US demand for biochip products and services is projected to increase 20 percent annually to $2.1 billion in 2008. Biochips (or microarrays) will account for $875 million of this amount, with the remaining $1.2 billion divided among related instruments, reagents and other consumables, software, and services. Growth will be led by uses in drug discovery and epidemiological research, with protein analysis and gene expression profiling providing the fastest expanding applications.

DNA biochips to remain dominant

Expanding efforts by pharmaceutical and other life science researchers to apply knowledge gained from the Human Genome Project to commercial applications will create strong growth opportunities for biochips. DNA chips will continue to generate broad usage in genomic research. However, sales of laboratory and protein chips will expand faster as pharmaceutical researchers shift the focus of drug discovery toward proteomics. By 2013, protein chips will account for the largest demand among microarrays.

Instruments, other products to post strong gains

Demand for biochip instruments is projected to exceed $260 million in 2008, up over 13 percent annually from 2003. Growth opportunities for detection, sample preparation and hybridization equipment will continue to expand as pharmaceutical and other life science researchers diversify into proteomic investigations.

By contrast, increasing end-user preferences for pre-arrayed biochips will weaken gains for biochip production instruments.

Based on increased sensitivity, high value-added microarray labeling and processing kits will generate the strongest sales gains among biochip reagents and consumables. Demand for biochip software will also rise impressively as researchers purchase more sophisticated programs capable of comparing vast amounts of experimental microarray data to information contained in external databases.

Biochip services to grow 19% yearly

The market for biochip-related services is projected to reach $600 million in 2008, up 19 percent annually from 2003.

Subscription rights to use proprietary technologies and systems, along with contract research in the area of drug discovery, will continue to make up the largest share of demand. Growth opportunities for maintenance and technical support services will also increase favorably, spurred by more newly installed biochip systems and the aging of previously installed systems.

Drug discovery is key application

Since drug discovery will remain the leading application for microarray technology over the long term, pharmaceutical companies, biotechnology firms and major medical universities will continue to form the three largest markets served by the biochip industry. Other markets, including government agencies, teaching hospitals, clinical laboratories, forensic laboratories, agricultural stations and industrial firms will provide small but attractive niche opportunities.

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