Global Proteomics Market Analysis - Arrayit …arrayit.com/Proteomics-Market-Size.pdfGlobal Proteomics Market Analysis June 2016 Growth opportunities in a market in transition Growing

Global

Proteomics Market Analysis

June 2016

Growth opportunities in a market in transition Growing demand for personalized medicine, and strong R&D

investments in proteomics-based drug discovery projects has fueled the growth.

The global proteomics market has shown strong growth, and is

expected to exceed $15 billion by 2020

• Global market for Proteomics is forecast to exceed $15 billion by 2020,

buoyed by growing demand for personalized medicine, and strong R&D

investments in proteomics-based drug discovery projects.

• Fueled by the importance of accurate and sensitive diagnosis offered by

proteomics in the area of personalized medicine, the market for proteomics is

expected to register strong growth in the coming years.

• Detailed analysis of proteins provides better opportunities for the

development of drugs that can target disease pathways more efficiently. The

discovery of new protein biomarkers in disease development, and the

corresponding development of novel drugs for cancer, cardiovascular, and

neurodegenerative diseases have strengthened the market in recent years.

Identification and characterization of proteins provides a deeper

understanding of disease mechanisms when compared to genetic profiling.

• Funding support offered by government and private organizations for

proteomics research, developments in mass spectrometry-based proteomic

and chemoproteomic strategies, and increased focus of biotechnology and

pharmaceutical companies on novel drug discovery methods, bode well for

the global proteomics market. Despite the opportunities for growth, the

market will continue to face challenges such as tough regulatory approvals,

dearth of qualified and skilled research manpower, and high cost of

proteomics instruments and equipment.

• The United States represents the largest market worldwide, followed by

Europe. Emerging economies of Asia and Latin America are poised to fuel

future growth in the market supported by socioeconomic growth, increased

focus on biotechnological research, strong government support, and

increased outsourcing of proteomics services to Asian countries.

www.merkleandsears.com

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Executive Summary

2014 2015 2016 2017 2018 2019 2020

Global proteomics market growth ($ Billion)

APAC proteomics market by Country (2015-2020)

China

Japan

South Korea

Taiwan

India

Australia

Others

Strong growth curves ahead for many market segments

• The US proteomics market benefits from the vast diversity and scale of

operations of the academic sector. Further, ability of academics to reposition

themselves into new groups in order to meet the scientific challenges in

proteomics industry also proves beneficial for the industry. Proteomics

research, being complementary to genomic approaches, has been

witnessing increased integration with drug discovery market. Rising interest

in integrated technologies is driving rapid expansion of bio-informatics and

protein biochip technologies in Europe.

• The shift towards proteomics from genomics facilitates technological

advancements, which are aimed at providing assistance to drug discovery

researchers by offering enhanced throughput, resolution, and sensitivity,

compared to conventional protein research tools.

• Over the next decade, better understanding of proteome will lead to the

development of advanced sequencing methods and superior technologies

that help expand application possibilities.

• Discovery of new biomarkers is expected to enable successful development

of newer drugs. Technological improvements in instruments and workflow

and miniaturization of biochip devices will create new milestones in diagnosis

and drug development applications. Biomarker-based research will be a

strong area of focus given the increasing importance of proteomics in novel

drug discovery, design, and development.

• Major players covered in the report include Bio-Rad Laboratories Inc.,

ThermoFisher Scientific, Waters Corporation, Sigma-Aldrich Corporation,

PerkinElmer Inc., Bruker Daltonics Inc., Caprion Proteomics Inc., GE

Healthcare, and Shimadzu Biotech, among others.

• The United States and Europe represent the predominant markets, as stated

by the new market research report on Proteomics. The shift towards

proteomics from genomics facilitates technological advancements, which are

aimed at providing assistance to drug discovery researchers by offering

enhanced throughput, resolution, and sensitivity, compared to conventional

protein research tools.

• Recently developed biomarker-discovery platforms include relative

quantitative proteomic tools, such as the iTRAQ (isobaric Tagging for

Relative and Absolute Quantitation) and SILAC (Stable Isotope Labeling by

Amino Acids in Cell Culture).


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Executive Summary

xx%

xx%

xx%

Market share breakdown, 2015

xx

xx

xx

xx

North American proteomics market by application

Aggregate 2020 demand

Demand growth %, CAGR

xx

xx

xx

xx

U.S.

Canada

Mexico

Rest of North America

xx

xx

xx

xx

Two-dimensional electrophoresis continues to hog the limelight

• Two-dimensional electrophoresis (2DE) is one of the most cost-effective protein

profiling technologies. Using this technology, the constituents of a protein

sample can be entirely visualized in a single gel.

• The global economic recession affected the government research spending

across the globe. However, it was a blessing in disguise for the 2DE industry as

researchers were on the prowl for cheaper technologies in that cash-crunched

climate. Participants in the market capitalized on the then prevailing situation to

improve their revenues.

• The 2DE market is projected to grow at very high rate in the near term, as

academic researchers – the main consumers of these products – are

increasingly investing more in cheaper alternatives for protein expression

studies, such as 2DE. End users are more likely to automate their existing

2DGE-MS process than invest in new technologies since the others have not

been as successful on a wide range of samples.

• Sample preparation solutions can vary dramatically from each other. Companies

therefore find it very difficult to come out with sample preparation kits that will

effectively address the varied needs of the market. A large number of products

are required to address this market, but each of these products will enjoy only a

limited response due to the differing needs of customers. Sample preparation is

a major challenge that the industry needs to overcome. It affects both the

reproducibility and the resolution of the 2DE experiment which, in turn,

influences the end results.

• As a result, many market players are increasingly focusing on determining the

kinds of samples that are the most widely studied in the market. Following this, a

feasibility analysis to check the financial viability of developing a sample

preparation kit for such samples is conducted. This has helped these companies

to more effectively fulfil varied sample requirements.

• The customers also need to be provided strong technical support. This aspect,

therefore, also is increasingly taken in to consideration in the feasibility studies

related to the development of sample preparation kits.

• "Industry participants need to address the sample preparation market in a more

consolidated manner, whereby every sample preparation kit developed by each

company should effectively address a unique niche," advises Ramachandran.

"This strategy will ensure that participants do not cannibalise each others

customer base.“

• New analysis from Frost & Sullivan (http://www.drugdiscovery.frost.com),

European 2-Dimensional Electrophoresis Market, finds that the market earned

revenues of about $130.0 million in 2008 and estimates this to reach nearly

$159.2 million in 2015. The following segments are covered in the research:

two-dimensional gel electrophoresis, liquid chromatography and mass

spectrometry.


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Market Analysis

xx%

xx%

xx%

C a p

a c i t y

Time 2016

Current market position

Predicted strategic inflection point

Steep growth curve ahead for the market


Growing adoption of integrated Liquid Chromatography systems

• Increasing need to extract greater amounts of proteomic information is driving

the adoption of Liquid Chromatography (LC). Interest and level of activity in

the field of proteomics has remained high and will continue to increase

because crucial information is mostly gathered from proteins.

• Researchers are still on the lookout for the product that will enable them to

draw information accurately and efficiently. As the study of proteins gains

importance in other industries and research markets, the demand for protein

LC technologies is expected to continue growing.

• The superior capabilities of LC to analyze complex samples when coupled

with mass spectrometry (MS) are propelling deployment of integrated LC

systems.

• Manufacturers, recognizing the needs of researchers working on advanced

analysis, are striving to offer technologies such as fully integrated LC-MS

systems.

• These integrated solution systems are likely to provide researchers with

sophisticated analysis tools offering higher ease of use. Sustained innovation

is anticipated to further increase LC adoption.

• However, limited volume of protein samples has restricted the number of LC

experiments conducted so far. In many proteomics research programs,

protein sample availability restricts liquid chromatography (LC) experiments.

• Researchers are often unable to conduct the entire range of experiments

desired since only small amounts of valuable protein samples are available.

Answering numerous questions with limited sample is difficult. Moreover, with

researchers often having to prioritize experiments, researchers are unable to

conduct thorough studies.


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Market Analysis

xx%

xx%

xx%


Global liquid chromatography market for protein studies

2014 2015 2016 2017 2018 2019 2020

$ Million

Growing need for automated crystallization shaping the protein

crystallography market • Increasing demand for high throughput protein crystallography has resulted

increase in adoption of automated crystallization. The need to understand

exactly how small molecules bind to their protein target is driving the demand for

protein crystallography in drug discovery. A higher throughput protein

crystallography process requires protein crystallization to also become high

throughput and this is best achieved through automated crystallization. A

number of large proteomic initiatives are being launched, increasing market

opportunities for automated crystallization.

• Drug discovery initiatives have driven numerous technological advancements in

structural proteomics. Pharmaceutical companies today acknowledge that

structure discovery helps lead optimization. With rapid technology advances,

structure-based design is set to become a preferred method for discovering new

drugs.

• As an increasing number of companies discover the importance and significance

of protein structure studies for drug discovery, more efforts are being made

toward improving structural determination technologies. Market consolidation

and industrialization along with the introduction of powerful integrated systems is

changing research approaches. Besides automation, miniaturization of protein

crystals and processes including purification is another big trend.

• Lack of experienced researchers has further fueled the demand for automated

crystallization. Protein crystallization is a process that requires training, skill, and

time. The number of trained researchers and people willing to commit to such a

process has been decreasing. The surge in automation has addressed the

worrisome dearth of protein-structure researchers. However, automation allows

researchers with less experience and training to be involved in crystallization.

This frees researchers, allowing them to focus on increasing productivity,

reproducibility, and throughput.

• A novice, with an expert's guidance, can now perform projects that once

required the full-time attention of an expert. Automation eliminates much of the

repetitive work involved in setting up the massive number of crystallization trials.

• This Frost & Sullivan research analyzes the global market for structural

proteomics. It provides an analysis of market drivers, restraints, and forecasts,

identifying areas of growth. The study covers liquid handlers used for protein

purification; automated protein crystallization instruments; nuclear magnetic

resonance (NMR) spectrometers, and X-ray systems used for protein studies.


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Market Analysis

xx%

xx%

xx%

C a p

a c i t y

Time 2016

Current market position

Predicted strategic inflection point

Steep growth curve ahead for the market


Global Industry Overview

• Proteomic research inherently requires huge capital investments and

historically, it has yielded poor revenues. Pharmaceutical companies have

hesitated in adopting the proteomics technologies in their drug

development pipeline as they have been wary of premium pricing.

• However, today public funding institutions are giving importance to this

growing biological discipline next to comparative genomics. The proteomics

market is considered an emerging area with immense potential. In fact,

Governments and federal ministries in three major European countries,

namely the United Kingdom, France and Germany, have allocated thematic

priorities to nurture the growth of this market. This has resulted in greater

industrialization of this field, which in turn, has boosted the confidence of

companies to invest in this fast-paced and dynamic arena. Low return on

investment that can dissuade potential entrants in proteomics technology

markets has thus been offset by increasing public funding.

• The increasing relevance of protein-protein interactions and protein

analytics in drug discovery as well as clinical diagnostics has highlighted

the importance of proteome research. Technological advancements in

protein separation technologies and two-dimensional gel electrophoresis

are likely to usher in a ubiquitous approach to assess differential protein

expressions. Maximum utility of expression proteomics tools in the target

discovery phase of drug development is likely to trigger reliable separation

and identification of low abundant proteins with poor expression levels.

Moreover, the development of matrix-assisted laser desorption/ionization

(MALDI) and electrospray ionization (ESI) technologies has enlarged the

scope of building versatile mass spectrometers, considered the cornerstone

of proteomics. The improved mass spectrometers are likely to have

enhanced functionalities of automation and compatibility with other

proteomics equipment.

• Another possible trend is the emergence of newer dyes that increase the

chances for improved sensitivity.

• New Applications Using Proteomics Fostered by Public-private

Partnerships

• "Besides those between companies, another important collaboration is

between companies and academic research units, since such alliances are

likely to be potentially very interesting as they are anticipated to be a

merger of disciplines," notes the analyst. "This ensures that academic

research develops groundbreaking research methodologies, while

companies can introduce the technology into possible applications that are

likely to boost their business in terms of revenues and in this manner, the

uptake of proteomics tools can be encouraged."


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Industry Analysis

xx%

xx%

xx%


Global proteomics market

2014 2015 2016 2017 2018 2019 2020

$ Million

European proteomics market overview

• The European Union (EU) has become a popular hub for advanced research

into proteomics. This can be attributed to the significant government funding at

both the national level and from individual EU agencies.

• Moreover, Europe houses some of the largest pharmaceutical companies that

are extending their support to research programs related to proteomics, either

in-house or in collaboration with smaller firms. The primary goal of most of

these pharmaceutical companies is to go beyond the realms of human genome

sequencing and expand the list of identified proteins and genes, which will

ultimately aid in understanding disease mechanisms and developing

corresponding therapeutics.

• The high impact of emerging technologies such as proteomics is causing

radical changes in the fields of drug discovery as well as clinical research and

diagnostics. As a result, end users in the European life sciences arena are

looking for a complete, integrated solution. The current trend in the European

market has been the formation of broad partnerships, as the European

commercial sector realizes that this is one of the best ways of maximizing

opportunities in this area since smaller companies can affiliate themselves with

larger, more recognized suppliers.

• Increased funding for research and sustained pharmaceutical and

biotechnology industry interest in drug discovery is a major growth factor for the

European proteomics market. Though proteomics is a critical technology for

mass screening and post-translational modification of proteins, the European

proteomics industry's progress is restricted by complications faced by

organizations in sourcing adequate funding for various research initiatives. The

relative higher cost of equipment and software in the European market has

enhanced the importance of funding to huge extent.

• Proteomics is fast gaining prominence as one of the primary tools for drug

discovery. While the potential of proteomics is constantly growing, the most

lucrative applications lie in the field of drug discovery and development and

molecular diagnostics. Proteomics is expected to be one of the key tools in

target identification and validation and ultimately expanding the list of cellular

targets. New information on the molecular mechanisms responsible for disease

has enhanced the identification and validation processes. With regard to

molecular diagnostics, there is ever growing expectation that diseases with a

genetic component can be treated according to specific genetic markers,

medications and dosages that are optimized for individual patients.

• Human genomic research is accelerating as scientists seek effective therapies

with the ability to target the appropriate genes for activation inhibition or

replacement. The target genes are multiplying in numbers and researchers are

hoping to develop treatments for a wide variety of disorders, from cystic fibrosis

to cancer and cardiovascular disease.

• Emerging technologies such as microarrays, automation and robotics are

taking genomics and proteomics research to new heights. "Weeks, if not

months, were initially required to elucidate the expression of a single gene,"

observes the analyst. "Now, tens and thousands of genes can be studied in a

single afternoon." In addition, previously time-consuming and skill-intensive

assays and preparations can now be accomplished thousands of samples at a

time and within a few hours. This is made possible through new computer-

modelling approaches such as molecular dynamics (MD), ligand docking (LD),

pharmacophore modelling (PM), homology modelling (HM) and enzyme-

substrate modelling (ESM).

• Since conventional technologies such as 2D gel electrophoresis pose certain

limitations, development of new technologies such as isotope coded affinity

tags, 2D chromatographic separation, terahertz pulsed imaging (TPI) and

terahertz pulsed spectroscopy (TPS) and protein arrays are also gaining

importance.


8

Regional Analysis

European proteomics market

xx%

xx%

xx%


2014 2015 2016 2017 2018 2019 2020

$ Million

Government support has fueled the growth in Australian market

• Growing focus on research has driven the growth in proteomics market in

Australia. Extensive research in proteomics is promising cures for previously

untreatable diseases. With the Government assisting by providing additional

tax concessions, the spending on research and development (R&D) is likely to

increase by 58.0 percent in 2016.

• As a result, more than 300 biotechnology companies focusing on proteomics

applications have set up operations in Australia to take advantage of this

favorable environment. Drug discovery companies are also likely to have ample

opportunities to slightly modify the lead compound in order to screen and

exclude patients of a certain genotype who are more prone to developing

certain side effects from clinical trials.

• Australian research companies are increasingly entering into collaborations

with Venture Capitalists for funds. Compared to Western countries, most of the

Australian biotech companies are start-up undertakings that are in need of

capital to support their research.

• However, venture capitalists (VCs) have been hesitant to provide funds since

these companies have few products in the final stages of drug discovery and

have to wait for around ten years for their products to complete clinical trials

before releasing them into the market.

• The long gestation period and the low market awareness on the potential of

biotech products have led to insufficient funding of the biotech ventures in

Australia as investors perceive them as being too risky. However, the Australian

government and the top research companies have helped the VCs to

understand the commercial viability of their projects and the time required to

market them. Their efforts have begun to bore fruits as the market has

witnessed growing entries from several major international VCs in the recent

years.

• Enterprises Must Supply Researchers with Superior Products at Lesser Costs

• Researchers need to strike the right balance between choosing high-end

products for their research and maintaining lower costs," emphasizes the

analyst. "New products such as those in structural proteomics can be

expensive, and at times, complex and enterprises should convince researchers

about their long-term benefits to drive their sales."

• To encourage greater involvement in research from universities, biotech

companies must educate the faculty on intellectual property (IP) issues, patent

filing, and tracking of license agreements with third parties, and monitoring

competitors' technologies. These universities need to allot more resources for

developing enhanced commercialization processes and build managerial

expertise in commercialization, deal structuring, and business development.


9

Country Analysis

VC funding in Australian proteomics market

xx%

xx%

xx%


2014 2015 2016 2017 2018 2019 2020

$ Million

0

20

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

New Zealand

Hong Kong

Taiwan

Thailand

Philippines

Australia

Malaysia

Indonesia

South Korea

Japan

China

India


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Growing Diabetic Population – A Key Growth Driver

Million Million Million

Million Million

Prevalence of Diabetes in Million (2005 – 2015)

Growing base of diabetic population and the acute need for their quality care and

treatment is boosting the adoption of proteomics technologies in the stem cell research activities

0

5

10

15

20

25

30

U.S. Canada

0

5

10

15

20

25

Brazil Mexico Argentina

Peru Venezuela Chile

0

5

10

15

20

25

Russia Turkey Poland

Czech Republic Hungary

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Belgium

Netherlands

Sweden

Switzerland

Portugal

Austria

U.K

Spain

France

Italy

Germany

(4)

(2)

0

2

4

6

0 1 2 3 4 5 6

11

Fourteen players identified as candidates for benchmarking as

'Large Competition' given industry spread

xxxx

xxxx

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xxxx

xxxx

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xxxx

Frequency across market segments

Frequency across Regions

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xxxx

xxxx

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Emerging players

Prominent players

Fourteen players defining the industry

benchmark in 2015


Competition Analysis

Thank you


Documents

Global Proteomics Market Analysis - Arrayit …arrayit.com/Proteomics-Market-Size.pdfGlobal Proteomics Market Analysis June 2016 Growth opportunities in a market in transition Growing