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 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.
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 tumor’s 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 the emergence of DTC genetic testing companies in developing countries such as India are 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.
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.
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).
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.
North America accounted for the largest revenue share in 2019. The 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.
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.
Base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Revenue in USD Million and CAGR from 2020 to 2027
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, Germany, U.K., China, Japan, Brazil, South Africa
Revenue forecast, company share, competitive landscape, growth factors and trends
15% free customization scope (equivalent to 5 analysts working days)
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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 2016 to 2027. For this study, Grand View Research has segmented the global next generation sequencing market report based on application, technology, workflow, end use, and region:
Application Outlook (Revenue, USD Million, 2016 - 2027)
Diagnostics and Screening
Newborn Genetic Screening
Single Gene Analysis
HLA Typing/Immune System Monitoring
Metagenomics, Epidemiology & Drug Development
Agrigenomics & Forensics
Technology Outlook (Revenue, USD Million, 2016 - 2027)
Whole Genome Sequencing
Whole Exome Sequencing
Targeted Sequencing & Resequencing
Workflow Outlook (Revenue, USD Million, 2016 - 2027)
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, 2016 - 2027)
Hospitals & Clinics
Pharma & Biotech Entities
Regional Outlook (Revenue, USD Million, 2016 - 2027)
Middle East Africa
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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.