The global next generation sequencing market size was valued at USD 3.99 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 14.4% during the forecast period. Genome sequencing has been used to understand the spread of Covid-19 and has the potential to understand the impact of interventions and help guide treatments in the future. Covid-19 Genomics U.K. Consortium (COG-U.K.) was formed in March 2020 to analyze the coronavirus genome using Whole-Genome Sequencing (WGS). The consortium includes Wellcome Sanger Institute, the NHS, Public Health Agencies, and other academic institutions. These groups have collaborated to map the evolution and spread of the virus.
The consortium is also focused on deciphering the transmission chain of the virus so that the spread can be stopped. Researchers at the University of Liverpool have also carried out sequencing analysis to analyze the unique genetic code from samples collected from different individuals.
Companies, such as ThermoFisher and Illumina, have also geared up to fight this pandemic with the help of sequencing. Illumina has already provided support and technology to conduct surveillance and track transmission. The company also aims to develop vaccines and therapies to ensure long-term global security and safety.
The global market is highly competitive. Major industry participants are collaborating with other companies to increase the use of their platforms for research as well as diagnostics use. For instance, in January 2021, Illumina announced multiple oncology partnerships with Merck, Myriad Genetics, Kura Oncology, and Bristol Myers Squibb to expand the utilization and reach of its TruSight Oncology pan-cancer assay
Oncology accounted for the largest revenue of over 28% in 2020. Next generation sequencing (NGS) coupled with bioinformatics tools holds potential in revolutionizing oncology research, diagnosis, and treatment. Advancements in NGS technology have led to improvements in cancer research indicating the dawn of the “molecular age” of cancer.
Leading companies, such as Illumina, are constantly working toward the development of NGS-based In Vitro Diagnostic (IVD) solutions for cancer diagnostics. For instance, in January 2021, Illumina collaborated with Myriad Genetics to develop a kit-based version of the latter’s myChoice companion diagnostic (CDx) test. This combines NGS technology with companion diagnostics to enhance the genomic profiles of tumor samples.
Several other market players also offer NGS solutions to support cancer research. For example, in January 2021, Merus N.V.; a clinical-stage immuno-oncology company; collaborated with National Cancer Center, Japan, and Erasmus University Medical Center, the Netherlands to evaluate its HER2/3-targeting bispecific antibody in solid tumors. Under this, Merus plans to support access to NGS testing for non-small cell lung, and pancreatic cancer.
Targeted sequencing & resequencing dominated the NGS market in 2020 with a revenue share of over 73%. The technology offers economical alternatives for WGS and facilitates the in-depth investigation of genomic regions. RNA-based targeted sequencing is anticipated to witness lucrative growth in the coming years as a result of the rising demand for differential expression analysis.
Moreover, wide use of the Amplicon RNA-Seq technology for the targeted RNA sequencing for the diagnosis of schizophrenia and other disorders supports the growth. Availability of expression kits for apoptosis, cardiotoxicity, cell cycle, p450 & p53 pathway, cardiotoxicity, and other customized panels is anticipated to fuel segment growth in the coming years.
The WGS technology is anticipated to grow at a significant rate from 2021 to 2028. A rise in the use of WGS to combat Covid-19 is attributed to segment growth. Moreover, companies, such as Illumina, offer microbial WGS in the market as the first NGS method that can be used for infectious disease surveillance. Such technology can produce high data quality and rapid results. Furthermore, it can be used to identify, track, and respond to disease outbreaks in a region.
The sequencing segment accounted for the dominant revenue share of more than 54% in 2020 as sequencing is a critical step of the workflow. In addition, sequencing is a capital-intensive procedure and thus accounts for a higher revenue generation. With an expected increase in the implementation of WGS, the subsequent data generation from sequencing projects is expected to grow. Due to the large volumes of data generated after sequencing, analysis becomes a challenge. However, there are several tools available in the market that address these issues.
For instance, Illumina’s BaseSpace Suite helps analyze sequencing data and produces results in a short span. The company has also acquired DRAGEN Bio-IT Platform (DRAGEN), and Edico Genome to expand its data analysis offerings. Other companies, such as Genomatix and DNAnexus, offer cloud-based platforms for the analysis and management of large volumes of sequencing data.
The academic research end-use segment held the largest share of more than 53% in 2020. The segment is projected to expand further at a steady CAGR from 2021 to 2028. This growth can be attributed to the application of NGS solutions in research projects that are carried out in universities and research centers. Furthermore, scholarships offered for Ph.D. projects in NGS are anticipated to drive demand for NGS products and services, thereby resulting in lucrative growth over the coming years.
Moreover, countries, such as Germany and the U.K., have several universities that offer NGS applications and molecular biology courses. For instance, the Wageningen University & Research, the Netherlands offers NGS facilities and technologies that can be used in various applications. The university uses instruments and platforms, such as Illumina HiSeq2500, MiSeq, and PacBio Sequel.
Clinical research is expected to be the fastest-growing end-use segment from 2021 to 2028. This can be attributed to the rising penetration of NGS-based diagnostic tests that are CLIA-waived and under the process of clinical approval augmenting the demand for NGS solutions. In addition, commercially available clinical research solutions from Agilent, Illumina, Thermo Fisher Scientific, and other companies for target enrichment & detection are anticipated to provide this segment with high growth opportunities over the forecast period.
North America dominated the global market with a revenue share of 49.77% in 2020. The presence of several clinical laboratories that use NGS to offer genetic testing services drives the regional market. In addition, the development and launch of novel products by key companies in North America boost the market growth. For instance, in August 2020, Quest Diagnostics launched Automated NGS Engine to power AncestryHealth, a consumer genetics offering by Ancestry. The platform offers genetic screening of risks for blood disorders, colon cancer, breast cancer, and heart diseases.
Asia Pacific is expected to be the fastest-growing regional market from 2021 to 2028. The presence of local companies, such as BGI Genomics, and NGS service providers including First BASE Laboratories Sdn Bhd, Macrogen Asia Pacific Pte Ltd., and others is expected to drive the market in the Asia Pacific. MedGenome Labs Ltd. offers NGS services to more than 5,500 clinicians and 1,600 hospitals across South Asia and India.
The industry is marked by high competition between the dominant players. Strategies adopted by these companies to enhance their market presence include the launch of novel platforms that are rapid, small-sized, and less expensive. For instance, in January 2021, Cerba Research launched two new; PCR-based and NGS-based; Covid-19 exploratory tools to support R&D for vaccine development against infectious diseases, including Covid-19. The NGS-based assay facilitates WGS of respiratory viruses and SARS-CoV-2.
In December 2020, Eurofins Genomics launched cost-effective, optimized, SARS-CoV-2 NGS services that offer sequencing of complete viral genomes. In May 2020, Roche launched the KAPA Target Enrichment portfolio for target enrichment during sequencing and KAPA HyperExome whole-exome research panel. Therefore, a rise in market competition coupled with the launch of novel products is expected to increase revenue generation in the market. Some of the key companies in the global next generation sequencing market include:
Thermo Fisher Scientific, Inc.
F. Hoffman-La Roche Ltd.
Oxford Nanopore Technologies
Eurofins GATC Biotech GmbH
Perkin Elmer, Inc.
Bio-Rad Laboratories, Inc.
Market size value in 2021
USD 4.4 billion
Revenue forecast in 2028
USD 11.7 billion
CAGR of 14.4% from 2021 to 2028
Base year for estimation
2017 - 2019
2021 - 2028
Revenue in USD million/billion and CAGR from 2021 to 2028
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Technology, application, workflow, end-use, region
North America; Europe; Asia Pacific; Latin America; Middle East & Africa
U.S.; Canada; Germany; U.K. Italy; Spain; France; Japan; China; South Korea; Australia; India; Brazil; Mexico; South Africa; Saudi Arabia
Key companies profiled
Illumina; 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; Bio-Rad Laboratories, Inc.
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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 2017 to 2028. For purpose of this study, Grand View Research has segmented the global next generation sequencing market report on the basis of technology, application, workflow, end-use, and region:
Technology Outlook (Revenue, USD Million, 2017 - 2028)
Whole Exome Sequencing
Targeted Sequencing & Resequencing
Application Outlook (Revenue, USD Million, 2017 - 2028)
Diagnostics and Screening
Newborn Genetic Screening
Single Gene Analysis
HLA Typing/Immune System Monitoring
Metagenomics, Epidemiology & Drug Development
Agrigenomics & Forensics
Workflow Outlook (Revenue, USD Million, 2017 - 2028)
NGS Library Preparation Kits
Semi-automated Library Preparation
Automated Library Preparation
NGS Data Analysis
NGS Primary Data Analysis
NGS Secondary Data Analysis
NGS Tertiary Data Analysis
End-use Outlook (Revenue, USD Million, 2017 - 2028)
Hospitals & Clinics
Pharma & Biotech Entities
Regional Outlook (Revenue, USD Million, 2017 - 2028)
Middle East Africa
b. The global NGS market size was estimated at USD 4.0 billion in 2020 and is expected to reach USD 4.4 billion in 2021.
b. The global NGS market is expected to grow at a compound annual growth rate of 14.4% from 2021 to 2028 to reach USD 11.7 billion by 2028.
b. North America dominated the NGS market with a share of 47.2% in 2019. This is attributable to the presence of major clinical laboratories that are using next-generation sequencing technology to perform genetic tests.
b. Some key players operating in the NGS market include Illumina, 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.
b. Key factors that are driving the NGS market growth include exponentially decreasing costs for genetic sequencing, development of companion diagnostics and personalized medicine, rise in competition amongst prominent market entities, a rising clinical opportunity for NGS technology, technological advancements in cloud computing and data integration, growing healthcare expenditure, and increasing prevalence of cancer.
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Biopharmaceutical innovators are at the forefront of the human response to the coronavirus pandemic. A significant number of major biotech firms are in the midst of a race to investigate the Sars-Cov-2 genome and prepare a viable vaccine for the same. As compared to the speed of response to SARS/MERs etc, the biotech entities are investigating SARs-Cov-2 at an unprecedented rate and a considerable amount of funds are being put into the R&D. With multiple candidates in trial, the public and private sectors are anticipated to work in unison for the foreseeable period, until a vaccine is developed for Covid-19. The report will account for Covid19 as a key market contributor.