Next-Generation Sequencing (NGS) Market Size, Share & Trends Analysis Report By Type of Sequencing (Whole Genome Sequencing, Targeted Sequencing & Resequencing, Whole Exome Sequencing, RNA Sequencing, CHIP Sequencing, De Novo Sequencing, Methyl Sequencing), By Product Type (Instruments, Reagents and Consumables, Services), By End-User (Hospitals and Clinical Laboratories, Academics and Research Institutions, Pharmaceutical and Biotechnology Companies), By Applications (Drug Discovery and Personalized Medicine, Genetic Screening, Agriculture and Animal Research, Biomarkers and cancer, Oncology, Clinical Investigation, Reproductive Health, HLA Typing/Immune System Monitoring, Metagenomics, Epidemiology & Drug Development, Agrigenomics & Forensics, Consumer Genomics), By Technology (Sequencing by Synthesis, Ion Semiconductor Sequencing, Sequencing by Ligation, Pyrosequencing, Single Molecule Real Time Sequencing, Other Technologies) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global next-generation sequencing (NGS) market size was valued at USD 7,744.30 million in 2021. It is projected to reach USD 45,017.81 million by 2030, growing at a CAGR of 21.60% during the forecast period (2022-2030).

Next-generation sequencing (NGS) is a massively parallel sequencing technology with exceptionally high throughput, scalability, and speed. The method establishes the nucleotide sequence in whole genomes or specific DNA or RNA sections. The biological sciences have been transformed by NGS, which enables labs to carry out a vast range of tasks and biological research systems at a level never before feasible. The market under study is expanding due to factors such as rising applications in clinical diagnostics, the adequate replacement of conventional technologies, applications for drug discovery that require NGS technology, and speed, cost, and accuracy.

Market Dynamics

Global NGS Market Drivers

Advancement in the Clinical Diagnosis

Next-generation sequencing is used for various purposes, including forensics, reproductive health, customized medicine, biomarkers, and diagnostics. Next-generation sequencing (NGS) has become the standard for clinical laboratories to utilize for identifying genetic diseases due to its analytical precision, high throughput, and cost-effectiveness. Rare diseases can pose a threat to life and can be challenging to diagnose and treat. It is estimated that 80% of rare diseases are genetic in nature. Therefore genome sequencing-based diagnosis offers a viable alternative for managing uncommon diseases, according to a Scientific Reports Journal 2019 study by Hong-Yan Liu et al.

High Accuracy and Low Cost

Significant changes have been made due to the development of next-generation technology (NGS), which both reduces costs and increases the quantity of extensive sequential data. Complete DNA sequences or genomes of many different types and species of life have been sequenced due to the quick sequencing rate made possible by modern NGS technology. Over the past century, advances in genomics have significantly decreased the cost of genetics. The affordability of various methodologies and techniques for genome sequencing is of significant importance since it impacts the scope and caliber of practically all genomics research efforts. Newer methods, quicker and more cost-effective than first-generation sequencing technology, have made it possible to sequence many DNA fragments simultaneously.

Global NGS Market Restraint

Ethical and Juridical Concerns

Legality and ethics concern any form of DNA sequencing, including NGS. These issues include identifiability, disclosing research findings, stereotyping, the appropriateness of consent, stigmatization, inclusion, and differential benefit, as well as problems specific to a given culture and community. These moral questions essentially retrain market expansion. Medical sequencing raises ethical questions for individuals and populations, such as data release and identifiability, adequate consent, reporting research findings, stereotyping and stigmatization, inclusion and differential benefit, and issues specific to particular cultures and communities.

Global NGS Market Opportunities

Replacement of Traditional Technologies with Efficient Methods (Microarrays)

Next-generation sequencing has surpassed microarrays as the most cutting-edge technique in genomics, making the former obsolete as a discovery tool (NGS). The acceptance of NGS has increased dramatically due to recent developments and a sharp drop in sequencing prices. Researchers favor NGS over microarrays for most of their genomic applications as the costs continue to decline and the techniques become more widely used. Microarrays have several drawbacks, including Cross hybridization between identical sequences is a significant barrier to microarray analysis, which necessitates prior knowledge of the genome or its properties. A high signal-to-noise ratio constrains the dynamic range of high-confidence data. NGS provides an unlimited, fully quantitative dynamic range of the signal, which allows for monitoring expression from gene alleles that differ by as little as one sequence nucleotide, thus solving the problems above. However, knowledge of the genome or the genome sequence is not necessary.

Drug Development by NGS Technology

Genomic research, including the sequencing and study of the human genome, is one of the healthcare industry's most cutting-edge and quickly developing sectors. Pharmaceutical companies can now build drugs more individually due to genomics, producing safer and more potent medications. DNA sequencing hence supports medication discovery and development and propels market expansion. NGS will aid in thoroughly examining and comprehending human genes and their functions in the transmission of diseases.

Regional Analysis

North America Dominates the Global Market

The global next-generation sequencing (NGS) market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant shareholder in the global next-generation sequencing (NGS) market and is expected to grow at a CAGR of 10% during the forecast period. The introduction of extensive genome sequencing initiatives, the creation of reimbursement and regulatory policies for NGS-based diagnostic tools, and the development of precision and tailored treatments are all priorities for pharmaceutical companies in North America. Numerous governmental organizations, such as the National Human Genome Research Institute (NHGRI), have supported research on human genome sequencing while sponsoring studies on the structure, function, and significance of the genome in health and disease.

Europe is anticipated to increase at a CAGR of 21.10%, generating USD 10,523.90 million during the forecast period. Germany controls a substantial portion of the NGS market. The nation has made significant investments in the healthcare and medical research fields. The pharmaceutical and biotechnology industries are investing heavily in personalized medicine, which relies heavily on tools like NGS. Most academic institutions have NGS facilities, and the general facilities are open to the public. The next-generation sequencing market in Germany will expand due to the increasing strategic activities being carried out by major market players.

Asia-Pacific is anticipated to grow significantly during the forecast period. The rising incidence of specific diseases and the expanding government involvement in bolstering the nation's biotech industry is contributing to the growth of the next-generation sequencing market in China. Another factor boosting the market expansion in this region is the growing emphasis of the key market players on providing cutting-edge, effective NGS technology to developing nations to meet the demand for genomic therapeutics and whole-genome sequencing for customized medicine. Rising funding, expanding government backing, and strategic initiatives taken by major market players are projected to strengthen the nation's market for next-generation sequencing.

The Gulf Cooperation Council (GCC) region comprises Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates, and Oman. NGS technologies are growing well in the GCC region. A high-throughput genomics laboratory is located at Sidra, a research center in Qatar, and it conducts demographic studies and genetic sequencing for the Middle East and North Africa region. The region gains from the advancement in NGS research because of the presence of such institutes. Illumina Inc. and Alliance Global, Illumina's partner in the Middle East, worked together to implement next-generation sequencing technology at Sidra's new high-throughput genomics center.

Segmental Analysis

The global next-generation sequencing (NGS) market is segmented by type of sequencing, product type, and end user.

Based on the type of sequencing, the global next-generation sequencing market is bifurcated into whole genome sequencing, targeted resequencing, whole exome sequencing, RNA sequencing, chip sequencing, de novo sequencing, and methyl sequencing.

The targeted resequencing segment is the highest contributor to the market and is expected to grow at a CAGR of 20.60% during the forecast period. The process of sequencing the genome's protein-coding sections, known as next-generation sequencing (NGS), is known as whole-exome sequencing. Furthermore, exome sequencing and exome enrichment are efficient methods for discovering coding changes in various applications, including population genetics, genetic disease, and cancer research. This technique identifies gene-based protein mutations or variations and can be used to find potential mutations that cause disease. The variant finding is supported by whole-exome sequencing, which is appropriate for Mendelian disorders, including cancer.

Whole-genome sequencing (WGS) allows researchers to analyze a complete genome simultaneously. Due to constantly falling sequencing costs and its capacity to generate significant amounts of data, it is considered a valuable tool in genetic research. Additionally, this technique is frequently linked to human genomes. However, next-generation sequencing (NGS) technology's scalability and flexibility have enabled applying this WBS to any species, including plants, animals used for agriculture, and bacteria that cause illness. Some benefits of this sequencing strategy include a high-resolution, base-by-base picture of the genome and the ability to catch large and small changes targeted approaches may miss.

Based on the product type of sequencing, the global next-generation sequencing market is bifurcated into instruments, reagents and consumables, and services.

The reagents and consumables segment owns the highest market share and is expected to grow at a CAGR of 20.85% during the forecast period. Many different kinds of services related to next-generation sequencing are already available. The services industry can be broken down into a few broad classes, the most prominent of which are sequencing services and data management services. Services such as next-generation sequencing (NGS) of RNA, whole-exome sequencing, whole-genome sequencing, targeted sequencing, chip sequencing, de novo sequencing, methyl sequencing, and others may be available for these items. NGS-related data management services could offer software, tools, and cloud computing solutions.

Reagents and consumables play a crucial role in the NGS system industry. They can be broken down into consumables and sample preparation consumables. The introduction of simple-to-use consumables and the increase in sequencing techniques are boosting the segment's rise. The consumables and reagents are used for sample preparation, DNA isolation, sample cleanup, and other necessary enzymes throughout the procedure. Consumables used in sample preparation include that DNA fragmentation, end-repair, size selection, a-tailing, library creation, target enrichment, and quality assurance. The cost of next-generation sequencers is steadily declining, NGS technologies are improving, and user-friendliness is proliferating.

Based on the end-user of sequencing, the global next-generation sequencing market is bifurcated into hospitals and clinical laboratories, academics and research institutions, and pharmaceutical and biotechnology companies.

The academics and research institutions segment is the highest contributor to the market and is expected to grow at a CAGR of 23.20% during the forecast period. Pharmaceutical companies are making headway in the tailored approach to drug development due to genomics, which has also resulted in the identification of safer and more efficient medications. Therefore, most pharmaceutical companies have been working toward Next Generation Sequencing evidence-based medication discovery and development through research and strategic alliances. For instance, Roche purchased Stratos Genomics in May 2020 to advance the development of Roche's nanopore sequencer, which uses a novel strategy that combines electronic and biological components to sequence DNA for quick, adaptable, and affordable clinical diagnostic testing.

The use of the Next Generation Sequencing technology in clinical diagnosis to detect various diseases, such as cancers, infectious diseases, pathological conditions, and disease-causing mutations, has increased dependence on hospitals, healthcare organizations, and clinical laboratories. It is anticipated to be an effective tool for neonatal and genetic screening. Understanding a disease's underlying genomic and genetic components can aid in developing a diagnostic strategy. This information may also help with patient care and counseling. As a result, most medical practitioners rely on NGS to treat patients correctly.

Based on application, the global next-generation sequencing market is bifurcated into drug discovery and personalized medicine, genetic screening, diagnostics, agriculture and animal research, and other applications.

The drug discovery and personalized medicine segment owns the highest market share and is anticipated to grow at a CAGR of 24.10% over the forecast period. Crucial for drug discovery and development, next-generation sequencing techniques generate multiple layers of genomic data, such as genomic changes, transcriptome profiling and quantification, epigenetic modifications, and other genomic information relevant to the target disease. A new age of genetics-based medicine development has begun due to the high throughput investigation of genotype-phenotype interactions on human populations made possible by NGS.

The NGS is quickly becoming a potent and promising tool for illness diagnosis, particularly as a pathogen-detection technique for infectious disease diagnosis. A 15-year, non-exclusive partnership between Roche and Illumina grants Roche rights to develop and distribute in vitro diagnostic (IVD) tests on Illumina's NextSeq 550Dx System and its future portfolio of diagnostic (Dx) sequencing systems. This partnership reflects the growing emphasis significant players are placing on the launch of NGS diagnostic products.

Impact of covid-19

Restrictions brought forth by governments in light of the COVID-19 outbreak have put a lot of pressure on mining companies operating in affected countries such as China, Italy, and others. Key vendors such as Rio Tinto and Anglo American have reported a massive slowdown in production in recent months. Oyu Tolgoi project in Mongolia has been suspended as the Mongolian government tightened restrictions following the country’s first confirmed COVID-19 case. Anglo American demobilized most of the 10,000-strong construction workforce at its Qullaveco copper project in Peru, after the announcement of a 15-day quarantine to curb the spread of COVID-19 in the region.

Recent Developments

• August 2022- A market leader in clinical diagnostics and life science research unveiled a line of type 1 antibodies that prevent the drug evolocumab (Repatha®) from binding to its intended target, the human proprotein convertase subtilisin/Kexin type 9 (PCSK9), which has been implicated in the control of cholesterol levels. These sequence-defined, recombinant antibodies can be used to create evolocumab and its biosimilar-specific pharmacokinetic (PK) and anti-drug antibody (ADA) assays that are extremely sensitive and selective.
• August 2022- The Bio-Rad line of StarBright Dyes offered multiplex flow cytometry panels for immunology research by providing stable, verified flow antibodies linked to individual fluorescent nanoparticles specific to important immunophenotyping targets. Reproducible and consistent staining is guaranteed by minimal lot-to-lot variation and the dyes' resistance to photobleaching and lack of signal loss during fixation.