Next-generation Sequencing Data Analysis Market Size, Share & Trends Analysis Report By Product (Services, NGS Commercial Software), 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 561.6 million in 2020 and is expected to expand 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. However, issues pertaining to storage, management, and accessing information are expected to provide the market with potential R&D opportunities, consequently fueling the growth of the market. Research communities that use high-throughput sequencers demand Laboratory Information Management Systems (LIMSs) for handling and archiving 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.

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 October 2021, Phase Genomics announced to launch a cost-effective platform for genome analysis.

Similarly, various stakeholders in the industry are looking for companies that offer low-cost solutions. For instance, Gencoveraised USD 10 million to meet the demand for interpretable and accessible whole-genome sequencing. The company manages the cost by integrating low-pass whole-genome sequencing with a proprietary software-as-a-service computation.

The spontaneous spread of COVID-19 led to the increased emphasis on genome surveillance. Moreover, enhanced capabilities of genome surveillance can support the development of intelligent systems to track virus mutations and variants associated with respiratory conditions. In June 2021, the European Centre for Disease Prevention and Control announced the launch of EpiPulse, a European surveillance portal, for infectious diseases to gather, analyze, and share sequencing data associated with infectious diseases.

Furthermore, the companies are engaged in the deployment of such surveillance platforms, which can provide a robust platform for sequencing and analysis of viruses. For instance, in March 2021, Applied DNA Sciences, Inc. announced the launch of the Linea Genomic Surveillance Mutation Panel for COVID-19 to consolidate the process associated with SARS-CoV-2 variant tracking and detection.

Rising awareness and adoption of such genome surveillance platforms can play a powerful role in handling future health emergencies. In addition, the growth of such platforms is expected to create a lucrative growth opportunity for next-generation sequencing data analysis platforms in the coming years.

Product Insights

The services segment dominated the market with a revenue share of over 50.0% in 2020. Cost-effective NGS data analysis services are readily adopted by establishments that lack the required infrastructure for data management, analysis, and interpretation. ThermoFisher Scientific; Igenbio, Inc.; Toldot Genetics; Genoplex Bioinformatics Services; and ArrayGen Technologies Pvt. Ltd. offer services for exome interpretation, variant calling, mapping, annotation, and others.

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

CLC Genomics Workbench offered by QIAGEN is one such data interpretation tools toolkit 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, Genomatix, QIAGEN, and DNAStarare some of the companies that provide software and tools for the interpretation of generated data. Illumina and QIAGEN are the largest providers of 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

NGS tertiary data analysis dominated the market in 2020 with a revenue share of over 45.0%. 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 October 2021, Verogenand CellmarkForensic Services collaborated to introduce the first NGS-based forensic services in the U.K. The partnership will integrate the use of the Universal Analysis Software, ForesnSeq DNA Signature Prep Kit, and MiSeqFGx System.

Secondary data analysis is anticipated to register the fastest CAGR over the forecast period. 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

In-house mode accounted for the largest revenue share of over 65.0% in 2020. The in-house mode includes companies that are involved in disease testing and diagnosis using NGS while conducting their analysis using available technology and software tools. Such companies operating in this segment are 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 process.

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 the segment is likely to maintain its lead 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.

Outsourced mode is expected to register the fastest CAGR over the forecast period. Considering the cost advantages offered by outsourcing mode, companies such as SciBergprovide outsourced services. The company’s services facilitate NGS data analysis at a very low cost when compared to costs for DNA library preparation and deep sequencing. However, the low adoption of outsourced services among large, multinational pharmaceutical and biotechnology companies is expected to reduce the revenue generation from this segment.

Read Length Insights

Short-read sequencing dominated the market in 2020 with a share of over 75.0% owing to the wide adoption and the 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 offers a wide range of accelerated secondary analysis pipelines including align 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 basecalling algorithms. The onboard basecalling 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 led the market in 2020 with a revenue share of over 50.0%. The growth can be attributed to a rise in the adoption of the workflows process in academic institutions. For instance, Wageningen University & Research, the Netherlands has installed Saphyr system from Bionano Genomics, IlluminaMiSeq, 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 and projects. Western Sydney University (Penrith, Australia) utilizes IlluminaNovaSeq 6000 and IlluminaMiSeq to provide sequencing services to its internal students and staff and external industry participants and researchers.

The clinical research segment is expected to expand at the fastest growth rate from 2021 to 2028. Research initiatives for the development of in vitro tests using sequencing technology are expected to influence the growth of the clinical research segment. Moreover, with the advent of personalized medicine and companion diagnostics for monitoring disease progression, the demand for the process 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

Europe held the largest revenue share of over 45.0%in 2020. This can be attributed to the presence of a significant number of key players, such as Illumina, Thermo Fisher Scientific, and Agilent Technologies, along with the presence of several organizations operating in this region that incorporates data analysis software. A large number of NGS research projects are conducted in European universities, which increases the demand for NGS software tools.

As per a study on genomic sequencing for COVID-19 in respect to countries, the U.K. reported the highest number of published COVID-19 genomic sequences and that is 38.9% of total published data. Such initiatives undertaken by the institutions drive the demand for NGS technologies for COVID-19, consequently raising the demand for NGS data analysis solutions.

Asia Pacific is expected to register the fastest growth rate over the forecast period. 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

Innovation in products, strategic initiatives, and regional expansions are important strategies that can aid in market growth. Implementation of such extensive strategic initiatives in the field of next-generation sequencing data analysis by the existing players will assist to address the unmet needs of consumers.

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. In addition, the company’s investments and acquisitions of several NGS informatics firms have significantly enhanced its market share.

Furthermore, market leaders have acquired smaller players to reinforce their market presence. In October 2021, Bionano Genomics, Inc. acquired BioDiscovery, Inc., a software company with the analysis, interpretation, and reporting of genomic data solutions. This acquisition allowed the company to improve its capabilities to analyze and interpret sequencing data. The finest product of BioDiscovery, NxClinical technology that perfectly integrates with NGS and microarray data will be under BionanoGenomic’s product portfolio. Some prominent players in the global 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

• Precigen Bioinformatics Germany GmbH

• Partek Incorporated

• 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.

• Verily Life Science

Next-generation Sequencing Data Analysis Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities 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

      • QC/Pre-processing Tools

      • Alignment Tools & Software

        • DNA Seq Alignment

        • RNA Seq Alignment

        • Protein Seq Alignment

      • 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

      • RNA Seq

      • Whole Genome

      • Chip Seq

      • Others

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

  • In-house

  • Outsourced

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

  • Short Read Sequencing

  • Long Read Sequencing

  • Very Long Read Sequencing

• 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

    • France

    • U.K.

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East Africa (MEA)

    • South Africa

    • Saudi Arabia