Rat Model Market Analysis

Rat Model Market Analysis

The increasing number of pharmaceutical research and development activities is anticipated to drive the rat model market in the coming years. Innovative medications serving to meet the unmet therapeutic requirements are amongst the significant value drivers of research-based pharmaceutical & biotechnology companies

The pharmaceutical sector develops several innovative medicines that deliver valuable clinical advantages. The growing number of investments by government as well as private players are amongst the key factors boosting the number of pharmaceutical R&D activities. For instance, the Congressional Budget Office evaluates trends in expenditure for drug research and development (R&D) and the commercialization of novel molecules.

According to the Congressional Budget Office, in 2019, the pharmaceutical sector spent USD 83 billion on R&D activities. Those expenditures encompass a comprehensive spectrum of activities, such as discovering & testing novel medications, developing incremental improvements including product extensions, and testing for safety-parameters or regulatory purposes. This amount associated with pharmaceutical R&D activities is approximately 10-fold times higher as compared to the industry spending in the 1980s, further highlighting the increased R&D volume and investments. As a result, the rising research volume and investments in pharmaceutical R&D are set to drive the adoption of rat models in these activities.

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Based on rat type, the market is segmented into inbred, outbred, knockout, hybrid, and others. The inbred segment held a dominant market share in 2021 and was valued at USD 368 million due to their surging application in the study of a broad variety of human diseases comprising neurodegenerative disorders, cancer research, etc. The use of inbred rat testing is significantly surging as these models are observed to be more progressive in terms of cognition and memory. This is further driving the use of the inbred model in a wide variety of applications.
 

The use of these inbred models in pharmaceutical sectors is rising to enhance drug discovery processes. Several academic and research Institutes are significantly employing inbred models in genetic mapping, transplantation research, aging research, etc. Moreover, leading market players comprising Charles River is focusing to manage the health & genetics of inbred rat strains under the International Genetic Standardization (IGS) program. This is ensuring the easy worldwide availability of standardized inbred rat strains, thereby propelling the demand for unique inbred and mutant models.
 

Based on technology, the market is segmented into CRISPR, microinjection, embryonic stem cell injection, nuclear transfer, and others.  The CRISPR segment held a majority market share in 2021 and was valued at more than USD 447 million. The CRISPR-Cas9 technology has accelerated the development of transgenic rats, demonstrating unprecedented safety, efficiency, and easy applicability, thereby limiting the time and expenses for genome editing.
 

This technology has further enabled the production of rat models with more comprehensive genetic modifications as compared to conventional gene-targeting methods. The genome editing approach based on the CRISPR-Cas9 system enables the accurate introduction of mutations at target DNA sequences. This technology has fuelled the generation of rat models and significantly contributed to their increased adoption for research purposes. Thus, the accelerated development of research models using CRISPR is anticipated to drive the rat model market share.
 

Based on application, the market is segmented into research & development, production and quality control, academics, and others. The research & development segment held the largest market share in 2021 and is expected to grow at a notable pace to reach over USD 1,648 million by 2028 owing to the increasing number of research & development projects, rise in the investment to innovate novel therapeutics, etc. Rat models are developed to feature some of the earliest developments related to the disease and to detect potential drug targets.
 

Furthermore, the pharmacokinetic and pharmacodynamic experiments are conducted for evaluating gastrointestinal absorption, distribution, metabolism, and drug excretion (ADME) parameters for every candidate drug. Rat model-based research is extensively employed in these ADME studies that aid in screening these lead candidates to move forward to the next step in safety and efficacy studies. This assists to eliminate some candidate drugs, further helping in substantial costs savings. Thus, the increased use of rat models in R&D is expected to drive the rat model market growth.
 

Based on use, the market is segmented into human and veterinary. The human segment held a dominant revenue share in 2021 and was valued at more than USD 1,127 million due to the increasing prevalence of chronic disorders, rise in the demand for personalized medicine, etc. According to the World Health Organization (WHO), in 2020, cancer is among the critical conditions inflicting a substantial disease burden, accounting for approximately 10 million deaths.
 

Furthermore, as per the Cancer Statistics, in 2020, around 1,806,590 new cancer cases were diagnosed in the U.S. and around 606,520 individuals were estimated to die from the disease. The rise in the prevalence of such chronic human ailments is set to drive the demand for novel therapeutics and effective drugs. This surged demand is expected to push the use of rat model-based research in drug research & development.
 

 

Based on end-use, the market is segmented into companies, organizations, academic and research institutes, and contract research organizations (CRO). The companies segment held a dominant market share in 2021 and was valued at over USD 862 million. This majority revenue share of the segment is attributed to heavy investment in research and development by pharmaceutical & biotechnology companies and the surged usage of rat models in these activities.
 

According to a recently published report, in 2019, the R&D spending surged by 5% and the major 11 pharma companies accounted for a total of USD 77.6 billion. These R&D investments in new drug therapeutics are also increasing. Rat testing is considered as an essential tool to aid in making the decision to develop potential therapies from preclinical studies to human trials. The rise in investment and increased demand for effective therapeutics is set to drive the acceptance of rat models.
 

 

U.S. dominated the North American market in 2021 and is anticipated to expand at a significant pace to reach over USD 1,589 million by 2028 owing to the growing demand for personalized medication, the increasing research activities concerning drug development, and rising healthcare expenditure in the region. According to the latest research study, the U.S. accounts for the use of more than 100 million rat & mice models for research every year.
 

The increased use of rat testing is set to positively influence market growth. Further, the constantly rising number of registered clinical trials is anticipated to drive regional growth. For instance, as per the Clinical Trials.gov, the number of registered clinical trials in the U.S. surged from 29,188 in 2017 to 32,253 in 2019. Thus, the rising number of clinical trials and significant investments into these studies are expected to boost the regional rat model industry growth.