Clinical Oncology Next Generation Sequencing Market Size, Share & Trends Analysis Report By Workflow (Pre-Sequencing, Sequencing, Data Analysis), By Technology (Whole Genome Sequencing, Whole Exome Sequencing, Targeted Sequencing & Resequencing Centrifuges), By Application (Screening, Companion Diagnostics, Other Diagnostics), By End-Use (Hospitals, Clinics, Laboratories) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global clinical oncology next generation sequencing market size was valued at USD 339.10 million in 2021 and is predicted to reach at USD 1.18 billion by 2030, increasing at a CAGR of 14.95% from 2022 to 2030.

Next generation sequencing, also known as NGS, is a type of massively parallel sequencing technique that provides scalability, ultra-high throughput, and high speed for determining the order of nucleotides throughout an entire genome. Since it involves the preparation of the material for the subsequent sequencing reaction, DNA pre-sequencing is one of the most important processes in the overall sequencing protocol.

The use of NGS for clinical laboratory analysis, testing, and disease diagnoses is becoming increasingly widespread across the world's healthcare industries. The process of finding new drugs has been sped up significantly with the help of NGS, which has seen widespread application. The sales of devices and equipment used in clinical oncology next-generation sequencing and related services are included in the clinical oncology next-generation sequencing market.

The clinical oncology next-generation sequencing market is comprised of sales made by entities (organisations, sole traders, and partnerships) that manufacture clinical oncology next-generation sequencing equipment. Cancer research often makes use of a technique called "next-generation sequencing," which involves determining the order of nucleotides present in a particular segment of DNA. Inclusion is limited to only those commodities and services that are exchanged between entities or that are offered directly to consumers.

Market Dynamics

Global clinical oncology next generation sequencing market drivers

Technological advancements and research expenditures are both on the rise

The need for technology that can do next-generation sequencing is rising in tandem with the popularity of personalized medicine and diagnostic companion tests. It is anticipated that expanding the usefulness of NGS for liquid biopsy would also assist in the generation of income for the sector. This technique is utilized for the sequencing of circulating tumor DNA during the investigation of liquid biopsy sample material. Accurate cancer profiling paves the way for surveillance of cancer in real time that does not involve any kind of invasion.

According to the findings of the study, an increase in financing for oncology research is another factor that is driving growth in the global market for clinical oncology next generation sequencing. In 2019, Cancer Research UK invested a total of 262.90 million dollars United States dollars in cancer treatment businesses.

An increase in cancer cases over the world

It is anticipated that the rise in the number of cancer cases around the globe will be a primary factor in the expansion of the clinical oncology market for next-generation sequencing over the time of forecasting. The American Cancer Society estimates that there were 1.7 million newly diagnosed instances of cancer in 2019 in the United States, with 0.6 million people succumbing to the disease. Lung, prostate, bowel, and breast cancer in women make up 43 percent of all newly diagnosed instances of cancer worldwide. These four forms of cancer account for the majority of new diagnoses. As a result, it is projected that the rise in the cancer incidence rate across the globe will stimulate an increase in the demand for the clinical oncology market for next-generation sequencing. In addition, Asia is home to the vast majority of cancer cases, while Europe accounts for approximately one-quarter of all cases. As a result, the growing burden of cancer and the importance of detecting it early in order to effectively treat it are driving the expansion of the market.

Global clinical oncology next generation sequencing market restraints

The clinical oncology next generation sequencing process is associated with high expenses

Patients all across the world are up against a significant challenge in the form of the prohibitively high prices connected with clinical oncology next generation sequencing. There is a lot of pressure to keep prices down and show that the money was worth it. The viability of public health care funding is being called into question in a number of countries as a result of the continued presence of political unpredictability and economic strain. The absence of cancer treatments that are both effective and affordable has had a negative impact on the overall health of the population in nations with low per capita incomes, which in turn has contributed to a decrease in the average lifespan.

Consumables, which are the most expensive components in the sequencing process, contribute to the high cost of genome sequencing. Additionally, the cost of equipment used to treat rare cancer diseases is higher than that used to treat normal cancer diseases, which hinders the expansion of the market.

Global clinical oncology next generation sequencing market key future opportunities

Government support will open doors to ample of new opportunities

The alarmingly rapid rise in the number of cancer cases is a global issue. The sickness not only kills people, but it also has a negative impact on a country's economy. Government and other healthcare institutions are taking action to reduce the worldwide burden of cancer as a result. Research institutes are receiving large sums of money to find new treatments and drugs. The human genome is being studied in new and innovative ways. 

Over US$1.2 million was awarded in December 2021 to fund 20 breast cancer research projects in Alabama, for example. The Cancer Genome Atlas (TCGA) project was initiated by the National Cancer Institute (NCI) and the National Human Genome Research Institute (NHGRI). The project's goal was to study the whole range of genetic changes that occur in human cancer.

Increased investment from public and private sources will help jumpstart the clinical cancer next generation sequencing sector, opening up a slew of great opportunities.

Regional Analysis

The Global Clinical Oncology Next Generation Sequencing Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. 

With a share of more than 50 percent, North America maintained its position as the most dominant region in the worldwide clinical oncology NGS market. This surge can be attributed to the significant efforts conducted by regulatory agencies in the United States to raise the number of cancer screening diagnoses. For instance, the Cancer Genome Atlas programme, which was established by the National Cancer Institute (NCI) of the United States, has completed next-generation sequencing on more than 20,000 original cancer samples from 33 distinct forms of cancer.

The rapidly expanding use of sequencing platforms for clinical diagnosis as a direct result of the large decline in the cost of installation is the primary factor driving growth in the clinical oncology next-generation sequencing market in the United States. In addition, the convenience with which genomic and proteomic data may be obtained has positioned this sector to be in a position to offer potentially high-value prospects for expansion in the years to come.

This market in Asia Pacific is projected to expand at a rapid compound annual growth rate (CAGR) during the forecast period. This is due to the growth of the clinical oncology next generation sequencing market in emerging countries, as well as the continuous development of the pharmaceutical industry and the health care industry in the region. Australia and New Zealand are among the nations having the highest cancer mortality rates.

When compared to the years before, China has seen a dramatic drop in the cost of sequencing, which has contributed to the country's recent surge in economic development. When compared to prices in other countries, the leading players in the country offer products and services related to NGS at prices that are extremely competitive. The expansion of the market is being fuelled by factors including favourable government policies as well as high investment levels by leading market competitors.

Segmental Analysis

The Global Clinical Oncology Next Generation Sequencing Market is divided into different segments according to the Workflow, Technology, Application, End-use, and Region (Geography).

By Workflow, the Global Clinical Oncology Next Generation Sequencing Market is segmented into Pre-Sequencing, Sequencing, and Data Analysis. The workflow category that generated the most income in 2021—more than 57 percent of it—was sequencing. A crucial phase in the procedure is sequencing, which calls for the utilisation of cutting-edge platforms. The segment growth is also accelerated by a rise in the number of cancer sequencing initiatives. For instance, by sequencing more than 2,600 tumour samples, the Pan-Cancer Analysis of Whole Genomes (PCAWG) Consortium examined 38 distinct cancer types.

The pre-sequencing market is being driven by key competitors' initiatives to lower the cost of NGS library preparation. For instance, in order to lower the cost of NGS library preparation for the variant detection of cancer, infectious diseases, and other clinical conditions, Thermo Fisher Scientific and SPT Labtech formed a co-marketing agreement in January 2021.

By Technology, the Global Clinical Oncology Next Generation Sequencing Market is segmented into Whole Genome Sequencing, Whole Exome Sequencing, and Targeted Sequencing & Resequencing Centrifuges. With a revenue share of more than 70% in 2021, the targeted sequencing and resequencing segment dominated the market. The cost, time, and volume of data evaluated during the sequencing of tumour samples are reduced thanks to targeted cancer sequencing panels. Additionally, the therapeutic value of targeted panels is increased by how well they can identify malignant tumours.

Due to its ability to distinguish and contrast normal tissues from malignant tissues, whole-genome sequencing (WGS) is predicted to have the fastest growth in the technology sector between 2022 and 2030. Furthermore, cancer patients' whole genome sequencing aids in both the early detection of mutations and the development of treatments for those that are already present. Additionally, it aids in cancer prognostic analysis and the creation of a treatment plan based on the compromised genes.

By Application, the Global Clinical Oncology Next Generation Sequencing Market is segmented into Screening, Companion Diagnostics, and Other Diagnostics. Since NGS is widely used in cancer screening programs around the world, screening accounted for the biggest revenue share of almost 80%. The most effective strategy for finding genetic changes that can be targeted for clinical benefit in cancer patients is currently thought to be NGS-based testing. Clinicians can evaluate several gene changes simultaneously thanks to this technology.

Additionally, compared to conventional pathology techniques, the system uses fewer tumor tissues. From 2022 to 2030, the companion diagnostics market is anticipated to grow at the quickest rate. The usage of NGS for companion diagnostics is anticipated to increase as a result of ongoing product advancements and partnerships and cooperation among the major players.

By End-Use, the Global Clinical Oncology Next Generation Sequencing Market is segmented into Hospitals, Clinics, and Laboratories. With a sales share of around 70% in 2021, the laboratories sector held the market's top spot. Complex workflow setup is a time-consuming process for laboratories. As a result, the majority of cutting-edge laboratories have created pre-existing workflows that are founded on common practises.

Additionally, because to the rapid development and availability of NGS assays for clinical use, detailed guidelines for procedures including NGS testing have been created. In order to confirm the reliability of the findings, the majority of FDA-approved tests have specified controls, standards, and performance parameters.

By Region or Geography, the Global Clinical Oncology Next Generation Sequencing Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. With a market share of more than 50%, North America dominated the global clinical oncology NGS market. This surge is attributable to significant regulatory body efforts to raise cancer screening diagnosis rates in the United States.

Due to the drastic decrease in sequencing costs compared to prior years, Asia-Pacific region, especially China has experienced substantial growth in recent years. When compared to other nations, the leading players in the nation offer NGS products and services at a very competitive pricing. Favorable government policies and significant market participants' investments are propelling the market's expansion.

Recent Developments

• January 2022 - A multi-year cooperation to co-develop diagnostic (IVD) tests for oncology testing was announced by Agendia, Inc., a global pioneer in precision oncology for breast cancer, in January 2022.
• January 2022 - To hasten the creation of precision medicines and therapy selection for patients with advanced cancer, Illumina Inc. teamed up with Boehringer Ingelheim in January 2022.
• October 2021 - Roche introduced the AVENIO tumor tissue CGP kit in October 2021 to provide access to tailored cancer research.