The global targeted DNA/RNA sequencing market size was estimated at USD 4.15 billion in 2016.Whole genome & exome sequencing (WGS/WES) offer information on entire sequence, but it is time-consuming as the data generated through this approach is complicated and research-intensive requiring higher capital as well. Taking these facts into consideration, research entities have begun investing in targeted approaches as this technology is a highly flexible and economical alternative to genome/exome-based methods.
Numerous studies are being carried out to demonstrate the remarkable reduction in cost per sample by sequencing the relevant regions of the genome, which are informative. As a result, targeted methods have begun to supplant other WGS/WES methods in biomedical research. Furthermore, technological advancements are being made in enrichment protocols to standardize and simplify the seq-processes, which drives the market. These advancements have enabled faster analysis as they reduce presequencing time.
Germany targeted DNA/RNA sequencing market by workflow, 2014 - 2025 (USD Million)
The anticipated progress of this market can also be attributed to the introduction of digital Next-Generation Sequencing (NGS) technology. This technology allows better target quantification by enabling number counting of only unique molecular identifiers, that are attached to the DNA molecules prior to amplification, in the reads, instead of counting total reads. Moreover, gene testing has increased the pool of data, which has enabled researchers, physicians, and patients to further understand genetic susceptibility to certain diseases.
Utilization of this data pool in clinical practices is expected to positively influence the adoption rate in this market. Although a surge in the adoption of this technology has been observed, it is still not widely used in certain developing and emerging economies. Lack of trained personnel and high installation / maintenance costs are expected to limit growth of this market during the forecast period.
NGS-based methods dominated the market in 2016 and are anticipated to maintain their dominance during the forecast period. Its large share can be attributed to the presence of a substantial number of high-throughput sequencers for studying mutations in a specific region of genome. Targeted NGS simultaneously screens several hundred to thousands of genes. Furthermore, plummeting cost of seq-process has made NGS technology more accessible to scientists.
Significant success of NGS technology is evident by the continuous increase in number of genome projects that are based on next-generation targeted approaches. In addition, players continue to make investments to develop next-generation targeted methods as they understand their significance. Enrichment seq., exome seq., and amplicon seq. are recognized as major NGS methods. Exome seq. is the most widely used method and its adoption is increasing at a faster rate than any other method.
Sanger sequencing is estimated to have less penetration in 2016 due to the advent of improved second-generation sequencers. Adoption rate of this technology is observed to be relatively low due to its accompanying pitfalls, such as low sensitivity & scalability. However, Sanger method is simpler than the second-generation sequencing methods, where workflow is concerned. Therefore, this segment is expected to witness considerable growth in the coming years.
The entire sequencing process is broken down into pre-sequencing, sequencing, and data analysis. The sequencing process held a major share in 2016. Major factor responsible for this large share is the gradual evolution of modern sequencers for efficient sequencing of large number of samples, which is certainly due to increasing complexity of genome explorations. Moreover, firms have begun to develop third-generation sequencers, which in turn is expected to aid in revenue generation for this segment.
Since expansion of modern sequencers has a direct impact on the expansion of data output from each experiment, growth of both segments-sequencing and data analysis-complements each other. Ongoing developments in the fields of molecular biology & gene engineering and parallelization of seq-reaction has resulted in a massive increase in the number of produced sequence reads per run. This, in turn, has increased the need for development of data analysis solutions for handling and interpreting surplus amount of data. These factors are expected to drive the data analysis segment.
Innovation in sample preparation protocols to optimize the seq-process is expected to boost the progress of presequencing process. Furthermore, with the introduction of several novel technologies in genomic studies, a wide range of samples is incorporated into research, which has led to the development of sample preparation solutions. Presence of high-quality control measures and improved extraction & purification techniques have enabled sequencing of a wide variety of samples, which has enhanced progress of this segment.
Targeted approach has proven to be an efficient method for accelerating translational biomedical research. This factor is responsible for the large share held by this segment. Targeted methods have enabled the study of complex interplay between genes involved in development of diseases, without the risk of wastage and expending high cost. Hence, this technology is recognized as a cost-effective strategy for detection of multiple genetic alterations from minimal DNA sample.
Drug discovery is anticipated to significantly benefit in the coming years from advent of this technology. Factors that are responsible for spurring the adoption of targeted approach in this segment are creation of diverse datasets for drug discovery, growing emphasis on discovery of potential drug targets, and translation of genomic knowledge into rational drug development process.
This technology allows mapping of regions that contain informative Single Nucleotide Polymorphism (SNPs) in plants and animals. These SNPs are associated with phenotypic differences, which has thereby revolutionized the plant and animal breeding scenario. Moreover, several studies are being conducted to illustrate targeted approach in plant-based applications for enhancing the yield and reproducibility, consequently driving the growth of plant & animal science.
On the basis of input type, this market is bifurcated into DNA and RNA-seq. Continuous cost reduction per raw mega-base has greatly impacted the adoption of this technology, and, in turn, resulted in the large share of this segment. Moreover, presence of wide range of products to facilitate DNA-seq is expected to help maintain the dominance of this segment.
RNA-seq is expected to witness significant growth in the coming years owing to the growing use of amplicon RNA-seq technology for various disease detection procedures. Growing need for transcriptome study to evaluate disease states and cellular responses to therapeutics is expected to impel the market growth in the near future.
Various end-use segments in this market are academic research, hospitals & clinics, pharma & biotech entities, and other users. These methods are highly utilized in universities and academic entities for accelerating ongoing research projects. This can be attributed to the large share of academic research segment. Moreover, scholarships offered for NGS-based PhD projects are anticipated to positively influence the progress of this segment.
Hospitals & clinics are expected to emerge as fastest growing segment as the technology generates immense opportunities for healthcare entities to improve patient outcomes. Utilizing sequencing methods, such as targeted methods, in healthcare is most likely to help doctors in making effective treatment decisions by analyzing bacterial and viral DNA from patient specimens.
Global targeted DNA/RNA sequencing market by region, 2016 (%)
Presence of large number of genome centers with installed sequencers can be attributed to the large share of the North American region. Presence of effective regulatory bodies to review the sequencing-based genetic tests and new approval of related technologies have also added to the regional growth. Furthermore, grants from NIH to support targeted sequencing study in the country has expanded the market in this region.
Asian countries such as Japan and China are expected to emerge as lucrative revenue source in the coming years. This is mainly due to the low prices of NGS-based tests in China compared to the tests in the U.S. Moreover, clinical laboratories in this region are continuously making efforts to meet the standard guidelines established by regulatory agencies for accreditation of NGS platforms.
Illumina, Inc.; F. Hoffmann-La Roche Ltd; Agilent Technologies; GATC Biotech Ag; Oxford Nanopore Technologies; Thermo Fisher Scientific, Inc.; DNASTAR Inc.; QIAGEN; BGI; Perkin Elmer, Inc.; Pacific Biosciences of California, Inc.; Bio-Rad Laboratories, Inc.; Integrated DNA Technologies, Inc.; RainDance Technologies, Inc.; PierianDx; Genomatix GmbH; and Macrogen, Inc. are some key participants operating in the space.
These participants are engaged in introducing novel products to keep pace with the growing demand for targeted approach in life science research. Recently, in March 2017, Agilent Technologies released new target enrichment solution for next-generation DNA-seq in order to enhance exome-seq for clinical research.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, Germany, UK, China, Japan, Brazil, South Africa
Revenue forecast, company share, competitive landscape, growth factors and trends
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Segments covered in the report
This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global targeted DNA/RNA sequencing market on the basis of technology, workflow, application, type, end-use, and region:
Technology Outlook (Revenue, USD Million, 2014 - 2025)
Cancer Gene Sequencing
Inherited Disease Screening
16S ribosomal RNA (rRNA) sequencing
Workflow Outlook (Revenue, USD Million, 2014 - 2025)
Application Outlook (Revenue, USD Million, 2014 - 2025)
Human Biomedical Research
Plant & Animal Sciences
Type Outlook (Revenue, USD Million, 2014 - 2025)
DNA-based Targeted Sequencing
RNA-based Targeted Sequencing
End-use Outlook (Revenue, USD Million, 2014 - 2025)
Hospitals & Clinics
Pharma & Biotech Entities
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East & Africa
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