Next-generation sequencing is a technology for determining DNA or RNA sequences to study genetic variation associated with diseases or other biological phenomena. The massively parallel sequencing technology is called next-generation sequencing (NGS) has revolutionized the biological sciences. Its ultra-high throughput, speed, and scalability allow researchers to study biological systems and perform a numerous variety of applications at a stage never before possible. NGS platforms enable the sequencing of millions of small fragments of DNA in parallel. These fragments can be piece together through bioinformatics analyses by mapping individual reads to the human reference genome. The human genome contains approx 3 billion of these base pairs, which are sequenced multiple times, provides accurate data and insight into unexpected DNA variation. NGS platform can be used to sequence entire genomes or constrained to specific areas of interest, including all 22000 coding genes or small numbers of individual genes. NGS provides the ideal throughput per run, and studies can be performed cost-effectively and quickly. Besides, NGS has several advantages, including higher accuracy, lower sample input requirements, and the ability to detect variants at lower allele frequencies.
The Global next-generation sequencing market is expected to gain a healthy CAGR of 19.58 in the forecast period of 2020-2027. The major factors are growing applications of NGS in clinical diagnosis, technological advancements in NGS, and declining costs of genome sequencing. Additionally, the increasing incidence of cancer worldwide, along with the rise in demand for early-stage diagnosis and growing applications of NGS in cancer research, will spur the next-generation sequencing industry in the future periods. Furthermore, the increasing research and development activities utilizing the NGS technologies and high adoption of NGS as diagnostic tools to understand the treatment regimen for various diseases, such as infectious diseases, cancer, and cardiovascular diseases, are expected to witness remarkable growth next-generation sequencing market. The rise in genome mapping programs or projects and increase in partnerships & collaborations are expected to propel the demand for the next-generation sequencing market over the coming years.
Moreover, the rapidly expanding customer base, the rise in the extensive R&D activities at the academic and industrial level, and the increasing scope of biomedical applications fuel the demand for the next-generation sequencing market. The rising government and private sector support to bring NGS technology as the potential diagnostic tool and the rapid cost, speed, and accuracy of the NGS technology have also helped grow next-generation sequencing market share. Additionally, the growing population and increasing healthcare demands in the developing world swelling the growth of the next-generation sequencing market across the globe.
NGS is used to diagnose hereditary disorders and diseases because of its cost-effectiveness, high throughput, and accuracy. NGS contributes to worldwide research efforts of developing various test kits and testing services for the emerging needs of non-invasive prenatal diagnosis, genetic testing, cancer diagnosis, and others. Moreover, the governments of developed countries are providing support through product approvals and improved reimbursement coverage for such diagnostic tests. Researchers and scientists are harnessing NGS technology to address the ever-increasing diverse range of biological problems. NGS technology approach is tempting when there is a genetic contribution in complex and heterogeneous diseases, such as in cardiac arrhythmias, connective tissue disorders, cardiomyopathies, and autism or mental retardation, where many genes are involved in a huge phenotypic spectrum. In these kinds of cases, NGS approaches allow to test of many genes simultaneously in a cost-effective manner. NGS allows scientists to find treatment and solutions even for incurable diseases, creating strong demand in the market. However, the difficulty in managing large data, coupled with the lack of awareness among people, is restraining the market’s growth.
Based on the product & service, the next-generation sequencing market is segregated into NGS consumables, sequencing services, pre-sequencing products & services, NGS platforms, bioinformatics, and services for NGS platforms. The NGS consumables segment is estimated to witness the highest growth over the analysis timeframe due to the increasing adoption in the number of sequencing procedures and growing utilization of sequencing reagents and kits in abundant quantity for diagnostic procedures in diagnostic laboratories.
The sequencing services will grow significantly due to the decrease in the cost of sequencing through NGS, the rise in the need for investigation of gene functions for disease treatment, and the increasing number of genomic research projects.
Based on the technology, the next-generation sequencing market is categorized into sequencing by synthesis, ion semiconductor sequencing, nanopore sequencing, single-molecule real-time sequencing, and other technologies. The sequencing by synthesis segment held for a significant market share in 2019 and will gain maximum market revenue by 2027. It is attributable to the high availability of NGS platforms based on sequencing by synthesis technology. Also, it offers a short-insert paired-end capability for high-resolution genome sequencing and long-insert paired-end reads for efficient sequence assembly.
The ion semiconductor sequencing segment is poised to witness significant growth over the forecast period. It is due to rapid sequencing speed and reduced operating costs.
The next-generation sequencing market is classified into diagnostics, drug discovery, agricultural & animal research, and other applications based on the application. Furthermore, the diagnostics applications are segmented into cancer diagnostics, infectious disease diagnostics, reproductive health diagnostics, and other diagnostic applications.
The diagnostic application segment is expected to be the highest revenue share for the next-generation sequencing market during the forecast period. The segment’s growth is generally attributed to the growing use of NGS-based products & services for non-invasive prenatal testing & cancer diagnosis, coupled with the increasing incidence of cancer across the globe. In addition, the major market players, such as Illumina, are constantly working toward developing NGS-based in-vitro diagnostic (IVD) solutions for the diagnosis of cancer.
The drug discovery will witness a lucrative growth rate in the estimated period due to its use in the generation of large datasets, which can be mined to identify novel targets. Besides, NGS can identify target genes for future drug development and uncover many mutations associated with genetic diseases.
Based on the end-user, the global next-generation sequencing market is segmented into research centers & academic institutes, pharmaceutical & biotechnology companies, hospitals & clinics, and other end users. The hospitals & clinics segment will dominate the next-generation sequencing market by 2027 due to the surge in the number of hospitals using NGS technology for clinical diagnosis and the increasing need for the identification of transmission linkages to prevent infections across hospital settings.
The pharmaceuticals and biotechnology companies assigned for the largest share of the global next-generation sequencing market in 2019 because of the increasing use of NGS in developing drug molecules that can typically bind multiple targets and monitoring adverse drug reactions & their undesirable effects. NGS technology is also used to determine the impact of genetic variation on drug effect, dose-response relationships of drugs, and clinical effects of drug-drug interactions.
The Global next-generation sequencing market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa by geography.
North America is estimated to project fair growth over 2020-2026. It is owing to advents in technology, the presence of leading industry players offering innovative products, and increasing application in diagnostics and genomics research.
The Asia Pacific will capture a prominent share of the next-generation sequencing market by 2027. Due to the increasing demand for NGS services, continually improving healthcare infrastructure in the region, and mounting health care expenditures in developing countries such as India and China.
Companies such as Illumina, Agilent Technologies, BGI Group, Eurofins Scientific, PerkinElmer, Thermo Fisher Scientific, Pacific Biosciences, F. Hoffmann-La Roche AG, Psomagen Inc., Oxford Nanopore Technologies, QIAGEN, GENEWIZ, Takara Bio, 10x Genomics, Zymo Research, NuGen Technologies, Novogene Co. Ltd., Becton Dickinson and Company, Hamilton Company, Beckman Coulter, and Lucigen Corporation are the key players in the next-generation sequencing market.
By Product & Service