Next Generation Sequencing Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global next-generation sequencing market growth forecasted to transform from USD 13.0 billion in 2022 to USD 27.0 billion by 2027, driven by a CAGR of 15.7%. Growth in this market can be attributed to factors such as advancements in NGS technologies, growing incidence of cancer, declining cost of genome sequencing, and improving regulatory and reimbursement scenarios for NGS-based diagnostic tests.

Next Generation Sequencing Market Trends

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Next Generation Sequencing Market Dynamics

Driver: Advancements in NGS platforms

In last few years, prominent market players have introduced new technologies behind them provides an immediate competitive edge to players. Market players are now focusing on the increasing their R&D efforts in development of new product. PromethION (Oxford Nanopore Technologies), Ion Torrent Genexus Dx Integrated Sequencer (Thermo Fisher), iSeq 100 (Illumina), and Ion GeneStudio S5 System (Thermo Fisher) are the key revolutionary platforms in the market.

Restraint: End-user budget constraints in developing countries

Research and development, in institutions in developing countries heavily rely on financial support. Despite efforts from both private organizations to allocate funds for research globally many research institutions are encountering financial limitations when it comes to acquiring and utilizing sophisticated and costly equipment and technologies. Consequently, the establishment and growth of research facilities are being hindered in institutions in developing nations. This poses an obstacle to the integration of technologies like Next Generation Sequencing (NGS) in developing regions, across Africa and Asia.

Opportunity: Application of NGS in precision medicine and molecular diagnostics

Continuous developments in sequencing technologies and a better understanding of genomics have increased the efficiency of biomarkers in disease detection. Since precise diagnosis and personalized medicine increase survival rates as well as reduce the financial burden on national health insurance programs, governments across the globe are expected to make significant investments in genome sciences, which will ensure a positive future demand for NGS in such applications.

NGS consumables dominated the next-generation sequencing market.

The market by product & services is categorized into pre sequencing products & services, NGS platforms, NGS consumables, services for NGS platforms, sequencing services, and bioinformatics. NGS consumables dominated the market in 2021. Various factors contributing to the growth of the segment are increasing demand for kits and reagents for sequencing procedures.

Sequencing by synthesis segment dominated the next-generation sequencing market.

Based on technology, the market is segmented into sequencing by synthesis, ion semiconductor sequencing, nanopore sequencing, single-molecule real-time sequencing, and other sequencing technologies. In 2021, sequencing by synthesis segment dominated the market. The largest share of this segment is attributed to launch of new platforms based on SBS technology.

The diagnostics application segment accounted for the largest next-generation sequencing market share.

Based on application, the market is categorized into diagnostics, drug discovery & development, agricultural & animal research, and other applications. The diagnostics segment is further categorized into cancer diagnostics, infectious disease diagnostics, reproductive health diagnostics, and other diagnostic applications. The discovery & development segment is further categorized into pharmacogenomics and other discovery & development applications. The diagnostics application segment accounted for the largest market share in 2021. The segment is expected to continue its dominance during the forecast period owing to launch of new product for IVD applications and rising demand for NGS based diagnostic kits.

The academic institutes & research centers segment held largest next-generation sequencing market share.

Based on end users, the market is segmented into academic institutes & research centers, hospitals & clinics, reference laboratories, pharmaceutical & biotechnology companies, and other end users. The academic institutes & research centers segment held largest market share in 2021. The largest share of this segment is attributed to favorable funding scenario for genomics and the development of cost-effective NGS products.

North America grabbed the largest share of the next-generation sequencing market.

By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America grabbed the largest share of the next-generation sequencing market in 2021 and this trend is expected to continue during the forecast period. Various factors driving the growth of the market in North America are availability of research funding and rising applications of NGS in diagnostics and genomics research.

Next Generation Sequencing Market By Region

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The market ecosystem comprises raw material suppliers, NGS product providers service providers, and end users such as pharmaceutical & biotech companies, academic institutes, and reference laboratories. Raw material suppliers and service providers offer various supplies and services, such as instruments, consumables, assays, kits, and accessories for NGS. Key players in the market include Illumina (US), Thermo Fisher Scientific (US), PerkinElmer (US), BGI Group (China), Agilent Technologies (US), Eurofins Scientific (Luxembourg), Pacific Biosciences (US), Oxford Nanopore Technologies (UK), QIAGEN (Netherlands), F. Hoffmann-La Roche AG (Switzerland), Brooks Automation (US), Psomagen, Inc. (US), 10x Genomics (US), Tecan Group (Switzerland), Zymo Research (US), Takara Bio (Japan), Promega Corporation (US), New England Biolabs (US), and Novogene Corporation (China).

Next Generation Sequencing Market Report Scope

The study categorizes the next generation sequencing market to forecast revenue and analyze trends in each of the following submarkets:

By Product

• NGS Consumables
• Sequencing Services
  • Exome & Targeted Resequencing and Custom Panels
  • RNA Sequencing
  • De Novo Sequencing
  • ChIP-Seq
  • Whole-genome Sequencing
  • Methyl Sequencing
  • Other Sequencing Services
• Presequencing Products & Services
  • Library Preparation & Target Enrichment
  • Quality Control
• NGS Platforms
  • Illumina
    • Novaseq Systems
    • Nextseq Systems
    • Miseq Systems
    • Miniseq Systems
    • iSeq Systems
  • Thermo Fisher Scientific
    • ION PGM Systems
    • ION Proton Systems
    • ION Genestudio Systems
    • Ion Torrent Genexus Systems
  • Oxford Nanopore Technologies
  • Pacific Biosciences
  • Other Platforms
• Bioinformatics
  • Data Analysis Services
  • NGS Data Analysis Software & Workbenches
  • NGS Storage, Management, & Cloud Computing Solutions
• Services for NGS Platforms

By Technology

• Sequencing by Synthesis
• ION Semiconductor Sequencing
• Nanopore Sequencing
• Single-Molecule Real-Time Sequencing
• Other Technologies

By Application

• Diagnostics
  • Cancer Diagnostics
  • Infectious Disease Diagnostics
  • Reproductive Health Diagnostics
  • Other Diagnostic Applications
• Drug Discovery & Development
  • Pharmacogenomics
  • Other Drug Discovery and Development Applications
• Agricultural & Animal Research
• Other Applications

By End User

• Academic Institutes & Research Centers
• Pharmaceutical & Biotechnology Companies
• Hospitals & Clinics
• Reference Laboratories
• Other End Users

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • Middle East
  • Africa

Recent Developments of Next Generation Sequencing Market

• In October 2022 Illumina, from the United States and GenoScreen from France joined forces to increase the availability of testing for multidrug tuberculosis in countries heavily affected by the disease.
• Additionally in the month Illumina collaborated with AstraZeneca, from the United Kingdom on a research partnership aimed at enhancing pipelines effectiveness through genetic variant identification.
• Illumina (US) signed a strategic research cooperation with AstraZeneca (UK) in October 2022 in order to leverage the capacity to identify genetic variations causing human diseases so enhancing the efficiency of pharma pipelines.
• Thermo Fisher Scientific (US) got FDA approval for the first NGS-based companion diagnostic to help in therapy selection for patients with RET Mutations/Fusions in thyroid malignancies in September 2022: the Oncomine Dx Target Test.

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