Next-Generation Sequencing Market

Next-Generation Sequencing Market Size (2023 to 2028)

As per our report, the global NGS market size is estimated to grow to USD 12.03 billion by 2028 from USD 5.11 billion in 2023, growing at a CAGR of 18.66% during the forecast period.

Next-Generation Sequencing Market Share Insights:

• Based on product, the services segment led the market and held 40% of the global market share in 2022.
• Based on technology, the targeted re-sequencing segment led the market and is expected to grow at the highest CAGR from 2023 to 2028.
• North America was the biggest regional segment worldwide in 2022, occupying a 35% share.

The next-generation sequencing (NGS) approach uses massively parallel processing to form DNA sequencing. There are two methods to prepare the templates, namely amplified templates originating from single molecules and single DNA molecule templates. NGS plays a pivotal role in clinical practice by improving diagnosis procedures. This technique is mainly used in discovering disease-causing genes. It takes a single day to complete the entire human genome with this technique.

MARKET DRIVERS:

An increasing number of advancements in genomics research is propelling the NGS market growth. Genomics research has experienced numerous significant developments and NGS has played a vital role in facilitating this progress. The speed and accuracy of sequencing entire genomes have been improved dramatically through next-generation sequencing. The next-generation sequencing technology plays a major role in analyzing vast amounts of genetic data and identifying the causes behind various diseases. In addition, the involvement of next-generation sequencing in developing personalized medicine is on the rise. Researchers and healthcare providers have been using next-generation sequencing to analyze genetic mutations to understand the risk of genetic diseases and develop personalized therapies accordingly.

The growing patient population suffering from genetic diseases fuels the growth rate of the NGS market. In recent years, next-generation sequencing technology has been increasingly used to identify the genetic variations associated with genetic diseases. In addition, NGS technology has been playing a key role in diagnosing and treating genetic diseases. The population suffering from genetic disorders is growing continuously, and WHO says millions of people are affected by genetic diseases worldwide. An estimated 400 million people worldwide were affected by rare diseases in 2019, most of them because of genetic mutations. In the U.S., an estimated 30 million people suffer from genetic diseases. The National Institute of Health (NIH) says an estimated more than 6000 rare genetic diseases have been identified to date and the count is increasing. Likewise, the growing number of genetic diseases and the increasing population suffering from these diseases is expected to result in the growing usage of next-generation sequencing technology in the diagnosis and treatment procedures and boost the market’s growth rate.

The decreasing costs of sequencing drive the NGS market growth. The cost of sequencing has been continuously decreasing over the last few years and making NGS affordable and accessible to researchers and clinicians and the same resulted in the rising adoption of NGS technology in clinical settings. This trend is expected to fuel in the coming years and result in the market’s growth rate. In addition, factors such as increasing demand for personalized medicine, rapid adoption of technological developments in NGS platforms and software tools and rising usage of NGS in agricultural and animal genomics accelerate the market growth. Furthermore, the growing adoption of NGS in clinical diagnostics, increasing usage of NIPT, rising usage of NGS in microbiology for pathogen detection and identification, and studying microbial communities propel the NGS market growth. Furthermore, factors such as the growing cancer patient population, increasing investments for the R&D of advanced and innovative NGS solutions by the market participants and research institutes, the growing need to improve diagnostic procedures and to ensure quality treatment, an increasing number of studies on genomes are leveling up the growth rate of this next-generation sequencing market.

MARKET RESTRAINTS:

High costs associated with the installation and maintenance of the equipment required for NGS in laboratories are one of the key factors hampering the market growth. Lack of standardization is another significant attribute limiting the demand for the NGS and the market’s growth rate. The interpretation of the data's DNA sequence, acceleration of the data analysis, and shortage in the data storage generated in the bottleneck are some other key factors inhibiting the growth rate of the next-generation sequencing market. In addition, there are serious issues, such as data originating from the various datasets usage, which must be addressed. Some DNA, like short fragments, should be analyzed and compared with the reference databases, which is against but efficient and fast. To face these many challenges, many solutions were proposed by commercial software and industries, but many hardships still exist. Updating the data to the central or disturbed data storage and analysis services by the clients' computers and the data parallelization using the grid or cloud solutions further hinder the NGS market growth.

Impact of COVID-19 on the global NGS market:

The COVID-19 pandemic has favorably impacted the next-generation sequencing market growth. During the COVID-19 pandemic, next-generation sequencing testing has grown significantly as it has been used as an effective tool for detecting viruses in the human body. During the COVID-19 pandemic, several companies have developed NGS-based diagnostic tests to detect COVID-19. In addition, the NGS technology has been increasingly used by researchers in drug discovery activities to develop treatments for the COVID-19 virus. Furthermore, the usage of telemedicine has been fuelled during the COVID-19 pandemic and boosted the usage of NGS testing. Likewise, the COVID-19 pandemic has favored the growth of the next-generation testing market. On the other hand, many research projects that rely on NGS were kept on hold during the COVID-19 pandemic and the COVID-19 pandemic has severely disrupted the global supply chain; these factors have reduced the demand levels for NGS instruments and reagents and resulting slightly negatively on the NGS market growth. Overall, the impact of the COVID-19 pandemic on the global next-generation sequencing market has been positive.

REPORT COVERAGE:

This research report on the global next-generation sequencing market has been segmented and sub-segmented based on the product, technology, application, and region.

Next-Generation Sequencing Market - By Product:

• Software
• Services

Based on the product, the services segment is predicted to occupy the major share of the worldwide NGS market during the forecast period by growing fastest. Factors such as the growing patient population suffering from genetic diseases, increasing demand for sequence-based products, rising need for data management services to store large amounts of data and favorable government policies majorly drive the segmental growth. In addition, the growing demand for personalized medicine, the increasing need for NGS-based diagnostics and the rising number of NGS service providers propels the segment’s growth rate. Furthermore, the declining cost of NGS services and increasing awareness among end-users about the advantages of NGS accelerates the growth rate of the segment.

On the other hand, the software segment is predicted to register a promising CAGR during the forecast period. Factors such as the growing need for efficient data analysis and interpretation, rising adoption of NGS technology in research and clinical applications and an increasing number of advancements in NGS data analysis software boost the segment's growth rate. The segmental growth is further driven by the rising integration of artificial intelligence (AI) and machine learning (ML) technologies in NGS data analysis software.

Next-Generation Sequencing Market - By Technology:

• Targeted Re-Sequencing
• Whole Genome Sequencing
• De Novo Sequencing
• Exome Sequencing
• RNA-Seq
• ChIP-Seq
• Methyl-Seq

Based on the technology, the targeted re-sequencing segment is predicted to account for the largest share of the worldwide NGS market during the forecast period. It is expected to show the highest CAGR. The growing usage of targeted re-sequencing in oncology research is one of the key factors driving segmental growth. Targeted re-sequencing has been increasingly used to study the cancer genome as it can help researchers analyze the cancer genome efficiently and effectively. This trend is predicted to continue in the coming years and boost segmental growth. In addition, the growing number of advancements in targeted re-sequencing technologies and increasing adoption of targeted re-sequencing in clinical applications accelerate the segment’s growth rate.

On the other hand, the whole genome sequencing segment is projected to showcase a healthy growth rate over the forthcoming years. The growing usage of whole genome sequencing in research and clinical applications, increasing technological developments in WGS and benefits of whole genome sequencing such as improved accuracy, speed, and cost-effectiveness drive the segmental growth. In addition, the rising usage of WGS in the development of personalized medicine favors the segment's growth rate.

Next-Generation Sequencing Market - By Application:

• Diagnostics
• Drug Discovery
• Biomarker Discovery
• Personalized Medicine
• Agriculture and Animals Research

Based on the application, the diagnostics segment accounted for the largest share of the global NGS market in 2022 and is estimated to repeat the same trend throughout the forecast period. The growing cancer patient population, and favorable reimbursement policies from the government towards NGS-based tests in the U.S. contribute to the segmental growth.

On the other hand, the personalized medicine segment is predicted to witness a prominent CAGR during the forecast period. The growing awareness regarding the benefits of NGS, increasing demand for personalized therapies, and early detection of disorders enhance segmental growth.

Next-Generation Sequencing Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

Geographically, the North American next-generation sequencing market accounted for the largest share of the worldwide market in 2022 and is expected to continue the domination of North America in the global market throughout the forecast period. The growth of the North American market is majorly driven by the increasing patient population suffering from chronic diseases, rising demand for personalized medicine and personalized diagnostics, favorable government initiatives and funding for genomics R&D. In addition, the presence of notable NGS companies and research institutions, the presence of skilled professionals and advanced medical infrastructure further fuels the growth rate of the North American market. As a result, the U.S. NGS market held the largest share of the North American market, followed by Canada in 2022.

The European next-generation sequencing market held the second-largest worldwide market share in 2022 and is expected to register a notable CAGR during the forecast period. Factors such as the presence of several biotech and pharmaceutical companies, growing adoption of personalized medicine, and rising demand for NGS-based diagnostics propel the European market growth. In addition, the growing investments from the European governments for the research and developmental activities of genomics is another key factor that boosts the European NGS market growth. As a result, the UK NGS market had the major share of the European market, followed by France and Germany and the same trend is expected to continue during the forecast period.

The APAC NGS market is projected to showcase the fastest CAGR during the forecast period. The growth of the APAC market is attributed to the rising adoption of NGS technologies in research and clinical settings, increasing investments by governmental and non-governmental organizations in favor of genomics and the growing patient population in developing countries promoting the NGS market growth in APAC. China is expected to grow at the highest CAGR during the forecast period in the APAC region. In addition, the presence of noteworthy developments in China and Japan to integrate new technologies and the development of healthcare, R&D, and clinical development frameworks of developing economies such as India and Australia have led the Asia Pacific market to witness rewarding growth throughout the forecast period.

The Latin American next-generation sequencing market accounted for a considerable share of the worldwide market in 2022 and is expected to grow steadily in the coming years. The growing number of investments by governmental organizations in the healthcare infrastructure and increasing adoption of advanced sequencing technologies primarily drive the NGS market in Latin America. As a result, Brazil and Mexico are predicted to occupy the leading share of the Latin American market during the forecast period.

The MEA NGS market is predicted to capture a moderate global market share during the forecast period.

KEY MARKET PARTICIPANTS:

Illumina, Thermo Fisher Scientific, Pacific Biosciences, Macrogen Inc., Partek Inc., Genomatix Software GmbH, Perkin Elmer Inc., GATC Biotech Ag, Agilent Technologies Inc., Biomatters Ltd., BGI (Beijing Genomics Institute), Oxford Nanopore Technologies Ltd., DNASTAR Inc., Knome Inc., and Qiagen N.V. are some of the notable players in the global next-generation sequencing market.

RECENT DEVELOPMENTS IN THE NGS MARKET:

• In July 2020, Illumina introduced software for whole-genome analysis to examine rare diseases. This software is helped in making it comfortable to identify the genetic elements behind rare diseases.
• In July 2019, DNASTAR launched Lasergene16, which involves many improvements for analyzing DNA or RNA and protein sequence data and advancements in analyzing protein structures.
• In July 2020, Thermo Fisher Scientific partnered with First Genetics JCS to promote NGS-based diagnostics assays in Russia. This agreement allows the market for reproductive health testing and cancer diagnostics. 
• In April 2019, food and drug administration guidelines were released to design, develop, and validate the NGS tests. These guidelines help companies detect specific variants in a clinical setting with high accuracy and support innovative tools in NGS-based tests.