accelerate the UK oligonucleotide synthesis market by 2030. For instance, May 2021, UK government set out 21 commitments to strategies, personalized medicine, diagnosis, early detection and prevention, and research.

Japan ranks among the leading countries in regenerative medicine, gene therapy, and cell-based research. Rapid adoption of technological innovations and regulatory environment that supports innovation further influence market growth. In addition, the country maintains its own data repositories such as Kyoto Encyclopedia of Genes and Genomes (KEGG), and DNA Data Bank of Japan (DDBJ). They provide tools such as GenomeNet Bioinformatics Tools for chemical analysis, sequencing, and genome. It has Cancer Gene Expression Database (CGED), which provides gene expression profiling with clinical information of cancer tissues. Such developments are estimated to offer a favorable environment for Japan oligonucleotide synthesis market during the forecast period.

Key Companies & Market Share Insights

Some key companies operating in the market are Thermo Fisher Scientific, Inc.; Merck - Co., Inc.; GE Healthcare Dharmacon Inc.; Agilent Technologies; Bio-synthesis; Kaneka Eurogentec S.A.; Integrated DNA Technologies, Inc.; BioAutomation; and LGC Biosearch Technologies. The market is highly competitive due to rigorous strategies adopted by these players to capture a greater market share.

Various strategies adopted by these competitors include the acquisition of players in emerging markets, distribution partnerships, and collaboration for the development of novel technologies and products. For instance, in February 2017, Integrated DNA Technologies acquired GeneWorks Pty Ltd., an oligonucleotide manufacturer in Australia through its Singapore-based subsidiary.

Oligonucleotide Synthesis Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global oligonucleotide synthesis market report based on product, application, end-use, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Oligonucleotides

    • Oligonucleotides, By Product Type

      • Column-based Oligos

      • Array-based Oligos

    • Oligonucleotides, By Nucleic Acid Type

      • DNA

      • RNA

  • Equipment

  • Reagents

  • Services

    • Oligo Synthesis

      • 25 nmol

      • 50 nmol

      • 200 nmol

      • 1000 nmol

      • 10,000 nmol

    • Purification

    • Modification

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • PCR Primers

  • PCR Assays and Panels

  • Sequencing

  • DNA Microarrays

  • Fluorescence In Situ Hybridization (FISH)

  • Antisense Oligonucleotides

  • Other Applications

• End-use Outlook (Revenue, USD Million, 2014 - 2025)

  • Academic Research Institutes

  • Diagnostic Laboratories

  • Pharmaceutical - Biotechnology Companies

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • Japan

    • China

  • Latin America

    • Brazil

  • The Middle East and Africa (MEA)

    • South Africa