NGS Data Analysis Market

Market Overview

The global NGS data analysis market size was valued at USD 740.98 million in 2022. It is estimated to reach USD 3180.35 million by 2031, growing at a CAGR of 17.57% during the forecast period (2023–2031).

Next-generation sequencing (NGS) is an emerging technology for determining DNA/RNA sequences for the entire genome or specific regions of interest at a fraction of the cost of conventional Sanger sequencing. NGS provides some rich information about genetic variants, transcription factor binding profile, transcriptome dynamics, epigenetic modifications, and other information when combined with other technologies like enrichment for exome (Exome-Seq), RNA extraction (RNA-Seq), or other genomic regions of interest, bisulfate conversion (BS-seq) and chromatin immuno-precipitation (ChIP-Seq).

NGS applications are fast-growing, necessitating innovative and effective data storage, analysis, and visualization methods. A critical step in the NGS workflow is processing next-generation sequencing (NGS) data for downstream applications since it directly affects how data are interpreted and how experiments are concluded. The design and planning of NGS experiments can be facilitated by having a fundamental understanding of NGS data analysis, common bioinformatic tools, and a broad understanding of the data analysis pipeline.

Highlights

• Short read sequencing dominates the read-length segment
• Services dominate the product segment
• Academic research dominates the end-user segment
• North America is the highest shareholder in the global market

Market Dynamics

Global NGS Data Analysis Market Drivers

Rising Academic Research Based on NGS Protocols

NGS is readily adopted in academic research institutes for genomic and proteomic research. For instance, Wageningen University & Research, the Netherlands, installed the Saphyr system from Bionano Genomics, Illumina MiSeq, Pacbio Sequel, and 10XGenomics Chromium for Genome de novo sequencing, Re-sequencing, Gene expression analysis (RNA-seq); Small-RNA sequencing; SNP analysis and mutation discovery; Genome-wide methylation studies; Ultra deep amplicon sequencing; DNA-protein interaction analyses (ChIP-seq); and Bioinformatics analyses. The rise in the adoption of targeted NGS in complex diseases such as cancer, neurodegenerative diseases and dementia, behavioral and psychiatric disorders, cardiovascular diseases, autoimmune diseases, immunological conditions, and metabolic disorders is expected to drive market growth.

Demand for Efficient Algorithms and Tools to Analyze Large Sequencer Data

Next-generation sequencing (NGS) technologies have aided in unveiling biological information that has never been studied using conventional technologies. However, storage, management, access, and data analysis issues are expected to provide the market with potential R&D opportunities, consequently fueling the market's growth. It has been observed that research communities that use high-throughput sequencers demand software systems like Laboratory Information Management Systems (LIMS) for handling and archiving sequencing information.

These information systems are also useful for monitoring the analysis flow, which is expected to increase the adoption rate of data analysis solutions. Research for enhancing the performance of read mapping tools that enable scalability in aligning reads is anticipated to boost expansion during the forecast period. The development of tools that can handle larger data sets produced by NGS devices is expected to facilitate data analysis efficiently.

Global NGS Data Analysis Market Restraint

Challenges in Sequence Compression and Data Storage

NGS has made clinical research possible, but managing the vast amounts of data these technologies produce remains difficult. It is an ongoing research challenge for the compression of biological sequences in a way such that they can be accessed and stored. Although research is carried out to develop the referential compression algorithms to compress the data generated, scalability and compression rate are still some of the challenges that need to be overcome. Furthermore, handling quality scores and sequence compression is another challenge research communities face. Such challenges in implementing NGS technology are expected to impede the adoption of data analysis solutions.

Global NGS Data Analysis Market Opportunities

Introduction of Technological Advancements in Cloud Computing and Data Integration

Introducing a cloud-computing environment for processing NGS-generated data has played a significant role in adopting NGS data analysis solutions. It is observed that cloud computing works efficiently for data analysis for performance and cost-effectiveness. Companies such as Microsoft, Google, and Amazon offer solutions for computational power, which are required for storing and analyzing this data.

Cloud computing platforms have led to technological advancements in data integration tools, which help analyze and process massive NGS-sequenced data. Improvements in technology are expected to create opportunities for market growth soon. Moreover, market players are developing cloud-based solutions and are engaged in mergers and acquisitions. For instance, in October 2021, BioNano Genomics, Inc. completed the acquisition of BioDiscovery for USD 100 million to expand its variant analysis platform in genomics.

Regional Analysis

Based on region, the global NGS data analysis market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global NGS data analysis market shareholder and is anticipated to exhibit a CAGR of 18.47% during the forecast period. North America is anticipated to expand substantially due to many key players, such as Illumina, Thermo Fisher Scientific, Agilent Technologies, and others, along with several organizations operating in this region that incorporate data analysis software. Many NGS research projects are conducted in U.S. and Canadian universities, increasing the demand for NGS software tools. Significant advancements in personalized medicine, companion diagnostics, and NGS are responsible for the dominant share of this region.

In addition, an increasing emphasis on process optimization and cost reduction and a decrease in the overall turnover time for clinical processes are anticipated to generate tremendous growth opportunities for the industry. These disciplines are capital-intensive and therefore require substantial R&D expenditures. Illumina, Inc. and ArcherDx, Inc. entered into a multi-year partnership in January 2020 to increase access to NGS-based oncology testing and companion diagnostics for the selection of therapeutics and personalized monitoring.

Europe is estimated to exhibit a CAGR of 9.14% over the forecast period. The growth of the European next-generation sequencing data analysis market can be attributed to increasing technological developments in genome analysis platforms and a growing number of initiatives undertaken by authorities. Government authorities are actively helping set up conferences, provide business concessions for international players, and conduct seminars to increase awareness about NGS data analysis and associated technologies. For instance, in March 2017, the European Commission (EC) conducted a seminar to address the role and utilization of NGS technologies in dealing with antimicrobial resistance. The seminar focused on various platforms and data analysis solutions for the condition.

Additionally, many programs are conducted to expand the scope of NGS technologies and associated data analysis software in Europe. For instance, the COST Action, initiated by the European member states, involves bioinformaticians, biomedical scientists, and computer scientists, leveraging their expertise to make NGS data more efficient and integrated. This action is expected to increase the ability of European groups to highly benefit from the NGS technology. Continuous surveillance of NGS technology and related software developments is anticipated to enable the partners to promptly create software products for future NGS opportunities.

Asia-Pacific is anticipated to exhibit the quickest growth rate during the forecast period. Several genomic programs in this region concentrate on integrating genomics into healthcare and consequently employ NGS technologies. For instance, the Australian Genomics or Australian Genomics Health Alliance is a collaborative research partnership comprised of more than 80 organizations seeking to integrate genomics into healthcare. In addition, several company developments are anticipated to increase the availability of NGS technologies and related software in this region. In March 2022, Vela Diagnostics introduced two NGS-based panels that could detect RNA and DNA biomarkers: Comprehensive (525 Genes) and Focused (60 Genes).

Segmental Analysis

The global NGS data analysis market is segmented by read length, product, workflow, mode, and end-user.

Based on read length, the global market is divided into short, long, and very long read sequencing. 

The short-read sequencing segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 12.92% over the forecast period. The availability of a wide range of algorithms and alignment tools for analyzing short-read sequencing data is expected to make it the largest revenue-generating segment throughout the analysis period. TopHat, Bowtie2, STAR, BWA, Minimap2, and HISAT2 are the commonly used alignment tools for High-Throughput Sequencing (HTS) data. In addition, Illumina, a leading player in the short-read sequencing data analysis market, also offers a broad range of short-read sequencing data analysis tools, such as push-button tools for variant calling, DNA sequence alignment, and data visualization.

Based on product, the global market is bifurcated into services and NGS commercial software. 

The services segment is the highest contributor to the market and is anticipated to grow at a CAGR of 14.85% over the forecast period. Although NGS is advantageous in cost and speed, many research institutions cannot implement it due to a lack of computational infrastructure and qualified personnel to analyze the generated data. Consequently, institutions lacking provisions for data interpretation, analysis, and administration utilize platforms and services provided by other market participants. Genoplex Bioinformatics Services; Toldot Genetics; and Igenbio, Inc. are some of the companies that provide services for annotation, mapping, variant calling, exome analysis, etc.

Based on workflow, the global market is divided into NGS primary data analysis, NGS secondary data analysis, and NGS tertiary data analysis. 

The NGS tertiary data analysis segment dominates the global market and is predicted to exhibit a CAGR of 15.40% over the forecast period. Tertiary data analysis is the most challenging step among primary and secondary data analysis. The core tertiary analysis involves interpreting or determining the clinical relevance of variants generated in sequencing data. This step comprises the biological classification of observed variants, identification of the clinical relevance of these variants, the activity of these variants for treatment options, and their applicability in clinical practices, further helping in treatment recommendations. However, tertiary data analysis has issues with the lack of standardization. Companies like QIAGEN design their commercial products in collaboration with their intended customers and validate them with third parties to eliminate or reduce inherent bias. The companies are working to bring standardization.

Based on mode, the global market is segmented into in-house and outsourced data analysis. 

The in-house data analysis segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 14.77% over the forecast period. In-house NGS data analysis includes companies involved in disease testing and diagnosis using NGS while conducting their own data analysis using available technology and software tools. Such companies operating in this segment are rapidly increasing. Similarly, several research institutes and academic institutions conducting NGS research have been observed to have allocated annual budgets for in-house services to be more than twofold of the outsourced data analysis. Moreover, an in-house data analysis infrastructure provides enhanced flexibility to design and implement NGS data analysis workflows in an organization.

Based on end-user, the global market is bifurcated into academic research, clinical research, hospitals and clinics, pharma and biotech entities, and others. 

The academic research segment dominates the global market and is projected to exhibit a CAGR of 13.93% over the forecast period. The decreasing cost of NGS technology has increased the usage of NGS software and data analysis platforms by various academic institutions and research centers for their projects that require data interpretation. Hosting workshops and training sessions for data analysis is likely responsible for the larger share of academic research. Moreover, the number of skilled professionals has gradually increased in research centers for handling data analysis software and computational tools, which is anticipated to boost revenue generation in this segment. Various institutes offer on-site bioinformatics courses and training programs that enhance knowledge about sequencing data analysis solutions, benefitting academic research revenue generation.

Recent Developments

• March 2023- SOPHiA GENETICS, a cloud-native healthcare software company, announced an exciting new collaboration with QIAGEN N.V. that will combine QIAseq reagent technology with the SOPHiA DDMTM platform for improved tumor analysis through next-generation sequencing (NGS).
• March 2023- Illumina Inc., a world leader in DNA sequencing and array-based technologies, introduced Connected Insights. This new cloud-based software enables tertiary analysis of clinical next-generation sequencing (NGS) data.