News | August 15, 2000

Forecasting the microarray market

The following is a synposis of a report called "DNA Microarrays, A Strategic Business Analysis" prepared by Front Line Strategic Management Consulting (Foster City, CA). All the figures and conclusions on market leaders are derived from the report. This should not be taken as an endorsement by the editors of BioResearch Online.

Front Line Strategic Management Consulting projects that the market for DNA microarrays and related equipment will reach $4.7 billion by the year 2010. The annual growth through 2010 is anticipated to dramatically increase as a more researchers worldwide adopt microarrays.

As a proportion of the market, microarray slide sales are expected to climb dramatically by 2010, driven predominantly by pre-spotted glass slides. The primary market players in coated slides include Corning and Surmodics. In custom and pre-spotted slides, key players include Stratagene, Affymetrix, NEN Life Science Products and CLONTECH Laboratories, according to Front Line.

Integrated system sales are anticipated to peak by 2003 and thn decline as the market becomes saturated with installed equipment. Front Line identifies three major providers of integrated systems, Affymetrix, Molecular Dynamics and Genomic Solutions. Interoperability, qualified technical support and established brands are driving this segment forward.

Arrayer sales are expected to peak by 2004, followed by a decrease of 9% per year through 2010 as long-term sales are sustained by a 20% arrayer replacement rate and late adopters. Principal arrayer manufacturers include Affymetrix, Molecular Dynamics, Cartesian Technologies, BioRobotics and Packard Instruments. Nimblegen, which is developing the next generation of arrayers using technology from Texas Instruments has the potential to revolutionize this segment.

Scanners will account for the largest proportion of array-related equipment sales by 2004. Major factors driving sales of microarray scanners include capacity, interoperability, resolution and sensitivity. Approximately three-fourths of the scanner market is divided among five companies, with GSI-Lumonics retaining the dominant market share. Axon Instrument's scanners continue to gain a reputation as relatively inexpensive and reliable and thus will likely gain market share in the next few years. Applied Precision, with its new arrayWoRx scanner has potential to become a key player in this segment.

Image analysis software, currently comprising a small percentage of equipment sales is expected to significantly increase through 2003. The image analysis software segment is highly fragmented, with no single unifying software platform expected to emerge in the near term. Bio-Discovery, GSI-Lumonics and Gene Logic all hold strong patent positions and have access to significant funds. Other market players include Affymetrix, Axon Instruments, Spotfire, Silicon Genetics and Scanalytics.

Front Line Strategic Management Consulting Inc. is a market and strategy consultancy specializing in the pharmaceutical and biotechnology industries, providing clients with strategic evaluations, recommendations, and competitive assessments. This research was obtained and analyzed in its 2000 report, DNA Microarrays, A Strategic Business Analysis. Free executive summaries of all Front Line studies are available to the press and free tables of contents and sample pages are available to industry.

For more information: Front Line Strategic Management Consulting Inc., 1065 E. Hillsdale Blvd, Suite 403, Foster City, CA 94404. Tel: 650-525-1500. Fax: 650-525-2727.

Edited by Laura DeFrancesco
Managing Editor, Bioresearch Online