Next-generation Sequencing Services Market Size, Share & Trends Analysis Report By Service Type (Human Genome Sequencing, Gene Regulation Services), By Workflow, By End-use, And Segment Forecasts, 2023 - 2030

Report Overview

The global next-generation sequencing services market size was valued at USD 4,830.3 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 22.56% from 2023 to 2030. Next-generation sequencing (NGS) technology is increasingly leveraged for both conventional and non-conventional applications to gain rapid and comprehensive insights at a genomic level. This is primarily due to continuous improvements in automation, ancillary protocols, services, and analytical solutions in this field. This, in turn, has provided healthy growth prospects for the implementation of NGS in clinical workflows. Growing demand for robust sequencing-based diagnostics has resulted in the inception of new seq-technologies, ranging from high-throughput sequencers to portable units. This has fomented the trend of clinical NGS in recent times. For example, in March 2022, ARUP Laboratories declared the launch of new coronavirus tests, and IDbyDNA, Inc. collaborated with another firm introducing new tests for coronavirus, an NGS test for respiratory infections, to assist physicians in screening patients with pneumonia and other respiratory diseases.

The market leader, Illumina, has launched the Illumina Propel Certification Program (CSPro) to establish a partnership between the company and laboratories. In July 2019, GENEWIZ scientists are committed to assisting in identifying the NGS solution for the projects. The NeXT Dx Test was launched by Personalis, Inc. to assist oncologists in identifying new therapy and clinical trial choices for people with cancer. The Personalis NeXT Dx Check is among the first cancer diagnostic platforms to profile nearly 20,000 genes in both the tumor exome and transcriptome, offering a complete genomic result in great that goes beyond existing cancer diagnosing panels that focus on a few dozen genes. Advanced analytics are included in the Personalis NeXT Dx Test, which provides a diagnostic report on genetic changes in medically essential cancer genes and emerging immunotherapy synthesis biomarkers of medical value. The clinical report also includes immunotherapy-related indicators such as microsatellite instability (MSI) status and tumor mutational burden (TMB) in January 2020.

Most service providers employ platforms from Illumina, PacBio, and Oxford Nanopore Technologies. They use these technologies in-house to serve their customers by delivering projects with high quality and within the shortest timelines. There are also some products that are no longer commercially available, such as products from 454 Life Sciences.

Some products are still under development, such as the SOLiD platform and Ion Torrent’s semiconductor sequencing. However, these products are not as widely accepted as those offered by Illumina. Data generated through genome sequencing is considered an efficient diagnostic and prognostic tool to aid clinicians in identifying specific characteristics in each patient. This, in turn, helps in offering personalized therapies to patients, thus improving patient outcomes. This factor is anticipated to fuel the demand for NGS-based diagnostics in the coming years.

Next-generation sequencing is an effective and impartial technique to recognize new coronavirus variants and other pathogens without foreknowledge of the organism. Sequencing allowed the globe to promptly recognize SARS-CoV-2 and advance diagnostic tests and extra tools for epidemic management. Continued genomic sequencing holdup the tracking of the disease’s spread and evolution of the virus. Hastened integration of genomic sequencing in the direction of the exercise of the global health community is essential to prepare for future threats.

Some of the major issues faced by end-users in the market are implementing large-scale data analysis and analytical challenges while conducting single-cell sequencing. Nevertheless, manufacturers are constantly strategizing their R&D in order to address these challenges and augment the scope of NGS services.

SARS-CoV-2 generates a wide range of clinical symptoms, from mild to severe. In order to be effective, disease management and prevention strategies must account for all kinds of transmission, including asymptomatic and presymptomatic individuals. Other infections may also impact the development of Covid-19; having awareness of these could help identify individuals who are at a higher risk of developing severe sickness. Illumina has developed two approaches for decoding SARS-CoV-2 from samples collected to aid researchers in their efforts: one focused on shotgun metagenomics and the other on target enrichment.

Service Type Insights

Human genome sequencing held the largest revenue share of over 30.40% in 2022. It is the most widely offered and practiced segment. The presence of a substantial number of key players in this segment is contributing to the segment's growth. Companies operating in this segment include BGI-Complete Genomics, Veritas Genetics, Macrogen, Full genomes.com, Novogene, SureGenomics, Partners LMM, Genos, BGI, 14 labs, Gene-by-Gene, and Personalis.

Gene regulation services are estimated to exhibit a lucrative CAGR of 24.27% during the forecast period. It covers small RNA sequencing, ChIP sequencing, lncRNA seq, isoform sequencing, and bisulfite sequencing. Various advantages offered by RNA sequencing have enabled the replacement of microarrays in many applications. It is expected that the application of RNA-seq will continue to expand over the coming years, thus driving the segment at a rapid pace.

Workflow Insights

The sequencing segment accounted for the largest revenue share of over 54.79% in 2022 owing to the high cost of instruments. Companies have been offering a broad portfolio for a wide spectrum of sample types. For example, Novogene Corporation conducts sequencing and generates publication-ready data for the success of research programs of customers from various domains such as agricultural, biomedical, and environmental science.

NGS services offered in the market include various aspects of sequencing, ranging from consultation to final result derivation. Some companies offer thorough protocol while others are engaged in offering standalone services to customers that have a lab equipped with NGS facilities but seek to outsource some portions of NGS workflow.

Analysis of NGS data poses great challenges for researchers engaged in conducting sequencing protocols for their projects. This is because a systematic and intelligent methodology is required for efficient processing and interpretation of data. As there is an increase in the number of sequenced reads per run, the subsequent growth in demand for robust data management solutions is projected.

End-use Insights

Universities and other research entities held the largest revenue share of over 53.57% in 2022 owing to the fact that NGS is primarily being used for research purposes. Research entities are utilizing sequencing services to improve the outcomes of their projects and gain in-depth insights into the mechanism of disease occurrence.

However, with the rising trend of clinical NGS, hospitals, and clinics are projected to witness the fastest CAGR of 23.93% over the forecast period. This trend in clinical settings is marked by the growing implementation of NGS technology for the detection of fetal aneuploidies through analyzing fetal cfDNA obtained from a single maternal blood draw in prenatal diagnostic procedures.

In addition to this, the liquid biopsy NGS panel is receiving great attention among healthcare entities, including clinics and hospitals, for cancer management. The definition of a proper regulatory framework for the use of NGS in clinical settings is expected to support the projected growth.

Regional Insights

North America accounted for the largest revenue share of 46.14% in 2022 owing to factors such as a well-established informatics network, effective regulatory guidelines pertaining to approval and usage of genetic tests, and the presence of market leaders in the region. In addition, the growing number of FDA-approved genomic tests in the U.S. is anticipated to drive the regional market throughout the forecast period.

The Asia Pacific market is expected to serve as a lucrative source of revenue over the forecast period. The growing attention of government bodies toward the maintenance of public health and consequent investments in the development of advanced diagnostic approaches are anticipated to spur the uptake of seq-services in the region.

Furthermore, domestic players in Asian countries are involved in forming mutually beneficial partnerships among each other as well as with global companies for the establishment of NGS service providers. For instance, in November 2021, Novogene stated during the 44th Annual Gathering of Molecular Biological Society of Japan (MSBJ) in Japan that they will be launching single-cell sequencing services specifically for their Japanese customers. Novogene Japan K.K. will provide on-site service to assist clients in optimizing their single-cell planning with this new service. It gives researchers the freedom to enjoy a dependable and seamless end-to-end sequencing solution for their single-cell research, starting with research design projects, cell barcoding, library creation, sequencing, and bioinformatic analysis.

Key Companies & Market Share Insights

Key participants have collaborated with several platform manufacturers to receive a license for the use of NGS at their centers. Furthermore, manufacturers are undertaking various marketing strategies to capitalize on avenues in untapped markets such as India, Brazil, and China.

For instance, in November 2021, Illumina and Genetic Alliance announced iHope Genetic Program aspires to provide WGS (whole-genome sequencing) access to thousands of people suffering from genetic illness around the world. The majority of iHope Genetic Health's initiatives will be centered on areas of the globe in need beyond the U.S., with over one-third of Illumina's endorse being devoted to patients in Africa. This will help accelerate start-up operations and upgrade existing operations in terms of sequencing volume and efficiency. Some prominent players in the global next-generation sequencing services market include:

• Quest Diagnostics Incorporated

• ARUP Laboratories

• Applied Biological Materials, Inc. (abm)

• Novogene Co, Ltd.

• Azenta Life Sciences (GENEWIZ)

• NanoString

• Illumina, Inc.

• PacBio

• Veritas

• BGI (Beijing Genomics Institute)

• Gene by Gene Ltd.

• Lucigen Corporation

Next-generation Sequencing Services Market Report Scope

Global Next-generation Sequencing Services Market Segmentation

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 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global next-generation sequencing services market report on the basis of service type, workflow, end-use, and region:

• Service Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Human Genome Sequencing Services

  • Single Cell Sequencing Services

  • Microbial Genome-based Sequencing Services

  • Gene Regulation Services

    • Small RNA Sequencing

    • ChIP Sequencing

    • Other Gene Regulation-based Services

  • Animal & Plant Sequencing Services

  • Other Sequencing Services

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

  • Pre-sequencing

  • Sequencing

  • Data Analysis

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

  • Universities & Other Research Entities

  • Hospitals & Clinics

  • Pharma & Biotech Entities

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy 

    • Spain

    • Denmark

    • Sweden

    • Norway

    • Switzerland

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Thailand

    • South Korea

    • Singapore

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait