Next-Generation Sequencing Data Analysis Market Size, Share & Trends Analysis Report By Product, By Workflow, By Mode, By Read Length, By End-use, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global next-generation sequencing data analysis market size was valued at USD 561.4 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 15.02% from 2021 to 2028. Next-generation sequencing (NGS) has effectively helped in studying epigenomic as well as genomic patterns associated with various biological processes. Issues regarding storage, management, and accessing information are expected to provide the market with potential R&D opportunities, consequently fueling the market growth. Research communities that use high-throughput sequencers demand Laboratory Information Management Systems (LIMS) for handling and archiving of sequencing information.

Cloud-based platforms offer favorable solutions for computationally-intensive tasks during the analysis of NGS data. Therefore, it has become a quick and easy approach for the acquisition of computational resources to conduct NGS data analysis at a large scale. Thus, the development of cloud-based bioinformatics platforms and services for large-scale NGS data analysis is expected to drive the market at a fast pace.

BaseSpace, Bina, DNAnexus, LifeScope, GeneSifter, and SevenBridges are some of the commercially available cloud-based NGS tools readily adopted by end-users to analyze sequencing information. The incorporation of NGS protocols has been specifically used for oncology precision medicine, especially for lung and breast cancers.

Companies are also focused on developing low-cost genome sequencing solutions to enhance their businesses. For instance, in February 2020, Nebula Genomics-a spinout of Harvard University-launched an at-home whole genome sequencing test. This test can provide a readout of the entire genetic code of a person.

Product Insights

Services led the global next-generation sequencing data analysis market with a revenue share of over 54% in 2020. Cost-effective NGS data analysis services are readily adopted by establishments that lack the required infrastructure for data management, analysis, and interpretation. Companies, such as ThermoFisher Scientific; Igenbio, Inc; and Toldot Genetics, offer services for exome interpretation, variant calling, mapping, annotation, and others.

Although the analytical software segment held a lower market share in 2020, it is expected to witness the fastest CAGR over the forecast period owing to high demand and an increase in awareness about sequencing technologies. A large amount of data generated through NGS needs management solutions and platforms, which results in high demand for such tools & algorithms.

CLC Genomics Workbench offered by QIAGEN is one such data interpretation tools for epigenomics, genomics, metagenomics, and transcriptomics in one single program. Many companies are engaged in delivering products for data processing, i.e., data analysis tools that enable research entities to carry out projects using NGS. This propels the growth of the NGS commercial software segment.

Illumina and QIAGEN are the largest providers of data analysis software. Other key players, such as ThermoFisher Scientific, also offer commercial software for the analysis of NGS data. The Avadis NGS Software offered by the company is used with the Ion PGM System for management, visualization, and analysis of NGS data.

Workflow Insights

The tertiary workflow segment dominated the market in 2020 with a revenue share of over 48%. Various annotation tools are utilized for NGS tertiary data analysis and companies are adopting strategic initiatives to expand the scope of these tools. For instance, in May 2020, Saphetor SA entered into a partnership with Paragon Genomics for the development and commercialization of VarSome, a bioinformatics solution used for accurate and fast variant discovery, annotation, and interpretation of NGS-generated data.

Secondary data analysis is anticipated to be the fastest-growing workflow segment from 2021 to 2028. The rising application of whole-genome sequencing requires faster secondary analysis tools to fulfill the increasing demand. It is essential in reducing the time required to perform whole-genome sequencing secondary analysis to scale-up the sample throughput by implementing field-programmable gate arrays operating in the cloud.

The field-programmable gate arrays are logic circuits that represent higher efficiency and speed as compared to conventional CPUs, especially for customized genomic analysis. On the other hand, cloud service providers, including Amazon Web Services, possess large data centers with large capacities to process a large number of samples simultaneously.

Mode Insights

The in-house mode segment accounted for the largest revenue share of over 65% in 2020. The in-house mode includes companies that are involved in disease testing and diagnosis using NGS while conducting their own analysis using available technology & software tools. The number of such companies is rapidly increasing. Furthermore, annual budgets for in-house data analysis of several academic and research institutes are observed to be more than twofold of the outsourced data analysis.

The in-house analysis also allows quick incorporation of innovative scientific workflows into bioinformatics pipelines. These factors are responsible for the largest share of this segment and it is likely to maintain its dominance during the forecast period. However, the installation of an in-house data analysis infrastructure necessitates substantial investments with respect to time and complex IT architectures.

The outsourced mode segment is projected to register the fastest CAGR from 2021 to 2028. Considering the cost advantages offered by outsourcing mode, companies, such as SciBerg, offer outsourced NGS data analysis services. However, the low adoption of outsourced services among large-scale multinational pharmaceutical & biotechnology companies is expected to reduce the revenue generation from this segment.

Read Length Insights

Short-read sequencing dominated the global market in 2020 with a share of 77.37% owing to the wide adoption and availability of alignment tools and algorithms for short-read sequencing data. BaseSpace Sequence Hub, a cloud computing environment for genomics, includes a collection of short-read sequencing data analysis apps that can simplify the management of sequencing data and be used in a wide range of studies.

Similarly, DRAGEN is a Bio-IT Platform that provides an ultra-rapid secondary analysis of sequencing data from whole genome, whole exome, and targeted sequencing workflows. In addition, DRAGEN also offers a wide range of accelerated secondary analysis pipelines including aligning pipeline, stand-alone map, Joint Genotyping, Methylation, and other tools.

The market shows lucrative opportunities for long and very long read sequencing segments. Guppy, Offered by Oxford Nanopore, is a data processing toolkit that includes bioinformatic post-processing features and base calling algorithms. The onboard base calling with Guppy is profitable as it eliminates the need for a stable internet connection or a local infrastructure. The toolkit can either be integrated with MinKNOW; the device control software offered by Oxford Nanopore; or can be run on Linux, Windows, and OS X platforms.

End-use Insights

The academic research segment accounted for the largest revenue share of over 53% in 2020 due to a rise in the adoption of next-generation sequencing data analysis workflows in academic institutions. For instance, Wageningen University & Research, the Netherlands, has installed the Saphyr system from Bionano Genomics, Illumina MiSeq, Pacbio Sequel, and 10XGenomics Chromium for Genome de novo sequencing, Re-sequencing, Gene expression analysis (RNA-seq); Genome-wide methylation studies; and other bioinformatics analyses.

Similarly, the University of Pittsburgh has established centers to perform sequencing, bioinformatics analysis, and high-performance computing to assist researchers with their ongoing academic research & projects. The Western Sydney University (Penrith, Australia) utilizes Illumina NovaSeq 6000 and Illumina MiSeq to provide sequencing services to its internal student & staff, as well as to external industry participants and researchers.

The clinical research segment is projected to register the fastest CAGR from 2021 to 2028. Research initiatives for the development of in vitro tests using sequencing technology are expected to influence growth in clinical research. Moreover, with the advent of personalized medicine and companion diagnostics for monitoring disease progression, the demand for NGS data analysis is expected to increase significantly.

For instance, PierianDx offers Clinical Genomicist Workspace software that provides clinical laboratories a more accurate and streamlined analysis along with reporting and interpretation for personalized medicine programs. These services are anticipated to revolutionize the clinical research paradigm, which includes clinical trials and drug discovery, in the coming years.

Regional Insights

North America held a dominant share of 50.03% in 2020. This can be attributed to the presence of a significant number of key players, such as Illumina, Thermo Fisher Scientific, Agilent Technologies, and several organizations that incorporate data analysis software. Moreover, a large number of NGS research projects are conducted in the U.S. and Canadian universities, which increases the demand for NGS software tools.

In January 2021, Illumina collaborated with Helix to use its sequencing technology for the assessment of the New SARS-CoV-2 U.K. Variant (B.1.1.7) in the U.S. The partnership also aims to design the national surveillance infrastructure to track the prevalence and emergence of the new strain. Such initiatives undertaken by the companies drive the demand for NGS technologies for Covid-19, thereby supporting market growth.

Asia Pacific is projected to be the fastest-growing regional market from 2021 to 2028. There has been significant progress in understanding the molecular basis of cancer with the use of sequencing technologies in Japan. The Ministry of Health, Labor, and Welfare of Japan has approved multiple cancer gene panels based on NGS technology to be used in clinical practice. In November 2020, Kaohsiung Medical University Chung-Ho Memorial Hospital, Taiwan partnered with ACT Genomics to target precision cancer treatment by combining ACT Genomics’ NGS database with ASUS’s Intelligent Cloud Services.

Key Companies & Market Share Insights

Illumina and QIAGEN are the two major players in this market. The NGS data analysis software platform offered by QIAGEN is useful at all stages of the workflow. Furthermore, key companies have acquired smaller companies to reinforce their market presence. In June 2020, Illumina completed the acquisition of BlueBee-a cloud-based software company located in the Netherlands. This acquisition allowed the company to improve its capabilities to analyze and interpret sequencing data. The cloud capabilities of BlueBee allow Illumina’s users to have the flexibility to run their custom analyses or access industry products, such as the DRAGEN Bio-IT Platform, which streamlines data processing and boosts operational efficiency. Some of the prominent players in the next-generation sequencing data analysis market include:

• Thermo Fisher Scientific, Inc.

• QIAGEN

• Illumina, Inc.

• F. Hoffmann-La Roche Ltd.

• Agilent Technologies, Inc.

• Bio-Rad Laboratories, Inc.

• PierianDx

• Intrexon Bioinformatics Germany GmbH

• Partek, Inc.

• Eurofins Scientific

• Pacific Biosciences of California, Inc.

• DNASTAR, Inc.

• Congenica Ltd.

• Fabric Genomics, Inc.

• Genuity Science

• DNAnexus Inc.

• SciGenom Labs Pvt. Ltd.

• Golden Helix, Inc.

Next-Generation Sequencing Data Analysis 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 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global next-generation sequencing data analysis market report on the basis of product, workflow, mode, read length, end use, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Services

  • NGS Commercial Software

    • Platform OS/UI

    • Analytical Software

      • Alignment Tools & Software

        • DNA Seq Alignment

        • RNA Seq Alignment

        • Protein Seq Alignment

      • QC/Pre-processing Tools

      • Others

• Workflow Outlook (Revenue, USD Million, 2017 - 2028)

  • Primary

  • Secondary

    • Read Mapping

    • Variant Alignment & Variant Calling

  • Tertiary

    • Variant Annotation

    • Application-specific

      • Targeted Sequencing/Gene Panel

      • Exome Sequencing

      • RNA Sequencing

      • Whole Genome Sequencing

      • ChIP-sequencing

      • Others

• Mode Outlook (Revenue, USD Million, 2017 - 2028)

  • In-house

  • Outsourced

• Read Length Outlook (Revenue, USD Million, 2017 - 2028)

  • Short Read

  • Long Read

  • Very Long Read

• End-use Outlook (Revenue, USD Million, 2017 - 2028)

  • Academic Research

  • Clinical Research

  • Hospitals & Clinics

  • Pharma & Biotech Entities

  • Other Users

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East Africa (MEA)

    • South Africa

    • Saudi Arabia