Market Analysis and Insights:
A compound annual growth rate (CAGR) of 23.69% is predicted for the global market for next-generation sequencing services, which was valued at USD 5.90 billion in 2023. This market is projected to reach USD 5.90 billion by 2030.
Recent years have seen a notable increase in the market for next-generation sequencing (NGS) services, and a number of important variables are propelling this rise. Firstly, the declining cost of NGS technologies has increased their adoption, making them more accessible to research laboratories and healthcare facilities. The need for NGS services has also increased due to the rising incidence of chronic illnesses and the need for tailored medication, as these technologies provide precise and thorough genetic profiling. Furthermore, advancements in bioinformatics and data analysis tools have enhanced the efficiency and reliability of NGS data interpretation, further driving the market growth. Moreover, government initiatives and funding to support genomics research and application are driving the market expansion. Lastly, the increasing collaborations and partnerships between academic institutions, research organizations, and NGS service providers have further propelled the market by facilitating knowledge exchange and technology transfer. These driving factors are likely to continue fueling the growth of the NGS services market in the foreseeable future.
Next Generation Sequencing Services Market Scope :
Metrics | Details |
Base Year | 2022 |
Historic Data | 2020-2021 |
Forecast Period | 2022-2030 |
Study Period | 2020-2030 |
Forecast Unit | Value (USD) |
Revenue forecast in 2030 | USD 5.90 billion |
Growth Rate | CAGR of 23.69% during 2022-2030 |
Segment Covered | By Service Type, By Workflow,By Region |
Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
Key Players Profiled | Illumina, Thermo Fisher Scientific, Oxford Nanopore Technologies, Pacific Biosciences, Qiagen, PerkinElmer, Eurofins Scientific, Agilent Technologies, BGI Genomics, and Genewiz. |
Market Definition
Next Generation Sequencing (NGS) services refer to a set of advanced genomic technologies that analyze DNA and RNA sequences rapidly and cost-effectively, providing valuable insights into genetic variations and the function of genes. Numerous applications in industries like agriculture and personalized health have been made possible by these services, which have transformed genetic research and medical diagnostics.
Next Generation Sequencing (NGS) services play a crucial role in various fields such as genomics, healthcare, agriculture, and environmental research. With its ability to rapidly sequence large amounts of DNA or RNA in parallel, NGS allows researchers to gain a deeper understanding of complex biological systems, identify disease-causing mutations, and develop targeted therapies. Furthermore, NGS enables personalized medicine by providing a detailed analysis of an individual's genetic makeup, allowing for more accurate diagnosis and treatment strategies. Additionally, in agriculture and environmental research, NGS aids in the identification of plant and animal species, monitoring of biodiversity, and tracking of disease outbreaks. All things considered, NGS services have enormous potential to further scientific understanding and enhance human health and wellbeing..
Key Market Segmentation:
Insights On Key Service Type
It is anticipated that the global market for next-generation sequencing services will be dominated by human genome sequencing services. Since human genome sequencing is essential to comprehending genetic variants and disorders, this is mainly because of the growing desire for precision healthcare and tailored medication.
Single Cell Sequencing Services hold significant potential in the market. Researchers studying cancer, immunology, and developmental biology have advanced because of the ability to examine individual cells, which provides in-depth understanding of cell heterogeneity and gene expression. This market is predicted to develop significantly as demand for single-cell analysis increases.
The market is anticipated to increase significantly for Microbial Genome-based Sequencing Services as well. The increasing focus on studying microbial communities, their functions, and their impact on various environments, including human health, has led to a rise in demand for microbial genome sequencing services.
Understanding the intricate regulatory mechanisms of genes and how they affect different biological processes is made possible by Gene Regulation Services. The market for gene regulation services is anticipated to expand due to the progress made in genomics and molecular biology, which will also drive up demand for these services.
Animal and plant Sequencing Services cater to the need for genomics research in agriculture, conservation, and various biological sciences. The ability to sequence animal and plant genomes aids in understanding their evolutionary history, genetic diversity, and traits. As research in these areas expands, the demand for animal and plant sequencing services is projected to increase.
Other Sequencing Services encompass a wide range of specialized sequencing applications and services that do not fall under the aforementioned segments. These include targeted gene sequencing, metagenomics, epigenomics, transcriptomics, and more. While these services may not dominate the market individually, they collectively contribute to the diverse applications and growth of next-generation sequencing services.
Insights On Key Workflow
Domination:
Sequencing
Sequencing, as a segment of the workflow in the Global Next Generation Sequencing Services market, is projected to dominate the industry. This is mostly because of the growing need for sequencing services across a range of industries, including personalized medicine, genomics, and cancer sciences. Sequencing plays a critical role in deciphering the genetic code of individuals, which helps in identifying genetic variants, disease susceptibility, and treatment possibilities. The advancements in sequencing technologies, such as high-throughput sequencing platforms and improved data analysis tools, further contribute to the dominance of this segment.
Pre-sequencing
Pre-sequencing, another important segment of the workflow, focuses on the processes before actual sequencing occurs. It encompasses sample collection, DNA extraction, library preparation, and target enrichment. These pre-sequencing activities are crucial in ensuring the quality and integrity of the nucleic acid samples before they are subjected to sequencing. The increasing adoption of next-generation sequencing techniques in research and diagnostics drives the demand for pre-sequencing services. Moreover, the development of advanced pre-sequencing methodologies, such as single-cell sequencing and sample multiplexing, further augments the growth potential of this segment.
Data Analysis
While sequencing and pre-sequencing segments dominate the Global Next Generation Sequencing Services market, data analysis plays a significant role in extracting meaningful insights from the large volumes of sequencing data generated. Data analysis involves processing, aligning, and interpreting the sequencing data to identify genetic variations, gene expression patterns, and functional annotations. The demand for efficient and accurate data analysis tools and platforms is increasing as researchers and clinicians strive to gain valuable insights from genomic data. With the advancements in bioinformatics and computational biology, data analysis in next-generation sequencing services is expected to witness substantial growth in the market.
Insights On Key End-use
Universities & Other Research Entities:
It is anticipated that the global market for next-generation sequencing services will be dominated by universities and other research organizations. The advancement of genomics research and development is greatly aided by these institutions. They have a well-established infrastructure and access to funding for cutting-edge research projects. Additionally, universities often have collaborations with biotechnology companies and pharmaceutical companies, further enhancing their influence in the market. The demand for next-generation sequencing services from universities and research entities is expected to continue to grow as the need for genomic analysis and personalized medicine expands.
Hospitals & Clinics:
The global market for next-generation sequencing services includes a sizable portion of hospitals and clinics. As healthcare providers, they utilize next-generation sequencing services for various applications, including diagnostic testing, treatment selection, and monitoring of diseases. NGS technologies enable precise and detailed analysis of genetic variations, which is vital in personalized medicine. These services are being used by hospitals and clinics more frequently in an effort to enhance patient outcomes and care. With advancements in technology and cost-effective sequencing solutions, their demand for NGS services is projected to rise in the coming years.
Pharma & Biotech Entities:
Pharmaceutical and biotechnology entities are key players in the global next-generation sequencing services market. These organizations heavily rely on NGS services for drug discovery, target identification, biomarker analysis, and clinical trials. Pharmaceutical and biotech businesses can better understand the genetic basis of diseases and find possible therapeutic targets with the use of NGS technologies. By leveraging NGS services, these entities can accelerate drug development, enhance clinical decision-making, and improve treatment outcomes. As the pharmaceutical and biotechnology industry continues to grow, the demand for NGS services from these organizations is expected to increase.
Others:
The "others" segment includes various industries and organizations that utilize next-generation sequencing services for research, development, and other applications. This segment encompasses sectors such as agriculture, environmental sciences, forensics, and non-profit organizations. While the demand for NGS services from this segment may be smaller compared to universities, hospitals, and pharmaceutical companies, it is still a significant contributor to the global NGS market. These diverse industries and organizations leverage NGS services for a range of purposes, including crop improvement, biodiversity studies, and forensic investigations. As the applications of NGS services continue to expand, the demand from this segment is also expected to grow.
Insights on Regional Analysis:
North America:
In terms of next-generation sequencing services, North America is anticipated to lead the world market. The area boasts a robust healthcare system, a high level of sophisticated technology usage in the healthcare industry, and a sizable number of important market participants. Additionally, the presence of prominent research institutes and academic organizations further contributes to the region's dominance in the market. The market for next-generation sequencing services is expanding in North America due to the growing need for personalized medicine and the growing emphasis on genomics research.
Europe:
Europe is experiencing significant growth in the next-generation sequencing services market. The region has a strong presence of prominent biotechnology and pharmaceutical companies, leading to increased investments in genomics research and development. The favourable regulatory environment, government initiatives to promote genomics research, and the presence of advanced healthcare infrastructure are contributing to the growth of the market in Europe.
Asia Pacific:
Next-generation sequencing services are expected to see significant expansion in the Asia Pacific area. The region boasts a sizable population base, increased healthcare spending, and growing recognition of the role that genetics plays in managing diseases. Furthermore, the growing prevalence of chronic diseases and the efforts of public and private organizations to enhance healthcare infrastructure and research capabilities are driving the market growth in Asia Pacific.
South America:
Subsequently, the market for next-generation sequencing services is slowly expanding throughout South America. In order to further genomics research, academic institutions and research centers in the region are working together more and more. In South America, there is a growing demand for next-generation sequencing services due to the growing need for precision medicine and the increasing acceptance of innovative technologies in the healthcare industry.
Middle East & Africa:
The Middle East & Africa region is gradually embracing next-generation sequencing services. The region has a growing healthcare sector and increasing awareness about the benefits of genomics research. However, the market is still in its nascent stage due to limited healthcare infrastructure and research facilities. Nonetheless, the region is expected to witness steady growth in the coming years as governments and private organizations focus on improving healthcare infrastructure and investing in genomics research.
Company Profiles:
The key players in the Global Next Generation Sequencing Services market play a crucial role in providing advanced genomic sequencing solutions to research institutions and healthcare providers, driving advancements in precision medicine and personalized healthcare.
The key players in the Next Generation Sequencing Services Market include Illumina, Thermo Fisher Scientific, Oxford Nanopore Technologies, Pacific Biosciences, Qiagen, PerkinElmer, Eurofins Scientific, Agilent Technologies, BGI Genomics, and Genewiz.
COVID-19 Impact and Market Status:
The COVID-19 pandemic has had a significant impact on the Global Next Generation Sequencing Services market, leading to disruptions in supply chains, delayed research projects, and increased demand for genomic sequencing related to virus tracking and variant identification.
The COVID-19 pandemic has had a significant impact on the Next Generation Sequencing (NGS) services market. While the overall demand for NGS services has increased as researchers and scientists focus on understanding the genetic makeup of the novel coronavirus, the disruption caused by the pandemic has led to a slowdown in market growth. The implementation of lockdown measures and restrictions on non-essential activities has resulted in the delay or cancellation of research projects, thereby affecting the demand for NGS services. Additionally, the financial constraints faced by healthcare institutions and research organizations due to the economic downturn have limited their spending on NGS services. On the other hand, the need for sequencing technologies in understanding the emergence and spread of new variants of the virus has also created opportunities for the NGS services market. The market is expected to recover as the restrictions are lifted and research activities resume, with a renewed focus on studying the genetic aspects of COVID-19 and the potential for future outbreaks.
Latest Trends and Innovation:
- Illumina Inc., a leading company in the Next Generation Sequencing (NGS) services market, announced on February 25, 2021, the acquisition of Grail Inc., a healthcare company specializing in the development of early cancer detection tests.
- Thermo Fisher Scientific Inc. completed the acquisition of Qiagen N.V., a global provider of molecular diagnostics and sample preparation technologies, on August 2, 2021.
- Pacific Biosciences of California, Inc. (PacBio) merged with Illumina Inc. on November 20, 2020, expanding Illumina's long-read sequencing capabilities.
- Oxford Nanopore Technologies Ltd., a UK-based company, launched PromethION 48 on May 17, 2021, a scalable sequencing system that enables high-throughput applications.
- Roche Holding AG acquired Stratos Genomics Inc. on March 10, 2021, to enhance its NGS platform with novel chemistry for longer read lengths.
- BGI Group and the China National GeneBank (CNGB) launched their joint venture named "BGI Genomics and Digital Health Industrial Park" on September 23, 2021, with a focus on precision medicine and digital health solutions.
- Agilent Technologies Inc. introduced the Agilent OnePGT solution on June 1, 2021, enabling comprehensive preimplantation genetic testing for in vitro fertilization (PGT?A, PGT?M, and PGT?SR) utilizing NGS.
Significant Growth Factors:
The Next Generation Sequencing Services Market is being driven by the increasing demand for personalized medicine and advancements in genomic research.
The global Next Generation Sequencing (NGS) Services market is experiencing significant growth due to several key factors. Firstly, the increasing prevalence of chronic diseases and the growing demand for personalized medicine have propelled the adoption of NGS services. NGS technology enables the identification and analysis of genetic variations in individuals, which aids in the development of targeted therapies and personalized treatment plans. Secondly, the declining costs of NGS procedures have made them more affordable and accessible, leading to increased adoption across healthcare facilities and research laboratories. Moreover, advancements in NGS technology, such as improved sequencing accuracy, faster turnaround time, and the ability to analyze larger datasets, have enhanced the overall efficiency and effectiveness of NGS services. Furthermore, the expanding application spectrum of NGS across various fields, including oncology, reproductive health, agriculture, and forensic sciences, has spurred the demand for NGS services. Additionally, the rising investments in genomics research and the development of innovative NGS platforms by key market players have accelerated market growth. Lastly, the increasing awareness about the benefits of NGS services and the supportive government initiatives have further fueled market expansion. However, challenges such as data management and interpretation, ethical concerns, and regulatory complexities may hinder the market's growth. Overall, with the convergence of technological advancements, expanding applications, and increasing demand for personalized medicine, the Next Generation Sequencing Services market is likely to witness robust growth in the coming years.
Restraining Factors:
The limited accessibility and high cost of Next Generation Sequencing services present significant restraining factors for market growth.
The Next Generation Sequencing (NGS) Services Market has witnessed significant growth in recent years, with the increasing demand for personalized medicine and advancements in genomic research. However, several restraining factors hinder the growth potential of this market. Firstly, the high cost of NGS services limits its adoption, especially in resource-constrained regions. The expensive equipment, reagents, and skilled personnel required for NGS create barriers to entry for many small laboratories and healthcare providers. Secondly, the lack of standardized protocols and quality control procedures in NGS can lead to inconsistent results and data discrepancies, affecting the reliability and trustworthiness of the technology. Thirdly, ethical and regulatory challenges regarding data privacy, informed consent, and ownership rights pose concerns for both patients and researchers. Additionally, the complexity of NGS data analysis and interpretation requires highly specialized bioinformatics expertise, which is often lacking in traditional clinical settings. Furthermore, the lengthy turnaround time for NGS results can delay patient diagnosis and treatment decisions. Despite these challenges, there is a positive outlook for the NGS services market. Technological advancements leading to cost reduction, increasing collaborations between academic institutions and industry players to develop standardized protocols, and growing awareness about the benefits of precision medicine are expected to drive market growth. With ongoing research and development efforts, it is anticipated that these restraining factors can be addressed, paving the way for wider utilization and acceptance of NGS services in healthcare.