Next Generation Sequencing Market Size, Share & Trends Analysis Report By Technology (Targeted Sequencing & Resequencing), By Product, By Application , By Workflow, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global next generation sequencing market size was estimated at USD 6.96 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 21.66% from 2023 to 2030. Next Generation Sequencing (NGS) refers to the huge DNA sequencing methods that aid in genomic discovery. Following the World Health Organization's (WHO) declaration of COVID-19 as a pandemic, a diverse group of recognized pharmaceutical and biotechnology companies, have decided to step forward in order to boost the global research efforts to develop test kits and vaccines.

Furthermore, major companies across the globe have increased their research and development capacities. This substantial focus on COVID-19 vaccine development offered a lucrative opportunity for the adoption of NGS during the pandemic period. For instance, a group of researchers in China utilized MinION Mk1C, a product by Oxford Nanopore Technologies (U.K.) for the sequencing of COVID-19 samples. In addition, factors such as extensive adoption of NGS technologies in clinical diagnostics due to rapid result time and faster processing are also projected to offer a favorable environment for market growth during the forecast period. For instance, in August 2020, Pediatrix Medical Group, GeneDx Inc., and OPKO Health signed an agreement to provide state-of-the-art, next generation gene-sequencing to enhance clinical diagnosis in uncommon disorders for newborn intensive care units.

Moreover, growing technological developments in NGS instruments and technologies are further likely to offer significant market growth over the coming years. For instance, in January 2020, the Intelligence Advanced Research Projects Activity in the U.S. awarded a grant of USD 23 million to the Harvard University, DNA Script, and Broad Institute. The institutes are conducting collaborative research to develop a novel technology that will combine enzymatic DNA synthesis and NGS into a single instrument.

To better understand the link between genetics and disease, several countries have invested in their own national population genome mapping projects. Furthermore, millions of genomes are being sequenced by government groups to progress research and discover better ways to identify and cure cancer, uncommon disorders, and other ailments. Efforts are being undertaken by the EU to improve the region’s large-scale genomic data with projects such as France’s French Plan for Genomic Medicine 2025 and the UK’s 100,000 Genomes Project. Such initiatives have resulted in the growth of NGS informatics services in the region.

Certain advantages offered by NGS such as cost-effectiveness, rapid and accurate sample analysis, and technological advancements are estimated to boost the adoption of NGS technologies during the forecast period. In addition, the development of genomics programs in a number of countries is projected to benefit the NGS market. The advent of next generation sequencing-based diagnoses, along with proactive government support, are also some of the key market growth factors.

Application Insights

The oncology segment held the highest market share of 27.70% in 2022. A gradually growing prevalence of cancer that warrants use of latest technology to enable oncologists better understand the mechanics of cancer and tumor cells and the application of NGS for DNA & RNA sequencing, epigenetics, and analyzing chromosomal abnormalities account for over three fourths of the global sequencing data are factors responsible for high market share.Companies like Myriad, through its myRisk product, offer genetic testing to identify people who may be at higher risk of developing certain cancers in the future. In January 2021, Merus N.V.; a clinical stage immuno-oncology company; collaborated with National Cancer Center, Japan and Erasmus University Medical Center, Netherlands to evaluate its HER2/3-targeting bispecific antibody in solid tumors.

Furthermore, the consumer genomics segment is anticipated to be the fastest-growing segment with a CAGR of 24.84% during the forecast period. Continuous introduction of new products by the key players is driving growth in the consumer genomics segment.Presence of companies such as 23andMe that are involved in the provision of the “Personal Genome Service” can be attributed to growth in the coming years. Moreover, Ancestry.com, Color Genomics, Cloud Health (which purchased a HiSeq X Ten), National Geographic and several Japanese consumer companies, as well as a nascent consumer business, Helix, which was launched by Illumina are expected to impact revenue generation in this segment. Rapid proliferation in genealogy, paternity testing, and personal health awareness is expected to drive the growth in the consumer genomics, as an application of NGS.

Product Insights

The consumables segment held the larger market share of 74.65% in 2022 and will continue to grow at a faster CAGR of 22.47% from 2023 to 2030. The larger share and exponential growth rate of this segment is mainly attributed to the recurrent usage and high demand of the consumables in the commercial as well as research applications of NGS. These consumables include sample preparation kits as well as kits for target enrichment. The adoption of NGS consumables has increased as most of the pharmaceutical companies and research institutes are utilizing NGS for several diagnostic applications and cancer research.

Another import factor contributing to the growth of the consumables market is the involvement of key companies in development of innovative products, focus on regulatory approvals, along with strategic initiatives to ensure the constant supply of consumables that can meet the increasing demand. These efforts also strengthen the company’s product portfolio, thus, maintaining the leading position in the market. For instance, in June 2022, PerkinElmer, Inc. launched three sample preparation kits for research purpose only, which include PG-Seq Rapid Kit v2, NEXTFLEX Small RNA-Seq Kit v4, and NEXTFLEX Rapid XP V2 DNA-Seq Kit. All these factors along with increasing R&D activities in the sequencing market will continue to boost the market growth.

Technology Insights

The targeted sequencing & resequencing segment held the highest market share of 73.09% in 2022. This segment is expected to witness growth in demand subsequent to the growth of whole genome sequencing, as the availability of a large amount of whole genome data will required to be analyzed at specific gene locations and isolated genetic expressions. There are many companies in the NGS market offering targeted sequencing services. Thus, this segment is expected to grow in tandem with WGS segment throughout the forecast period.

Illumina offers targeted resequencing with its gene panel and array finder, whereas Pacific Biosciences of California’s Sequel System with its SMRT technique allows targeted sequencing and accurate detection of variants.Targeted sequencing panels are expected to remain the workhorse for cancer molecular diagnostics and are projected to become the routine part of the heme malignancies and solid tumor.

Workflow Insights

The sequencing segment held the highest market share of 57.12% in 2022. NGS sequencing is the most important phase of the workflow and consequently accounts for the largest share of the market. These systems are able to provide accurate amount of liquid, which is important in NGS. Moreover, functions such as changing tubes and micro liter plates are also carried out by the system, which helps streamline workflow. The advantage of using robotic liquid handling system is that it enables researchers focus on analyzing the data rather than managing the process.

NGS Data Analysis is anticipated to be the fastest growing segment with a CAGR of 22.89%. A key factor contributing to the industry growth is the growing acceptance of sequencing platforms for clinical diagnosis due to a huge cost reduction of installation. Moreover, easy genomic and proteomic information availability is anticipated to create significant growth opportunities in this industry during the forecast period. Furthermore, the cost reduction of these sequencing technologies has resulted in increased adoption of NGS. In addition strategic activities by key market players will further offer lucrative opportunities in the review period. For instance, Illumina's BaseSpace Suite, aids in the analysis of sequencing data and the production of findings in a short amount of time. To expand its data analytic capabilities, the company has also purchased DRAGEN Bio-IT Platform (DRAGEN) and Edico Genome. Furthermore, Genomatix and DNAnexus, provide cloud-based solutions for the interpretation and management of enormous volumes of sequencing data.

End-use Insights

The academic research segment held the highest market share of 53.65% in 2022. Application of NGS solutions in research projects that are carried out in the universities and research centers can be attributed to the largest share of this segment in the market. Furthermore, scholarships offered for PhD projects in NGS are anticipated to drive demand for NGS products and services, thereby resulting in lucrative growth over the forecast period. Provision of on-site bioinformatics courses that include workshops on practical implementation of NGS sequencing and data analysis are also expected to boost revenue generated through academic research segment in the coming years.

Clinical research segment is anticipated to be the fastest growing segment with a CAGR of 22.92% during the forecast period. Owing to the use of NGS in cancer research and, more specifically, in discovery of new cancer-related genes, studying tumor heterogeneity, and identification of alterations that are contributive in tumorigenesis the segment is expected to witness significant growth through to 2030. In addition, availability of clinical research solutions through market entities such as Illumina, Thermo Fisher Scientific Corporation, and Agilent Technologies for the purpose of target enrichment & detection is anticipated to provide this segment with high growth opportunities over the forecast period.

Regional Insights

North America dominated the NGS market with a share of 49.25% in 2022.The regional market is driven by the presence of multiple clinical laboratories that employ NGS to provide genetic testing services. Furthermore, due to the presence of high R&D investment, availability of technologically advanced healthcare research framework, the development of WGS in the region is also expected to serve as a critical factor for the growth of North America NGS market throughout the forecast period.

The Asia Pacific region is estimated to be the fastest-growing region owing to the presence of significant developments by China and Japan for technological integration of NGS methodologies, and the development of healthcare, R&D and clinical development frameworks of emerging economies such as India and Australia have poised the Asia Pacific NGS market to witness lucrative opportunities o growth throughout the forecast period.

Key Companies & Market Share Insights

The industry is marked by high competition between the dominant players and these players are rapidly undertaking strategies such as strategic collaborations, geographical expansion, and partnerships through mergers & acquisitions in economically favorable and emerging regions. For instance, in January 2021, Cerba Research announced launch of its new tools to enhance R&D for vaccine development against infectious diseases, including COVID-19. The market has witnessed significant competition from other mid and large sized entities. For instance, in March 2021, Integrated DNA Technologies (IDT) announced the acquisition of Swift Biosciences, a pioneer in the development of NGS library preparation genomics kits for clinical, translational, and academic research. Some of the prominent players in the global next generation sequencing market include:

• Illumina

• F. Hoffman-La Roche Ltd.

• QIAGEN

• Thermo Fisher Scientific, Inc.

• Bio-Rad Laboratories, Inc.

• Oxford Nanopore Technologies

• PierianDx

• Genomatix GmbH

• DNASTAR, Inc.

• Perkin Elmer, Inc.

• Eurofins GATC Biotech GmbH

• BGI

Recent Developments

• In June 2023, Oxford Nanopore Technologies Plc, a nanopore sequencing developer company, teamed up with Geneyx, an AI platform, introduced a scalable software solution for advancing new-generation nanopore sequencing technology. This will empower health centers including genetic labs, and hospitals with analytical data pertaining to genome sequencing

• In June 2023, Thermo Fisher Scientific, Inc., a world leader in serving science, introduced the Thermo Scientific^TM Orbitrap^TM Astral mass spectrometer, a high-speed and resolution advancement for detecting the latest proteins, and innovations in precision medicine. The spectrometer constitutes end-to-end and next-generation sequencing solutions for examining proteomic

• In March 2023, QIAGEN N.V, a worldwide molecular sample insights provider, declared its strategic partnership with Servier, a global pharmaceutical company, for the development of a companion diagnostic trial for TIBSOVO^®, an isocitrate dehydrogenase-1 (IDH 1) inhibitor. From next-generation sequencing to a polymerase chain reaction, QIAGEN will validate these for detecting IDH 1 gene mutations among patients suffering from acute myeloid leukemia (AML)

• In November 2022, DNASTAR, Inc., a global bioinformatics software company, launched Lasergene 17.4 software with the latest functionality for multiple next-generation sequencing alignments. In addition, the software also includes various sequence assembly and sequence editing applications

• In October 2022, PierienDx, a global leader in clinical genomics technology, reported a partnership with P4 Diagnostix^®, a leading network of laboratories, for helping laboratories that physicians own. These laboratories specialize in women's health, urology, and gastroenterology, thus the addition of the next-generation sequencing test will benefit the routine diagnostic practice

• In January 2022, BGI Americas Corporation, a subsidiary of BGI Genomics Co. Ltd., announced a joint marketing agreement with Gencove, a genome sequence platform. This agreement included BGI’s next-generation sequencing services of DNBSEQ^TM sequence technology along with Gencove’s analysis platform for the development of cost-efficient, and high-capacity genome information for a healthy and sustainable world

Next Generation Sequencing Market Report Scope

Global Next Generation Sequencing Market Report Segmentation

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2018 to 2030. For the purpose of this report, Grand View Research has segmented the global next generation sequencing market report on the basis of technology, product, application, workflow, end-use, and region.

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • WGS

  • Whole Exome Sequencing

  • Targeted Sequencing & Resequencing

    • DNA-based

    • RNA-based

  • Others

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Platform

    • Sequencing

    • Data Analysis

  • Consumables

    • Sample Preparation

    • Target Enrichment

    • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Oncology

    • Diagnostics and Screening

      • Oncology Screening

        • Sporadic Cancer

        • Inherited Cancer

      • Companion Diagnostics

      • Other Diagnostics

    • Research Studies

  • Clinical Investigation

    • Infectious Diseases

    • Inherited Diseases

    • Idiopathic Diseases

    • Non-Communicable/Other Diseases

  • Reproductive Health

    • NIPT

      • Aneuploidy

      • Microdeletions

    • PGT

    • Newborn Genetic Screening

    • Single Gene Analysis

  • HLA Typing/Immune System Monitoring

  • Metagenomics, Epidemiology & Drug Development

  • Agrigenomics & Forensics

  • Consumer Genomics

• Workflow Outlook (Revenue, USD Million, 2018 - 2030)

  • Pre-Sequencing

    • NGS Library Preparation Kits

    • Semi-automated Library Preparation

    • Automated Library Preparation

  • Sequencing

  • NGS Data Analysis

    • NGS Primary Data Analysis

    • NGS Secondary Data Analysis

    • NGS Tertiary Data Analysis

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Academic Research

  • Clinical Research

  • Hospitals & Clinics

  • Pharma & Biotech Entities

  • Other Users

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait