U.S. Research Instrumentation Strikes Fresh Markets as Government Backs New Research Areas

Business Wire, Sept 14, 2004

PALO ALTO, Calif. -- New demand in the mature U.S. nucleic acid and liquid handling research instrumentation market is generated from government-funded areas such as food safety, disease prevention as well as bio-threat and pathogen detection.

As such, the market is fiercely competitive, marked by high installed bases, intense pricing pressures, and end users with increasing bargaining powers demanding more features at lower costs. To maintain market shares, participants must provide instruments that are robust, innovative, and capable of increasing laboratory productivity as well as providing quality customer care.

New analysis from Frost & Sullivan (http://www.healthcare.frost.com), U.S. Nucleic Acid and Liquid Handling Research Instrumentation Markets, reveals that revenue in this industry totaled $439.1 million in 2003 and projects to reach $856.0 million by 2012.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the U.S. Nucleic Acid and Liquid Handling Research Instrumentation Markets, then send an email to Danielle White - Corporate Communications at dwhite@frost.com with the following information: your full name, company name, title, telephone number, fax number, and email. Upon receipt of the above information, an overview will be sent to you via e-mail.

Competition in the market depends on the specific product segment. For example, established segments such as DNA synthesizer and thermal cycler are subject to moderate to high levels of competition, while growing sectors including real-time thermal cycler instrumentation and turnkey robotic liquid handling instrumentation experience high levels of competition.

"Continued growth in the market is expected to be fueled by mainstream adoption of real-time PCR technology to facilitate genomic-based research," says Frost & Sullivan Industry Analyst Vikram Wadhwani. "The market is likely to get another boost from the adoption of robotic liquid handling workstation systems to meet high throughput research demands."

A critical factor restraining demand is the high initial investment needed to purchase laboratory instruments. Researchers are reluctant to invest in a new technology, especially without proof of a quantifiable return on investment. They also do not want to spend much time learning to operate new instrumentation and software.

"To dispel user apprehension, market participants must run effective awareness campaigns highlighting instrument ease of use, reproducibility, flexibility, and functionality," states Wadhwani. "Furthermore, equipment manufacturers should highlight increases in laboratory productivity and cost savings associated with instrument use."

Large corporations with lavish budgets, especially in the pharmaceutical and biotechnology segments, are more receptive toward these new technologies.

Another issue hindering instrument sales is the rigorous regulatory pathway in the United States -- in this case, compliance with Good Laboratory Practice (GLP) and Good Manufacturing Practice (GMP). Most market participants have not incorporated instrument solutions that adhere to these regulations, losing out on profitable markets such as clinical laboratories.

Demand is expected to increase if equipment manufacturers develop instrumentation that meet these standards and can be used in clinical laboratories. For instance, there already exists a demand for a small format liquid handling workstation (8-channel workstation) that is GLP- and GMP-compliant in the clinical marketplace.

U.S. Nucleic Acid and Liquid Handling Research Instrumentation Markets, part of the Drug Discovery & Technology subscription, is a comprehensive analysis of the key market dynamics such as drivers, restraints, and challenges. Revenue forecasts and pricing trends enable market participants to develop strategic business growth plans. Interviews are available to the press.

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U.S. Nucleic Acid and Liquid Handling Research Instrumentation
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