Next-Generation Sequencing Market

Next-Generation Sequencing Market Synopsis

Next-Generation Sequencing Market Size Was Valued at USD 9.98 Billion in 2023, and is Projected to Reach USD 60.2 Billion by 2032, Growing at a CAGR of 22.1% From 2024-2032.

The Next-Generation Sequencing (NGS) market can be defined as the portion of the bio and health care businesses, companies and organizations that are aimed at the application of tests and techniques based on high through put sequencing system technologies. These technologies make it possible to acquire vast and detailed data of the DNA and RNA and understanding genomics, personalized treatment, diagnostics, among other fields. It is applied in genomic researches and sequencing, diagnostics, in development of new drugs, in agriculture because of its high speed, scope and relatively low cost compared with other techniques of sequencing.

 Next Generation Sequencing or NGS is one of the massive transformations in the field of genomics and molecular biology. For a long time, NGS has transited from being regarded as a specialized genetics tool to becoming an essential tool used in the diagnosis of human diseases. By allowing for the sequencing entire genomes in one go, NGS give high resolution data that is very accurate and faster than that given by Sanger sequencing. Sequencing has become cheap through this technology making it easily accessible to everyone while also paving way for precision medicine, pharmaceutical, and agro industries.

The NGS market extends to all the equipment used in the process, such as the machines, reagents, chemicals, software, and services, and therefore it is a complex and fast growing market. Formerly, reagents and instruments are significant for the functioning of sequenced technology while the software solutions allow completing the analyses of the accumulating sequences of data. Owing to the development of a common NGS platform, the requirement of bioinformatics and dedicated software has since upraised further boosting innovation in the same.

Being a comparatively recent technology, the uses of NGS are numerous and diverse. Non-invasive prenatal testing, cancer genomics, infection disease detection and differentiation can also be done using NGS in clinical diagnostics, which means NGS can offer shorter time for diagnoses. As for the drug discovery, NGS is changing the method by offering new opportunities to better target new treatment as well as new biomarkers for diseases routes. Furthermore, NGS work as the driver of phase-III in the development of diagnostics and therapeutics particularly in the area of personalized medicine. The adoption of NGS technologies remains to expand in agricultural research owing to advancement and affordability of high-throughput sequencing platforms particularly in crop breeding and animal production.

The market for NGS is also helped by the increasing availability of big data technologies and the cloud which improves data storage, retrieval, and information exchange. It has been identified that affiliating NGS with artificial intelligence and machine learning is gradually leading to revolutionary sequencing platforms containing enhanced capability to answer complicated genomic queries. It has also been realized that with the maturity of the market, NGS is a requisite tool that applies to several industries, including health, agriculture, environment among others.

Next-Generation Sequencing Market Outlook, 2023 and 2032: Future Outlook

Next-Generation Sequencing Market Trend Analysis

Trend: Growing Demand for Personalized Medicine

The need for personalized medicine is one of the most essential contributors to the appearance of Next-Generation Sequencing technologies. This concept of medicine is oriented on individual characteristics of every person and the treatment has to be adapted to genetic pattern, so the most accurate and detailed information is needed. Clinicians and researchers can now use a relatively inexpensive approach offered by NGS to sequence patient genomes for detecting genetic variations, mutations, and inherited diseases such as cancer, cardiovascular diseases, and rare genetic diseases. Since the concept of healthcare mapping for targeted therapeutic options is becoming a reality, NGS is growing as a vital technique in clinical as well as research studies.

However, the recent upgrade of NGS with artificial intelligence (AI) and the use of machine learning (ML) in personalized medicine is improving on the existing technologies. These technologies assist in the evaluation of intricate genetic information regarding disease prognosis, therapeutic reaction or impact and side effects. Further development of bioinformatics as well as enhancements in the processing of data will only enhance this upward trend with regards to the utilisation of NGS data by the stakeholders in the provision of healthcare. Thus, it is expected that the applications of NGS in personalized medicine will expand in the nearest future, creating opportunities for companies that operates in the genetic sequencing and other related markets.

Opportunity: NGS in Liquid Biopsy for Cancer Detection

There is enormous potential in their opportunities for markets based on the use of NGS, such as liquid biopsies for cancer diagnostics. Liquid biopsy as a minimally invasive approach enhance the detection of circulating cell-free DNA and neoantigens in the blood for cancer diagnosis. In liquid biopsy, NGS technology is vital because it can identify low frequency changes and capture ctDNA or exosomes in the blood sample. This approach provides a less invasive, cost-effective and faster approach to screening for early cancer, response to treatment intervention and identification of minimal residual disease.

Increasingly, cancer detection and monitoring are considered integral for effective individualized treatment and therefore the uptake of liquid biopsy technologies based on NGS will also rise. The possibility of the initial diagnosis, at the same time distinguishing several types of cancer with high sensitivity and specificity only with the aid of a blood test looks promising in the improvement of clinical diagnostics and assessment of cancer related conditions. Also, the increasing focus on immunotherapy and precision oncology should lead to the development of new and expanding uses of liquid biopsies further. The presented idea of NGS-based liquid biopsy is thus promising and presents a vast opportunity for companies developing these technologies.

Driver: Advancements in Bioinformatics and Data Analysis

One of the most influential factors that are influencing Next-Generation Sequencing market is the ever improving tool and data analysis in the bioinformatics arena. Due to the nature of NGS it produces an enormous quantity of data, which makes its analysis with the help of conventional software and algorithmic solutions practically impossible. The advances of further sophisticated bioinformatics tools conceive new opportunities to generate significant information out of the sequenced data for practitioners and researchers. This has improved the various aspects of the NGS applications in clinical diagnoses, new drug discovery, and genomics.

Moreover, cloud platforms which have been seamlessly adopted for big data, make data storage, processing and sharing of the huge data sets produced by NGS platforms fairly manageable. To be more precise, bioinformatics is integrating with AI and, in particular, with ML to enhance the identification of more genetic variants and to estimate risks or tailor treatments. Consequently, as bioinformatics becomes even more developed, it is believed that adoption of NGS solutions will expand into many more fields as well. From this foundation, as well as enhanced data analysis tools and NGS, future researchers will be in a position to provide better answers to biological inquiries and help drive precision medicine.

Restraints: High Initial Investment Costs

Even though there are numerous developments and appreciable impacts of Next-Generation Sequencing, one of the main challenges hindering NGS popularity is the comparatively high cost attributed to the purchase of NGS platforms and necessary devices. Even though the costs per run have steadily continued to come down over the years, the initial costs in getting the sequencers, consumables, and software may be high, and unaffordable for many centers, nascent companies, and some developing economies. These high costs reduce the reach of NGS technologies to the research-centered institutes and experienced healthcare centers.

Further, the requirements for operation and maintenance of the NGS systems as well as the system upgrades can also drive the costs for the new generation sequencing; hiring of specialists and training being some of them. As the costs of sequencing decline there is still remaining the problem of entry costs and necessary infrastructure that may hinder potential users. This restraint may slow down the market growth in some areas especially in part developing nations which may have poor infrastructure. Although these are significant barriers they are sufficient and expected to reduce over-time since innovative technologies are continually improving with time and alternatives cheaper options will be developed.

Next-Generation Sequencing Market Segment Analysis

Next-Generation Sequencing Market Segmented on the basis of product type, technology, application and end user.

By Type

o   Instruments

o   Reagents & Consumables

o   Software

o   Services

By Application

o   Diagnostics

o   Drug Discovery

o   Personalized Medicine

o   Agriculture & Animal Research

o   Others

By Region

o   North America (U.S., Canada, Mexico)

o   Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

o   Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

o   Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

o   Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

o   South America (Brazil, Argentina, Rest of SA)

By Product Type, Instruments segment is expected to dominate the market during the forecast period

By product and service offering, the Next-Generation Sequencing market has been divided into instruments, reagents & consumables, software and services. Numerous devices familiar and unfamiliar to customers are used widely, but there are three key tools employed in NGS technology, namely sequencers, which carry out sequencing of DNA or RNA samples physically. This category comprises reagents that will be used in sample preparation and sequencing processes as well as in the cutting-edge technology system. These segments are also growing at a very fast pace because of the growing popularity of NGS platforms across various care delivery and research systems.

Because the NGS technologies produce large scale data, software solutions play a more vital role in efficient storage and analysis of such datasets. Bioinformatics tools facilitate molecular analysis and provide physician-scientists with rich information to make diagnostics and treatment decisions. The services segment, including sequencing as a service, is also on the rise for the same reasons; it lets small institutions or companies to incorporate NGS without having to pay for hardware and facilities.

By Application, Diagnostics segment expected to held the largest share 

The primary uses that Next-Generation Sequencing has are in diagnostics, drug discovery, individualized treatment, agriculture, and animals among others. Diagnostics is currently the largest segment for NGS especially in the oncology, infectious diseases and genetic disorders. Faster and cheaper processing of genetic data has made it possible to diagnose disease earlier and sometimes even target the correct part of the genome to repair.

In drug discovery process, NGS is realising on genetic variations linked to specific diseases with aim for individualised treatment. Personalized medicine, under which gene therapies are directed by people’s genetic make-up, another area is another area where NGS is increasingly being used. Further, NGS is being adopted across the sectors involved in agriculture and animal related research for increasing crop production, improving breed of livestock and to understand the diversity. The numerous applications of NGS remain ever increasing benefiting both healthcare and research industries.

Next-Generation Sequencing Market Regional Insights

North America is Expected to Dominate the Market Over the Forecast period

North America is the largest market for Next-Generation Sequencing because it invests significantly in biotechnology research, has excellent infrastructure for health care, and possesses proficient research facilities. The USA continues to be an active participant in genomics, where there are tens of universities, biotech companies, and hospitals together with research centers, which use NGS technologies for the investigation of diseases. They are; The regulatory environment in the region also foster the use of NGS The FDA for instance, has given standard procedures for the approval of NGS-based diagnostic tests.

In addition, North America has experienced a meaningful level of government investment in genomics research – a number of large-scale genomics projects have been funded by the NIH in recent years Among them has been the All of Us project which proposes to obtain genetic data on one million or more individuals as a way to facilitate more effective precision medicine. Risk and implementation of precision medicine along with the increasing accessibility of genetic testing services make North America enthroned in terms of NGS market. North America is expected to remain the leading market because of constant innovations in technology as the market expands.

Next-Generation Sequencing Market Share, by Geography, 2023 (%)

Active Key Players in the Next-Generation Sequencing Market

o   Illumina (USA)

o   Thermo Fisher Scientific (USA)

o   Roche Diagnostics (Switzerland)

o   Agilent Technologies (USA)

o   Pacific Biosciences (USA)

o   Qiagen (Germany)

o   Oxford Nanopore Technologies (UK)

o   Bio-Rad Laboratories (USA)

o   PerkinElmer (USA)

o   Promega Corporation (USA)

o   10x Genomics (USA)

o   BGI Genomics (China)

o   Other key Players

Key Industry Developments in the Next-Generation Sequencing Market

In December 2023, Oxford Nanopore launched TurBOT beta access in partnership with Tecan. The buyers are expected to recive the products in Q1 2024. TurBOT  is a benchtop instrument offering efficient basecalling, data analysis, automated extraction, and library preparation of multiple samples in one single unit.

In December 2023, Illumina signed a memorandum of understanding with African Society for Laboratory Medicine to increase access to genomics within the African region to fight infectious diseases.

In December 2023, Illumina partnered with HaploX to provide locally manufactured sequencing instruments in China.

In November 2023, MedGenome and PacBio announced De Novo Genome Assembly and Annotation grant. Such research grants are expected to promote research and development activities within the industry.

In November 2023, Yourgene Health and PacBio announced collaboration in order to optimize the workflow of long read sequencing. PacBio approved LightBench instrument made by Yourgene Health for size selection of long DNA fragments

In September 2023, Integrated DNA Technologies (IDT) launched its xGen NGS products, including primers, adapters, and universal blockers for the Ultima Genomics UG 100 platform.

Global Next-Generation Sequencing Market Scope