Next Generation Sequencing Market Size, Share, Market Research and Industry Forecast Report, 2027 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Next Generation Sequencing Market


The global next generation sequencing market size was estimated at USD 9.78 billion in 2019 and is projected to grow at a CAGR 11.7% during the forecast period. With the reducing cost of sequencing, Next Generation Sequencing (NGS) is anticipated to witness diversification into a substantial number of clinical areas. Currently, next generation sequencing is recognized as the primary technology responsible for the burgeoning field of oncology, Mendelian diseases, and complex disease testing. Next generation sequencing assays have become an integral process in several areas of clinical diagnostics, which in turn is driving the market for next generation sequencing.

The all-in-one approach offered by next generation sequencing assays minimizes the time required to identify the cause of a condition, compared to sequential molecular tests, contributing to the improved health outcome. In the current scenario, liquid biopsies for early detection and monitoring of cancer, and diversification of the reproductive health market exhibits substantial promise for the technology in the near future.

In recent times, the miniaturization of third-generation instruments with the introduction of palm-sized sequencers is one of the key development that has driven the market. The continuous evolution of next generation sequencing technologies with respect to efficiency and cost is anticipated to boost the adoption in the non-conventional applications such as agrigenomics and infectious disease testing.

The expanding use of this technology has led to the entry of several market innovators. For instance, Genapsys introduced Genius an I-pad-sized sequencer platform. This product is designed to sequence multiple molecules in a single run. Similarly, Stratos Genomics is developing fourth-generation sequencer based on Sequencing by Expansion (SBX). These ongoing advancements are anticipated to aid in revenue generation for this market.
Furthermore, IQVIA is investing ~$500 million in the NextGen platform (2016-2020), focusing on big data infrastructure, AI, machine learning, predictive algorithms, automation of global analytic libraries, data scientists and strategic partnerships and process reengineering. The growing investment in the space is anticipated to accelerate the organic revenue growth of the operating companies.

Application Insights of Next Generation Sequencing Market

The advent of liquid biopsies in cancer diagnostics is one of the most notable developments of next generation sequencing. NGS-based liquid biopsies utilize cell-free, circulating tumor DNA (ctDNA) as a noninvasive cancer biomarker for real-time cancer detection and monitoring. In addition, next generation sequencing offers high specificity and sensitivity during the detection of low-level ctDNA in the bloodstream. The targeted cancer panel sequencing or whole exome sequencing can be conducted for patient-derived cancer cells derived both from solid tumor samples and liquid biopsies.

Next generation sequencing delivers a detailed understanding of a tumors genetic make-up which further accelerates the therapy prescription protocols. Moreover, the launch of preventive cancer screening programs offers considerable growth potential for next generation sequencing assays, as these programs benefit a significant proportion of the population. The above-articulated factors have led to the highest revenue share of oncology. Consumer genomics is anticipated to grow at a significant growth rate throughout the forecast period.
Recent FDA approvals of DNA home tests and emergence of DTC genetic testing companies in developing countries such as India is anticipated to drive the revenue in this segment. Mapmygenome, DNA Labs India, Positive Biosciences, Xcode, and EasyDNA are some DTC companies operating in India. These companies offer products online through their websites or e-commerce companies such as Amazon.

Technology Insights of Next Generation Sequencing Market

Targeted sequencing offers economical alternatives for Whole Genome Sequencing (WGS) as it allows the in-depth investigation of the regions of interest. Reduced target size increases the depth coverage which enhances sensitivity and boosts the chance of finding biologically relevant variants. These advantages have bolstered the adoption rate under this segment.

Moreover, targeted approaches have significantly impacted disease diagnosis by allowing effective detection of causal mutations for various genetic disorders and cancer forms. This is anticipated to drive its application in clinical settings in the coming years. However, WGS facilitates the identification of all possible variants including indels, SNPs, and CNVs, without any prior information and thus accelerates discovery focused research activities.
In July 2019, Veritas Genetics reduced the WGS price from USD 999 to USD 599 and it is speculated that it will available in USD 100“USD 200 range in the coming years. Reducing the test pricing by 40% from 2016, the company aimed at gaining competitive advantage in the growing personal genetics industry which is currently dominated by companies like 23andMe and AncestryDNA. These ongoing marketing activities by emerging players are anticipated to drive the revenue for the WGS segment in the next generation sequencing market during the forecast period.
Workflow Insights

Library preparation, assay designing, sequencing, and data analysis are the key phases of the entire next generation sequencing procedure. The availability of various techniques such as Qubit technology from Thermo Fisher Scientific that help measure the DNA in a sample before next generation sequencing improves the sample preparation method, thereby aiding in revenue generation.

Out of all, sequencing is recognized as the critical phase as it demands skilled expertise to handle next generation sequencing technology. Moreover, sequencing is relatively capital intensive. These factors have contributed to the largest share of this segment. On the other hand, there is constant growth in the development of data generated through next generation sequencing technology.

This emphasizes the need for development in data analysis algorithms and software. Owing to this factor, the data analysis segment is anticipated to be the source of lucrative growth in the coming years. The key players are collaborating and acquiring technologies as well as other companies to accelerate their data analysis workflows. Illumina has accelerated its data analysis workflows through the acquisition of Edico Genome and its DRAGEN Bio-IT Platform (DRAGEN).

End-use Insights

Academic research entities generated the highest revenue in 2019 owing to the high use of next generation sequencing platforms within universities and institutes to drive basic research programs. University of Pittsburgh, University of Minnesota, University of Chicago, and Johns Hopkins University are some key universities that employ next generation sequencing technology or offer associated services to the researchers.

Entities within academic settings have collaborated with key market players such as Illumina and Pacific Bioscience to offer next generation sequencing services for researchers. For instance, the University of Chicago Genomics Facility offers Illumina NovaSEQ6000, Illumina HiSeq4000, Illumina NextSEQ500, and PacBio Sequel-based next generation sequencing services. However, the widespread implementation of this technology coupled with improving capabilities has supported their transition from investigational research to clinical diagnostics.

Clinical laboratories have begun adopting next generation sequencing as a gold standard for the testing of inherited conditions owing to its analytic accuracy, high throughput, and cost-effectiveness. NGS-based clinical genetic tests have been implemented for CNV analysis and variant detection on a broad scale at clinical laboratories. This is expected to positively influence the future revenue growth of the NGS market for hospitals and clinics.

Regional Insights of Next Generation Sequencing Market

North America accounted for the largest revenue share in 2019. Presence of major clinical laboratories that are using next generation sequencing technology to perform genetic tests has driven the revenue share. For instance, Quest Diagnostics performs genetic sequencing for the consumer samples provided by Ancestry. The regulatory agencies continue to make amendments to drive development and innovations in genetic disease diagnosis, consequently boosting the uptake of next generation sequencing technology.

On the other hand, the Asia Pacific market is projected to grow at a lucrative rate throughout the forecast period. The anticipated growth can be attributed to the Asian companies as well as government bodies that are striving to boost their genomics industry and revenue generation in this space.

Along with the business expansion in the domestic market, Asian companies are undertaking various marketing strategies to expand their marketing operations in the other regional market. BGI acquired Complete Genomics, an American company that offers DNA next generation sequencing platform for human genome analysis. Similarly, China collaborated with U.K. in December 2017 to advance the science and innovation space of the country.

Market Share Insights of Next Generation Sequencing Market

Currently, the market is dominated by Illumina at a substantial market share. Other key participants that have marked their presence in the space are QIAGEN; Thermo Fisher Scientific Inc.; F Hoffman-La Roche Ltd.; Oxford Nanopore Technologies; Genomatix GmbH; PierianDx; DNASTAR, Inc.; Eurofins GATC Biotech GmbH; Perkin Elmer, Inc.; BGI; and Bio-Rad Laboratories, Inc.

These companies witnessed Y-O-Y growth in revenue owing to increased clinical activity and new product launches and services. With the growing clinical application of next generation sequencing, the companies are collaborating with clinical research entities to decipher the pathogenesis of various diseases using next generation sequencing platforms.

For instance, in March 2019, Illumina collaborated with the Lundbeck Foundation GeoGenetics Centre at the University of Copenhagen, Denmark to establish the link between infectious pathogens and neurological & mental disorders. Moreover, the companies are undertaking business strategies to drive down the next generation sequencing cost to nearly USD 100.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Next Generation Sequencing Market Research Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, this market research report has segmented the global next generation sequencing market report based on application, technology, workflow, end use, and region:

Application Outlook (Revenue, USD Million, 2019 - 2030)

  
Oncology
  
Diagnostics and Screening
  
Screening
  
Sporadic Cancer
  
Inherited Cancer
  
Companion Diagnostics
  
Other Diagnostics
  
Research Studies
  
Clinical Investigation
  
Infectious Diseases
  
Idiopathic Diseases
  
Inherited Diseases

Non-Communicable/Other Diseases

  
Reproductive Health
  
NIPT
  
Aneuploidy
  
Microdeletions
  
PGT
  
Newborn Genetic Screening
  
Single Gene Analysis
  
HLA Typing/Immune System Monitoring

Metagenomics, Epidemiology & Drug Development

  
Agrigenomics & Forensics
  
Consumer Genomics

Technology Outlook (Revenue, USD Million, 2019 - 2030)

  
Whole Genome Sequencing
  
Whole Exome Sequencing
  
Targeted Sequencing & Resequencing
  
DNA-based
  
RNA-based

Workflow Outlook (Revenue, USD Million, 2019 - 2030)

  
Pre-Sequencing
  
NGS Library Preparation Kits
  
Semi-automated Library Preparation
  
Automated Library Preparation
  
Clonal Amplification
  
Sequencing
  
NGS Data Analysis
  
NGS Primary Data Analysis
  
NGS Secondary Data Analysis
  
NGS Tertiary Data Analysis

End-use Outlook (Revenue, USD Million, 2019 - 2030)

Academic Research

Clinical Research

Hospitals & Clinics

Pharma & Biotech Entities

Other Users