DNA Sequencing Market Size, Share & Trends Analysis Report By Product, By Technology, By Workflow, By Application (Oncology, HLA Typing, Clinical Investigation), By End-use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global DNA sequencing market size was valued at USD 4.7 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 11.4% from 2020 to 2027. Rapid advancements in sequencing technology and bioinformatics have enabled the identification of DNA variations. These advancements also determine variants associated with increased risk for disease. With a widespread application of Next-generation Sequencing (NGS) and Whole-genome Sequencing (WGS), a large range of genes can be tested in a single diagnostic platform at the same time, which expands the utility of DNA sequencing in clinical diagnosis applications. Personalized targeted sequencing of tumor accelerates the identification of mutations and further identifies cancer target or pathway for which pharmacological treatments are developed. The emergence of global-scale projects incorporating NGS protocols generates new foundational knowledge about oncology precision medicine.

Transform Oncology Care, a precision medicine program launched by CVS Health in December 2019, leverages genomics technology to plan personalized cancer treatment plans. An exponential rise in the COVID-19 cases has driven the demand for these technologies in large-scale, rapid genomic sequencing projects to monitor the viral spread and guide treatments in the future. The National Health Service of U.K., Genomics England, and Genetics of Mortality in Critical Care partnered with Illumina to generate whole-genome sequences of 35,000 COVID-19 affected U.K. citizens in May 2020. This propels the demand for DNA sequencing in COVID-19 diagnosis.

DNA sequencing has brought a paradigm shift in the proteomic and genomic research as it is highly accurate and high-throughput technology that is used for a variety of applications, such as de novo assembly, WGS, and DNA resequencing. Thereby, this technology is readily adopted in several academic research institutes for research studies. Illumina installed NovaSeq 6000 Sequencing System at the Whitehead Institute for Biomedical Research, Massachusetts, the U.S., in June 2020.

Efforts undertaken by the Centers for Medicare and Medicaid Services (CMS), Association for Molecular Pathology, as well as commercial payers, such as Blue Cross Blue Shield and Aetna, to boost the clinical usage of sequencing technologies, drives the market for DNA sequencing. For instance, in January 2020, CMS expanded the coverage of NGS-based diagnostic tests for ovarian and breast cancer patients, therefore providing more opportunities for patients to personalize their cancer care.

Product Insights

Consumables dominated the DNA sequencing market with a revenue share of 43.3% in 2019. The wide availability of reagents and kits to cater to all steps of library construction, such as DNA fragmentation, enrichment, adapter ligation, amplification, and quality control contributes to a larger share of the segment. Most of these tools feature streamlined and simplified workflows, ready-to-use components, and compatibility with low-input and formalin-fixed specimens.

The constant introduction of reagents and kits to make WGS more accessible and affordable also drives the segment in the market for DNA sequencing. For instance, in August 2020, Illumina Inc. launched NovaSeq 6000 v1.5 Reagent Kit, which made the WGS technique more cost-effective and accessible for all the laboratories and reduced the cost to sequence a human genome for USD 600. These new kits can be used across WGS, single-cell genomics, and liquid biopsy techniques.

Sequencing services unravel several sequencing challenges, such as uneven base distributions and multiple hairpin loops. The proprietary reagents and streamlined technology platforms of the service providers ensure highly accurate performance, and their highly experienced team assists with customer’s special requirements. They offer rapid turnaround time, outstanding customer service, and technical support, which is expected to drive the services segment at the fastest CAGR in the market for DNA sequencing. 

Technology Insights

Next-generation sequencing dominated the market for DNA sequencing and accounted for the largest revenue share of 58.6% in 2019. The radical advances in these technologies along with the declining cost of sequencing have made genome sequencing faster, more affordable, and accurate. In addition, NGS technology is gaining popularity as a routine clinical diagnostic test, particularly with the pandemic of COVID-19 infection, which positively impacts the segment’s revenue share.

Recently, in June 2020, Illumina received Emergency Use Authorization (EUA) from the FDA for its COVIDSeq Test that is used to sequence the full genome of the novel SARS-CoV-2 virus. This test along with high-throughput NovaSeq 6000 hardware of Illumina is capable of processing more than 3,000 samples and offers results within 24 hours. Similarly, in April 2020, Helix OpCo LLC received EUA for its Helix COVID-19 NGS Test for the detection of SARS-CoV-2 infection.

The third-generation sequencing methods, such as Nanopore and Single-Molecule Real-Time sequencing, are projected to witness a considerable CAGR during the forecast period in the market for DNA sequencing. This technology overcomes the issues of second-generation techniques as it includes easy sample preparation without the need for PCR amplification with faster speed. Moreover, it generates long reads exceeding numerous kilobases for the detection of repetitive sites of complex genomes.

Workflow Insights

Sequencing is the major step of the entire workflow and held the maximum revenue share of 52.8% in 2019 in the market for DNA sequencing. This step enables the sequence profiling of the genome as well as DNA-protein interactions. It is an integral part of the entire DNA sequencing workflow in research and discovery studies, thereby accounting for a larger share. The ability of sequencers to generate a large amount of data in a relatively short period accelerates understanding of human health and disease treatments.

Besides, the advent of Paired-End (PE) sequencing results in the advancement in this workflow, further contributing to segment growth in the market for DNA sequencing. PE sequencing allows the DNA fragments to sequence from both ends, which produces twice the number of reads in a similar time. Sequences aligned as read-pairs allow accurate read alignment and detection of indels that are not possible with single-read data.

Data analysis workflow is projected to witness a significant growth rate during the analysis period. In recent years, commercial cloud computing solutions have matured rapidly. This creates new data centers, add services, reduce the prices, and generates notable profits to run existing genomics software. These platforms have resulted in technological advancements in data integration tools, which help the analysis and processing of massive, sequenced data.

Application Insights

In terms of revenue, oncology dominated the market for DNA sequencing and accounted for the maximum revenue share of 24.4% in 2019. The technology holds great potential in clinical research and development of cancer diagnostics and therapeutics. Recently, NGS technology has demonstrated the capacity as a high-throughput and an affordable approach in the identification and characterization of clinically actionable genetic variants across numerous genes at an exceptional speed in a single test.

Furthermore, the value of these technologies in companion diagnostics and precision medicine is widely recognized by clinicians and companies. In regard to this, in August 2020, the FDA approved the first liquid biopsy companion diagnostic that leverages NGS technology to guide cancer treatment. The Guardant360 CDx assay promotes less invasive testing and the simultaneous mapping of several biomarkers of genomic alterations in the tumor.

Consumer genomics is anticipated to witness the fastest CAGR during the forecast period in the market for DNA sequencing. This is attributed to the rapid proliferation in paternity testing, genealogy, ancestry, and personal health awareness. Biotechnology companies, such as AncestryDNA, Helix Opto LLC, and 23andMe, are involved in the provision of the “Personal Genome Service” along with the emergence of other small-mid-sized companies operating in the consumer genomics sector.

End-use Insights

The academic research segment dominated the market for DNA sequencing with a revenue share of 55.4% in 2019 owing to the wide acceptability of Sanger technology and NGS in academic and institutional research projects. Besides, a rise in funding and investment programs augment the demand for DNA sequencing products in these entities, resulting in a larger revenue share.  

For instance, in January 2020, the Intelligence Advanced Research Projects Activity provided USD 23.0 million to the Broad Institute and Harvard University, and DNA Script. The entities are working together to explore the possibility of combining the enzymatic DNA synthesis technology and NGS into a single instrument for more than four years. This consortium further plans to partner with Illumina to utilize its sequencing-by-synthesis technology.

An increase in the incorporation of NGS products and services in several clinical laboratories due to several strategic alliances among the clinical laboratories and companies is projected to result in significant growth of the clinical research segment. As of July 2020, a high throughput NGS clinical laboratory, Otogenetics Corporation, signed an agreement for the supply of Swift 2S Turbo DNA Library Kits from Swift Biosciences, Inc. to ramp up its NGS-base clinical services.

Regional Insights

North America dominated the market for DNA sequencing and accounted for the largest revenue share of 44.3% in 2019. Continuous technological developments by key players, high investment in R&D, and availability of technologically advanced healthcare infrastructure have resulted in North America’s leading share in the market for DNA sequencing. The presence of several government initiatives in the U.S. and Canada supports research in drug development and treatment of cancer.

For instance, the Personalized Onco-Genomics program of the BC Cancer Foundation, a part of the Provincial Health Services Authority in British Columbia, Canada, utilizes transcriptome and whole-genome analysis to determine cancer genes and identifies corresponding drugs. These drugs can inhibit the relevant pathways in cancer-affected patients. Such public programs are expected to boost the application of these technologies in the region.

In Asia Pacific, the market for DNA sequencing is projected to witness a lucrative growth rate throughout the forecast period. Strategic initiatives undertaken by international firms to expand their presence due to the high customer base is expected to create numerous opportunities for regional growth. For instance, in February 2020, GenapSys, a California-based firm, raised USD 75 million to finance the global expansion of its tabletop DNA sequencer to support the control of coronavirus in the region.

Key Companies & Market Share Insights

The global market for DNA sequencing witnesses high competition with Illumina, Inc.; Thermo Fisher Scientific; Agilent Technologies; QIAGEN; and Perkin Elmer as dominant players in 2019. These companies are making efforts to address the rising consumer demand as well as making significant investments in production, distribution, and total quality management for the expansion of their portfolio. For instance, in June 2019, PerkinElmer, Inc. along with FDNA, an artificial intelligence company, introduced Face2Gene LABS to provide genomic services, in combination with Next-Generation Phenotyping (NGP) technologies for more accurate and efficient diagnoses. This initiative represented Perkin Elmer’s commitment to the diagnosis of patients with genetic and rare disorders by offering high-quality genomic testing options and efficiency. Some of the prominent players in the DNA sequencing market include:

• Agilent Technologies, Inc.

• Thermo Fisher Scientific, Inc.

• Illumina, Inc.

• QIAGEN

• F. Hoffmann-La Roche Ltd.

• Oxford Nanopore Technologies Ltd.

• Macrogen, Inc.

• Perkin Elmer, Inc.

• Pacific Biosciences of California, Inc.

• BGI

• Bio-Rad Laboratories, Inc.

• Myriad Genetics

• PierianDx

• Intrexon Bioinformatics Germany GmbH

• Eurofins Scientific

DNA Sequencing Market Report Scope

Segments Covered in the 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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global DNA sequencing market report on the basis of product and services, technology, workflow, application, end-use, and region:

• Product & Services Outlook (Revenue, USD Million, 2016 - 2027)

  • Consumables

  • Instruments

  • Services

• Technology Outlook (Revenue, USD Million, 2016 - 2027)

  • Sanger Sequencing

  • Next-Generation Sequencing

    • Whole Genome Sequencing (WGS)

    • Whole Exome Sequencing (WES)

    • Targeted Sequencing & Resequencing

  • Third Generation DNA Sequencing   

    • Single-Molecule Real-Time Sequencing (SMRT)

    • Nanopore Sequencing

• Workflow Outlook (Revenue, USD Million, 2016 - 2027)

  • Pre-sequencing

  • Sequencing

  • Data Analysis

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Oncology

  • Reproductive Health

  • Clinical Investigation

  • Agrigenomics & Forensics

  • HLA Typing/Immune System Monitoring

  • Metagenomics, Epidemiology & Drug Development

  • Consumer Genomics

  • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Academic Research

  • Clinical Research

  • Hospitals & Clinics

  • Pharmaceutical & Biotechnology Companies

  • Other Users

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)

    • South Africa

    • Saudi Arabia