The global next-generation sequencing services market size was accounted at USD 1.2 billion in 2021 and it is expected to surpass around USD 4.65 billion by 2030, growing at a CAGR of 18.5% from 2022 to 2030.
The development of next-generation sequencing (NGS) technologies has revolutionized gene sequencing in terms of reproducibility and cost savings. This has resulted in the introduction of several advancements in NGS technology to promote its usage in clinical labs and hospitals. Most current innovations in this field revolve around simplifying the usage of seq-technology and making it more sophisticated. These factors have driven the uptake of NGS services across various end-users.
Next-generation sequencing has progressed from research to clinical use in the last five years. Around 14 nations have launched large-scale genome sequencing programs, with nearly 60 million people expected to have their genome analyzed by 2025. Conventional disease testing service providers have broadened their portfolio with a rising trend of seq-based genetic tests. For instance, ARUP Laboratories announced the release of new coronavirus tests in March 2022, and IDbyDNA, Inc. partnered with another firm to introduce new coronavirus tests, an NGS test for respiratory illnesses, to aid physicians in evaluating patients with pneumonia and some other respiratory problems.
With the rising trend of high throughput sequencing within the pharma and biotech industry, there is a need for more developments to improve the speed and convenience of high throughput seq-platforms and simplify workflows. As a result, companies are focusing on the development of solutions to simplify the amplification and purification of samples and starting input. In March 2022, Illumina, Inc. announced the release of TruSigh Oncology (TSO) Comprehensive (EU), a comprehensive diagnostic that evaluates several tumor genes and indicators to identify a patient's cancer's individual molecular profile. The in vitro diagnostic (IVD) kit would assist in influencing genomic decisions for patients with cancer across Europe, with its global debut taking place first in Europe.
Scope of the Report
|Market Size in 2021||USD 1.2 Billion|
|Revenue Forecast By 2030||USD 4.65 Billion|
|Growth Rate from 2022 to 2030||CAGR of 18.5%|
|Forecast Period||2022 to 2030|
|Companies Mentioned||Illumina, Inc.; Veritas Genetics; BGI; GENEWIZ Germany GmbH; ABM Inc.; ARUP Laboratories; Novogene Corporation; Lucigen; Quest Diagnostics; Gene by Gene|
Service Type Insights
Human genome sequencing held the largest revenue share of over 30.0% in 2021. It is the most widely offered and practiced segment. The presence of a substantial number of key players in this segment is contributing to the segment's growth. Companies operating in this segment include BGI-Complete Genomics, Veritas Genetics, Macrogen, Full genomes.com, Novogene, SureGenomics, Partners LMM, Genos, BGI, 14 labs, Gene-by-Gene, and Personalis.
Gene regulation services are estimated to exhibit a lucrative CAGR during the forecast period. It covers small RNA sequencing, ChIP sequencing, lncRNA seq, isoform sequencing, and bisulfite sequencing. Various advantages offered by RNA sequencing have enabled the replacement of microarrays in many applications. It is expected that the application of RNA-seq will continue to expand over the coming years, thus driving the segment at a rapid pace.
The sequencing segment accounted for the largest revenue share of over 50.0% in 2021 owing to the high cost of instruments. Companies have been offering a broad portfolio for a wide spectrum of sample types. For example, Novogene Corporation conducts sequencing and generates publication-ready data for the success of research programs of customers from various domains such as agricultural, biomedical, and environmental science.
NGS services offered in the market include various aspects of sequencing, ranging from consultation to final result derivation. Some companies offer thorough protocol while others are engaged in offering standalone services to customers that have a lab equipped with NGS facilities but seek to outsource some portions of NGS workflow.
Analysis of NGS data poses great challenges for researchers engaged in conducting sequencing protocols for their projects. This is because a systematic and intelligent methodology is required for efficient processing and interpretation of data. As there is an increase in the number of sequenced reads per run, the subsequent growth in demand for robust data management solutions is projected.
Universities and other research entities held the largest revenue share of over 50.0% in 2021 owing to the fact that NGS is primarily being used for research purposes. Research entities are utilizing sequencing services to improve the outcomes of their projects and gain in-depth insights into the mechanism of disease occurrence.
However, with the rising trend of clinical NGS, hospitals, and clinics are projected to witness the fastest growth over the forecast period. This trend in clinical settings is marked by the growing implementation of NGS technology for the detection of fetal aneuploidies through analyzing fetal cfDNA obtained from a single maternal blood draw in prenatal diagnostic procedures.
In addition to this, the liquid biopsy NGS panel is receiving great attention among healthcare entities, including clinics and hospitals, for cancer management. The definition of a proper regulatory framework for the use of NGS in clinical settings is expected to support the projected growth.
North America accounted for the largest revenue share of over 45.0% in 2021 owing to factors such as a well-established informatics network, effective regulatory guidelines pertaining to approval and usage of genetic tests, and the presence of market leaders in the region. In addition, the growing number of FDA-approved genomic tests in the U.S. is anticipated to drive the regional market throughout the forecast period.
The Asia Pacific market is expected to serve as a lucrative source of revenue over the forecast period. The growing attention of government bodies toward the maintenance of public health and consequent investments in the development of advanced diagnostic approaches are anticipated to spur the uptake of seq-services in the region.
Furthermore, domestic players in Asian countries are involved in forming mutually beneficial partnerships among each other as well as with global companies for the establishment of NGS service providers. For instance, in November 2021, Novogene stated during the 44th Annual Gathering of Molecular Biological Society of Japan (MSBJ) in Japan that they will be launching single-cell sequencing services specifically for their Japanese customers. Novogene Japan K.K. will provide on-site service to assist clients in optimizing their single-cell planning with this new service. It gives researchers the freedom to enjoy a dependable and seamless end-to-end sequencing solution for their single-cell research, starting with research design projects, cell barcoding, library creation, sequencing, and bioinformatic analysis.