Global Proteomics Market Analysis

Global
Proteomics
Market Analysis
June 2016
Growth opportunities in a market in transition
Growing demand for personalized medicine, and strong R&D
investments in proteomics-based drug discovery projects has fueled
the growth.

Executive Summary
The global proteomics market has shown strong growth, and is
expected to exceed $15 billion by 2020
• Global market for Proteomics is forecast to exceed $15 billion by 2020,
buoyed by growing demand for personalized medicine, and strong R&D
investments in proteomics-based drug discovery projects.
• Fueled by the importance of accurate and sensitive diagnosis offered by
proteomics in the area of personalized medicine, the market for proteomics is
expected to register strong growth in the coming years.
• Detailed analysis of proteins provides better opportunities for the
development of drugs that can target disease pathways more efficiently. The
discovery of new protein biomarkers in disease development, and the
corresponding development of novel drugs for cancer, cardiovascular, and
neurodegenerative diseases have strengthened the market in recent years.
Identification and characterization of proteins provides a deeper
understanding of disease mechanisms when compared to genetic profiling.
• Funding support offered by government and private organizations for
proteomics research, developments in mass spectrometry-based proteomic
and chemoproteomic strategies, and increased focus of biotechnology and
pharmaceutical companies on novel drug discovery methods, bode well for
the global proteomics market. Despite the opportunities for growth, the
market will continue to face challenges such as tough regulatory approvals,
dearth of qualified and skilled research manpower, and high cost of
proteomics instruments and equipment.
• The United States represents the largest market worldwide, followed by
Europe. Emerging economies of Asia and Latin America are poised to fuel
future growth in the market supported by socioeconomic growth, increased
focus on biotechnological research, strong government support, and
increased outsourcing of proteomics services to Asian countries.
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2014 2015 2016 2017 2018 2019 2020
China
Japan
South Korea
Taiwan
India
Australia
Others
Global proteomics market growth
($ Billion)
APAC proteomics market
by Country (2015-2020)
2

Executive Summary
Strong growth curves ahead for many market segments
• The US proteomics market benefits from the vast diversity and scale of
operations of the academic sector. Further, ability of academics to reposition
themselves into new groups in order to meet the scientific challenges in
proteomics industry also proves beneficial for the industry. Proteomics
research, being complementary to genomic approaches, has been
witnessing increased integration with drug discovery market. Rising interest
in integrated technologies is driving rapid expansion of bio-informatics and
protein biochip technologies in Europe.
• The shift towards proteomics from genomics facilitates technological
advancements, which are aimed at providing assistance to drug discovery
researchers by offering enhanced throughput, resolution, and sensitivity,
compared to conventional protein research tools.
• Over the next decade, better understanding of proteome will lead to the
development of advanced sequencing methods and superior technologies
that help expand application possibilities.
• Discovery of new biomarkers is expected to enable successful development
of newer drugs. Technological improvements in instruments and workflow
and miniaturization of biochip devices will create new milestones in diagnosis
and drug development applications. Biomarker-based research will be a
strong area of focus given the increasing importance of proteomics in novel
drug discovery, design, and development.
• Major players covered in the report include Bio-Rad Laboratories Inc.,
ThermoFisher Scientific, Waters Corporation, Sigma-Aldrich Corporation,
PerkinElmer Inc., Bruker Daltonics Inc., Caprion Proteomics Inc., GE
Healthcare, and Shimadzu Biotech, among others.
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U.S.
Canada
Mexico
Rest of
North
America
North American proteomics market
by application
Aggregate
2020 demand
Market share breakdown, 2015
xx%
xx%
xx
xx
xx
xx
Demand
growth
%, CAGR
xx
xx
xx
xx
xx
xx
xx
xx
xx%
3

Market Analysis
Two-dimensional electrophoresis continues to hog the limelight
• Two-dimensional electrophoresis (2DE) is one of the most cost-effective protein
profiling technologies. Using this technology, the constituents of a protein
sample can be entirely visualized in a single gel.
• The global economic recession affected the government research spending
across the globe. However, it was a blessing in disguise for the 2DE industry as
researchers were on the prowl for cheaper technologies in that cash-crunched
climate. Participants in the market capitalized on the then prevailing situation to
improve their revenues.
• The 2DE market is projected to grow at very high rate in the near term, as
academic researchers – the main consumers of these products – are
increasingly investing more in cheaper alternatives for protein expression
studies, such as 2DE. End users are more likely to automate their existing
2DGE-MS process than invest in new technologies since the others have not
been as successful on a wide range of samples.
• Sample preparation solutions can vary dramatically from each other. Companies
therefore find it very difficult to come out with sample preparation kits that will
effectively address the varied needs of the market. A large number of products
are required to address this market, but each of these products will enjoy only a
limited response due to the differing needs of customers. Sample preparation is
a major challenge that the industry needs to overcome. It affects both the
reproducibility and the resolution of the 2DE experiment which, in turn,
influences the end results.
• As a result, many market players are increasingly focusing on determining the
kinds of samples that are the most widely studied in the market. Following this, a
feasibility analysis to check the financial viability of developing a sample
preparation kit for such samples is conducted. This has helped these companies
to more effectively fulfil varied sample requirements.
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C a p a c i t y
Steep growth curve ahead for
the market
Current market
position
xx%
xx%
2016
Market share breakdown, 2015
Predicted strategic
inflection point
xx%
4
Time

Market Analysis
Growing adoption of integrated Liquid Chromatography systems
• Increasing need to extract greater amounts of proteomic information is driving
the adoption of Liquid Chromatography (LC). Interest and level of activity in
the field of proteomics has remained high and will continue to increase
because crucial information is mostly gathered from proteins.
• Researchers are still on the lookout for the product that will enable them to
draw information accurately and efficiently. As the study of proteins gains
importance in other industries and research markets, the demand for protein
LC technologies is expected to continue growing.
• The superior capabilities of LC to analyze complex samples when coupled
with mass spectrometry (MS) are propelling deployment of integrated LC
systems.
• Manufacturers, recognizing the needs of researchers working on advanced
analysis, are striving to offer technologies such as fully integrated LC-MS
systems.
• These integrated solution systems are likely to provide researchers with
sophisticated analysis tools offering higher ease of use. Sustained innovation
is anticipated to further increase LC adoption.
• However, limited volume of protein samples has restricted the number of LC
experiments conducted so far. In many proteomics research programs,
protein sample availability restricts liquid chromatography (LC) experiments.
• Researchers are often unable to conduct the entire range of experiments
desired since only small amounts of valuable protein samples are available.
Answering numerous questions with limited sample is difficult. Moreover, with
researchers often having to prioritize experiments, researchers are unable to
conduct thorough studies.
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Global liquid chromatography market for
protein studies
$ Million
2014 2015 2016 2017 2018 2019 2020
Market share breakdown, 2015
xx%
xx%
xx%
5

Market Analysis
Growing need for automated crystallization shaping the protein
crystallography market
• Increasing demand for high throughput protein crystallography has resulted
increase in adoption of automated crystallization. The need to understand
exactly how small molecules bind to their protein target is driving the demand for
protein crystallography in drug discovery. A higher throughput protein
crystallography process requires protein crystallization to also become high
throughput and this is best achieved through automated crystallization. A
number of large proteomic initiatives are being launched, increasing market
opportunities for automated crystallization.
• Drug discovery initiatives have driven numerous technological advancements in
structural proteomics. Pharmaceutical companies today acknowledge that
structure discovery helps lead optimization. With rapid technology advances,
structure-based design is set to become a preferred method for discovering new
drugs.
• As an increasing number of companies discover the importance and significance
of protein structure studies for drug discovery, more efforts are being made
toward improving structural determination technologies. Market consolidation
and industrialization along with the introduction of powerful integrated systems is
changing research approaches. Besides automation, miniaturization of protein
crystals and processes including purification is another big trend.
• Lack of experienced researchers has further fueled the demand for automated
crystallization. Protein crystallization is a process that requires training, skill, and
time. The number of trained researchers and people willing to commit to such a
process has been decreasing. The surge in automation has addressed the
worrisome dearth of protein-structure researchers. However, automation allows
researchers with less experience and training to be involved in crystallization.
This frees researchers, allowing them to focus on increasing productivity,
reproducibility, and throughput.
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C a p a c i t y
Steep growth curve ahead for
the market
Current market
position
xx%
xx%
2016
Market share breakdown, 2015
Predicted strategic
inflection point
xx%
6
Time

Industry Analysis
Global Industry Overview
• Proteomic research inherently requires huge capital investments and
historically, it has yielded poor revenues. Pharmaceutical companies have
hesitated in adopting the proteomics technologies in their drug
development pipeline as they have been wary of premium pricing.
• However, today public funding institutions are giving importance to this
growing biological discipline next to comparative genomics. The proteomics
market is considered an emerging area with immense potential. In fact,
Governments and federal ministries in three major European countries,
namely the United Kingdom, France and Germany, have allocated thematic
priorities to nurture the growth of this market. This has resulted in greater
industrialization of this field, which in turn, has boosted the confidence of
companies to invest in this fast-paced and dynamic arena. Low return on
investment that can dissuade potential entrants in proteomics technology
markets has thus been offset by increasing public funding.
• The increasing relevance of protein-protein interactions and protein
analytics in drug discovery as well as clinical diagnostics has highlighted
the importance of proteome research. Technological advancements in
protein separation technologies and two-dimensional gel electrophoresis
are likely to usher in a ubiquitous approach to assess differential protein
expressions. Maximum utility of expression proteomics tools in the target
discovery phase of drug development is likely to trigger reliable separation
and identification of low abundant proteins with poor expression levels.
Moreover, the development of matrix-assisted laser desorption/ionization
(MALDI) and electrospray ionization (ESI) technologies has enlarged the
scope of building versatile mass spectrometers, considered the cornerstone
of proteomics. The improved mass spectrometers are likely to have
enhanced functionalities of automation and compatibility with other
proteomics equipment.
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Global proteomics market
$ Million
2014 2015 2016 2017 2018 2019 2020
Market share breakdown, 2015
xx%
xx%
xx%
7

Regional Analysis
European proteomics market overview
• The European Union (EU) has become a popular hub for advanced research
into proteomics. This can be attributed to the significant government funding at
both the national level and from individual EU agencies.
• Moreover, Europe houses some of the largest pharmaceutical companies that
are extending their support to research programs related to proteomics, either
in-house or in collaboration with smaller firms. The primary goal of most of
these pharmaceutical companies is to go beyond the realms of human genome
sequencing and expand the list of identified proteins and genes, which will
ultimately aid in understanding disease mechanisms and developing
corresponding therapeutics.
• The high impact of emerging technologies such as proteomics is causing
radical changes in the fields of drug discovery as well as clinical research and
diagnostics. As a result, end users in the European life sciences arena are
looking for a complete, integrated solution. The current trend in the European
market has been the formation of broad partnerships, as the European
commercial sector realizes that this is one of the best ways of maximizing
opportunities in this area since smaller companies can affiliate themselves with
larger, more recognized suppliers.
• Increased funding for research and sustained pharmaceutical and
biotechnology industry interest in drug discovery is a major growth factor for the
European proteomics market. Though proteomics is a critical technology for
mass screening and post-translational modification of proteins, the European
proteomics industry's progress is restricted by complications faced by
organizations in sourcing adequate funding for various research initiatives. The
relative higher cost of equipment and software in the European market has
enhanced the importance of funding to huge extent.
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European proteomics market
$ Million
2014 2015 2016 2017 2018 2019 2020
Market share breakdown, 2015
xx%
xx%
xx%
8

Country Analysis
Government support has fueled the growth in Australian market
• Growing focus on research has driven the growth in proteomics market in
Australia. Extensive research in proteomics is promising cures for previously
untreatable diseases. With the Government assisting by providing additional
tax concessions, the spending on research and development (R&D) is likely to
increase by 58.0 percent in 2016.
• As a result, more than 300 biotechnology companies focusing on proteomics
applications have set up operations in Australia to take advantage of this
favorable environment. Drug discovery companies are also likely to have ample
opportunities to slightly modify the lead compound in order to screen and
exclude patients of a certain genotype who are more prone to developing
certain side effects from clinical trials.
• Australian research companies are increasingly entering into collaborations
with Venture Capitalists for funds. Compared to Western countries, most of the
Australian biotech companies are start-up undertakings that are in need of
capital to support their research.
• However, venture capitalists (VCs) have been hesitant to provide funds since
these companies have few products in the final stages of drug discovery and
have to wait for around ten years for their products to complete clinical trials
before releasing them into the market.
• The long gestation period and the low market awareness on the potential of
biotech products have led to insufficient funding of the biotech ventures in
Australia as investors perceive them as being too risky. However, the Australian
government and the top research companies have helped the VCs to
understand the commercial viability of their projects and the time required to
market them. Their efforts have begun to bore fruits as the market has
witnessed growing entries from several major international VCs in the recent
years.
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VC funding in Australian proteomics market
$ Million
2014 2015 2016 2017 2018 2019 2020
Market share breakdown, 2015
xx%
xx%
xx%
9

Growing Diabetic Population – A Key Growth Driver
Prevalence of Diabetes in Million (2005 – 2015)
Growing base of diabetic population and the acute need for their quality care and
treatment is boosting the adoption of proteomics technologies in the stem cell research activities
Million Million Million
30
25
25
25
20
15
10
5
0
20
15
10
5
0
20
15
10
5
0
U.S.
Canada
Brazil Mexico Argentina
Peru Venezuela Chile
Russia Turkey Poland
Czech Republic
Hungary
Million
25
20
15
10
5
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Million
140
Belgium
Netherlands 120
Sweden 100
Switzerland
Portugal
80
Austria 60
U.K
Spain
40
France 20
Italy
0
Germany
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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New Zealand
Hong Kong
Taiwan
Thailand
Philippines
Australia
Malaysia
Indonesia
South Korea
Japan
China
India
10

Competition Analysis
Fourteen players identified as candidates for benchmarking as
'Large Competition' given industry spread
Frequency across market segments
6
xxxx
xxxx
xxxx
4
xxxx
xxxx
xxxx
xxxx
xxxx
2
xxxx
xxxx
xxxx
xxxx
0
xxxx
xxxx
(2)
Prominent players
Emerging players
(4)
0 1 2 3 4 5 6
Frequency across Regions
Fourteen players defining the industry
benchmark in 2015
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11

Thank you
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