Next Gen Sequencing Data Analysis Market Size, Share & Trends Analysis Report By Product, By Workflow, By Mode, By Read Length (Long Read, Short Read), By End-use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global next-gen sequencing data analysis market size was valued at USD 579.4 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 12.9% from 2020 to 2027. An increase in the adoption of cloud-based solutions that robustly and effectively manage the parallelization and distribution of input data and user codes on many computer nodes contributes to market growth. Continuous advancements in data integration and cloud computing solutions can address the data-handling bottleneck efficiently. These solutions reduce waiting time and work efficiently for data analysis.

Companies such as Microsoft, Google, and Amazon offer solutions for computational power, which are required to store and analyze the information generated from next-generation sequencing. The use of cloud computing platforms has led to technological advancements in data integration tools, which helps in analyzing and processing massive next-generation sequencing data. These improvements in technology are expected to influence the market for next-generation sequencing data analysis in the near future.

The advent of workflow management systems solutions, such as Galaxy and Chipster, boost the demand for technological advancements in data storage and management. Demand for technologically advanced infrastructure to monitor the flow of this analysis process from data generation to preliminary to higher-level analysis has increased. Thus, constant developments in analysis tools to obtain effective results are expected to drive the market for next-generation sequencing data analysis.

A rise in the demand for personalized medicine results in a shift from a one-size-fits-all concept to tailored target therapies. Numerous international and national genome projects have been introduced to reap the benefits of precision medicine. Whole exome sequencing (WES) is widely accepted in this area as it covers genome areas to determine the regions of disease-causing mutations. Thus, progress in precision medicine drives big data analytics and WES analysis.

The broadening horizon of next-generation sequencing for In-vitro Diagnostics (IVD) creates lucrative opportunities for the expansion of software tools in clinical settings. In this regard, Illumina partnered with ArcherDX, Inc. to expand access to next-generation sequencing-based oncology testing in January 2020. This allowed the latter to develop IVD tests based on Illumina’s platforms and further commercialize them along with companion software to enable fast clinical decision-making and development of targeted therapies.

Product Insights

Next-generation sequencing (NGS) data analysis services dominated the market with a revenue share of 54.1% in 2019. The wide availability of cost-effective services offered by key players, especially for institutions that lack provision for data interpretation, analysis, and management contributes to segment growth. Genoplex Bioinformatics Services; Toldot Genetics; and Igenbio, Inc. are some of the companies that provide services for annotation, mapping, variant calling, exome interpretation, and many more.

Within the commercial software segment, the platform operating system/user interface (OS/UI) held a sizable share in 2019 in the market for next-generation sequencing data analysis. This is attributed to a substantial number of companies offering cloud-based bioinformatics platform for easy analysis. Besides, entities are engaged in the development of GUI-based analysis software for data visualization. This allows the usage of the software by personnel with little or no bioinformatics or programming skills, such as Amazon Web Services developed DocMind Analyst.

RNA sequence alignment is anticipated to grow at a lucrative pace during the forecast period in the Next-generation Sequencing (NGS) data analysis market. However, computational issues in RNA sequencing have proven to be a challenging task for researchers. Such limitations are eliminated with the introduction of alignment-free transcript quantification tools. This is because these tools are quicker than alignment-based workflows and they operate by cutting sequencing reads into k-mers, which propel segment growth. 

Workflow Insights

Tertiary data analysis accounted for the largest revenue share of 48.2% in 2019 in the market for next-generation sequencing data analysis. The core tertiary analysis involves the interpretation or determination of the clinical relevance of variants generated in sequencing data. This step comprises the biological classification of observed variants, identification of the clinical relevance of these variants, the activity of these variants for treatment options, and their applicability in clinical practices further helps in treatment recommendations.

Market participants have made efforts to find better ways to compile and integrate data from a variety of sources. The companies are facilitating the integration of systems and data sharing across research laboratories and institutions to improve medical research and clinical care. For instance, Fabric Genomics in collaboration with Edico Genome provides an integrated solution for tertiary data analysis to gain accurate biological insights for both oncology and inherited diseases.

Secondary data analysis is expected to witness a lucrative CAGR over the forecast period in the market for next-generation sequencing data analysis. This is attributed to a rise in the applicability of Whole-genome Sequencing (WGS) that requires robust secondary analyzing tools for secondary data analysis. These tools are crucial in the reduction of time required for WGS analysis to scale-up the sample throughput by the implementation of field-programmable gate arrays operating in the cloud. These gate arrays represent higher efficiency and speed as compared to conventional CPUs.

Mode Insights

In terms of revenue, in-house data analysis held a maximum revenue share of 65.2% in 2019 in the market for next-generation sequencing data analysis. A significant number of companies, which are involved in disease testing and diagnosis, use next-generation sequencing data analysis tools while analyzing their data based on available technology and software tools. Moreover, research and academic institutions that conduct sequencing-based research have been observed to have allocated annual budgets for in-house services to be over two-fold of the outsourced mode.

Besides, an in-house mode infrastructure provides enhanced flexibility to design and implement sequencing analysis workflows in an organization. The in-house mode also assists end-users to carry out the rapid integration of novel scientific methods into bioinformatics pipelines. The confluence of the aforementioned factors is attributive to the dominance of the in-house mode.

The outsourced mode is anticipated to witness the fastest CAGR during the forecast period in the market for next-generation sequencing data analysis. It is a cost-efficient method for small-to-midsized firms that lack budgets to have an in-house infrastructure. Moreover, the availability of advanced software tools, an increase in generated sequencing information, regulated access to instruments and tools, and lack of expertise with a need to compress timelines is attributive to the utilization of intra- or inter-entity outsourcing analysis projects by major players.

Read Length Insights

Short-read sequencing dominated the market for next-generation sequencing data analysis with a revenue share of 78.4% in 2019. This is attributed to the availability of a wide range of algorithms and alignment tools. TopHat, Bowtie2, STAR, BWA, Minimap2, and HISAT2 are among the few commonly used alignment tools for high-throughput short-read sequencing information. In addition, a higher adoption rate of these techniques, their inexpensive nature, and the ability to work with fragment DNA also contribute to a larger share.

However, these techniques are not efficient in determining structural variants, distinguishing highly homologous genomic regions, sequencing repetitive regions, and phasing of alleles. These methods also lead to a loss in the variant phasing information and create challenges in the diagnosis of structural variants in the complex regions of the genome. The advent of long-read sequencing methods has proven to overcome the limitations associated with the usage of short-read methods.

The emergence of very long-read sequencing methods, such as Nanopore sequencing, which offers the longest read lengths ranging from 500 bp to 2.3 Mb, is projected to drive the very long-read sequencing segment at a considerable CAGR. Real-time base calling, onboard base-calling with a data processing toolkit Guppy, and discontinuation of sequencing after obtaining sufficient information are few benefits associated with the usage of Nanopore analysis.

End-use Insights

The academic research segment held the largest revenue share of 53.9% in 2019 in the market for next-generation sequencing data analysis. This is due to the widespread utilization of high-throughput sequencing techniques in academic and university-based research projects. Organization of workshops and training sessions for data analysis in academic institutions is likely to be responsible for the larger share of this segment.

The availability of research funding for doctoral academic and genomic projects is anticipated to drive the demand for sequence analysis services. For instance, in November 2019, the National Institutes of Health provided funding of USD 29.5 million to academic centers for a new human genome reference program. The provision of onsite bioinformatics courses that execute workshops on the practical application of sequencing and output analysis further boost revenue growth.

An increase in the implementation of next-generation sequencing technology for the discovery of new cancer-related genes, tumor heterogeneity, and identification of alterations that contribute to tumorigenesis is expected to result in significant growth of the clinical research segment. Moreover, as personalized medicine and companion diagnostics are gaining popularity for monitoring disease progression, the demand for these tools is estimated to increase significantly for this segment.

Regional Insights

North America dominated the market for next-generation sequencing data analysis with a revenue share of 49.9% in 2019. The U.S.-based pharmaceutical manufacturers are continuously putting efforts to design tissue-agnostic cancer therapeutics, which has the capability to target a specific genetic marker independent of tumor type. This creates lucrative opportunities for the application of next-generation sequencing technologies and its associated analyzing tools in the development of such drugs.

The presence of market leaders such as Illumina, Thermo Fisher, and Agilent Technologies, and efforts undertaken by them to boost their revenue share is propelling the growth of the market for next-generation sequencing data analysis in the region. For instance, in June 2020, Illumina acquired a cloud-based software company, BlueBee, which offers genomics analyzing tools for clinical and research applications. This acquisition integrated capabilities of BlueBee into the cloud portfolio of Illumina to offer flexibility during data processing.

In Asia Pacific, the market for next-generation sequencing data analysis is anticipated to register a lucrative growth rate during the forecast period. National agencies focus on the expansion of next-generation sequencing-based testing by implementing such tools in this region, which positively impact the regional revenue growth. For instance, in June 2019, the National Cancer Center of Japan selected QIAGEN’s QIAGEN Clinical Insight (QCI) to support molecular profiling in the nation’s cancer genomic medicine program.

Key Companies & Market Share Insights

The market for next-generation sequencing data analysis is competitive in nature. Illumina, Inc. and QIAGEN dominated the market in 2019. Illumina holds a significant market share owing to its wide service portfolio for analyzing tools. While, the acquisition of Ingenuity by QIAGEN in 2013 broadened the latter’s product portfolio of CLC Bio and Ingenuity, which, in turn, surged the company's sales. Furthermore, key companies have adopted the acquisition of smaller companies as a strategy to reinforce their market presence. For instance, in May 2020, F. Hoffmann-La Roche Ltd. completed the acquisition of Seattle-based genetic sequencing company Stratos Genomics. This acquisition allowed Roche to introduce advancements in its nanopore sequencer by integrating Sequencing by Expansion (SBX) chemistry from Stratos and further expand its sequencing capabilities. Some of the prominent players in the next-gen 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 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.

Next Gen 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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global next-gen sequencing data analysis market report on the basis of product, workflow, mode, read length, end-use, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Services

  • Next-generation Sequencing 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, 2016 - 2027)

  • Primary Data Analysis

  • Secondary Data Analysis

    • Read Mapping

    • Variant Alignment & Variant Calling

  • Tertiary Data Analysis

    • Variant Annotation

    • Application-Specific Data Analysis

      • Targeted sequencing/ gene panel

      • Exome

      • RNA seq

      • Whole-genome

      • Chip Seq

      • Others

• Mode Outlook (Revenue, USD Million, 2016 - 2027)

  • In-house Data Analysis

  • Outsourced Data Analysis

• Read Length Outlook (Revenue, USD Million, 2016 - 2027)

  • Short Read Sequencing

  • Long Read Sequencing

  • Very Long Read Sequencing

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Academic Research

  • Clinical Research

  • Hospitals & Clinics

  • Pharma & Biotech Entities

  • Other Users

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)

    • South Africa