China remains an attractive market for life science tool suppliers capable of taking advantage of strong demand for nucleic acid purification (NAP) products. While the Chinese NAP market is expected to grow overall at more than 8% in the next 12 months, particular market segments such as DNA and RNA library preparation for next-generation sequencing are projected to grow at a rate of over 20%.
The nucleic acid purification research market in China is proving to be very different from that of North America and Europe. Major differences exist in the competitive landscape, use of specific NAP methods, and distribution/dealer channels.
Results from respondents to a recent Percepta study indicate that Qiagen, Tiangen (acquired by Qiagen in 2005), and Life Technologies are leading suppliers for the 15 market segments analyzed. Six additional companies emerge as second-tier NAP suppliers: Corning/Axygen, BioTeke, Illumina, Promega, Roche, and TaKaRa/Clontech.
In six of fifteen market segments analyzed, the leading supplier exhibits characteristics of an entrenched market leader, which is markedly different from the competitive landscape in North America and Europe, where Percepta data shows Qiagen dominates its closest competitor by 37 percentage points on average for all segments analyzed. These fragmented NAP market segments present significant opportunity for life science research tool suppliers that conduct business in China.
The Percepta 2013 Series One Nucleic Acid Purification (China) Life Science Dashboard™ study focuses on fifteen key nucleic acid market segments, a majority of which have been analyzed by the company on an ongoing basis since 2005 for North American and Europe (NA/EU).
Key NAP market segments in China include products for extraction of nucleic acids from gels, genomic DNA, and total RNA isolation from various starting materials such as cells/tissue, formalin-fixed paraffin-embedded tissue, whole blood, plasmid preparation, mRNA/microRNA isolation, post-reaction cleanup, and RNA/DNA library preparation for next-generation sequencing.
Comparisons to our NAP Life Science Dashboard results for NA/EU show life science laboratories are larger in China and have a much greater number of employees who perform NAP experiments per lab. Looking at overall laboratory size, 40% of life science laboratories in China have more than 10 people that perform NAP experiments as opposed to only 23% of NA/EU laboratories (see bar chart above).
The median number of laboratory researchers that perform NAP experiments in China is 10, compared to only six in NA/EU.