SOURCE: Kalorama Information

Kalorama Information

September 11, 2012 11:25 ET

DNA Sequencer Sales Rise With New System Introductions

NEW YORK, NY--(Marketwire - Sep 11, 2012) -  The market for DNA sequencers increased in the last year with the introduction of new systems and a growing demand for sequencing, according to Kalorama Information. The healthcare market research publisher said that the introductions of the Ion Torrent PGM, PacBio RS and MiSeq grew the sequencer market nearly five percent to $560 million in 2011. More new technologies are expected from Ion Torrent as well as from Oxford Nanopore that may further change the market and introduce price changes, according to Kalorama's report, "DNA Sequencing Equipment and Services Markets, 3rd Edition."

"This was getting to be a stable market, but that changed in the last two years," said Justin Saeks, Kalorama analyst and author of the report. "Now it's more volatile and complicated; we think customers will acquire new systems, but pricing and feature preferences will get interesting."

According to the report, DNA sequencing has seen very high growth in recent years as a result of labs deciding to start using next-generation sequencing for their research. At the same time, large segments of end-users are still continuing to use CE Sanger systems and may take a while to shift to the new technologies. The science of sequencing is constantly evolving, as more clinical applications are sought and competition with other technologies is resolved. Just one of many trends: microarrays remain more cost-effective for genome-wide association studies, but given the trends in the science and sequencing costs, that could change too, creating a further boost for DNA sequencers. Another trend is that large structural variations have shown to be highly important for genetic variation, more so than SNPs; read lengths then become a key factor in system purchases. As specific applications place greater emphasis on one benefit or another, the market segments can quickly narrow down their usage to certain products.

"Longer-term, questions still remain for broad areas such as disease prevention and diagnostics which could turn into home runs or strikeouts," Saeks said.

One thing to count on is competition, which the report says will be intense as systems are constantly improved and new products appear with increasing frequency. Illumina and Life Technologies have established themselves and appear better positioned than most, according to the report. The report also suggests customers' criteria and priorities may change: specific features might be make-or-break, depending on the applications that are discovered.

Kalorama Information's report, "DNA Sequencing Equipment and Services Markets, 3rd Edition," contains a deeper discussion of some of these trends, a review of products currently on the market, and competitive positions of players. In addition to analyzing DNA sequencer sales and making forecasts for future sales, it also looks at sequencer consumables and services sales. 

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Kalorama Information, a division of, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog.

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