With the rise in investments by research organizations and institutions in drug development and molecular research, there has been a significant rise in the demand for efficient biochips. Moreover, the increasing application of biochips in the medical sector for cancer treatment, diagnostics, and drug research is expected to further drive the adoption of biochips globally in the coming years. Due to the growing need for effective and low cost gene decoding methods, and biomarkers detection techniques, the demand for biochips is expected to rise at a significant rate in the coming years.
According to a report published by Transparency Market Research, the global biochips market is expected to expand at a CAGR of 16.9% between 2015 and 2023. The market stood at a valuation of US$5.7 bn in 2014 and is projected to reach a market worth US$22.2 bn by the end of 2023.
What factors are likely to aid the adoption of biochips globally?
As researchers strive to develop new drugs, biochips are proving to be the future potential materials for the development of innovative drugs and conducting research for availing molecular information. The preference for high quality and compact biochips among consumers over traditional hefty instruments is estimated to positively impact the adoption of biochips in the future. The growing pharmaceutical sector and the rise in favorable economic reforms in various countries across the world are factors further augmenting the growth of the global biochips market. Furthermore, the growing application of biochips in genomics, proteomics, and in-vitro diagnostics (IVD) is further expected to boost the consumption of biochips in the upcoming years.
For instance, recently, scientists from the Weizmann Institute and Technical University Munich announced the successful recreation of artificial DNA condensation on a single biochip. It is being considered as a breakthrough in DNA development research.
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What factors could negatively impact the biochips market in future?
Strict government regulations across the world regarding the implementation of biochip technology are anticipated to impede the application of biochips in medical and other research projects. Biochips are also inserted in human bodies to detect chronic diseases and anomalies. As a result of this, companies operating in the global biochips market are focusing on developing advanced biochips with fewer side effects. Moreover, the mass availability of fabricated biochips is also further anticipated to impede the growth of the global biochip market.
What are the opportunities manufacturers of biochips can capitalize on?
With the decreasing market shares of biochips manufacturers in regions such as North America and other developed regions, developing nations are likely to emerge as potential markets for the consumption of biochips.. The growing adoption of biochips in various industries to enhance automation processes is expected to provide lucrative opportunities to manufacturers in Asia Pacific in the coming years. The rising requirement for advanced diagnostic techniques in the healthcare sector of various developing countries, is another factor driving the consumption of biochips.
Owing to the rising research and development activities in the region, North America is expected to maintain a lead in the global biochips market until 2023. It is expected to witness a significant CAGR of 16.7% during the forecast period. The three key players operating in the global biochips market are Illumina Inc., Agilent Technologies Inc., and Affymetrix Inc.