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DNA Sequencing Equipment and Services Markets, 2nd Edition


Attention: There is an updated edition available for this report.

Since the last edition of Kalorama Information's DNA Sequencing Equipment and Services report, the market has been changing in unpredictable ways as second-generation sequencers are being incrementally introduced and upgraded. On the surface, the situation has become somewhat linear and predictable, but as Kalorama Information biotech analyst Justin Saeks explains, it is actually a unique and relatively volatile situation that is not seen often with life science tools markets. Third-generation systems have the potential to completely change the market, or to simply join the pack.

Revenue growth has been unusually high, and all of the trends seem to indicate that growth will continue in the near term. It is likely that completely new technologies will be introduced at least every year or two, while second-generation sequencer improvements also continue. In Kalorama Information biotech analyst Justin Saek's 2nd edition of DNA Sequencing Equipment and Services Markets, these changes are detailed and put in context, along with the following:

  • DNA Sequencer Revenues by Industry and by Leading Systems
  • Forecast of Sequencer Revenues to 2014
  • Review of Important Sequencers and Comparison of Features and Drawbacks.
  • Profiles of Major Companies in the Marketplace
  • Affymetrix and Illumina Settlement and other Significant Litigation in the Industry
  • Major Industry Deals since 2008, Review of Deals 05-07, and Analyst Commentary
  • Over 70 Figures and Tables making market information accessible
  • Review of Major Deals and Litigation affecting the marketplace.
  • Review of Technologies Under Development
  • Discussion of Funding Sources and Recent Grant Awardees
  • Strategic Recommendations for Companies Operating in the DNA Sequencing Market

Kalorama Information's DNA Sequencing Equipment and Service Markets represents research culled from a variety of secondary sources. But the true insights originated from interviews with market experts; these interviews were used to confirm numbers and test forecast assumptions.

Companies profiled in the report include:

  • 454 Life Sciences / Roche
  • Applied Biosystems / Life Technologies
  • Beckman Coulter (Fullerton, CA)
  • GE Healthcare Life Sciences
  • Helicos Biosciences
  • Illumina / Solexa
  • LI-COR Biosciences (Lincoln, NE)


- Rapid increase in output from second-generation DNA sequencers has enabled new levels of productivity and new experiments. This, along with funding from the stimulus bill, has caused rapid adoption of these machines, according to healthcare market research firm Kalorama Information, helping to fuel sales of DNA sequencers to $480 million in 2008. In its report DNA Sequencing Equipment and Services Markets, 2nd Edition, Kalorama says more changes are on the way and will drives sales growth of 19% annually through 2013.

“We expect growth in this market - and some of it will be due to new NIH grants originating from ARRA stimulus money,” said Justin Saeks, Kalorama Information’s biotech analyst. “But it’s not all government spending. There are also factors in the private sector that will fuel sales of sequencers, including a rapid increase in output from second-generation sequencers, decreasing costs of newer machines through competition, and potential applications in the pharmaceutical industry following the realization that personalized medicine, biomarkers, and other related post-genomic approaches are likely to counter shrinking pipelines. In the long term, clinical and industrial segments could far surpass the research market.”

Second-generation technologies have seen rapid improvements since they were introduced. Output has been roughly doubling each quarter for the Illumina Genome Analyzer II and the ABI SOLiD 3; both have improved read length. 454 Life Science’s Genome Sequencer FLX also has improved read length and output. This trend is anticipated to continue for at least another year, bringing the output to 100 gigabases per run.

The most recent system, Dover’s Polonator, introduced in mid-2009, is much less expensive than the other second-generation systems at about $170k instead of $400-600k. It is open-source, supports different running modes, and allows users to change protocols. Though it is potentially a disruptive technology, it is still too early to tell and inevitably more advances will appear soon.

However, all these improvements may not be rapid enough. The initial flurry of activity with second-generation systems seems to have died down, and now in mid-2009 it feels like the calm before the storm. The market remains highly volatile and things can change rapidly - patent disputes have occurred on a frequent basis, and disruptive third-generation technologies will begin to appear in the next year or two. Like the second generation, they will be completely new techniques.

More information on DNA sequencing markets can be found in Kalorama Information’s new report DNA Sequencing Equipment and Services Markets, 2nd Edition, which discusses trends, challenges, strategies, companies and products, and provides estimates of market share and revenue growth. The competitive situation, deals, and litigation are covered as well.

  • Executive Summary
    • INTRODUCTION, BACKGROUND, & DEFINITIONS
      • Introduction
      • A Period of Rapid Developments
      • Further Longer-Term Challenges
      • Rapid Growth Overall, But Intense Competition
      • Moving Into New Applications and Segments
      • Customers' Research Models Evolving
      • Second-Generation Systems Getting Established
      • Background
      • Scope and Methodology
      • Applications and Definitions
      • Types of Samples
      • DNA Sequencing Strategies
      • DNA Sequencing Chemistries and Techniques
  • Sequencer Market Trends
    • INDUSTRY AND TECHNOLOGY TRENDS
      • Continual Improvements Expand Next-Generation Market
      • Spread of Targeted Enrichment, Sequence-Capture Products and Services
      • Synergies Appearing Between Life Science Companies' Products
      • SNP and Other Experiments Moving to Sequencing for Higher Detail
      • Market Fragmenting Into Multiple Applications, Products
      • Miniaturization of Sanger and CE Technology
      • Rise of Consumer Genomics, Genetic Testing
    • GENOME SEQUENCING TRENDS
      • Continued Acceleration in Sequence Output
        • Table Completely Sequenced Genomes in GOLD, 1995-2008(Without Publication, With Publication)
        • Table Domains of Completed Genomes in GOLD by Year, 1995-2008 (Archaes', Bacteria, Eukaryota')
        • Table Genome Projects in IMG by Domain, 2005-2008 (Cumulative)
      • Phylogenetic Breakout of Genome Sequencing Projects
        • Table Phylogenetic Groups of Sequencing Projects in GOLD, 1998-2008 (Cumulative)
        • Table Phylogenetic Distribution of Bacterial Genome Projects, Q1 2007
        • Table Phylogenetic Distribution of Bacterial Genome Projects, Q1 2009
        • Table Category / Phylogeny of Metagenomics Projects (Cumulative) (percent)
      • Technologies Used in Genome Projects
        • Table Technology Used in Genome Projects, '95-Q1'09 (percent)
      • Types of Genome Projects in GOLD Database
        • Table Types of Projects in GOLD, `95-Q1'09 (percent)
      • Technologies Used in Genome Projects by Type of Project
        • Table Systems Used in Genome Projects by Type, '95-Q1'09 (Sanger, Illumina)
        • Table Systems Used in Genome Projects by Type, '95-Q1'09 (percent)
      • Technologies Used in Genome Projects by Country
        • Table Systems Used in Genome Projects by Country, '95-Q1'09
        • Table Systems Used in Genome Projects by Country, '95-Q1'09 (percent)
      • Countries Leading Genome Projects
        • Table Countries Leading Projects, '95-Q1'09
      • Technologies Used in Genome Projects by Institution
        • Table Systems Used in Genome Projects by Institute, '95-Q1'09 (# projects)
        • Table Systems Used in Genome Projects by Inst, '95-Q1'09 (% projects)
      • Technologies Used in Genome Projects by Funding Organization
        • Table Systems Used in Genome Projects by Funding Org., '95-Q1'09 (# projects)
        • Table Systems Used in Genome Projects by Funding Organization, '95-Q1'09 (% projects)
      • Technologies Used in Genome Projects by Domain
        • Table System Used in Genome Projects by Domain, '95-Q1'09
        • Table System Used in Genome Projects by Domain, '95-Q1'09 (percent)
      • Phenotypes of Genomes Being Sequenced
        • Table Phenotypes of Projects in GOLD, '95-Q1 '09
      • Diseases / Conditions Associated With Genomes Being Sequenced
        • Table Diseases/Conditions Associated with Projects, '95-Q1'09
      • Phylogenetic Breakout of Eukaryotic Genome Projects
        • Table Eukaryotic Genome Projects in GOLD, '07-09
    • FUNDING TRENDS, GENOME CENTERS, CONSORTIA
      • Introduction
      • Major Sequencing Centers
        • Table Number of Genome Projects by Institute, '95- Q1 '09
      • Major Funding Sources
        • Table Funding Sources of Genome Projects, '95-Q1 '09
      • Annual Funding of Genome Projects by Organization
        • Table Funding of Genome Projects by Organization, Q1'07-Q1'09 ($M)
      • Funding Relevance of Bacterial Sequencing Projects
        • Table Relevance of Bacterial Sequencing Projects, '95 - Q1 '09, (Cumulative)
      • Funding Relevance of Non-Bacterial Genome Projects
        • Table Relevance of Non-Bacterial Sequencing Project, '95 - Q1 '09, (Cumulative)
      • NHGRI Annual Funding, Budget, Periodic Strategic Planning
        • Table NHGRI Budget by Year
        • Table 2010 Estimated NHGRI Budget by Mechanism
        • Table NHGRI Budget by Activity, 2008-2010 (Medical Sequencing, Genomic Function, Technology Development, Computation Genomics, Large-scale Sequencing
        • Table NHGRI Extramural Budget, 2006-2010
        • Table NHGRI Budget by Mechanism (No. And Amount), FY 2008, FY 2009 and FY2010
      • NHGRI Funds Large-Scale Sequencing Centers
        • Table Large-Scale Sequencing Centers NHGRI Funding, 2004-2006 ($M)
        • Table Large-Scale Sequencing Centers NHGRI Funding by Year, 2007-2008
      • NHGRI White Paper #4: The Future of Genome Sequencing
      • The Cancer Genome Atlas Project
      • Cancer Sequencing Project
      • FUGE - Functional Genomics in Norway
        • Table FUGE Funding Recipients
      • National Plant Genome Initiative
        • Table Plant Genome Comparative Sequencing Program (PGCSP) Awards, 2007-2008
        • Table Plant Genome Research Program GEPR, TRMS, and TRPGR Awards, 2007
        • Table Plant Genome Research Program GEPR, TRMS, and TRPGR Awards, 2008 (Institution, Title, Total Award, Duration)
      • NSF / USDA Microbial Genome Sequencing Program
        • Table NSF / USDA Microbial Genome Sequencing Program Awards, 2007-2009
      • Other Initiatives and Consortia
        • Table Other Initiatives and Consortia Supporting Technology Development, 2009
        • Table Other Initiatives and Consortia Performing DNA Sequencing, 2009
  • DNA Sequencer Products
    • SPECIFIC TECHNOLOGIES
      • Table Key Systems and Technologies Currently in the Market (Company, Product, Comments)
    • 454 LIFE SCIENCES (BRANFORD, CT) / ROCHE
      • Genome Sequencer FLX
    • APPLIED BIOSYSTEMS (FOSTER CITY, CA)
      • ABI Prism 310 Genetic Analyzer
      • ABI Prism 3100-Avant Genetic Analyzer
      • Applied Biosystems 3100 Genetic Analyzer
      • Applied Biosystems 3130 Genetic Analyzer
      • Applied Biosystems 3130xl Genetic Analyzer
      • Applied Biosystems 3500 Genetic Analyzer
      • Applied Biosystems 3730 DNA Analyzer
      • Applied Biosystems 3730xl DNA Analyzer
      • SOLiD 3
    • BECKMAN COULTER
      • CEQ 8000; CEQ 8800
      • GenomeLab GeXP Genetic Analysis System
    • DOVER SYSTEMS (DANAHER MOTION)
      • Polonator G.007
    • GE HEALTHCARE
      • MegaBACE 500
      • MegaBACE 750
      • MegaBACE 1000
      • MegaBACE 1500
      • MegaBACE 4000
    • HELICOS BIOSCIENCES
      • Helicos Genetic Analysis System
    • ILLUMINA / SOLEXA
      • Illumina Genome Analyzer II
    • LI-COR BIOSCIENCES (LINCOLN, NE)
      • 4300
    • PACIFIC BIOSCIENCES
      • SMRT Technology
  • DNA Sequencer Market Forecast
    • REVENUES AND FORECAST
      • Table Revenues, 2001-2008 DNA Sequencer Equipment ($M)
      • Table Growth Rate, 2001-2008 DNA Sequencer Equipment (percent)
      • ABI as a Market Bellweather
      • Growth Indicators
        • Table 2008-2014 DNA Sequencer Equipment Market Forecast ($M)
        • Table Growth Rate, 2008-2014 DNA Sequencer Equipment
  • Competitive Analysis of Sequencer Market
    • INTRODUCTION
      • Next- and Next-Next-Generation Creating Turbulence
      • Capillary Electrophoresis Maintains Large Segment
      • Second-, Third-Generation Battle Still Up in the Air
      • DNA Sequencer Market Shares
        • Table Revenues & Market Shares, DNA Sequencer Systems, 2006 & 2008
      • Features and Strengths of Second-Generation Sequencers
        • Table Comparison of Second-Generation Sequencers, 2007
        • Table Comparison of Second-Generation Sequencers, 2009
      • 454 Life Sciences GS FLX - Strengths / Advantages
      • 454 Life Sciences GS FLX - Weaknesses / Disadvantages
      • Applied Biosystems SOLiD - Strength / Advantages
      • Applied Biosystems SOLiD - Weaknesses / Disadvantages
      • Illumina Genome Analyzer - Strength / Advantages
      • Illumina Genome Analyzer - Weaknesses / Disadvantages
  • Intellectual Property and Litigation
    • Table Select Early Sequencing-Related Patents Assigned or Licensed to Life Technologies / Applied Biosystems
    • Patent Interference Between Life Technologies and Pacific Biosciences
      • Helicos Appeals European Patent Office Decision on Illumina Patent
      • Illumina Files `841 Patent Infringement Suit Against Affymetrix
      • Affymetrix and Illumina Settle Case Over `243, `432, `531, `365, and `716
      • Applied Biosystems and Illumina Claims and Counter-claims Both Unsuccessful
      • Fluidigm and Applied Biosystems Agree to End Case
      • Beckman Coulter and Applied Biosystems Settle Outstanding Legal Disputes
      • Cepheid and Idaho Technology Settle Dispute Over PCR Patents
      • Enzo Biochem Disputes CalTech Sequencing Patents
      • Huang v. CalTech
      • Applied Biosystems and Amersham plc (GE Healthcare) Settle Sequencing Patent Litigation
  • Deals
    • SIGNIFICANT DNA SEQUENCING EQUIPMENT DEALS
      • Table Significant Deals in the DNA Sequencing Equipment and Services Market
  • Corporate Profiles
    • 454 LIFE SCIENCES / ROCHE
      • Est. 2008 DNA Sequencer Revenues: $50M
    • APPLIED BIOSYSTEMS / LIFE TECHNOLOGIES
      • Est. 2008 DNA Sequencer Revenues: $275M
    • BECKMAN COULTER (FULLERTON, CA)
      • Est. 2008 DNA Sequencer Revenues: $15M
    • GE HEALTHCARE LIFE SCIENCES
      • Est. 2008 DNA Sequencer Revenues: $15M
    • HELICOS BIOSCIENCES
      • Est. 2008 DNA Sequencer Revenues: $1M
    • ILLUMINA / SOLEXA
      • Est. 2008 DNA Sequencer Revenues: $85M
    • LI-COR BIOSCIENCES (LINCOLN, NE)
      • 2008 Est. DNA Sequencer Revenues: $15M
  • Technologies Under Development
    • INTRODUCTION
    • HUMAN MICROBIOME PROJECT AWARDS FUNDS FOR TECHNOLOGY DEVELOPMENT, DATA ANALYSIS AND ETHICAL RESEARCH
      • Table NIH Human Microbiome Project Technology Development Awards, 2008
    • NHGRI SEEKS DNA SEQUENCING TECHNOLOGIES FIT FOR ROUTINE LABORATORY AND MEDICAL USE, AUGUST 2008
      • Table NHGRI $1000 Genome Grant Awardees, August 2008
      • ARIZONA STATE UNIVERSITY, TEMPE
      • HARVARD COLLEGE
      • OAK RIDGE NATIONAL LABORATORY / UT BATTELLE
      • PRINCETON UNIVERSITY
      • UNIVERSITY OF ARKANSAS, FAYETTEVILLE
      • UNIVERSITY OF CALIFORNIA, SAN DIEGO
      • UNIVERSITY OF PENNSYLVANIA, PHILADELPHIA
      • UNIVERSITY OF PITTSBURGH
        • Table NHGRI $100,000 Genome Grant Awardees, August 2008
      • COLUMBIA UNIVERSITY
      • FOUNDATION FOR APPLIED MOLECULAR EVOLUTION, INC.
      • ILLUMINA
    • NHGRI SEEKS TO ADVANCE NEXT GENERATION OF SEQUENCING TECHNOLOGIES, AUGUST 2007
      • Table NHGRI $1000 Genome Grant Awardees, August 2007
      • ARIZONA STATE UNIVERSITY, TEMPE
      • BROWN UNIVERSITY
      • DUKE UNIVERSITY
      • NABSYS, INC.
      • NORTH CAROLINA STATE UNIVERSITY, RALEIGH
      • UMDNJ-NEW JERSEY MEDICAL SCHOOL
      • UNIVERSITY OF BRITISH COLUMBIA, VANCOUVER
      • UNIVERSITY OF CALIFORNIA, IRVINE
        • Table NHGRI $100,000 Genome Grant Awardees, August 2007
      • COLUMBIA UNIVERSITY
      • UNIVERSITY OF NEW MEXICO SCHOOL OF MEDICINE, ALBUQUERQUE
      • UNIVERSITY OF WISCONSIN, MADISON
        • Table NHGRI $1000 Genome Grant Awardees, October 2006
      • ARIZONA STATE UNIVERSITY
      • BOSTON UNIVERSITY
      • CASE WESTERN RESERVE UNIVERSITY
      • GENERAL ELECTRIC GLOBAL RESEARCH
      • HELICOS BIOSCIENCES
      • LEHIGH UNIVERSITY
      • UNIVERSITY OF CALIFORNIA, SAN DIEGO
      • UNIVERSITY OF NORTH CAROLINA, CHAPEL HILL
      • UNIVERSITY OF WASHINGTON, SEATTLE
        • Table NHGRI $100,000 Genome Grant Awardees, October 2006
      • BAYLOR COLLEGE OF MEDICINE, HGSC
      • INTELLIGENT BIO-SYSTEMS
    • NHGRI EXPANDS EFFORT TO REVOLUTIONIZE SEQUENCING TECHNOLOGIES, AUGUST 2005
      • Table NHGRI $100,000 Genome Grant Awardees, August 2005
      • AGENCOURT PERSONAL GENOMICS [APPLIED BIOSYSTEMS / LIFE TECHNOLOGIES]
      • NETWORK BIOSYSTEMS
      • THE STATE UNIVERSITY OF NEW YORK, STONY BROOK (SUNY)
        • Table NHGRI $1000 Genome Grant Awardees, August 2005
      • COLUMBIA UNIVERSITY
      • DUKE UNIVERSITY
      • HARVARD UNIVERSITY
      • PACIFIC BIOSCIENCES (FORMERLY NANOFLUIDICS)
      • NEW YORK UNIVERSITY
      • OXFORD UNIVERSITY AND THE SCRIPPS RESEARCH INSTITUTE
      • UNIVERSITY OF CALIFORNIA, SAN DIEGO
      • UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN
      • VISIGEN BIOTECHNOLOGIES
    • NHGRI FUNDS NEXT GENERATION OF SEQUENCING TECHNOLOGIES, OCTOBER 2004
      • Table NHGRI $100,000 Genome Grant Awardees, October 2004
      • Table NHGRI $1000 Genome Grant Awardees, October 2004
  • Challenges and Strategic Recommendations
    • MARKET CHALLENGES
      • 454's and Illumina's Head-Starts Cause Advantages
      • Disruptive Technologies, Multiple Variables Creating Unpredictable Market in Short- and Long-Term
      • Biases at Multiple Levels Raise Issues of Standards, Quality Metrics
      • Rapidly Changing Technologies Could Fatigue End-Users
      • Longer Read Lengths Expected to Steal the Show
      • Sequencer Market Slowed by Data Management Bottleneck
      • New Entrants Contending With Three Major Life Science Suppliers
      • Pharmacogenetics, Consumer Genomics Still Shaking Out
    • STRATEGIC RECOMMENDATIONS
      • Prepare for Applications Opened by Decreasing Cost
      • Balance Risks by Diversifying
      • Address Growing International Demand
      • Create User-Friendliness Through Tailored Software Tools
      • Increase Value by Combining with Complementary Technology or Content
      • Explore Demand in Expanding Routine Industry Segments
      • Address Niche Markets Resulting From Fragmentation
      • Establish Early Connections With End-Users
      • Move Towards Diagnostic Environment Requires Partnering

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