Market Trends of Biobank Equipment Industry
Drug Discovery Segment is Expected to Show Better Growth Over the Forecast Period
Drug discovery is the process through which potential new medicines are identified. It involves many scientific disciplines, including biology, chemistry, and pharmacology. The increasing burden of chronic diseases is the most crucial factor contributing to the growing drug discovery. According to the Congressional Budget Office, in April 2021, USD 700 billion had been provided to the NIH in federal funding for the past two decades. A significant portion of such money has gone toward supporting fundamental studies in genomics, molecular biology, and other life sciences that have discovered novel disease pathways.
Global pharmaceutical players also provide grants to pace innovative research in challenging areas. For instance, in 2021, Merck KGaA distributed several research funds to encourage creativity in difficult but crucial areas. Grants between EUR 40,000 (USD 43,366) and EUR 45,000 (USD 48,786) have been awarded for up to three years in the different areas of research, of which drug discovery has three grants totaling EUR 350,000 (USD 379,452) per year, renewable for an additional three years.
Furthermore, with the launch of new biobanks, the demand for biobank equipment is expected to increase. For instance, in December 2022, Saudi Arabia launched a National Biobank to improve public health. Furthermore, in partnership with Qatar, the Department of Laboratory Medicine and Pathology (DLMP) launched a tissue bank in February 2023. With such new biobanks coming into the market, the need for equipment is expected to rise, likely boosting the market growth over the forecast period.
To increase knowledge and look for potential vaccinations and treatments, scientists use a sizable collection of de-identified biological and medical data that they will research with the aid of the biobank. Therefore, with the significance of biobanks in drug discovery and the increasing grants, the segment is believed to witness strong growth in the coming years.
North America holds the Largest Share in the Biobank Equipment Market
The North American region is expected to dominate the biobank equipment market. Key factors propelling the market growth include rising investment by government organizations in drug discovery and research, the presence of key players in the region, and the growing burden of chronic diseases.
The United States is the most developed country in the region, with the highest market share in the market studied. Various activities that are taking place in the country are boosting the demand for equipment used in biobanks. For instance, in February 2021, the Cincinnati Children's Hospital Medical Center in the United States collaborated with DownSyndrome Achieves (DSA) to launch a research biobank that serves as a central repository for biospecimens donated by individuals with Down Syndrome and their immediate families.
Furthermore, increasing approvals from the USD FDA for small molecules are also expected to drive the growth of the biobank equipment market. For instance, according to the data published in Mid-Year Review: New Drug Approvals in June 2021, the US FDA, Center for Drug Evaluation and Research (CDER) authorized 26 New Molecular Entity (NMEs) (as of June 2021), which was on par with the full-year 2020 approval rate of 53 NMEs. With the approvals for such small molecules, there is a growing focus on drug discovery, boosting market growth.
