The market for gene expression analysis market is expected to grow from USD 3.2 billion in 2018 to USD 4.9 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 8.8% during the forecast period. Growth in the gene expression analysis market is primarily driven by factors such as rising prevalence of cancer, growing application areas of genomics, and the availability of gene expression databases.

By product and services, the consumables segment is expected grow at the highest rate during the forecast period

The increasing volume of genetic tests in drug discovery, biomarker discovery, and pharmacogenomics applications are driving the growth of the consumables market. The increasing installation of NGS and PCR equipment worldwide will significantly boost the demand for consumables.

By end user, pharmaceutical and biotechnology companies are expected to be the largest contributor to the gene expression analysis market

Pharmaceutical and biotechnology companies utilize gene expression analysis products and services to achieve their clinical research goals, such as drug discovery and development and biotech research. Biopharmaceutical companies focus on developing targeted therapies, especially for the treatment of cancer, complex diseases, and rare genetic disorders. CROs offer a number of gene expression analysis services, including gene expression profiling services such as NGS. This is increasing the demand for gene expression analysis services offered by CROs.

North America is expected to hold a significant share in the gene expression analysis market during the forecast period

Factors such as the development of gene therapy, focus on gene expression studies, government initiatives, and the availability of funding for NGS research are driving the growth of the gene expression analysis market in North America.

Market Dynamics

Driver: Decreasing Cost of Sequencing

The high cost associated with sequencing posed as a major challenge for market growth in the last decade. In 2003, the first human genome sequenced by the Human Genome Project required funding of ~USD 2.7 billion. However, several technological developments have taken place in the field of genomics, which were aimed at increasing the speed and reducing the expenses associated with sequencing.

The NHGRI (National Human Genome Research Institute, US) has tracked the sequencing costs at its various funded genome sequencing centers for many years and estimated the cost of genome sequencing in the years following the Human Genome Project. Based on this data, the NHGRI estimated that in 2006, it would have likely cost over USD 20�25 million for generating a finished human genome sequence, while by late 2015, the cost to generate a high-quality whole human genome sequence draft had fallen below USD 1,500 and the cost to generate a whole-exome sequence was generally below USD 1,000.

Major players operating in the field of gene expression are constantly bringing new and advanced technologies to the market. This is enabling the launch of more affordable testing services in the market. For instance, Illumina (US) launched the NovaSeq Series in January 2017, which is expected to enable the reduction of the sequencing cost of a genome/transcriptome to as less as USD 100 in the coming years.

The reduced cost of sequencing is expected to offer an array of opportunities for stakeholders in the healthcare industry. For instance, the low cost of sequencing would enable researchers to sequence the genomes of thousands of individuals, which would result in an improved data set to be used for the identification of the causes of illnesses. Also, the lower cost would enable individuals with rare diseases to be analyzed and treated quickly. Thus, the significant reduction in the cost of sequencing is expected to be a major factor driving the growth of the gene expression analysis market.

Restraint: Shortage of Trained Professionals

Gene expression data can be used for various applications, such as pharmacogenomics, diagnostics, and toxicogenomics. However, the major challenge lies in the analysis of the colossal volume of gene expression data. In certain cases, technological advancements have enabled the instruments in use to present an analysis; however, the interpretation is still dependent on the reader. Due to the high complexity involved and the need for in-depth knowledge in the field of genomics, it is necessary to hire professionals in the field of genomics to analyze and interpret the results of gene expression data. However, there is a shortage of skilled professionals in the genomics field in major markets across the globe. According to a 2017 article published by the Shoreline Community College, a skill gap in the medical workforce is creating a severe need for immuno-biotechnology training in the US, which includes work in molecular biology.

The governments of Australia and New Zealand have identified biotechnology as an integral part of their long-term future economic growth. However, these countries are facing a shortage of biotechnologists who have the relevant genetic sciences skills. Owing to this, authorities in these countries are focusing on attracting foreign nationals with skills in the field of biotechnology. Also, over the last few years, jobs in this field have appeared on the long-term shortage list of their immigration postings. Similarly, India has a strong focus on developing its biotechnology industry. However, the country is facing a shortage of professionals in the field of biotechnology. For instance, according to a 2016 survey conducted by the Federation of Indian Chambers of Commerce & Industry (FICCI), India faces an acute shortage of nearly 80% of Doctorate and Post Doctorate Scientists, a 20% shortage of people with a Master�s degree, and a production staff shortage of 18% in the biotechnology sector.

Opportunity: Emerging Countries to Provide Growth Opportunities

Emerging countries, such as India, China, and Brazil, are expected to provide potential growth opportunities to players operating in the gene expression analysis market. Several established players in the market are increasingly entering into collaborative agreements with organizations in emerging countries such as China. For instance, in January 2018, Illumina partnered with KingMed Diagnostics, a clinical testing firm based in China, in order to develop next-generation sequencing-based oncology and hereditary disease diagnostics (based on Illumina�s MiniSeq technology) for the Chinese market. Similarly, in September 2015, China-based Amoy Diagnostics Co. Ltd. collaborated with Illumina, Inc. (US) for providing precision medicine and targeted therapies in China.

Several companies based in India are receiving funding from global investors, which is enabling them to offer new and advanced services in the market. For instance, in December 2016, the India-based startup� Core Diagnostics Pvt. Ltd.�successfully raised close to USD 11.5 million (INR 84 crores) in a funding led by Eight Roads Ventures and F-Prime Capital Partners (global venture capital investors based in the US). Also, Biocon Ltd., one of India�s largest companies in the biotechnology sector, has reported significant growth in the early part of this decade�37.9% from 2014 to 2017.

Other countries such as Qatar, Singapore, and Brazil are also witnessing significant developments in their respective genomics and personalized medicine sectors. In 2017, the Qatar National Research Fund (QNRF) and the Qatar Biobank, in collaboration with the Qatar Genome Project (QGP), launched an annual grant program�Pathway Towards Personalized Medicine (PPM)�which aimed to support and encourage genetic research activities in the country. Similarly, an initiative called the Genome Asia 100K, started by Macrogen, Inc., (a South Korea-based biotechnology firm) at the Nanyang Technological University, Singapore in February 2016, aims at creating phased reference genomes for all major Asian ethnic groups to understand the population history and substructure of the region. In Brazil, the government invested ~USD 4.44 billion (BRL 10 billion) in 2016 to fund about 70% of the biotechnology companies in the country.

Active collaboration efforts to improve the quality of healthcare, growing domestic biotechnology sectors, and the availability of government funding for research in emerging markets are some of the factors that are providing growth opportunities to players operating in the gene expression analysis market.

Scope of the Report

Report Metric Details Market size available for years 2016�2023 Base year considered 2017 Forecast period 2018�2023 Forecast units Billion (USD) Segments covered Products, Services, End User, and Region Geographies covered North America (US & Canada) Europe (Germany, UK, France, Italy, Spain, Rest of Europe (RoE)), APAC ( Japan, Australia, China, India, Rest of Asia (RoAPAC)), Rest of the World (RoW) Companies covered Thermo Fisher Scientific Inc. (US), QIAGEN (The Netherlands), Illumina (Sweden), Bio-Rad Laboratories (US). Major 15 players covered.

This research report categorizes the gene expression market based on product & service, end user, and region.

On the basis of Products & Services, the gene expression market has been segmented as follows:

Consumables Reagents DNA Chips

Instruments PCR NGS DNA Microarray Others

Services Gene Expression Profiling Services Sequencing Services Other Services Bioinformatics Solutions



On the basis of End User, the gene expression market has been segmented as follows:

Pharmaceutical and Biotech companies

Academic Institutes and Research Centers

Others

On the basis of Region, the gene expression market has been segmented as follows:

North America US Canada

Europe Germany France UK Italy Spain RoE

Asia Pacific Japan China Australia India RoAPAC

Rest of the World

Key Market Players

The major vendors in the global gene expression analysis market are Illumina, Inc. (US), Thermo Fisher Scientific, Inc. (US), and Bio-Rad Laboratories, Inc. (US). Other players involved in this market are F. Hoffmann-La Roche Ltd. (Switzerland), GE Healthcare (UK), Pacific Biosciences of California, Inc. (US), BGI (China), PerkinElmer (US), Agilent Technologies Inc. (US), QIAGEN N. V. (Netherlands), Oxford Gene Technologies, Ltd. (UK), and Eurofins Scientific (Luxembourg).

Recent Developments

In January 2017, Biorad acquired of RainDance Technologies, a droplet-based PCR systems manufacturer. RainDance Technologies has a more focused portfolio, primarily known for its droplet-based technologies for digital PCR (dPCR).

In March 2016, Thermo Fisher Scientific completes acquisition of Affymetrix, a leading provider of cellular and genetic analysis products.

Key questions addressed by the report:

Which of the product segment will dominate the gene expression analysis market in future?

Emerging countries have immense opportunities for the growth and adoption of gene expression analysis, will this scenario continue in the next five years?

Where will all the advancements in products offered by various companies take the industry in the mid to long term?

Low sequencing costs in the emerging market is impacting the growth for developed markets. How will pricing difference impact the overall market?

What are the upcoming technologies in the gene expression analysis market?

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