METAGENOMICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Metagenomics Market Size and Trends

The metagenomics market is estimated to be valued at USD 2.18 Bn in 2024 and is expected to reach USD 3.77 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.1% from 2024 to 2031.

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Increasing metagenomics-based applications in various industries like healthcare and biotechnology will drive the market growth. Metagenomics has wide applications including the identification of genes for disease treatment, microbiome analysis, biofuel development, and environmental remediation. In addition, advancements in sequencing technologies and reduction in sequencing costs are expected to support the metagenomics industry growth during the forecast period. Growing research activities in metagenomics worldwide is further anticipated to fuel the market growth. However, the lack of standardization in data management and analytical tools is a major challenge for the market.

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Insights By Product - Versatile usage drives reagents & consumables segment growth

In terms of product, reagents & consumables segment is estimated to contribute the highest market share of 54.8% in 2024, owing to its versatile usage across different technologies and applications. Since metagenomic studies require processing a large number of nucleic acid samples, there is considerable demand for reagents that can efficiently extract, purify, and prepare DNA and RNA from diverse environmental samples.

Insights By Technology - Versatility of shotgun sequencing elevates its significance

In terms of technology, shotgun sequencing segment is estimated to contribute the highest market share of 41.8% in 2024, owing to its versatility in interrogating microbial communities. This technology involves randomly shearing the DNA & RNA from environmental samples followed by massively parallel sequencing of the fragments. Unlike targeted approaches, shotgun metagenomics provides a less biased and comprehensive view of constituent microbes in a sample. It allows the detection of novel taxa without prior genome information and quantification of relative organism abundances.

Insights By Application - Drug discovery leads growth as demand from pharmaceutical industry rises

In terms of application, drug discovery segment is estimated to contribute the highest market share of 52.3% in 2024, due to high demand from the pharmaceutical industry. Metagenomics enables the discovery of novel drugs, chemicals, and bioactive compounds from diverse and uncultured microbes residing in different environments. It provides access to an enormous pool of biological and chemical diversity that remains untapped in traditional culture-based drug screening approaches.

Regional Insights

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Regional Analysis: Metagenomics Market

Dominating Region: North America

North America is expected to dominate the metagenomics market industry with the highest market share of 37.5% in 2024, due to strong government funding for research activities, presence of leading life sciences companies, and technological advancement.

Fastest-Growing Region: Asia Pacific

Asia Pacific region exhibits the fastest growth with 24.2% market share in 2024 in the metagenomics industry, due to increasing research and development investment, rising healthcare expenditure, growing geriatric population, and rapid economic development.

Metagenomics Market Outlook for Key Countries

Increased research and development expenditure in the U.S.

There is a notable rise in research and development investments from governments, academic institutions, and private companies focusing on metagenomics. For instance, the NIH's R01 and R21 grant mechanisms support projects that explore the interactions between the human microbiome and health conditions such as cancer and infectious diseases. This funding recognizes the potential of metagenomics to provide insights into microbial ecosystems and their applications across various sectors. The U.S. government’s support for genomics research plays a pivotal role in fostering innovation and advancing metagenomic workflows and bioinformatics tools.

Collaborations in China

The Chinese metagenomics industry is primarily led by domestic companies leveraging local technologies. However, collaborations with international firms are increasing to enhance clinical applications. Initiatives like "Made in China 2025" aim to bolster the biotechnology sector significantly which will drive the market growth.

Advanced technological capabilities in Japan

The Japan metagenomics industry is characterized by advanced technological capabilities, with industry leaders like Takara Bio and Shimadzu collaborating with academic institutions. These partnerships focus on applying metagenomics in disease diagnostics, agriculture, and industrial biotechnology, driving significant innovation and growth.

Government Initiatives in India

India metagenomics market is witnessing increased participation of both public and private players to tap into opportunities. Programs like Digital India and Startup India are encouraging innovation and investment in biotechnology, fostering a conducive environment for metagenomics research and development.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Metagenomics Market Players

• Established players in the metagenomics market focus heavily on research and development to drive innovation. Industry leaders such as Illumina, Thermo Fisher Scientific, and Oxford Nanopore Technologies pour funding into creating high-performance genomic sequencing technologies and analysis software. They invest in developing new techniques like long-read and real-time sequencing to achieve faster, lower-cost solutions.
• Mid-level firms compete by delivering cost-effective products. Companies like DNASTAR and Qiagen offer affordable sample preparation kits and analysis software packages for researchers and labs with smaller budgets. They may partner with application-focused startups to develop specialized workflows combining both partners' expertise.
• Small-scale players survive by occupying specialized niches. Companies like CosmosID and Microbiome Insights have found success developing tools and databases for characterizing particular microbe classes or clinical/industrial applications. Their focused products fill needs unmet by larger competitors. To access new markets, some also form local partnerships for joint marketing and sales.

Emerging Startups in the Metagenomics Market

Various startups are making disruptive advancements in metagenomics technologies. Companies developing “smart microbiome” sensors hope to enable real-time community profiling directly from samples using nanowire or microfluidic chips. This could transform clinical diagnostics and environmental monitoring.

Startups creating AI-powered analysis platforms have the potential to dramatically speed up complex tasks like taxonomic profiling from sequencing data. Companies applying machine learning to reference databases may uncover new biological insights to drive therapeutic development.

Several early-stage firms focus on sustainability. Biome Makers develops bioplastic alternatives produced directly by engineered microbes. Their sustainable materials could reduce industry reliance on petrochemicals. BioLumi develops bacteria-powered LED lighting to provide off-grid illumination using waste biomass, offering an eco-friendly alternative.

Metagenomics Industry News

• On October 1, 2024, Universal Sequencing Technology (UST), a global leader in Next Generation DNA Sequencing (NGS) innovations, announced the launch of its TELL-Meta software pipeline designed for metagenomics applications utilizing TELL-Seq linked read technology. This innovative software aims to enhance metagenomics research by providing accurate tools for species discovery and high-quality metagenomic assembly and analysis. The TELL-Meta pipeline is optimized for identifying microbial communities directly from environmental samples, significantly improving the accuracy of taxonomic classification and abundance estimation.
• On August 2, 2024, MGI Tech, a global biotechnology company, launched a comprehensive Human Microbiome Metagenomics Sequencing Package. This package streamlines the entire sequencing process, including sample collection, extraction, library preparation, sequencing, and analysis, featuring high automation and flexible throughput options. It has been validated with over 130,000 stool samples, demonstrating excellent performance and consistency across various sequencing platforms.
• On April 23, 2024, Microbiome Insights Inc., a global leader in microbial sequencing and bioinformatic analysis, announced that it had launched its new long-read sequencing services for both amplicon and shotgun metagenomics. Utilizing cutting-edge high-throughput sequencers, sequencing strategies, and advanced bioinformatics pipelines, the service is ideal for academic, clinical, and industry researchers looking for the next breakthrough in microbial research.

Key Takeaways from Analyst

• Rising investments in metagenomics research by both private and government bodies will drive demand. Pharmaceutical companies are increasingly leveraging metagenomics to discover new drug candidates from uncultured microbes. This will remain a key driver as the market for novel antibiotics grows.
• However, technical challenges around DNA extraction from environmental samples and data analysis pose restraints. Standardizing protocols and developing user-friendly analysis tools can help lower these barriers.
• North America currently dominates due to extensive R&D spending and presence of leading players. However, Asia Pacific is emerging as the fastest growing region with strong focus on metagenomics in countries like China, India, and South Korea. Improving research infrastructure and funding is expanding regional capacity. Within Asia Pacific, China holds immense potential owing to government initiatives to establish specialized institutes for metagenomics.

Market Report Scope

Market Dynamics

Market Driver - Rapid advancements in genomic technologies

Genomic technologies have significantly advanced, enhancing the understanding of microbiomes. Next-generation sequencing allows for the identification of entire microbial genetic repertoires directly from environmental samples, revealing complex interactions within communities. This progress has led to insights linking gut microbiomes to health conditions and understanding microbial roles in nutrient cycling, paving the way for innovative diagnostic and therapeutic solutions. Overall, rapid technological progress in genomic and bioinformatic capabilities is substantially augmenting metagenomics research and its diverse real-world applications.

Market Challenge - Lack of skilled professionals

One of the key challenges in the metagenomics market is the shortage of skilled professionals proficient in metagenomics technologies. Despite rapid advancements, there is a lack of researchers and technicians with expertise in sample collection, DNA sequencing, extraction, and bioinformatics. This talent gap hampers research progress and commercialization, necessitating targeted training programs by governments and universities to cultivate expertise in metagenomics.

Market Challenge - Emerging economies

One of the key growth opportunities in the metagenomics market lies in emerging economies across Asia Pacific, Africa, and Latin America. These regions are expected to experience significant increases in healthcare investments and biotechnology spending over the next decade. As costs for metagenomics technologies decline, local initiatives focusing on infectious disease monitoring, environmental management, and agriculture will gain traction. Supported by favorable governmental policies, these markets can drive substantial expansion in the global metagenomics industry.

Key Stakeholders of Market

What does Growth in the Global Metagenomics Industry mean for Different Stakeholders?

The global metagenomics industry has multiple players with varied designations and offers multiple opportunities based on their scope of operations.

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Market Segmentation

•  Product Insights (Revenue, USD Bn, 2019 - 2031)
• • Reagents & Consumables
  • Instruments
  • Sequencing & Data Analytics Services
•  Technology Insights (Revenue, USD Bn, 2019 - 2031)
• • Shotgun Sequencing
  • 16S Sequencing
  • Whole Genome Sequencing
  • Others
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Drug Discovery
  • Clinical Diagnostics
  • Others
•  End User Insights (Revenue, USD Bn, 2019 - 2031)
• • Pharmaceutical Companies
  • Research Laboratories
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Bio-Rad Laboratories, Inc.
  • Illumina, Inc.
  • PerkinElmer, Inc.
  • Thermo Fisher Scientific, Inc.
  • Novogene Co., Ltd.
  • Promega Corporation
  • QIAGEN
  • Takara Bio, Inc.
  • Oxford Nanopore Technologies
  • F.Hoffmann-La Roche Ltd
  • PacBio