GLOBAL PHOSPHORAMIDITE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The global phosphoramidite market was valued US$ 1,011.3 Mn in 2023 and is expected to reach US$ 1,780.3 Mn by 2031 growing at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2031.

Phosphoramidites are organophosphorus compounds that are extensively used in DNA synthesis. There are four common phosphoramidite monomers used dimethylaminophosphoramidite, bis (diisopropylamino) phosphoramidite, phenoxyphosphoramidite, and cyanoethyl phosphoramidite. Of these, cyanoethyl phosphoramidite is the most widely used, as the cyanoethyl protecting group allows for controlled fragmentation during the synthesis and deprotection steps.

Global Phosphoramidite Market- Regional Insights

• North America currently dominates the global phosphoramidite market owing to the robust presence of established players in countries like the U.S. and Canada. The region accounts for over 30% share of the worldwide market at present, led by the advanced pharmaceutical and biotechnology industries. Major pharmaceutical companies in the U.S. have been investing heavily in Research & Development of novel drugs, which involves substantial use of phosphoramidite compounds during drug development process. This has ensured steady demand growth from the end-user industry over the years.
• Asia Pacific market is expected to be the second-largest market for phosphoramidite, accounting for over 25.2% of the market share in 2024. The Asia Pacific region has emerged as the fastest-expanding market for phosphoramidite globally in recent times. Rapid economic growth, along with rising healthcare expenditure, has fostered the development of the domestic pharmaceutical industry in countries such as India, China, and Japan. This has significantly propelled demand from the local drug makers who utilize phosphoramidite as raw material. Additionally, growing populations and rising disposable income have augmented food production needs, prompting increased R&D activities in the agricultural sector. The region also has presence of leading seed companies that are focused on growing their footprint in the global biotechnology market. Progressive technology adoption and favorable policy support by governments are enhancing prospects for phosphoramidite consumption from both pharmaceutical and agrochemical applications going forward. Rising industrial activity and emerging economic stature put Asia Pacific at an advantage to continue outpacing other regional markets in terms of phosphoramidite market growth over medium to long term time frame.
• Europe market is expected to be the fastest-growing market for phosphoramidite market, with a share of 19% during the forecast period. The phosphoramidite market in Europe is characterized by robust demand driven by extensive applications in DNA and RNA synthesis for research, diagnostics, and pharmaceuticals. Biotechnology and pharmaceutical companies, along with academic institutions, contribute to the market's growth. The region witnesses ongoing advancements in synthesis technologies, compliance with stringent regulatory standards, and a trend towards custom synthesis services. With a focus on innovation and research, Europe's phosphoramidite market remains a vital hub for the biotechnology sector, supporting advancements in genomics and personalized medicine. For the latest insights, refer to current market reports and industry analyses.

 Figure 1. Global Phosphoramidite Market Share (%), By Region, 2024

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Analyst View:

The global phosphoramidite market is expected to see steady growth over the next five years. The increasing demand for DNA synthesis from the biotechnology and pharmaceutical industries will be a major driver for the market. These industries rely on phosphoramidites as essential starting materials for successful DNA synthesis.

North America currently dominates the global phosphoramidite market due to the strong presence of biotech and pharmaceutical companies in the region. However, Asia Pacific is projected to be the fastest-growing regional market. This can be attributed to rising R&D expenditures and increasing investments by market players in the emerging economies of China, India, and Southeast Asia. A potential restraint for the phosphoramidite market could be the presence of alternative chemical compounds that can be used for DNA synthesis. However, phosphoramidites are still considered the most efficient and commonly used method. Stringent safety regulations surrounding the handling of phosphoramidites may also act as a moderate restraint. One of the key opportunities for phosphoramidite vendors lies in the expanding fields of DNA sequencing, molecular diagnostics and pharmacogenomics. As these technologies evolve, they will require larger volumes of oligonucleotides produced through phosphoramidite chemistry. Moreover, the growing healthcare expenditures in developing nations can support additional growth of end-use industries.

Global Phosphoramidite Market - Drivers

• Technological advancements in solid-phase DNA synthesis: Technological innovations in solid-phase DNA synthesis techniques have revolutionized molecular biology research. Traditional synthesis methods were tedious and produced DNA with low yields and purity. However, advances like automation and improved reagents have now enabled scalable, high-throughput production of custom DNA. Solid-phase synthesis attaches DNA to an inert substrate via the 3’-hydroxyl group, allowing excess reagents to be washed away at each chemical reaction cycle. Modern multi-channel synthesizers can simultaneously produce hundreds of oligonucleotides on microscopic synthesis supports in an automated, reproducible manner. This has significantly improved the accessibility and versatility of synthesized DNA.
• Growing biopharmaceutical industry: The biopharmaceutical industry has been seeing significant growth in recent years as more biologics and targeted therapies are being developed and approved for clinical use. This growing emphasis on biologics and specialty drugs is directly fueling demand for phosphoramidite, which is a key building block used in the synthesis of nucleotides and oligonucleotides. Phosphoramidite has become one of the primary chemical intermediates used in the solid-phase synthesis of oligonucleotides for several applications in the biopharmaceutical sector. Drug manufacturers are extensively utilizing oligonucleotides such as DNA, RNA, and antisense oligonucleotides in the development of advanced gene therapy and genetic medicine. For instance, mRNA vaccines for COVID-19 developed by Moderna, a pharmaceutical and Biotechnology Company based in Cambridge, U.S. and Pfizer, an American multinational pharmaceutical and biotechnology corporation rely on phosphoramidite-based oligonucleotide components. Cell and gene therapy approaches that engineer immune cells also depend on phosphoramidites for engineering and quality testing.

Global Phosphoramidite Market - Opportunities

• Growing diagnostic applications of DNA synthesis: The growing applications of DNA synthesis in diagnostics present a tremendous opportunity for the phosphoramidite market. Rapid advancements in DNA sequencing, molecular diagnostics, and synthetic biology indicate that demand for phosphoramidites will only continue rising in the coming years. As DNA sequencing becomes more widely adopted for applications like cancer screening, ancestry testing, and precision medicine, the need for high-quality phosphoramidites that enable these techniques will grow significantly. According to the Human Genome Project initiative, DNA sequencing costs have declined drastically over the past decade, making it accessible for routine clinical use. This increased accessibility will drive higher consumption of phosphoramidites as sequencing is applied to various disease screenings and genetic tests. Synthetic biology is another emerging area that relies on DNA synthesis. By 2023, the global Synbio market is projected to be worth US$ 37.82 billion, according to a report by SynBioBeta, as technologies like gene and cell therapy advance. This rapid expansion of synthetic biology will create sustained demand for phosphoramidites to synthesize the artificial DNA needed for various applications.
• Increasing R&D investments by pharmaceutical companies: Investing more in research and development can open up great new opportunities for pharmaceutical companies in the growing phosphoramidite market. Phosphoramidites are primarily used as intermediates in chemical synthesis processes, especially in the manufacturing of oligonucleotides. As the biotech and life sciences industries continue to advance, demand for oligonucleotides and their precursors will likely increase substantially in the coming years. By ramping up investments in R&D, pharmaceutical firms can drive important innovations to help meet this rising demand. Exploring new synthesis methods and reaction pathways could lead to manufacturing improvements like increased yields, reduced costs, and enhanced purity and quality of finished oligonucleotide products. Companies that establish technological leadership in oligonucleotide production stand to gain competitive advantages and capture greater market share. The patents and intellectual property generated from beefed-up R&D spending could also translate into lucrative licensing deals or strategic partnerships that further propel long-term commercial success.

Global Phosphoramidite Market - Trends

• Growing demand for oligonucleotides in molecular diagnostics and therapeutics: The growing demand for oligonucleotides in molecular diagnostics and therapeutics is having a major influence on the phosphoramidite market. Oligonucleotides are short single-stranded sequences of RNA or DNA that are used in various applications like molecular diagnostics, research, therapeutics, etc. They act as primers, probes, linkers, and adaptors and are essential components in techniques like polymerase chain reaction (PCR), DNA sequencing, hybridization assays, and microarrays. As the use of oligonucleotides continues to grow exponentially in areas like liquid biopsy testing, DNA sequencing, gene therapy and genetic disease treatment, the need for phosphoramidites that are used to synthesize oligonucleotides has also increased substantially. Phosphoramidites are the key monomers used in the solid phase synthesis of oligonucleotides through the phosphoramidite method. According to the National Human Genome Research Institute (NHGRI) data in 2021, which is part of the National Institutes of Health (NIH), over 30 million exomes and 10,000 genomes have been sequenced since 2009. This has resulted in significant rise in sequencing projects worldwide that rely on oligonucleotides.
• Advancements in combinatorial DNA synthesis: Combinatorial DNA synthesis refers to the automated synthesis of multiple DNA sequences simultaneously. This is disrupting the phosphoramidite market in significant ways. Through combinatorial DNA synthesis, researchers can now rapidly synthesize entire gene libraries with thousands of variant genes at relatively low costs. This has enabled applications like directed evolution for rapid vaccine and therapeutic protein design that were not feasible before. Companies are exploiting this to quickly screen large numbers of genetic variants to develop novel biologics against different diseases.

Global Phosphoramidite Market - Restraint

• High costs associated with DNA synthesis: The high costs associated with DNA synthesis are presenting significant challenges for the growth of the phosphoramidite market. DNA synthesis requires expensive DNA synthesizers and phosphoramidite reagents, which make the overall process quite costly. For researchers and smaller companies with limited budgets, undertaking projects that involve extensive DNA synthesis can be prohibitively expensive. This poses a major restraint on wider adoption and application development using synthesized DNA. While DNA synthesis has benefited tremendously from technological advancements over the years, bringing down costs has been an ongoing challenge. The complex, multi-step chemical process involves hazardous reagents and stringent safety and purity requirements that contribute to the expenses. Phosphoramidites themselves are complex to synthesize and purify, driving up their individual costs. Additionally, DNA synthesizers capable of producing long strands of customized DNA at scale remain highly sophisticated and expensive equipment, restricting access.
• Limited expertise and infrastructure in emerging economies: Limited expertise and infrastructure in emerging economies is indeed restraining the growth of the phosphoramidite market. Phosphoramidites are advanced chemical compounds that require a certain level of scientific knowledge and technical skills to produce and utilize effectively. However, many developing nations still have a shortage of skilled human capital and inadequate lab infrastructure for complex chemical synthesis and analysis. The existing disparity in skills and infrastructure is impeding their capacity to develop local phosphoramidite manufacturing facilities and integrate into global value chains. Most emerging countries do not have a large pool of trained organic chemists, biochemists, and chemical engineers who have a thorough understanding of phosphoramidite chemistry. Setting up a manufacturing plant involving hazardous chemicals requires adherence to strict safety and environmental standards, which needs experienced workforce as well as monitoring equipment. But the lack of homegrown technical expertise is a major restraint.

Figure 2. Global Phosphoramidite Market Share (%), By Product Type, 2024

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Recent Developments

• On May 4, 2023, Innovassynth, a chemical research company & organization and Actylis, a leading manufacturer and supplier of critical raw materials and performance ingredients, partnered, which will allow Actylis to add Innovassynth’s portfolio of nucleosides to its range of critical raw materials.
• On March 9, 2023, Ansa Biotechnologies, Inc., a pioneer of next-generation DNA synthesis, announced the successful de novo synthesis of the world’s longest DNA oligonucleotide ever reported to be produced in a single synthesis. The “Ansamer” oligonucleotide was cloned using standard molecular biology techniques and found to contain approximately 28% sequence-perfect molecules, indicating an industry-leading average stepwise yield of approximately 99.9% during its synthesis.
• In June 2022, DNA Script, a world leader in enzymatic DNA synthesis (EDS) for DNA on demand, announced the first successful qPCR assays using primers and probes synthesized by a customer via enzymatic synthesis using the company’s SYNTAX System DNA printer. This success was achieved as part of a contract with the French Defense Innovation Agency, in liaison with the French Armament General Directorate (DGA), first announced in January 2021.

Top Companies in Global Phosphoramidite Market

• Glen Research
• ChemGenes Corporation
• Link Technologies Ltd.
• BioAutomation Corporation
• Merck KGaA
• Sigma-Aldrich (now part of MilliporeSigma, a Merck Group company)
• LGC Biosearch Technologies
• Thermo Fisher Scientific
• Biosynthesis Inc.
• ATDBio Ltd.
• Genscript Biotech Corporation
• Expedeon AG
• Wuxi Donglin Sci & Tech Development Co., Ltd.
• Bio-Synthesis Inc.
• ChemGenes Corporation

Definition: Phosphoramidite is a crucial compound in the field of oligonucleotide synthesis, primarily used for constructing DNA and RNA molecules. It serves as a key building block in the stepwise assembly of nucleotides during the synthesis process. Phosphoramidites contain a protected phosphite group that facilitates controlled addition of nucleotides, allowing precise customization of sequences. The protection of reactive sites ensures selective reactions, contributing to the efficiency and accuracy of oligonucleotide synthesis. Widely employed in molecular biology, biotechnology, and pharmaceutical research, phosphoramidites play a fundamental role in the development of various applications, including diagnostics and therapeutic nucleic acid-based drugs.