U.S. Next Generation Sequencing Market Size, Share & Trends Analysis Report By Technology (Whole Exome Sequencing, Targeted Sequencing & Resequencing), By Product (Platforms, Consumables), By Application, By Workflow, By End-use, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The U.S. next generation sequencing market size was estimated at USD 3.39 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 20.14% from 2024 to 2030. The growth is attributed to factors such as advancements in technology, increasing demand for personalized medicine, and the rise in the prevalence of chronic diseases, such as cancer, and the need for early diagnosis. The increasing number of joint ventures, partnerships amongst market players, and rising investment are also expected to have a positive impact on market growth. For instance, in September 2023, Neuron23, a U.S.-based clinical-stage biotech company, partnered with QIAGEN to create a complementary diagnostic tool for Neuron23's LRRK2 inhibitor, which is intended to treat Parkinson's disease. The assay for this collaboration is integrated into an next generation sequencing (NGS) workflow that uses QIAGEN's Sample to Insight capabilities.

Government funding in the U.S. through various programs has played a significant role in boosting the NGS market. The CDC allocates funding for public health initiatives, including genomic surveillance programs. In September 2022, the American Rescue Plan allocated a sum of USD 1.7 billion to support ongoing and prospective genomic surveillance efforts. Within this funding, USD 400 million is allocated for innovation, with USD 90 million of this allocation dedicated to sustaining the Pathogen Genomics Centers of Excellence network over the subsequent five years. CDC funding supports the adoption of NGS in public health laboratories, enhancing their capacity for pathogen detection, characterization, and response.

In addition, the NIH provides substantial funding for biomedical research, including genomics and NGS-related projects. Researchers and institutions receiving NIH grants utilize NGS technologies to study various diseases, understand genetic factors, and develop personalized medicine approaches. This funding supports basic research and translational efforts, driving innovation and technology advancement in the NGS field. In 2018, the Somatic Cell Genome Editing program, initiated by the NIH, aims to eliminate obstacles restricting the clinical application of genome editing methodologies for treating diverse disorders. This initiative receives funding through the NIH Common Fund.

Furthermore, the growing prevalence of cancer in the U.S. is expected to support the NGS market growth. The American Cancer Society predicts that in the year 2024, there will be 2,001,140 new cancer cases and 611,720 cancer-related deaths in the U.S. NGS is extensively utilized in oncology for tumor profiling, identifying genetic mutations, and predicting treatment responses. Cancer genomics, including the molecular characterization of tumors and the development of targeted therapies, is a major driver of the NGS market.

Market Concentration & Characteristics

The NGS market continually evolves with innovations in sequencing platforms, sample preparation methods, and bioinformatics tools. Companies invest heavily in research and development to enhance sequencing accuracy, throughput, and cost-effectiveness. Emerging technologies such as single-molecule sequencing, nanopore sequencing, and spatial transcriptomics contribute to expanding the capabilities of NGS.

In recent years, there has been a significant increase in the level of M&A (mergers and acquisitions) activities in the market. For instance, in January 2023, QIAGEN acquired Verogen, a company in the use of NGS technologies for human identification and forensic investigation. Through the acquisition, the company expands its product portfolio with Verogen's NGS tools and professional services.

Regulations have a significant impact on the NGS market in the U.S. The U.S. Food and Drug Administration (FDA) regulates the use of NGS technologies in clinical applications, such as diagnostic testing and personalized medicine. The FDA has issued guidance documents that outline the regulatory requirements for NGS-based diagnostic tests, including the need for analytical and clinical validation. These regulations ensure that NGS-based tests are accurate, reliable, and safe for patient use.

Product expansion in the U.S. NGS market is a favorable strategy for companies looking to capitalize on the growing demand for genomic testing. By introducing new and innovative products, companies can differentiate themselves from competitors and capture market share in this rapidly evolving industry.

Technology Insights

The targeted sequencing and resequencing segment held the largest revenue share of 71.14% in 2023 and is expected to witness the fastest CAGR over the forecast period. Targeted sequencing and resequencing technologies are mainly adopted for clinical applications, such as cancer diagnostics, prenatal testing, and genetic disease screening. The ability to analyze specific genomic areas makes these technologies accurately and efficiently well-suited for clinical use, driving their widespread adoption in the healthcare industry. In addition, advances in targeted sequencing and resequencing technologies have led to increased sequencing throughput, allowing researchers to analyze larger numbers of samples simultaneously. This increased throughput enables more efficient study designs and accelerates the pace of research.

The whole genome sequencing (WGS) segment is anticipated to witness significant growth by 2030 due to the increasing adoption of precision medicine and personalized healthcare. With advancements in WGS technology, it has become possible to sequence an individual's entire genome, providing valuable insights into genetic variations and potential disease risks. This has led to the development of targeted therapies and personalized treatment plans, which can improve patient outcomes and reduce healthcare costs. Additionally, the decreasing costs of WGS and the increasing availability of sequencing services have made it more accessible to researchers and clinicians, further driving the growth of this segment.

Product Insights

The consumables segment accounted for the larger revenue share in 2023 and it is anticipated to grow at the fastest CAGR of 21.05% over the forecast period. The dominance can be attributed to the high demand for sequencing reagents, kits, and other consumables required for NGS procedures. As NGS technologies are more widely adopted in research and clinical settings, the demand for consumables is expected to continue to increase. In addition, advancements in sequencing technologies are resulting in new applications and workflows, which is further driving the demand for new and innovative consumables.

The platforms segment is expected to witness significant growth from 2024 to 2030, due to the increasing demand for better and more advanced sequencing platforms. Several companies are investing heavily in the development of new and innovative platforms that can provide faster and more accurate sequencing results. For instance, in April 2022, Thermo Fisher Scientific introduced the Ion Torrent Genexus Dx Integrated Sequencer. It is a CE-IVD marked and automated NGS platform designed to provide results within a single day. These trends are expected to continue in the coming years, driving further growth in the platform product segment.

Workflow Insights

In 2023, the sequencing segment held the largest market share of 57.60%. Sequencing workflow involves a comprehensive process of sequencing, which is critical for obtaining accurate and reliable results. It includes numerous steps, such as sample preparation, sequencing, and data analysis. The market for sequencing workflow is expected to grow further in the coming years as the demand for NGS-based research and clinical applications continues to increase.

The NGS data analysis segment is expected to grow at the highest CAGR over the forecast period, due to the increasing demand for efficient and accurate analysis of genomic data. With the growing adoption of NGS technology in various applications such as drug discovery, clinical diagnostics, and personalized medicine, the demand for NGS data analysis is expected to rise. Additionally, the availability of advanced software and tools for NGS data analysis is also contributing to the growth of this segment.

Application Insights

In 2023, the oncology segment held the largest market share of 26.67%, due to the increasing prevalence of cancer in the country. NGS technology has revolutionized cancer diagnosis and treatment by allowing for more accurate and comprehensive genomic analysis of tumors, leading to personalized and targeted therapies. Additionally, ongoing research and development in the field of oncology is driving the demand for NGS applications in this area.

The consumer genomics segment is expected to grow at the highest CAGR of 22.77% during the forecast period. There is a growing interest among consumers in learning about their genetic makeup, ancestry, and predisposition to certain health conditions. Direct-to-consumer (DTC) genetic testing companies offer affordable and convenient NGS-based DNA testing kits that provide consumers with insights into their genetic traits, ancestry, and potential health risks. This increasing consumer interest is expected to drive the demand for consumer genomics applications. Technological advancements in NGS have led to a significant reduction in the cost of sequencing, making it more accessible to consumers. As the cost of sequencing continues to decline and the efficiency of NGS platforms improves, consumer genomics companies can offer more comprehensive and affordable genetic testing services, further fueling market growth.

End-use Insights

In 2023, academic research held the largest market share of 50.49%. Academic institutions are at the forefront of genomic research and innovation. Researchers in academia are driven by interest and the purpose of knowledge, leading them to explore diverse areas of genomics using NGS technology. Their pioneering work drives the development of new sequencing methodologies, data analysis techniques, and applications, shaping the direction of the entire field. Government funding agencies, private foundations, and research grants often support academic research. These funding sources provide financial support for purchasing NGS equipment, reagents, and computational resources necessary for conducting genomic studies. The availability of funding enables academic researchers to invest in NGS technology and infrastructure, contributing to the growth of the market.

The clinical research segment is expected to grow at the highest CAGR of 22.85% from 2024 to 2030. Regulatory agencies such as the U.S. Food and Drug Administration (FDA) have approved several NGS-based tests and assays for clinical use, particularly in oncology and infectious diseases. The establishment of regulatory frameworks and guidelines for NGS-based diagnostics has increased confidence in the reliability and accuracy of genomic testing, facilitating the adoption of NGS technology in clinical research. As regulatory approvals for NGS-based tests continue to expand across different therapeutic areas, the demand for NGS in clinical research is expected to grow.

Key U.S. Next Generation Sequencing Company Insights

The key players operating in the U.S. Next Generation Sequencing (NGS) market are adopting product approval to increase the reach of their products in the market and improve the availability of their products in diverse geographical areas, along with expansion as a strategy to enhance production/research activities. In addition, several market players are acquiring smaller players to strengthen their market position. This strategy enables companies to increase their capabilities, expand their product portfolios, and improve their competencies.

Recent Developments

• In January 2024, Illumina collaborated with Janssen Research & Development, LLC. This collaboration aims to develop a molecular residual disease assay. The assay is a WGS multi-cancer research solution designed to detect circulating tumor DNA and improve our understanding of the persistence or recurrence of disease after clinical intervention.

• In May 2023, Thermo Fisher Scientific Inc. and Pfizer partnered to expand access to next-generation sequencing testing for lung and breast cancer patients in over 30 countries across Africa, Latin America, Asia, and the Middle East. By enabling local access to NGS testing, the collaboration seeks to expedite the analysis of relevant genes, enabling healthcare professionals to make more informed decisions regarding individualized therapy for patients.

• In April 2023, Agilent Technologies Inc. introduced the NGS assay for comprehensive genomic profiling for advancing precision oncology.

U.S. Next Generation Sequencing Report Scope

U.S. Next Generation Sequencing Market Report Segmentation

This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the U.S. next generation sequencing market report based on technology, product, application, workflow, and end-use:

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

  • Whole Genome Sequencing

  • Whole Exome Sequencing

  • Targeted Sequencing & Resequencing

    • DNA-based

    • RNA-based

  • Others

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

  • Platforms

    • Sequencing

    • Data Analysis

  • Consumables

    • Sample Preparation

    • Target Enrichment

    • Others

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

  • Oncology

    • Diagnostics and Screening

      • Oncology Screening

        • Sporadic Cancer

        • Inherited Cancer

      • Companion Diagnostics

      • Other Diagnostics

    • Research Studies

  • Clinical Investigation

    • Infectious Diseases

    • Inherited Diseases

    • Idiopathic Diseases

    • Non-Communicable/Other Diseases

  • Reproductive Health

    • NIPT

      • Aneuploidy

      • Microdeletions

    • PGT

    • Newborn Genetic Screening

    • Single Gene Analysis

  • HLA Typing/Immune System Monitoring

  • Metagenomics, Epidemiology & Drug Development

  • Agrigenomics & Forensics

  • Consumer Genomics

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

  • Pre-sequencing

    • Library Preparation

      • NGS Library Preparation Kits

      • Semi-automated Library Preparation

      • Automated Library Preparation

    • Others

  • Sequencing

  • NGS Data Analysis

    • NGS Primary Data Analysis

    • NGS Secondary Data Analysis

    • NGS Tertiary Data Analysis

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

  • Academic Research

  • Clinical Research

  • Hospitals & Clinics

  • Pharma & Biotech Entities

  • Other Users