NGS-based RNA-sequencing Market

The global size of NGS-based RNA-sequencing market in terms of revenue was estimated to be worth $2.5 billion in 2022 and is poised to reach $5.5 billion by 2027, growing at a CAGR of 17.2% from 2022 to 2027. The research study consists of an industry trend analysis, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market.

The key factors propelling the growth of this market are the advantages of RNA sequencing over conventional technologies, the decreasing costs of genome sequencing, increasing government funding to support genomics projects, growing research involving RNA sequencing, growing cancer cases, the increasing application of NGS in cancer research, and rapid growth in personalized medicine.

Attractive Opportunities in the NGS-based RNA-sequencing Market

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Global NGS-based RNA-sequencing Market Dynamics

DRIVER: Decreasing costs of genome sequencing

In the last two decades, advances in genomics have resulted in a substantial reduction in the cost of genomic sequencing. For example, in 2019, the cost of whole human genome sequencing using Illumina’s technology was USD 1,000, compared to USD 14 million in 2008, and is expected to decline further in 2023. Pacific Biosciences of California provides human genome sequencing 10X coverage at ~USD 3,000 and 30X coverage at ~USD 10,000.

The cost of sequencing depends on the genome size, which varies from organism to organism. For instance, targeted sequencing is less expensive than whole-genome sequencing. Apart from genome size, data quality is another major factor associated with variations in the cost of sequencing. Sequencing cost also depends on the average number of times each base in the genome is actually “read” during the sequencing workflow. Due to the reduced costs, several companies are participating in RNA sequencing projects. The cost per raw megabase of RNA sequence has also declined in the last two decades. This has helped sequencing service providers to offer NGS-based RNA sequencing services at lower prices. Consequently, the application of these services is increasing with their affordability.

RESTRAINT: Standardization concerns of RNA-sequencing in diagnostic testing

A shift from research applications of RNA-sequencing to clinical diagnostic applications is expected due to the decreasing sequencing costs. Hence, there is a need to standardize tests to avoid discrepancies in understanding and studying reports of RNA-sequencing diagnostic applications. The US Food and Drug Administration (FDA) is working to establish regulations for RNA sequencing diagnostics to tackle uncertainties regarding the accuracy and reliability of NGS. The interpretation of RNA-sequencing data requires trained physicians as efficient RNA-sequencing data analysis is a critical factor for diagnosis. However, the complexity of NGS technologies and data presents significant challenges to its acceptance in clinical laboratory practices, quality measures, and compliance with regulatory and professional standards. There is a need to identify unmet gaps and processes for test validation, quality control, and quality assurance of NGS-based RNA-sequencing applications for clinical testing. Thus, the lack of standardization in RNA sequencing for diagnostic testing is expected to hamper the growth of the NGS-based RNA-sequencing market.

OPPORTUNITY: Adoption of blockchain technology and cloud computing

The adoption of blockchain technology in healthcare is still nascent. Still, it has a huge potential to transform the current healthcare industry, revolutionize public and private service delivery, and strengthen customer data transparency. The increasing adoption of Blockchain-as-a-Service (BaaS) with significant funding through venture capitalists and initial coin offerings (ICOs) creates growth opportunities. Companies such as Nebula Genomics (US) are working on projects to share genetic information available to researchers securely, and patients are expected to be paid for shared data. The UK-based EncrypGen did similar work in genomic data storage.

With advancements in life sciences and IT, bioinformatics is witnessing a new trend in cloud technology. Cloud computing can efficiently handle vast quantities of biological data generated by high-throughput experiments. Ongoing efforts in nanopore sequencing technology and cloud technology for bioinformatics involve developing a large variety of services from data storage, data acquisition, and data analysis, and accordingly developing utility-supplied cloud computing services delivered over the internet. Thus, future efforts in developing and commercializing novel services for blockchain and cloud technology are expected to offer growth opportunities in the NGS-based RNA-sequencing market.

CHALLENGE: Storage and interpretation of sequencing data

RNA-sequencing enables the quantitative and qualitative investigation of different RNAs, including microRNAs, messenger RNAs, small interfering RNAs, and long noncoding RNAs. The use of RNA sequencing has increased due to NGS, which yields readouts of billions of bases from a single instrument daily. As this sequencing data accumulates, standardization becomes difficult, due to which downstream computational analysis of RNA sequencing data remains complex and generates an enormous amount of data. The study and interpretation of complex data from NGS platforms pose a significant informatics challenge. The lack of automated methodologies and standardized procedures for analyzing this RNA sequencing data is a major hurdle in data interpretation. Although software solutions for data analysis are available, the demand for more efficient data management facilities has intensified. Furthermore, researchers working daily on these instruments must navigate the information provided by datasets. Hence, new data management tools and sufficient training of skilled professionals pose a major challenge for the NGS industry.

North America accounted for the largest share of the NGS-based RNA-sequencing industry

Geographically, the NGS-based RNA-sequencing market is segmented into North America, Europe, Asia Pacific, and the Rest of the World (RoW). North America held the dominant share, followed by Europe. North America accounted for the largest share of the global market in 2021 owing to the availability of government support, advancements in RNA sequencing products, the growing prevalence of target diseases, growing research on cancer and inherited rare diseases, and the strong presence of key players in the region. However, the Asia Pacific market is projected to grow at the highest CAGR during the forecast period, owing to a significant focus on R&D, the decreasing costs of NGS products and services, and the increasing focus of major market players on strengthening their presence in the Asia Pacific.

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Key players in the global NGS-based RNA-sequencing market are Illumina, Inc. (US), Thermo Fisher Scientific, Inc. (US), QIAGEN N.V. (Netherlands), PerkinElmer, Inc. (US), and Eurofins Scientific (UK).

Scope of the NGS-based RNA-sequencing Industry

This report categorizes the NGS-based RNA-sequencing market to forecast revenue and analyze trends in each of the following submarkets:

By Product & Service

• Sample Preparation Products
  • By Workflow
    • Library Preparation and Target Enrichment
    • Quality Control
  • By Method
    • Manual Sample Preparation
    • Microfluidic Sample Preparation
    • Robotic Liquid Handling Sample Preparation
• RNA-sequencing Platforms and Consumables
• RNA-sequencing Services
• Data Analysis, Storage & Management

By Technology

• Sequencing by Synthesis
• Ion Semiconductor Sequencing
• Single-molecule Real-time Sequencing
• Nanopore Sequencing

By Application

• Expression Profiling Analysis
• Small RNA-sequencing
• De Novo Transcriptome Assembly
• Variant Calling and Transcriptome Epigenetics

By End User

• Research and Academia
• Hospitals and Clinics
• Pharmaceutical and Biotechnology Companies
• Other End Users

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa

Recent Developments of NGS-based RNA-sequencing Industry

• In July 2022, Illumina Inc. (US) launched Illumina DRAGEN v4.0, an accurate and comprehensive secondary analysis platform.
• In January 2021, Oxford Nanopore Technologies collaborated with NVIDIA to integrate the NVIDIA DGX Station A100 into Oxford Nanopore’s ultra-high-throughput sequencing system, PromethION.
• In July 2019, Oxford Nanopore Technologies (UK) launched GridION for real-time, on-demand, long-read, direct DNA or RNA sequencing.

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