Biotechnology Reagents Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The biotechnology reagents market is expected to register a CAGR of nearly 7.4% over the forecast period.

In the context of COVID-19, government organizations in various countries, research institutes, and many biotech and pharmaceutical firms are focusing on effective and rapid technologies for the fast diagnosis of COVID-19 and developing vaccines/new therapeutics to overcome the current situation. Hence, there is a huge demand for biotechnology reagents during the COVID-19 pandemic, which, in turn, is driving the market growth. For instance, in March 2020, the German Federal Ministry of Education and Research (BMBF) committed EUR 145 million of immediate funding to the Coalition for Epidemic Preparedness Innovations (CEPI) and to support the development of a vaccine against COVID-19. The development of numerous diagnostic tests for COVID-19 has further driven market growth. Thus, rising in the demand for the diagnosis of COVID-19 as well as research and development activity for the vaccines of COVOD-19 the demand for reagents spurred during the COVID-19 era. Hence, the market studied positively impacted by COVID-19.

Certain factors driving the market growth include high R&D expenditure by biotechnology companies, increasing interest in stem cell research, and a rise in the number of biotechnology firms. As per a May 2020 update by the India Brand Equity Foundation (IBEF), in the Union Budget 2022-23, the Department of Biotechnology was allotted Rs. 2,581 crore (USD 343.56 million) for developing basic infrastructure, genetic engineering, technologies and bioinformatics, agriculture biotechnology, and training skilled professionals. This is anticipated to boost the number research and development activities pertaining to product development.

The drug manufacturing companies have initiated stem cell research, and several players in the pharmaceutical industry are using these cells to test the toxicity of drugs, which helps them to identify new therapies. For instance, according to the International Society of Stem Cell Research in May 2022, Cell therapy company TreeFrog Therapeutics has launched The Stem Cell SpaceShot Grant, a USD 100,000 research funding in the field of stem cell biology and regenerative medicine. It’s open to PhD-level scientists and PhD students conducting research in stem cell biology, biophysics, gene editing, cell therapy, and bioproduction engineering. Much of the investments for stem cell research go into reagents, as their characterization and modification, along with tools for assessment of stem cell discoveries, play the primary role. There are several companies in the market that specializes only in the development of reagents, which can be useful for cell-line experiments and related discoveries.

However, the high cost of reagents, coupled with stringent government regulations for approval of reagents, is the major factor restraining the biotechnology reagents market.

Key Market Trends

The Polymerase Chain Reaction (PCR) Segment is Expected to Hold Significant Market Share

Polymerase chain reaction (PCR) is a technique that amplifies the amount of target nucleic acid in every cycle. It is a technique that is used to amplify target DNA and generate thousands to millions of copies of a particular DNA segment. PCR-based techniques have mostly been used for pre-screening analysis. PCR-based methods, like single-stranded conformation polymorphism (SSCP) analysis and Amplified fragment length polymorphism (AFLP), have been routinely used in labs to screen for various chronic and infectious diseases. ​ As the application of PCR techniques is expanding to vast areas, developments in PCR reagents have followed suit. Different types of reagents used in PCR techniques include NA/RNA template, DNA polymerase, primers (forward and reverse), deoxynucleotide triphosphates (dNTPs), and PCR buffers.

Moreover, market players are continuously launching new products to gain a competitive advantage in the market. For instance, in March 2020, Thermo Fisher Scientific extended its Dye-based SYBR Green real-time PCR (qPCR) portfolio with the launch of PowerTrack SYBR Green PCR Master Mix, which is a pre-formulated, universal, 2X concentration Master Mix for real-time PCR workflows with built-in visual dye-based indicators for accurate reaction set up.​

Additionally, due to the recent COVID-19 pandemic, there is a positive impact on the PCR Reagents market due to the increasing demand for the clinical diagnostic segment of the market. As the authorities have not recommended the viral culture tests, almost all the diagnostic tests use RT-PCR to test the population who have symptoms of COVID 19 and are advised by healthcare professionals to undergo a diagnostic test. For instance, in May 2020, Eurofins Technologies launched its GSD NovaPrime SARS-CoV-2 (COVID-19) CE-IVD marked real-time RT-PCR (polymerase chain reaction to reverse transcriptase chain reaction) multiplex for the direct qualitative detection of the pathogen of the new coronavirus (SARS-CoV-2).

Additionally, In December 2020, Europe-based biotech company Stilla Technologies launched its new naica multiplex PCR MIX and the naica PCR MIX ready-to-use solutions optimized for performance and robustness for digital PCR applications.

Thus, all aforementioned factors anticipated to boost the market growth over the forecast period.

North America Dominates the Market and the Region is Expected to Dominate during the Forecast Period

North America dominates the biotechnology reagents market and incurs the highest expenditure for global R&D. The North American segment is on the rise due to various ongoing research on biological sciences, an increase in the prevalence of cancer, chronic infectious and genetic conditions, considerable investments by various biotechnology companies, and the consistently increasing utilization of biotechnology reagents in the market. According to the estimates of Globocan 2020, there were around 195,499 new cases of cancer in Mexico. Approximately 90,222 deaths were recorded due to cancer in Mexico.

Furthermore, companies are either acquiring or merging with many companies for significant deals, and they are investing heavily in biotechnology and pharmaceutical research activities and also launching new products in the region. For instance, in March 2021, PromegaCorp. launched XpressAmp Direct amplification reagent.

Moreover, the recent COVID 19 pandemic has also spurred the demand for biotechnology reagents in the region due to the increasing case of COVID-19 infection due to increased laboratory diagnosis of COVID-19 specimens . For instance, in June 2020, Galenvs Sciences Inc., a Montreal-based biotech firm, entered into an agreement Canadian Federal Government for the supply of functionalized magnetic reagents for Coronavirus RNA extraction necessary to enable the COVID-19 testing efforts across Canada.

Thus, the market is expected to grow significantly in the North American region, during the forecast period.

Competitive Landscape

The biotechnology reagents market is highly competitive, with a good number of players. The key players have been involved in various strategic alliances such as acquisitions, and collaborations, along with the launch of advanced products to secure their position in the global market. Companies like Abbott Laboratories, Agilent Technologies, Danaher Corp. (Beckman Coulter), Becton Dickinson & Company, Bio-Rad Laboratories, GE Healthcare, Siemens Healthcare, Merck KGaA (Sigma Aldrich Corporation), Thermo Fisher Scientific Inc., and Waters Corporation hold a substantial market share.

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