Market Snapshot
Key Players
Global Statistics Representing Next-Generation Sequencing Market Scenario
Next-generation sequencing (NGS) is a modern sequencing technology that assists scientists in sequencing and assembling billions of short DNA readings. The advancements in the next-generation sequencing technologies have brought to the fore several amendments in the sequencing process by offering speed, flexibility, and thereby reducing sequencing costs. NGS technique is efficient in detecting even the smallest possible mutations without any prior knowledge of mutation.
The next-generation sequencing market was valued at USD 10,555.9 million in 2019, with a CAGR of 19.4% from 2020-2027.
An Essential Facet of NGS in Clinical Cancer Research — Diagnosis and Treatment
NGS initiated a new trend in precision oncology that describes the transition shift in cancer management. This is achieved effortlessly by matching the genetic characteristics of the tumor with the appropriate drugs to improve the patient's health. This approach has resulted in a whole new generation of oncological clinical trial designs utilizing NGS to define genetic defects in patients for better treatment prospects.
Governments Introducing Favorable Policies to Encourage Scientists in Research and Development
Research and development activities pertaining to the development of therapies in treatment for the genetic disease is slated to accelerate the demand for next-generation sequencing techniques during the forecast period. The governments of developed nations have brought in several policies and acts for encouraging research scientists to devise solutions for treating rare and chronic diseases.
On February 21, 2020, the FDA announced a new application for rare diseases. Under this application, FDA will fund the research for the rare disease through Orphan Product Grants Program that will support natural history studies and clinical trials for the rare disease. In such research projects, researchers extensively deploy next-generation sequencing technology that will develop novel therapies in treating genetic disorders and rare diseases.
Rising Adoption of NGS Technologies by the Pharmaceutical and Biopharmaceutical Companies
The rising incidences of chronic disorders such as cancer, diabetes, autoimmune diseases, and among others, have engendered an enormous demand for advanced treatments.
According to WHO, there were 9.6 million deaths due to cancer in 2018, which is 1 in every 6 deaths. Similarly, an estimated 1.6 million deaths due to diabetes were witnessed in 2016
The companies, therefore, are focusing on supplying superior quality instruments to the research centers and pharmaceutical companies that are engaged in the development of novel therapies for genetic diseases. A slew of industry players is developing several kits, instruments, and tools for analyzing defects in genetic sequence.
On January 08, 2019, Illumina announced the development of NGS library preparation kits, sequencing instruments, an automated data analysis tool that is efficient in analyzing the defects in genetic sequence.
Such NGS tools have assisted the pharmaceutical and biopharmaceutical companies in designing therapies subject to the nature of the disease. Such factors are projected to positively influence the market growth of the NGS market in the near future.
Consumables Products High Demand Among Research Laboratories
The consumables segment is anticipated to witness the highest CAGR of 18.3% during the analysis time frame. It is foreseen that consumables such as deep well plates, pipettes, tips, vials, and others have high demand from the research laboratories as they are frequently used while conducting the experiments. To match the rising consumable supply demand from the research laboratories, several pharmaceutical and biotechnology companies are taking several initiatives.
On July 02, 2018, Agilent announced the opening of a new logistics hub in Shanghai that will direct the fast delivery of consumables to the laboratories in China.
The Clinical Segment’s Considerable Revenue Share
The clinical segment will dominate the overall market, owing to the segment's substantial (40%) revenue share contribution in 2019, prompted by the rising trend of third-generation sequencing technologies that facilitates diagnostic procedures. Additionally, the NGS technique utilized in the drug discovery process has a positive impact on the segment’s growth. To attain new drug discovery projects, several companies are collaborating to develop new strategies that will enhance drug discovery projects for chronic diseases.
The biggest market for NGS is reproductive health, primarily non-invasive prenatal testing (NIPT). NIPT will prove to be a safer alternative for the traditional non-invasive tests as it analyzes fetal cell-free DNA from the mother's circulation, which detects genetic disorders such as down syndrome easily.
Well-Resourced Hospitals — Advanced Instruments and Devices
The hospital segment is expected to register more than a 40% revenue share during the forecast period and projected to generate lucrative opportunities for the overall market. Presently, the government is heavily investing in the healthcare sector in order to build a robust infrastructure. As a result, hospitals are well-resourced with technologically advanced instruments and devices. Moreover, NGS is broadly implemented in hospitals for the diagnosis of immune disorders, infectious diseases, non-invasive prenatal diagnosis, and detection of human hereditary disorders. This helps healthcare professionals in therapeutic decision making for somatic cancer. Therefore, hospitals prefer NGS techniques due to its ability to deliver a clinical diagnosis in less time.
Asia Pacific’s Technological Innovation and Rising Fundings From Governments and Private Firms
Asia-Pacific is predicted to register the highest CAGR of 21.2% during the forecast period. This can be attributed to rising technological innovations and fundings provided by the government and private organizations. Additionally, increasing investments by the biotechnology and pharmaceutical companies are also responsible for raising the market demand.
On October 28, 2019, PierianDx raised USD 27 million to democratize next-generation sequencing. The company aims to develop the software-as-a-service platform that will allow next-generation sequencing as a standard of care.
On September 14, 2020, National Human Genome Research Institute (NHGRI) announced funding for the development of next-generation sequencing.
Additionally, to address the rising failure rates across drug discovery, pharmaceutical companies are after identifying better drugs and personalized therapy solutions. Wipro's Integrated NextGen sequencing platform provides deep learning, computational biology, big data, and digital technology. It will offer modeled pre-processing of DNA, in-memory database results, storage and real-time analysis of genomic data, advanced analytics, semantics, data search, visualization, and reporting. This will substantially assist several ways from rapid sequencing to identifying drug resistance genome in specific conditions, isolating cell-free DNA, and offering a preventive diagnosis.
North America to Houses Prominent Clinical Laboratories
North America accounted for a market share of 41.40% in 2019, followed by Europe. This can be attributed to exploring new regulatory approaches, availability of research funding, and the presence of prominent clinical laboratories that are utilizing NGS technology to perform genetic tests.
On August 03, 2016, Quest Diagnostics and Ancestry DNA announced a collaboration for the expansion of consumer DNA testing. The companies are joining the forces to meet the rapidly growing consumer demand for genetic tests to provide genetic ethnicity, origins, other factors.
Competitive Landscape
Industry players operating in the next-generation sequencing market are Qiagen, BioRad, Thermo Fisher Scientific, Pac-Bio, Oxford Nanopore, NanoString, Genapsys, Agilent, Long Read Solutions, BGI, Roche, 10X Genomics and Illumina. These industry players implement different strategies such as new product launches, collaborations, more focus on R&D, acquisitions, and mergers. This strategy enables the company to capture a higher market share, gain competitive advantage, and sustain the competition.
Key Industry Developments
On March 28, 2019, Qiagen launched NGS panels and novel liquid biopsy solutions with integrated bioinformatics that will assists several advances in cancer research. This solution enables the purification of RNA and non-invasive extraction. Thus, innovative product launches will help the company to expand the product portfolio.
On January 08, 2018, Illumina launched the iSEQ 100 Sequencing system that delivers accurate data at lower costs. The system provides reliability and robustness for a wide range of application that ranges from somatic tumor and germline profiling to targeted gene expression and 16S microbial analysis. Illumina's strategy intends to offer an accurate and cost-effective product to the clinical laboratories.
Next-Generation Sequencing Market Segmentation
By Product
- Consumables
- Platforms
- Miseq Series
- Hiseq Series
- Ion Torrent
- Others Sequencing Platforms
By Application
- Reproductive Health
- Cancer
- Mendelian Disorders
- Cardiovascular
- Diagnostic
- Others
By End Users
- Pharmaceutical and Biotechnology Companies
- Hospital& Clinics
- Academics and Clinical Research Centres
- Others
By Regions
- North America
- Europe
- Asia-Pacific
- South America
- Middle-East
- Africa
