"Rising adoption of NGS platforms to drive the demand for data analysis services during the forecast period"
Global Next Generation Sequencing (NGS) data analysis market was valued at USD 459.1 million in 2015. The continual advancements in cloud computing and data integration solutions effectively address the data-handling bottleneck, which involves the analysis of a deluge of high-throughput sequence data. These technological advances in the bioinformatics field are expected to provide promising avenues to this vertical and hence drive the NGS data analysis market in the coming years.
Advent of NGS methods coupled with their rising adoption rate in genomics research, clinical diagnosis, and in personalized treatment of varied diseases are boosting the demand for accurate & rapid sequence interpretation tools and algorithms that expedite data analysis. In addition, the scope of sequencing projects is anticipated to grow owing to the high genetic data output and the concurrent fall in the prices of sequencing thereby leading to a further rise in the demand for an elaborate bioinformatics pipeline with sophisticated and efficient solutions.
In order to narrow the gap between sequence generation and processing, researchers are embracing the trend of replacing local computing software with cloud-based computing databases. The presence of challenges with respect to the biological interpretation of the output genomic data is anticipated to propel research efforts to develop precise analytical tools in this sector, thereby leading to revenue generation over the forecast period.
Research initiatives carried out to develop algorithms that can provide sub-linear alignment speed to facilitate faster interrogation of genetic information is expected to fuel the growth of this vertical through to 2024. This is largely due to the potentially high-value avenues that exist in this sector. The most significant bottleneck in the NGS workflow is the time-consuming nature of data analysis, which presents umpteen opportunities for commercial service providers to develop feasible solutions with faster turnaround times. These opportunities are expected to drive the growth of this segment through to 2024.
However, the infrastructure cost associated with the development of algorithms and software is expected to restrain the emergence of this market to a certain extent.
"Incorporation of cloud-based technology platforms to aid data accessibility is anticipated to drive the Next Generation Sequencing (NGS) data analysis software storage and management market"
Platform Operating System/User Interface (OS/UI) accounted for are venue share of the NGS analytical products segment mainly due to the high cost involved in the development of user interfaces. Moreover, the high preference of the researchers for the graphical user interface, equipped with cloud computing-based software, is anticipated to drive revenue generation in this vertical.
Analytical software section is segmented into alignment tools and Quality Control (QC)/pre-processing tools depending upon the software and tools employed in the different steps of genomic sequence interpretation. Alignment tools and software category are estimated to capture a comparatively sizable share of the revenue, attributed to the presence of different products in this segment.
"Tertiary analysis held the largest revenue share in the next generation sequencing data analysis market"
Of the different steps involved in genetic sequence interpretation, tertiary data analysis held the largest share, which is attributable to the cost of the software, and tools used in this step. It is further categorized into application-specific analysis and variant annotation.
Different licensed and paid tools available to perform variant annotation are estimated to contribute significantly in increasing the revenue share of tertiary data analysis. Moreover, the demand for application-specific services is anticipated to drive the sector growth.
"In-house services dominated the NGS data analysis market with respect to service modes"
In-house sequencing data interpretation is estimated to capture the biggest share owing to the presence of companies and institutes that outsource their services to in-house bioinformatics departments and third party subsidiary companies, present within the organization itself.
Moreover, the budget for in-house sequence analysis is double than that of the budget for outsourcing, which is also responsible for the significant revenue share for in-house sequence analysis services.
"Clinical research anticipated to witness the fastest growth"
End-users for this technology include academic research, clinical research, hospitals & clinics, and pharma & biotech entities. The academic research segment accounted for the largest share of the revenue owing to the high usage of high throughput sequencing in academic and university-based research projects.
Research funding available for doctoral academic projects employing this technology are anticipated to drive the demand for sequence analysis services. Provision of onsite bioinformatics courses, which conduct workshops on the practical implementation of sequencing and output analysis, are also expected to boost the revenue growth through the academic research segment in the near future.
Use of data analysis solutions to analyze sequence-based information for clinical diagnostic purposes and to conduct disease-related research is anticipated to drive this segment’s growth through to 2024.
"Asia Pacific to witness the fastest growth over the forecast period"
North America dominated the next generation sequencing data analysis market with a share of over 48% as a result of the presence of several organizations operating in this region. Moreover, the significant number of NGS research projects carried out in Canadian universities is resulting in the high demand, affecting the revenue growth significantly.
However, Asia Pacific is expected to witness lucrative growth through to 2024, which is attributable to the rise in number of research grants for sequencing projects in the developing economies of this region. Furthermore, positive R&D outcomes encouraging the incorporation of high-throughput sequencing in performing clinical diagnosis is expected to impact this sector substantially.
"Strong competitive rivalry observed amongst dominant players, along with collaborations with IT companies"
Key participants of the next generation sequencing data analysis market include Illumina Inc., Congenica, Ingenuity, Omicia, Inc. Station X, Inc., WuXiNextCODE, DNAnexus, SevenBridges Genomics, Bluebee, Genalice, and Edico Genome. These players undertake strategic partnerships and collaborations to enhance their existent product portfolio and maintain a strong presence in the sector.
For instance, in April 2016, Qiagen collaborated with hardware solutions providers, Intel Corporation and BioTeam, Inc. to develop feasible infrastructure solutions that enable population-scale genomic analysis for researchers. Such collaborations further augment the market growth.
The study is a derivative of the NGS market as sequence interpretation is the crucial step of sequencing. The rising adoption of this technology due to the low cost of sequencers coupled with the development of novel platforms that enable better, faster, and efficient clinical diagnosis and monitoring of chronic & acute diseases, the demand for interpretation services and products is expected to increase to a significant extent. Participants are involved in the outsourcing of genetic information analysis services amongst the subsidiary institutes and organizations, which is expected to drive revenue generation in this sector. A significant number of product commercialization activities and new product development cycles in the field of cloud-based IT solutions are expected to take place that will reinforce growth in the NGS data analysis sector.
This report provides a detailed overview of the technological advances in genome and proteome read, contig, and scaffold analysis. It aids in identifying key companies and researchers, and also provides sector revenue estimates and forecasts related to current and expected technology commercialization trends. The report is useful for the entities operating in biotechnology and bioinformatics industries, informatics solution providers, IT companies, hospitals, and health care research organizations that are practicing the NGS-based research.
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