The global short-read sequencing market size was valued at USD 8.80 billion in 2018 and is expected to expand at a CAGR of 11.32% during the forecast period. Accelerated demand for personalized medicine and companion diagnostics is anticipated to fuel the growth. Short reads are generated massively in a single run and the technology is easy to use and inexpensive. These advantages are projected to further fuel growth.
The advent of targeted cancer therapeutics has significantly enhanced the adoption of sequencing technologies for companion diagnostics. Next-generation Sequencing (NGS)-based methods are considered to be an ideal choice for targeted therapies for precision medicine, attributed to the competence of NGS platforms for measuring different biomarkers and mapping genomic sequences in a single test.
In addition, a decrease in the cost of genome sequencing is expected to boost the market revenue. According to the National Human Genome Research Institute (NHGRI), the costs for genome sequencing are declining to a substantial extent. The cost per Mb has reduced from USD 5,292.39 per Mb in 2001 to USD 0.014per Mb in 2019.
Initiatives undertaken by various key market players to gain greater market share are expected to drive the market in the near future. For instance, in March 2019, Illumina entered into a partnership with Boai NKY Medical Holdings, a China-based producer of polyvinylpyrrolidone, to develop NGS-based systems for in-vitro diagnosis of hereditary diseases. The novel systems would be developed by using NKY's library prep kits and analysis software and Illumina’s MiniSeq system.
Next-generation sequencing accounted for the largest revenue share of the short-read sequencing market in 2018, as this technology serves as a rapid and cost-effective method for the detection of genetic abnormalities. Moreover, the high throughput nature of NGS to sequence millions of genome fragments simultaneously in each run is projected to drive the adoption of NGS-based protocols.
On the other hand, Sanger sequencing method is ideal for the analysis of a single nucleotide fragment at a time. Therefore, it is a cost-effective and fast method when the number of targets is low (usually 1 to 20). However, low sensitivity and scalability of Sanger methods compared to NGS impedes the segment growth.
The consumables are to be procured at regular intervals by end users to carry out genome analysis as a consequence of higher consumption in multiple sequence runs. This has resulted in the substantial share of the segment in 2018. Instruments like genetic analyzers are used to sequence DNA or its fragments for a wide range of applications such as genotyping, Sanger sequencing, methylation, mutation analyses, and STR and SNP profiling. The advent of automated instruments has enhanced the efficiency of several genome analysis platforms available in the market.
The services segment is expected to register the fastest CAGR during the forecast period. Key players, such as Illumina and Roche offer a wide range of NGS-based short-read sequencing services at special prices to the academic researchers, thereby boosting the research in this sector.
The oncology segment accounted for a major market share in 2018 and is expected to maintain its dominance throughout the forecast period. Advanced platforms have enhanced the efficacy of sequencing of cancer genes from multiple genome sets. This allows medical specialists to understand the genetic makeup of tumor cells and advice therapeutics accordingly.
Companies such as Foundation Medicine provide actionable pan-cancer panels for NGS-based targeted sequencing that enable physicians to personalize treatment and select the most appropriate therapy based on the tumor genotype, while also enabling targeted drug development. Similarly, Myriad Genetics offers genetic testing through its myRisk product to identify people who may be at a higher risk of developing certain cancers.
Sequencing accounted for the largest revenue share of the market for short-read sequencing in 2018 as it the most important phase of the complete workflow. The penetration of the market participants in this step of the workflow adds to the revenue generated from this step.
High competition in the market has led to the launch of the novel and portable platforms that can be easily used to sequence DNA. These platforms include MiSeq, iSeq, MiniSeq, and NovaSeq, series from Illumina and IonS5, Ion Proton, and PGM from Thermo Fisher Scientific. These companies engage in research endeavors to reduce the impact of challenges associated with the application of short read protocols.
Academic research held the largest market share in 2018. Rise in research projects across the academic institutes owing to the availability of data analysis platforms at special licensing prices to the universities is expected to drive the growth. The presence of several research grants to these institutes contributes to the larger revenue generation from these end-users.
Higher usage of sequencing methodologies in research, academic workshops, and on-site bioinformatics courses offered by universities is further expected to enhance the share of the academic research segment. On the other hand, the demand for advanced technologies for clinical diagnostics is regarded as a high impact rendering driver for the growth of the clinical research segment.
In 2018, North America led the market for short-read sequencing with a share of 40.0%, with Europe following closely. Availability of a regulatory environment supporting the development of genomics is the key factor contributing to the estimated revenue share. In addition, presence of the key players, such as Illumina and Roche with a well-established distribution network across the region further strengthens the regional market growth.
Asia Pacific is anticipated to witness the fastest growth in the forthcoming years owing to the changing reimbursement framework in the developing economies of Asia. Penetration of dominant players in emerging markets through acquisitions and collaborative agreements is anticipated to support the projected growth rate.
Key players operating in this market include Thermo Fisher Scientific Inc.; Hoffmann-La Roche AG; Qiagen N.V.; Illumina, Inc.; Genewiz; Genscript Biotech Corporation; 10x Genomics; Macrogen, Inc.; Agilent Technologies; BGI Genomics; Fasteris SA; and GE healthcare
These companies are focused on novel product launches, acquisition/collaboration with other companies, and expansions of their current businesses in lucrative geographical regions. For instance, in January 2018, Thermo Fisher Scientific signed a commercial agreement with Illumina for the sale of the former’s Ion AmpliSeq technology to be used for research purposes.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD Million & CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Latin America, MEA
U.S., Canada, Germany, U.K., Japan, China, Brazil, South Africa
Revenue forecast, competitive landscape, growth factors and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest market trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research segmented the global short-read sequencing market report on the basis of technology, product, application, workflow, end-use, and region:
Technology Outlook (Revenue, USD Million, 2014 - 2025)
Product Outlook (Revenue, USD Million, 2014 - 2025)
Application Outlook (Revenue, USD Million, 2014 - 2025)
HLA Typing/Immune System Monitoring
Metagenomics, Epidemiology & Drug Development
Agrigenomics & Forensics
Workflow Outlook (Revenue, USD Million, 2014 - 2025)
End Use Outlook (Revenue, USD Million, 2014 - 2025)
Hospitals & Clinics
Pharma & Biotech Entities
Regional Outlook (Revenue, USD Million, 2014 - 2025)
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