OLIGONUCLEOTIDE SYNTHESIS MARKET ANALYSIS

The global oligonucleotide synthesis market is estimated to be valued at US$ 3.81 Billion in 2023 and is expected to exhibit a CAGR of 10.9% during the forecast period (2023-2030).

Analysts’ Views on Global Oligonucleotide Synthesis Market:

The oligonucleotide synthesis market is showing prominent growth due to many reasons, such as increasing research and development activities by market players and increasing manufacturing facility expansion in order to meet the demands of the customer base. Moreover, many market players have received accreditation from the regulatory authorities for their manufacturing facilities. For instance, in February 2021, Kaneka Eurogentec S.A., a Japanese international chemical manufacturing company, announced that the company had received Good Manufacturing Practices (GMP) accreditation from the Belgian Ministry of Health for the GMP manufacturing of messenger RNA (mRNA). Belgian authorities will allow the production and purification of up to 10 g ( up to 1 Million doses of vaccine) of RNA for use in human clinical trials, including COVID-19 clinical trials and its commercial supply.

Figure 1. Global Oligonucleotide Synthesis Market Share (%), By Equipment and Services, 2023

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Global Oligonucleotide Synthesis Market– Drivers

• Increasing Collaboration Agreements by the Market Players: Market players are engaged in inorganic growth strategies such as collaborations in order to provide data interpretation software to universities conducting research and development activities. This is expected to drive the growth of the global oligonucleotide synthesis market over the forecast period. For instance, in June 2021, Thermo Fisher Scientific, U.S. supplier of analytical instruments, life sciences solutions, specialty diagnostics, laboratory, pharmaceutical and biotechnology services announced a collaboration with the University of Sheffield to develop advanced end-to-end workflows for the characterization and monitoring of complex oligonucleotide and mRNA products. This collaboration provided data interpretation software technologies to the University of Sheffield for the development of streamlined analytical workflows and robust fit-for-purpose processes.
• Increasing Acquisition by the Market Players: Market players are focused on inorganic growth strategies, such as signing acquisition agreements, in order to expand its product portfolio and geographical presence in the market. In January 2022, Merck KGaA, German multinational science and technology company,  announced a definitive agreement to acquire Exelead, a biopharmaceutical contract development and manufacturing organization (CDMO). Exelead specializes in complex injectable formulations, including lipid nanoparticle (LNP), as well as other products such as liposomal complexes and oligonucleotides. 

Figure 2. Global Oligonucleotide Synthesis Market Share (%), By Region, 2023

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Global Oligonucleotide Synthesis Market- Regional Analysis

Among regions, North America is estimated to hold a dominant position in the global oligonucleotide synthesis market over the forecast period. North America is estimated to hold 39.7% of the market share in 2023. The global oligonucleotide synthesis market is expected to witness significant growth in the coming years, owing to the increasing adoption of inorganic growth strategies such as collaboration by key market players in the region. For instance, in January 2022, Maravai LifeSciences, Inc., a life science company, announced that it had acquired MyChem, LLC, manufacturer of ultrapure nucleotides, for US$240 million in cash. This acquisition continues their journey to develop and integrate strategic mRNA vaccines and therapeutic supply chain inputs into operations in the U.S. Under this acquisition, MyChem's portfolio complements Maravai's nucleic acid production products and is expected to provide significant benefits to customers through an integrated offering. Additionally, MyChem will help accelerate Maravai's innovation capabilities with additional research and development resources.

Global Oligonucleotide Synthesis Market– Impact of Coronavirus (COVID-19) Pandemic

• The COVID-19 pandemic is expected to have a positive effect on the global oligonucleotide synthesis market due to a significant increase in the use of reagents and kits for the diagnosis of COVID-19. For instance, in April 2021, Microsynth AG (Switzerland), a European company in the area of nucleic acid synthesis and analysis, provided key reagents such as primer-probe sets to PCR testing labs to support molecular diagnostic companies in developing and validating accurate, cutting-edge detection methods and to provide comprehensive genomics expertise for research labs studying coronaviruses. The main contribution includes the supply of RT-qPCR primer probe sets for SARS-CoV-2 detection and the synthesis of primers for Next Generation Sequencing (NGS)-based SARS-CoV-2 high-throughput diagnostics, among others.
• However, demand for oligonucleotide synthesis increased during the pandemic as pharmaceutical companies and healthcare providers were focused on finding more efficient uses for oligonucleotides and its application to prevent the spread of COVID-19. For instance, in 2020, the Innovative Genomic Institute stated that they were working on an aerosolized, locked nucleic acid modified antisense oligonucleotide that can be inhaled or nebulized for the treatment of COVID-19 infection. Such innovations were generating interest among healthcare providers and driving them to fight against the COVID-19 pandemic. Thus, COVID-19 has affected the global oligonucleotide synthesis market in a positive way.

Global Oligonucleotide Synthesis Market Segmentation:

The global oligonucleotide synthesis market report is segmented by equipment and services, by technology, by nucleic acid, by application, by end user, and by region.

• By equipment and services, the market is segmented into equipment/synthesizer, reagents and services. Out of which, the equipment/synthesizer is expected to hold a dominant position in the global oligonucleotide synthesis market during the forecast period, as synthetic oligonucleotides (oligos) are important tools in the fields of molecular biology and genetic engineering due to their use in gene regulation. Equipment/Synthesizer is used for the synthesis of Synthetic oligonucleotides (oligos) which can be used to develop custom-made drugs
• By technology, the market is segmented into column-based and microarray-based. Out of which, microarray-based is the dominant segment. As in microarray-based oligonucleotide synthesis, many oligonucleotide sequences are synthesized on microarray chips.
• By nucleic acid, the market is segmented into DNA and RNA. Out of which, DNA is expected to dominate the market over the forecast period, and this is attributed to the increasing demand for DNA for research and development activities.
• By application, the market is segmented into drug discovery and therapeutics. Out of which, therapeutics is expected to dominate the market over the forecast period, and this is attributed to the increasing oligonucleotides that are emerging modality offering new therapeutic opportunities to treat patients’ unmet needs.
• By end user, the market is segmented into academic research institutes, diagnostic laboratories and pharmaceutical-biotechnology companies. Out of which, academic research institutes is expected to dominate the market over the forecast period, and this is attributed to the increasing research associated with oligonucleotide synthesis in academic research institutes.
• Among all the segmentation, the equipment/synthesizer segment is expected to dominate the market over the forecast period, and this is attributed to the increasing preference of handheld oligonucleotide synthesis by physicians.

Global Oligonucleotide Synthesis Market- Cross Sectional Analysis:

Market players are focused on adopting inorganic strategies, such as collaborations, in order to expand its product portfolio and geographical presence in the market. In January 2022, Merck KGaA announced a collaboration with Aligos Therapeutics, Inc., a clinical-stage biopharmaceutical company, to discover and develop oligonucleotide therapies for non-alcoholic steatohepatitis (NASH).

Global Oligonucleotide Synthesis Market: Key Developments

• In August 2021, Danaher Corporation, global life sciences and diagnostics, announced the acquisition of Aldevron, a provider of nucleic acids and proteins. This acquisition helped Danaher Corporation to expand its oligonucleotide product portfolio.
• In June 2021, Twist Bioscience, is a public biotechnology company, announced the acquisition of iGenomX, a company offering multiplex library preparation tools for next-generation sequencing (NGS) workflows. The acquisition helped enhance Twist’s capabilities to support next-generation sequencing (NGS) preparations across the oligonucleotide synthesis market.

Global Oligonucleotide Synthesis Market: Key Trends

• Introduction of oligonucleotide synthesis with advanced technology: Market players are engaged in inorganic activities such as collaboration for the innovation of new oligonucleotide equipment. This is expected to increase the growth of the global oligonucleotide synthesis market, over the forecast period For instance, On December 18, PeptiSystems,  a company that offers a new generation of instruments for solid-phase synthesis production of peptide and oligonucleotide therapeutics, and CordenPharma, a full-service contract development and manufacturing organization (CDMO), entered into a collaboration agreement for testing and evaluation of a new generation of peptide synthesis technology. Under the terms of this agreement, CordenPharma will evaluate a new synthesis instrument, PeptiPilot, developed by PeptiSystems. It is based on flow through column technology. This technology can be used for process development and large-scale commercial manufacturing of peptides of non-GMP and GMP quality.

Global Oligonucleotide Synthesis Market: Restraint

• Low Quality and Complexity of Oligonucleotide Products: Natural oligonucleotides are composed of ribose or deoxyribose sugar phosphate as a base, which are quickly degraded in the body by nucleus. Moreover, in generic testing, Oligo degradation can affect cell growth and proliferation. Furthermore, the low quality of microarray-generated oligonucleotide sequences is a major challenge in adopting microarray technology for oligonucleotide synthesis. These factors are expected to restrain the global oligonucleotide synthesis market growth. For instance, oligonucleotides act on the RNA level through different molecular pathways, but there is a major drawback when using them as drugs: their poor bioavailability and cellular uptake. These considerations limit their application as therapeutics. To address these problems, it is vital to develop delivery systems that enable oligonucleotides to reach their targets: cell-penetrating peptides (CPPs) present a potential solution to this issue. To overcome the challenge, on March 10 , 2022, Bachem, a company specializing in the development and manufacturing of peptides and oligonucleotides, developed cell-penetrating peptides (CPPs) as a delivery system for oligonucleotides.

Global Oligonucleotide Synthesis Market - Key Players

Major players operating in the global oligonucleotide synthesis market include Thermo Fisher Scientific, Sigma-Aldrich Corporation, GE Healthcare, Integrated DNA Technologies, Inc., TriLink Biotechnologies’, Inc, BioAutomation Corporation, Twist Bioscience, Shanghai SynTheAll Pharmaceutical Co., CUSABIO Technology LLC, Synbio Technologies, GENEWIZ, Eurofins Scientific, Agilent Technologies, Kaneka Eurogentec S.A., and LGC, Biosearch Technologies

*Definition: Oligonucleotide synthesis is the chemical synthesis of relatively short fragments of nucleic acids with a defined chemical structure (sequence). The technique is extremely useful in current laboratory practice because it provides rapid and inexpensive access to custom-made oligonucleotides of the desired sequence.