Molecular biology enzymes, kits, and reagents offer a wide range of applications across life science research, diagnostic testing and drug discovery, and research and development. It is used for the analysis of diagnostic and therapeutic targets. Before the inception of biotech, science and business had been separate entities. Only a handful of companies were engaged in the commercialization of scientific research. However, in 1976, Genentech, the first biotech company, struck a deal with Eli Lilly. In the deal, Genentech gave manufacturing and marketing rights to Lilly in return for funding its development program. This has encouraged venture firms to fund startups and merge science and business together. The market is majorly driven by increasing research activities and investments in the life science industry, the rising number of genome projects, increasing technological advancements, and the rising incidence of infectious diseases & genetic disorders. Moreover, expanding the biotechnology industry in emerging nations is also offering umpteen growth opportunities to the molecular biology enzymes, kits, and reagents market.
Global molecular biology enzymes, kits, and reagents market was valued at USD 6,800 million in 2018 and is expected to grow at a CAGR of 17.4% during the forecast period.
Increasing R&D investments in the Life Science Industry
Globally, life scientists access genomics and molecular biology data for the discovery of advanced therapeutics and improved diagnosis of life-threatening diseases, which is further escalating the investments in these studies. For instance,
Earth BioGenome Project is a massive sequencing project proposed by the international consortium of scientists. In this project, genomes of all known eukaryotic species will be sequenced, which will take the utmost 10 years, and cost will cost around USD 4.7 billion. In the last few years, genomics has assisted scientists in the development of new medicines, feed a growing population, protect the environment, and support human survival. The Earth Microbiome Project has a support of over 500 scientists for sequencing bacterial and archaeal genomes across the globe. It will also include representatives of many ongoing large-scale genomics projects, such as the Global Genome Biodiversity Network, the i5K Initiative to Sequence 5,000 Arthropod Genomes, the Global Invertebrate Genomics Alliance, and the Genome 10K Project for better understanding and prosecution of the project.
In the last few years, the molecular biology enzymes, kits, and reagents market have been witnessing a significant surge in the number of new entrants in the biotechnology industry, which is further amplifying the investment opportunities of the market. In 2019, Carano Ventures invested around USD 2 million in Speratum, a Costa Rican biotech company engaged in microRNA-based oncology therapies mainly for pancreatic and ovarian cancers. Moreover, a number of conglomerates are heavily investing in new startups, which is subsequently increasing genomic-based activities. In 2018, Illumina Accelerator invested in six genomics startups, named Algen Biotechnologies, Inc., Astarte Medical Partners, Inc., Avail Bio, Inc., Cognitive Genetics Inc., and VastBiome.
On the basis of product, the market is bifurcated into enzymes and kits & reagents. Enzymes are further sub-segmented into polymerases, ligases, restriction endonucleases, reverse transcriptases, phosphatases, proteases & proteinases, and other enzymes. The kits & reagents are accounting for one of the largest shares in the market owing to their repeated purchase and increasing application in drug research. Additionally, growing investment in the discovery of new drugs for chronic diseases is driving the growth of the segment. Recently in 2019, Charity Parkinson’s U.K partnered with the University of Sheffield to develop a potential drug for Parkinson's disease. The charity is expected to invest around USD 111,349 million.
Based on the application, the market is segmented into polymerase chain reaction (PCR), sequencing, cloning, epigenetics, restriction digestion, synthetic biology, and other applications. Sequencing is the process of determining DNA sequence. Growing genomic research and technological advancements have contributed to making sequencing one of the highest-grossing segment. In addition to this, low sequencing prices with the emergence of new startups in the space, have strengthened the growth of the segment. In June 2019, Pitango Venture Capital invested about USD 7 million in Variantyx, a genomic testing firm. Similarly, Gencove received an investment of USD 3 million from Spero Ventures in March 2019.
Globally, North America dominates the global molecular biology enzymes, kits, and reagents market. This can be attributed to the increasing genomics research, rising number of pharmaceutical and biotechnology companies, rising investments, presence of well-established genomic companies, increasing genomic research projects, and rising public-private partnerships in the region. In 2019, GlaxoSmithKline plc collaborated with the University of California to establish a laboratory for genomics research, which will help in the development of advanced genomic technologies based on the data provided from 23andMe. Moreover, a number of companies are offering varied reagents to simplify the workflow process. In 2017, BD launched Precise WTA Reagents to provides accurate quantification of genetic information form single-cell analysis.
Europe is second in the global molecular biology enzymes, kits, and reagents market and will continue the same during the forecast period. The biotech sector has blurred the lines between university research and a biotech firm to a profitable business. Moreover, an increasing number of cell and gene therapy clinical trials in the U.K are driving the market growth. For instance, the gene-modified therapies in clinical trials increased from 47% in 2017 to 73% in 2018, the Cell and Gene Therapy Catapult. Also, genomics in precision medicine is offering lucrative opportunities for the market. The 100,000 Genomes Project invested around USD 396 million to completely revolutionize the genomic industry in the U.K. In this, around 100,000 human genomes were mapped by the end of 2017. Some of the major investments for genomic research are mentioned below:
In the Asia Pacific, developments in the field of biotechnology are tremendously impacting every aspect of life, including environment, reproduction, and the prevention of dread diseases like tuberculosis, HIV, and cancer. In the last few years, China’s biotech industry is worth around USD 4.7–6.2 billion and the agricultural biotech market is worth around USD 8.1 billion, the U.S.-China Economic and Security Review Commission. In China, the market is majorly driven by several commercial factors, such as cheap labor, abundant talent, and comprehensive planning. For instance, China has named biotechnology as a Strategic Emerging Industry, which will be included in Made in China in 2025 and the 13th Five Year Plan to prioritize its development. To implement these policies, the Chinese government is supporting the biotechnology industry through R&D programs like the 863 Program and through investment in infrastructure, development of research parks, and recruitment of overseas talent.
Some of the key players in the global molecular biology enzymes, kits, and reagents market are Illumina Inc, F. Hoffmann-La Roche Ltd, Thermo Fisher Scientific Inc., Agilent Technologies, Lucigen Corporation, Merck KGaA, Takara Bio Inc., Promega Corporation, Qiagen NV, and New England Biolabs Inc.