Oligonucleotide Synthesis Market

Market Overview

The global oligonucleotide synthesis market size was valued at USD 6.78 billion in 2022. It is projected to reach USD 22.39 billion by 2031, growing with a CAGR of 14.2% during the forecast period (2023–2031).

Oligonucleotide synthesis is an essential part of genetic research studies. They also have various applications in research activities and disease diagnosis. Inexpensiveness and easy availability of synthetic DNA and RNA has paved the way for DNA amplification by PCR. The availability of these oligonucleotides has made it possible to sequence the whole human genome; this has further unraveled many hidden facts about the genetic constitution, which now helps in understating different genetic and autoimmune disorders. For instance, more than 7000 genetic diseases are newly found.

In the US alone, birth defects affect one in every 33 babies and cause 20% of deaths in infants. Moreover, synthetic oligonucleotide applications have increased in the last few years, and this has fueled the research of several diseases, like the detection of cancer, infectious diseases, and genetic diseases. Commercialization of oligonucleotides for different therapies is under development. As per the Japan patent office, around 141 clinical trials were conducted for oligonucleotide therapies, of which nearly 20 products will be commercialized. One of its kind is SPINRAZA, manufactured by BIOGEN, which was approved by the FDA in 2016 and is used for the treatment of spinal muscular atrophy. After its approval, over 80% of individuals have been treated with SPINRAZA. The success of SPINRAZA exhibits a promising future for upcoming oligonucleotide-based therapies yet to be commercialized.

Market Dynamics

What are the factors driving the market growth?

Declining Cost of Sequencing

Recent developments in the field of genomics research have resulted in a dramatic decrease in the price of genome sequencing. The NGS technique has considerably decreased the cost and enhanced the speed of DNA sequencing. According to the National Human Genome Research Institute's (NHGRI) figures, the cost of sequencing a human genome has significantly fallen from around $5 million in 2008 to approximately $1,000 in 2017. In the field of genomics research, sequencing is increasingly employed not only to build genomes and examine the genetic basis of human disorders but also to gain a comprehensive understanding of reproductive medicine, cancer, and infectious diseases. Consequently, the fast-declining cost of sequencing is anticipated to stimulate research efforts, thereby boosting demand for oligonucleotide synthesis items and technology over the forecast period.

Regional Analysis

The global oligonucleotide synthesis market is divided into North America, Asia Pacific, Europe, and LAMEA.

North America is expected to hold the largest market share during the forecast period following the increasing investments in research and development in the region. The US is leading the oligonucleotide synthesis market in the region. For instance, an approximately USD 2 billion funding bill was passed for the NIH and USD 300 million funding for NCI in 2019, American Cancer Society Cancer Action Network Organization. These investments will accelerate the fight against cancer and will help in developing new effective ways for the treatment of the disease. Moreover, around USD 37 million has been spent to support CDC's cancer programs. Canada is the second leading market in the region. This can be attributed to the growing presence of genetic companies and increasing investments in research and development. Recently, around USD 2.25 million has been invested by Canadian Ovarian Cancer Research to develop better experimental models. Moreover, Editas Medicine, Intellia Therapeutics, and Sangamo Therapeutics are some of the prominent players involved in gene editing activities.

Europe is the second leading oligonucleotide synthesis market, following the growing demand for personalized data and increasing government support in the region. Many countries have also started genetic tests for autistic people in Europe. For instance, approximately 700,000 people are suffering from autism in the UK, according to the National Autistic Society. Moreover, the United Kingdom and France are planning to build a sequencing facility, create databases and integrate the results of genetic testing into standard healthcare. Currently, 13 centers in the UK have started offering whole-genome sequencing to cancer patients and autistic patients. Apart from this, some of the eminent gene research companies are also supporting the overall growth of the market.

Asia-Pacific is anticipated to experience the most rapid market expansion over the projected period, owing to the region's continuously developing healthcare infrastructure, economic growth, and rise in government support and investment. In addition, a spike in cases of chronic disorders like coronary disease, cancer, and others, as well as an increase in government support and investment for enhancing people's health, accelerate the market's growth. For instance, the Department of Biotechnology (DBT) launched the "Genome India Project" to construct a reference genome. The project intends to collect 10,000 genetic samples from residents across India. Precision health, rare genetic illnesses, the mutation spectrum of genetic & complex diseases in the Indian population, genetic epidemiology of multifactorial lifestyle diseases, and translational research are some of this project's focal points. In addition, key firms in this emerging region present a lucrative opportunity for the oligonucleotide synthesis industry. Stakeholders in the market for oligonucleotide synthesis have identified the Association of Southeast Asian Nations (ASEAN) member countries in the Asia-Pacific area as extremely attractive markets. Demand for genetic sequencing is exploding in China, fuelled by the nation's rising middle class, aging population, and expanding healthcare industry.

The LAMEA region is expected to witness significant growth over the forecast period. The important factors driving the expansion in the region are the rise in the use of synthesized oligos in therapeutic applications and the increasing emphasis on personalized medications. In addition, the presence of improved healthcare infrastructure and an increase in government financing for synthetic biology and genome studies contributes to the overall expansion of the market. Similarly, other factors, including the large increase in the geriatric population, advancements in purification and quality control technologies, and the increased use of oligonucleotides by pharmaceutical companies, drive the rate of market expansion. In addition, the rise in R&D activities and the presence of significant key players in emerging economies would create lucrative prospects for the market. However, the high cost of synthesized oligonucleotides and the dearth of qualified professionals would serve as market barriers and hinder the industry's growth rate. Additionally, the delivery of oligonucleotide medications to specific targets and rigorous regulations will present difficulties for the industry.

Segmental Analysis

The global oligonucleotide synthesis market is segmented by product type, application, and end user.

By product type, the market is segmented into synthesized oligonucleotides, reagents, and equipment.

The synthesized oligonucleotides segment is leading the global oligonucleotide synthesis market. In PCR investigations, the widespread use of synthesizers and consumables such as PCR primers has increased the proportion of synthetic products. The widespread implementation of PCR technologies in the research and diagnostics sectors due to their simplicity, high sensitivity, and cost-effectiveness is stimulating the expansion of this market.

Based on applications, the market is segmented into research, diagnostics, and therapeutics.

Applications of oligonucleotides in drug manufacturing are becoming mainstream; pharmaceutical companies are using them for different indications such as cancer, neurodegenerative, cardiovascular, and rare diseases. In 2016, FDA approved eteplirsen, which is a self-splicing oligonucleotide used in the restoration of function caused by muscular dystrophies. Recently, ‘Dynacare’ a French startup company, launched USD 55 million worth of antisense oligonucleotide drugs to treat rare genetic muscle diseases. With every new product launch, the application segment covers a wide range of indications, creating a foundation for a promising market scenario.

Based on end-user, the market for oligonucleotide synthesis is divided into academic research institutes, pharmaceutical and biotechnology firms, and diagnostic laboratories.

Due to the increasing use of oligonucleotides in diagnostic applications, the end-user sector of the diagnostic laboratory market is likely to post the highest CAGR over the forecast period. Oligonucleotides are used to test for genetic changes that cause or are related to neurodegenerative diseases such as spinocerebellar ataxia (SCA), epilepsy, and Alzheimer's disease. Recently, oligonucleotide-based biosensors have been utilized for the detection of small molecules, peptides, and proteins, in addition to the genetic detection of targets. This has expanded the scope of these sensors' uses in the medical and healthcare industries.