Sales of analytical instruments for security and safety are continuing to grow steadily. One important facet of this market is bio-based detection, which consists of two primary segments: nucleic acid amplification, commonly known as polymerase chain reaction (PCR), and other biochemical technologies. The information comes from the Strategic Directions International report “Chasing Disaster: Analytical Instrumentation for Security and Related Safety Applications, Market Forecast: 2010­–2014.” The report finds that sales related to PCR, the most successful technology in terms of both sales and performance for detecting and identifying biological threats, is continuing to grow, and also highlights the need for better biological threat detection solutions, which may ultimately come from aerosol and other types of analyzers.

The PCR market for security and safety applications includes both fixed-site installations, mainly systems that are bolted down, for example, in the downtown area of a major city, and that test for airborne pathogens; and portable devices, which a first responder can carry into the field to analyze a sample from something like a suspicious package. The majority of the PCR market consists of fixed-site installations, including laboratory systems repurposed as field units and systems reconfigured for specific applications, particularly the inspection of mail. These laboratory systems account for about three-quarters of the market, with sales growing in the mid-single digits.

Cepheid is the largest provider of such systems due to its postal inspection business. Cepheid and Northrop Grumman partnered to provide postal screening systems to the US Postal Service (USPS), and this contract continues to bring in substantial aftermarket and service revenues, as well as moderate sales of initial systems for expansion and replacement. Cepheid also supplies PCR instruments to other areas of the security market. The second-largest vendor, Life Technologies, sells instruments and specialized PCR reagents, and makes up slightly less of the market than Cepheid.

The aftermarket, which consists primarily of the reagents and pathogen sequences needed to carry out testing, comprises slightly less than half of the total PCR market for security and safety applications. Service, which is particularly significant for postal installations, comprises about a fifth of the market.

Sales of portable PCR systems for the safety and security market are not faring quite as well as fixed-site systems; the market for them is currently stagnant. Although portable systems have advantages for security applications, they often do not perform as well as standard lab systems. The rarity of incidents involving biological threats has led to portable PCR tools mostly being used for first responder and other front-line applications. The main vendor for portable PCR systems is Smiths Detection, which accounts for more than a tenth of the total PCR market. Its main competitor, Idaho Technology, also targets military and first responder applications.

The Other Government market, which consists of sales related to the protection of government buildings and facilities, made up over a third of the PCR market for safety and security application in 2009. The USPS makes up much of this market, though mostly in service and aftermarket, as it has a fairly complete installation of hardware. Revenues from USPS have been declining, and that decline coupled with the increase in sales from other areas of the Other Government segment have resulted in an overall flat market. The military is the second-largest market, accounting for a quarter of the overall PCR market. The greatest growth is predicted to come from the academic segment and first responders, with both segments growing in the low single digits annually.

Although PCR is the most widely used technology for the detection of biochemical threats, other technologies, mainly those involving the detection of various antibody/immunochemical responses and other chemical signatures characteristic of pathogens, are also used. Antibody-based techniques or immunochemical assays have become the preferred method for rapid on-site detection. Products in this market include enzyme-linked immunosorbent assays (ELISA) and lateral flow test kits; readers that can be used to increase the level of sensitivity for such tests; aerosol analyzers, a specific class of biological analyzer based on a number of different technologies that are designed to operate long term in a fixed location by sampling the air for suspended pathogen particles; and other technologies, such as those using surface plasmon resonance (SPR) or more advanced immunochemical techniques like paramagnetic bead assays. Counted as initial systems, ELISA and lateral flow tests represent the largest segment of the market for nonPCR-based techniques for detection of biochemical threats. The market for biochemical detection technologies other than PCR is somewhat stagnant, as many agencies already have an adequate stockpile of these tests.

The two largest vendors of biochemical detection systems using technologies other than PCR, Tetracore and US Genomics, each account for less than a tenth of the total nonPCR market. Tetracore’s main business involves confidential contracts with the US government, and the company has been targeting the foreign market, having provided security for the Beijing Olympics in 2008. US Genomics provides an automated aerosol analyzer marketed by Northrop Grumman. Lockheed Martin and Environics round out the top four vendors for this market.

When aftermarket and service revenues are considered, aerosol analyzers are the largest product segment of the market for biochemical detection other than PCR, comprising more than a third of the market. Similar to ELISA and lateral flow tests, sales of these systems are not growing substantially because of the low number of bioterrorism incidents. Like so many of the biochemical solutions for bioterrorism that do not use PCR, growth for aerosol analyzers should be less than 5% annually. Sales of systems using other technologies are forecast to grow the most, in the high single digits annually, as they evolve to provide better solutions.

The Other Government segment comprises the largest portion of the market for nonPCR-based detection techniques for security and safety, almost a third. The Other Government segment consists primarily of the national and local government security bodies responsible for protecting civilian populations with aerosol analyzers and other tools. Military demand, which covers all product types but with an emphasis on partially mobile aerosol analyzers, is experiencing some of the strongest growth. The industrial security segment, pertaining to such vital industries and facilities as chemicals, oil and gas, is expected to grow in the high single digits. Aviation is the remaining segment that comprises more than 5% of the market; growth in that segment is slightly more than the overall average.

Column Graph: Biochemical Detection Demand (Millions)

2009 2010 2011

PCR 161 166 172

Other Biochem. Tech. 78 81 84