NEXT GENERATION SEQUENCING MARKET ANALYSIS

Next Generation Sequencing Market Size and Trends

The next generation sequencing market is estimated to be valued at USD 16.51 Bn in 2024 and is expected to reach USD 42.61 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 14.5% from 2024 to 2031.

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The increased research and development for precision medicine, reduced sequencing costs, and advances in data integration and analysis are driving the growth of this market. The next generation sequencing market is witnessing significant technological upgrades with new product launches focusing on automation, compact size, and improved data analytics capabilities. Leading players are investing in key areas like direct-to-consumer genetic testing, non-invasive prenatal testing, oncology, and agricultural and animal research to boost market revenues. Wider clinical applications and therapeutic areas are expected to expand the potential of next generation sequencing in the coming years.

Rising demand for early detection of cancer and infectious diseases

The chances of successful treatment increase when cancer and infectious diseases are detected at the early stage. One of the major factors that drive growth of the next generation sequencing market is the rising prevalence of cancer and other infectious diseases such as tuberculosis, meningococcal disease, etc. For instance, according to the data provided by World Health Organization (WHO) in February 2022, cancer is a leading cause of death worldwide, accounting for nearly 10 million deaths in 2020.

Market Concentration and Competitive Landscape

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Demand for DNA testing is increasing due to advancements in next generation sequencing instruments and technologies, faster results, and cost effectives of the process as compared to genotyping based DNA microarray. For instance, in January 2022, a new ultra-rapid genome sequencing approach developed by Stanford Medicine scientists and their collaborators was used to diagnose rare genetic diseases in an average of eight hours. Genome sequencing allows scientists to see a patient’s complete DNA makeup, which contains information about everything from eye color to inherited diseases. Genome sequencing is vital for diagnosing patients with diseases rooted in their DNA.

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The major factors that hinder growth of the global next generation sequencing market include the storage and management issue of enormous data generated by next generation sequencing and its interpretation. In spite of tremendous advancements to broaden NGS applications from research to clinic, NGS still presents enormous challenges in terms of data storage, processing, quality control management and interpretation, which slow the translation from the bench-top to the bed-side

Market Opportunities: Rise in the research and development activities

The declining cost of sequencing per genome is improving the affordability and allowing new clinical and research applications. The developments in single-cell sequencing and spatial transcriptomics provide new opportunities in precision medicine and disease research. Additionally, the sequencing of various genomes is helping in better understanding of thousands of genetic disorders and opening avenues for new treatment development.

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The product type segment includes instruments and reagents & consumables. Reagents & Consumables segment is estimated to hold 57.5% the highest share of the market in 2024, owing to the growing demand for consumables and reagents among end-users. Extensive R&D activities in the fields of genomics and precision medicine have fueled the adoption of next-generation sequencing technologies. Since these high-throughput sequencing platforms require regular procurement of reagents and other associated consumables for their operation, this segment experiences consistent sales. Moreover, the decreasing costs of reagents and kits have made sequencing techniques more affordable for clinical research. Continuous technological advancements are also improving the efficiency and throughput of sequencing assays, leading to higher consumption of sequencing reagents, primers and enzymes among laboratories. The non-invasiveness and high sensitivity of NGS techniques further support the increased uptake of sequencing tests, thereby propelling the reagents and consumables segment.

Insights, By Sequencing Type: Expanding Applications Drive Whole Genome Sequencing

The sequencing type segment includes whole genome sequencing, whole exome sequencing, RNA sequencing, targeted re-sequencing, and others. Whole genome sequencing hold the highest share of the next generation sequencing market and is estimated to hold 33.1% of the market share in 2024. Reduced costs and enhanced speed of whole genome sequencing have enabled its use in diverse areas such as oncology, reproductive health and agricultural biotechnology. For instance, whole genome profiling is increasingly utilized for comprehensive tumor characterization and mutation detection in cancer. It also aids in newborn screening, infectious disease investigations and preimplantation genetic diagnosis. Moreover, whole genome analysis finds application in identifying genetic variations associated with drug response and trait mapping in plants and animals. Initiatives by governments and private agencies to sequence thousands of human genomes have further fostered the adoption of whole genome sequencing procedures. The proven effectiveness of WGS in precision diagnostics and personalized care makes it a preferred sequencing type.

Insights, By Application: Personalized Therapeutics Drives Demand for Personalized Medicine

The application segment includes drug discovery, personalized medicine, genetic screening, diagnostics, and others. Personalized medicine hold the highest share of the next generation sequencing market and is estimated to hold 38.5% of the market share in 2024. Advancements in genomic sciences and bioinformatics have enabled sequencing techniques to study individual patient's DNA, RNA and genomes. This revolutionized drug development processes wherein treatments can be customized based on a person's genetic profile. For instance, comprehensive genomic profiling via NGS aids in identifying therapeutic targets and biomarker-driven clinical trials. It also supports development of companion diagnostics to select appropriate patient populations for particular therapies. Thus, sequencing is widely utilized to develop effective and safer personalized treatment regimens. Furthermore, sequencing assists in disease screening, monitoring treatment response and detecting resistance at a molecular level. These merits have boosted the integration of NGS-based genomic data in clinical management across varied therapeutic areas like oncology and cardiology. The shift towards precision medicines will subsequently spur demand from the personalized medicine application segment over the coming years.

Regional Insights

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North America has established itself as the dominant region in the next generation sequencing market and is estimated to hold 43.7% of the market share in 2024. With strong presence of global industry leaders and emergence of several startups, the region enjoys high adoption rates of newer sequencing technologies. Presence of sophisticated research infrastructure, availability of funding for genomics and precision medicine initiatives have paved the way for North America's leadership.

Several pharmaceutical and biotechnology companies in the region are investing significantly in applying NGS for drug discovery and development. Leading academic institutes are also supporting research in clinical genomics through sequencing-based techniques. With the objective of faster drug approvals and lower costs, the U.S. FDA has also been encouraging use of biomarkers and companion diagnostics, driving use of NGS in clinical settings. The region also has robust bioinformatics capabilities helping accelerate genomic research. High disposable incomes allow for superior infrastructure and talent availability in the region.

While North America dominates the current market, Asia Pacific is emerging as the fastest growing market for next generation sequencing. Countries like China, Japan, India, South Korea and Australia are rapidly building their genomics capabilities. Considerable government investments into healthcare and biotech industries have created conducive environment for local and global industry players.

Market Report Scope

Next Generation Sequencing Industry News

• On January 30, 2024, QIAGEN Digital Insights (QDI), the bioinformatics division of QIAGEN, a provider of sample and assay technologies, announced that the improved QIAGEN CLC Genomics Workbench Premium with LightSpeed technology now supports next-generation sequencing (NGS) for somatic cancer secondary analysis. The software accelerator transforms raw sequencing data in FASTQ files into interpretable lists of genetic variants in VCF files at an unparalleled low cost and speed.
• On January 18, 2024, Quantum-Si Incorporated, a protein sequencing company, stated that it had signed an agreement with a new distributor to make the company's protein sequencing device, Platinum, available for the first time in Japan. TOMY Digital Biology Co., Ltd., a well-known importer and distributor, will distribute Quantum-Si's next-generation protein sequencer and related consumables across Japan.
• On January 09, 2024, Ultima Genomics, the developer of a revolutionary new ultra-high throughput sequencing architecture, and Quest Diagnostics, a leading provider of diagnostic information services, have announced a collaboration to use Ultima's next generation sequencing (NGS) technology in oncology and other clinical areas.
• In November 2023, QIAGEN and Element Biosciences, Inc., a life science company, announced a strategic partnership to provide full next-generation sequencing (NGS) workflows for the AVITI System, an innovative sequencing platform built on Element's revolutionary Avidity sequencing chemistry.

*Definition: The next generation sequencing market involves technologies and products that are used for DNA sequencing. It allows rapid sequencing of genomes and includes techniques such as shotgun sequencing, sequencing by synthesis, ion semiconductor sequencing, single-molecule real-time sequencing, nanopore sequencing, and miniature genome sequencing. Next generation sequencing enables faster and more affordable DNA analysis, helping to advance genomic research and its applications in healthcare, agriculture, and other fields.

Market Segmentation

• Product Type Insights (Revenue, USD BN, 2019 - 2031)
  • Instruments
  • Reagents & Consumables
• Sequencing Type Insights (Revenue, USD BN, 2019 - 2031)
  • Whole Genome Sequencing
  • Whole Exome Sequencing
  • RNA Sequencing
  • Targeted Re-sequencing
  • Others
• Application Insights (Revenue, USD BN, 2019 - 2031)
  • Drug Discovery
  • Personalized Medicine
  • Genetic Screening
  • Diagnostics
  • Others
• End User Insights (Revenue, USD BN, 2019 - 2031)
  • Hospitals & Clinics
  • Academic & Research Institutes
  • Biopharmaceutical Companies
  • Clinical 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
    • Pradeep Tripathi
• Key Players Insights
  • Thermo Fisher Scientific Inc.
  • Agilent Technologies Inc
  • bioMérieux SA
  • F. Hoffmann-La Roche Ltd
  • QIAGEN
  • Illumina Inc.
  • Oxford Nanopore Technologies plc.
  • BGI
  • PerkinElmer Genomics
  • Bio-Rad Laboratories Inc.
  • Pacific Biosciences
  • 10x Genomics
  • Promega Corporation
  • Macrogen Inc.
  • Eurofins Scientific
  • DNASTAR Inc.
  • CD Genomics