Market Scenario
Organ on a chip market was valued at US$ 129.96 million in 2023 and is projected to hit the market valuation of US$ 1,665.91 million by 2032 at a CAGR of 34.34% during the forecast period 2024–2032.
Organ on a chip (OoC) technology refers to microfluidic cell culture devices which recreate the functional responses of individual organs or systems. These cells are engineered using microchip production techniques which comprise of living human cells organized in a fashion that represents the organ level response and functions. As its possible to revolutionize drug discovery and development processes, the organ on a chip demand is on the rise due to animal testing often does not approximate human response very well. This results in a very low percentage of success of medicines undergoing clinical trials. OoC rather makes more sense because it is more humane, cheaper and more reliable as it offers relevant data early on in research where it means the most.
It has been found that key end users in the organ on a chip market comprises of pharmaceutical and biotechnology companies, academic research centers and medical research arms of government agencies. These types of organizations use OoC for a number of reasons including amongst others drug efficacy testing, toxicity screening, disease modelling and personalized drugs. For example, organ on a chip enables the emulation of some particular disease states which can then be used to explore how that disease stage advances and evaluate different treatments for a disease based on its staging in a more controlled environment. Furthermore, custom made OoC devices can be developed from a patient’s own cells, offering a basis for future custom-made therapies.
As of 2023, the global organ on a chip market has been growing considerably owing to the heightened investment in R&D, the OoC systems are gaining traction as they provide an effective way in shortening the time and costs incurred in drug development. The development of sophisticated multi-organ chips that can replicate extensive physiological functioning has also been witnessed. There has been consistent growth of OoC in North America, where there is a lot of funding support for OoC research. In 2023 alone, more than 150 organ-derived-on a chip new models were fabricated across the world including models for heart, liver, lungs and kidneys.
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Market Dynamics
Driver Focus: Growing Need for Accurate Human-Mimetic Models
The global pharmaceutical sector is searching for better models that can effectively reproduce human biophysics in order to advance drug discovery and development. Animal testing, simple cell cultures and similar procedures are forgotten in history because they are inadequate in predicting human responses which might lead to unfortunate expensive ‘failures’ late in development. Data showed that mass drug development expenditures to exceed $2.5 billion dollars in 2023 for a single useful drug, highlighting the tendency of booming losses instead of profits. Wherein, organ on a chip market seems to be the solution for this problem since it provides a framework that approximates the human organ system’s intricacies which in turn enhances testing procedures. More than 200 organotypic chips including liver and lung models to aid in metabolism and respiratory disease research were reported in 2023 alone. It is believed that these chips played a significant role in pre-clinical screening of toxicity and minimized adverse events during clinical testing. A study published in 2023 showed that liver-on-a-chip models were able to predict liver toxicity 85% of the times, clearly better than conventional methods have ever.
This trend is further illustrated by the increasing partnership between the academia and the industrial players. For example, in collaboration with a research university in 2023, a top pharmaceutical firm was able to create a heart-on-a-chip which closely replicates cardiac arrhythmia. Such partnerships are important for the development of OoC technology and its wider incorporation into the industry’s drug development processes.
Trend Focus: Integration of Artificial Intelligence with Organ-on-a-Chip Systems
AI and OoC Technologies Fusion Convergence became one of the vivid trends in organ on a chip market. AI boosts the functionality of OoC systems through advanced data comprehension and forecasting technology. This combination makes it possible to continuously observe and interpret the complicated biological responses unfolding in the chips. In 2023, more than 60% of all newly initiated organ on a chip platforms made use of AI algorithms for data processing. For instance, the AI-based kidney-on-a-chip improved specificity of the nephrotoxic effect screening of newly created compounds. An US-based AI startup rolled out in 2023 an AI powered OoC platform that can accurately predict drug induced organ damage with minimal error margin. Besides, training of algorithms also enabled approximation of the disease advancement in the organ chips thus giving further understanding of its pathophysiology.
This introduction of AI does not only speed up the process of researching but also improves the accuracy of the results obtained in the organ on a chip market. AI generates value from the datasets created by the OoC experiments through identifying detailed features and reactions otherwise regarded as noise during normal analysis. This tendency is expected to deepen with funding for AI installation rising to over US$ 500 million in 2023, what was definitely do not happen before.
Challenge Focus: Limited Standardization Across Different Organ-on-a-ChipPlatforms
The organ on a chip market faces standardization issues across its different platforms. In 2023, a survey showed that OoC devices manufacturers designed more than 70% of devices to have unique shapes, functional materials, and their own protocols. Therefore, this unevenness makes it difficult to harmonize results obtained from different studies and also delays the use of organ on a chip data for approval of new drugs. The use of diverse organ systems for modeling and different proprietary technologies for developing ooc systems make bringing about uniformity complex. For example, while one company may utilize silicone-based chips, another may utilize polymer-based materials which leads to disparities in the cellular response. To counter this drawback, international consortia formed in 2023 aim at developing uniform guidelines regarding the OoC development and testing procedures.
Adopting a chip model has potential but FDA argues for a single standard validation process. In 2023, the FDA published a draft guidance document which specified the areas which should be covered in the OoC data included in BA submissions. Overcoming this obstacle is important for scientists and regulators to fully accept and use organ on a chip technologies.
Segmental Analysis
By Product & Services
Based on product & services, product segment that comprises instruments as well as the OOC devices such as liver on chip, lung on chip, heart on chip devices is currently dominating the organ on a chip market with over 65.12% market share. This is owing to increased use and development in technology. A high demand for these devices has come up as they are more relevant for human models in drug testing and modeling of diseases. The increase in the chronic diseases and the requirement for individualized medicines has increased the utilization of OOC products leading to intensive use in R and D.
In 2023, a number of key industry players in the organ on a chip market have come forward to invest substantially into OOC devices so that new products that are more advanced than the current ones can be developed. Such developments have transformed OOC devices into cheap and easy to use systems which in turn encourages more and more institutions and companies to use them. Such renewed growths in the quality and use of these products propagates the growth of the organ on chip market maintaining it in a highly dynamic state. Moreover, supportive legislation and cooperation between industry and academia have facilitated the uptake of OOC products as opposed to services. The absence of OOC device standards and guidelines in 2023 have resulted in lack of confidence among end-users, thus weakening the procurement of goods. The potential of OOC devices to provide better predictive human models that reduce the cost and time required for drug development have made them popular options hence justifying the growth of this product segment in the market.
By Application
Based on application, organ on a chip market finds its largest demand in drug discovery due to its potential to revolutionize the drug development process. In 2023, the segment held over 64.32% market share. The pharmaceutical industry faces immense pressure to reduce the time and cost associated with bringing new drugs to market. OOC devices offer a promising solution by providing more accurate human organ models that can predict drug responses more effectively than traditional animal models. This increased accuracy reduces the likelihood of late-stage failures in clinical trials, saving companies substantial resources.
The ability of OOC technology to strengthen the performance of its applications in drug development is one major reason as to why it is so attractive. 2023 has also reported major achievements in microfluidics and biomaterials which have made it possible to develop OOC platforms that can mimic complex human organs in great detail. It is hence possible to replicate normal biological conditions so that many drugs can be tested at a go, and from this process, newly effective drugs can be identified swiftly. The high degree of flexibility in the designs of devices in the organ on a chip market enables the models to develop focus on specific diseases and this enhances understanding on the mechanisms of these diseases as well as open doors for the development of novel therapies.
Among the important factors driving this growth are robust funding of organ on a chip projects, joint ventures between pharmaceutical companies and technology providers, and amenable policy frameworks. In 2023, many regulators have appeared more willing to accept the data that comes from OOC studies as they consider it to be useful in anticipating humans’ responses. Another positive feature of the utilization of OOC in drug development as highlighted earlier such as ability to achieve fast paced results as well as reduction of animal testing requirements has led companies to implement the necessary changes and advancements towards meeting the drug market’s demands.
By End Users
Pharmaceutical and biotechnology companies are the primary consumers of the organ on a chip market due to their critical need for advanced tools that enhance drug development efficiency. In 2023, these companies are actively seeking technologies that can reduce the high costs and lengthy timelines associated with bringing new drugs to market. organ on a chip devices provide highly predictive human organ models that can identify potential drug failures early in the development process, thereby minimizing costly late-stage clinical trial failures.
These companies lead the market as they have the resources and infrastructure to adopt and integrate organ on a chip technology extensively. In 2023, significant investments have been made by pharmaceutical giants to incorporate OOC platforms into their R&D pipelines, support the organ on a chip market growth further. Collaborations between OOC developers and pharmaceutical companies have resulted in tailored OOC systems that meet specific research needs, further solidifying their reliance on these technologies. The ability to conduct more efficient and ethical research, with reduced use of animal models, aligns with the evolving goals of these industries. Moreover, the global scale and influence of pharmaceutical and biotechnology companies contribute to their control of the highest market share. In 2023, their widespread adoption of OOC devices has set industry standards and driven market trends. Their emphasis on innovation and improving success rates in drug development keeps them at the forefront of utilizing cutting-edge technologies like OOC, reinforcing their position as leading end-users in the market.
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Regional Analysis
North America, most notably the United States, has further entrenched its position as the largest ow organ on a chip market with over 46% market share. One of the factors that have facilitated this is the large amount of funds available for organ on chip investments. In the year 2023, the United States of America government invested $45 billion on the National Institutes of Health, of which $2 billion was specifically intended for biomaterials and organ-on-chip systems. Moreover, private sector investment has also been strong where, in 2023, U.S. biotech companies were able to raise more than $35 billion in venture capital financing the big appetite of which is often targeted at organ-on-chip technologies. There are about 50 companies in the U. S. among them big established firms and new entrants that are involved in the production of OoC devices. In addition, U.S. scholars published over 200 peer-reviewed articles on organ-on-chip technology in 2023 indicating that there is interest and expertise on the subject.
Numerous macro and microeconomic aspects determine the leaders in the organ on a chip market, and in this case, the United States is in a leading position. The regulatory aspect through authorities like FDA, supports alternatives to be sought and adopted to lessen animal model dependence. In 2023, FDA announced a new project in which it pledged to allocate $5 million to support the inclusion of organ-on-chip technology in drug evaluation. In 2023, the U.S. healthcare expenditure stood at $4.3 trillion, creating the much-needed room for biomedical inventions. In addition, the concentration of the world’s best research universities and biotechnology centers like Boston and San Francisco that have more than 1000 biotechnology companies is high in the country. The strong intellectual property framework is apparent, as more than 150 OoC related patents were registered in the US in 2023. This ecosystem promotes the creation of new organ-on-chip technology and enhances the development of organ-on-chip technology by providing capital, labor, and other resources.
Asia Pacific region is becoming a fast-growing organ on a chip market. Chinese Bioindustry reported that in March China declared a $15 billion investment into biotechnology development over the period of the next 5 years and organ-on-chip technology was pinpointed as one of the focus areas. Chinese institutions increased their organ on a chip publications to more than 120 in 2023, pointing to the area’s growing capacity. Japan's government set aside ¥10 billion in 2023 for the development of regenerative medicine as well as organ-on-chip technology. In addition, South Korea’s first national organ-on-chip research center which is referred to as the Seoul National University Organ-on-Chip Center was established in 2023 and is said to be worth $100 million. Australia also did not fall behind as the government earmarked AUD 5 million for universities for research projects focusing on the organ-on-chip model in 2023. In the Asia Pacific region, more than 25 startups were incorporated in 2023 dedicated to the cause of organ-on-chips indicating rise in the sector’s entrepreneurial activity.
Top Players in Organ on a Chip Market
Market Segmentation Overview:
By Product & Services
By Application
By End Users
By Region
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