Global Next Generation Sequencing Market By Technology (Whole Genome Sequencing, Whole Exome Sequencing, and Others), By Application (Oncology, Clinical Investigation, and Others), By Workflow (Pre-sequencing, Sequencing, and NGS Data Analysis), By End-User (Clinical Research, Hospitals and Clinics, and Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Next Generation Sequencing Market size is expected to be worth around USD 29 Billion by 2032, from USD 8 Billion in 2022, growing at a CAGR of 14.6% during the forecast period from 2023 to 2032.

The broad range of DNA sequencing techniques employed in genomic research is called “next-generation sequencing.” Numerous biotechnology and pharmaceutical firms have supported the international search for vaccinations and test kits.

Next-generation sequencing (NGS), also called high-throughput sequencing, is a generic term used to define different recent sequencing techniques. These techniques have revolutionized genomics and molecular biology research because they are much faster and cheaper than the previously used Sanger DNA and RNA sequencing.

Key Takeaways

• The Global Next-Generation Sequencing Market size was USD 7.6 billion in 2022.
• The market is projected to grow at a CAGR of 14.6% from 2023 to 2032.
• Estimated incremental revenue by 2032 is USD 29.7 billion.
• The targeted sequencing segment accounted for the largest revenue share of 73% in 2022, based on technology.
• In 2022, the oncology segment dominated the market, contributing to 28.5% of the global revenue by application.
• The pre-sequencing segment generated the largest revenue share of 56% in 2022, considering the workflow.
• The academic research segment dominated the market by end-use, accounting for the largest global revenue in 2022.
• North America held the highest market revenue share of 43% in 2022.
• The Asia Pacific region is expected to experience significant growth with a substantial CAGR from 2023 to 2032.
• NGS applications in oncology contribute to the detection of translocations, copy number variants, and cancer treatment information.
• The increasing prevalence of chronic diseases and genetic testing drives demand for NGS in diagnostics.
• Next-Generation Sequencing aids in identifying drug resistance and responses in the drug discovery process.

Technology Analysis

Targeted Sequencing Segment Dominating this Market

Based on technology global Next-Generation Sequencing market is segmented into whole genome sequencing, whole exome sequencing, targeted sequencing & resequencing. Based on ‘Technology,’ in 2022, the ‘Targeted Sequencing segment registered the largest market share at 73%.

As whole-genome sequencing continues to grow, this segment will note an increase in demand. It is because more information will be available to analyze specific gene locations or isolated genetic expressions.

Several companies in this market offer targeted sequencing services. This segment is anticipated to grow alongside the ‘WGS’ segment over the forecast period. Illumina Inc. provides targeted resequencing using its array finder and gene panel, while Pacific Biosciences of California’s Sequel System allows for targeted sequencing and the precise detection of variants.

Targeted sequencing panels will continue to be the standard for molecular cancer diagnostics. They are anticipated to become a routine part of treating solid tumors and hematologic malignancies. Targeted next-generation sequencing (NGS) can rapidly identify common and rare genetic mutations.

Identifying variants that contribute to therapeutic response or side effects is essential for providing personalized drug therapy. Resequencing the genome of many individuals for which there is a reference genome allows investigation of the relationship between sequence variation and normal or disease phenotypes.

The whole exome sequencing system is used primarily to determine the nucleotide sequence of exonic (or protein-coding) regions and related sequences of an individual’s genome, which make up about 1% of the complete DNA sequence.

Application Analysis

Oncology Segment Dominates the Market

Based on application NGS is classified into oncology, clinical investigation, reproductive health, metagenomics, drug development, and consumer genomics. In terms of ‘Application,’ the ‘Oncology’ segment dominated this Next-Generation Sequencing market and maintained a market share of 28.5%.

Current technologies must be used to help medical professionals better understand how cancer cells function; given the increasing incidence of cancer, several top businesses worldwide employ NGS and RNA sequencing.

The ‘Consumer Genomics segment is expanding due to continual product launches by major companies. Future segment growth can be due to businesses offering a “Personal Genome Service.” The revenue creation in this industry is anticipated to be impacted by companies including Color Genomics, Ancestry.com, Cloud Health, National Geographic, many Japanese consumer enterprises, and Helix, a newly announced venture.

With the growing growth of paternity testing and genealogy, consumer genomics as an application for NGS is predicted to expand.

Workflow Analysis

Pre-Sequencing Segment is Dominant

Concerning ‘Workflow,’ in 2022, the ‘Pre-Sequencing’ segment accounted for 56% of this market’s share. Next-generation sequencing is a critical workflow phase and has the largest Next-Generation Sequencing market share. These sequencing systems can accurately measure the liquid and are essential for NGS. This system can also perform functions like changing microliter plates and tubes and streamlining workflow.

Liquid-handling robotic systems allow researchers to concentrate on analysis and not manage the process.

End-Use Analysis

Academic Research Segment is Dominant

The end-user market is segmented into clinical research, hospitals and clinics, pharma and biotech industries, contract research organizations, and academic research. NGS can sequence hundreds and thousands of genes or whole genomes quickly. Sequence variants detected by GNS are widely used for disease diagnosis, prognosis, and therapeutic decisions.

Pharmaceutical and biotechnology companies are increasing the number of large-scale genomic sequencing projects to support their genomic drug development programs. It is expected to change the overall market dynamics.

However, as Next-Generation Sequencing market applications expand, companies struggle to gain buy-in from pharmaceutical and biotech stakeholders and build economically viable business models. Limited development of clinical applications may be one of the reasons. With regards to ‘End-Use,’ in 2022, the ‘Academic Research’ segment accounted for the highest market share at 53%. It is due to NGS solutions used in research projects at universities and research centers.

NGS scholarships for Ph.D. students are expected to increase in demand, which will lead to lucrative growth opportunities in the future. NGS is used in cancer research to discover and study cancer-related genes and identify mutations that contribute to tumorigenesis. Additionally, NGS has significant applications in diagnostic technology.

Key Market Segments

Based on Technology Type

• Whole Genome Sequencing
• Whole Exome Sequencing
• Targeted Sequencing & Resequencing

Based on Application

• Oncology
• Clinical Investigation
• Reproductive Health
• Metagenomics
• Drug Discovery
• Consumer Genomics

By Workflow

• Pre-sequencing
• Sequencing
• NGS Data Analysis

Based on End-User

• Clinical Research
• Hospitals and Clinics
• Pharma and Biotech Industries
• Contract Research Organizations
• Academic Research

Drivers

Increasing Use of NGS in Clinical Diagnostics Boosting the Market Growth.

Large corporations worldwide have improved their capacities for research and development initiatives. Due to the increased focus on COVID-19 vaccine research during the pandemic, there was a significant opportunity to deploy NGS. To sequence COVID-19 samples, Chinese researchers used Oxford Nanopore Technologies’ MinION Mk1C product.

Next-generation sequencing market expansion is anticipated to be aided by elements including the increased use of NGS technology in clinical diagnostics, allowing quicker processing and findings. OPKO Health, Pediatrix Medical Group, and GeneDx Inc. agreed in August 2020 to offer next-generation gene sequencing for the clinical identification of uncommon illnesses in neonatal critical care units.

Advancements in Next-Generation Sequencing Instrumentation and Technologies Driving the Market.

Future advancements in NGS instrumentation and technology will probably result in a significant industry expansion. NGS companies are developing a new method that integrates enzymatic DNA synthesis and NGS into a single device.

Numerous nations have initiated genome mapping initiatives to understand the connection between genes and disease better. Government organizations are sequencing millions of genomes to enhance science and develop better cancer and rare condition treatments. Through initiatives like the French Plan for Genomic Medicine 2025 or the 100,000 Genomes Project in the U.K., the EU is working to improve large-scale genomic data in the region.

The NGS informatics services have increased in this region due to these initiatives. The NGS is quickly becoming a potent and promising tool for illness diagnosis, particularly as a pathogen-detection technique for infectious disease diagnosis.

Expanding Genomics Programs in Several Nations Driving the Industry.

Globally, NGS is becoming more integrated into clinical testing, disease treatments, and laboratory investigation in the healthcare sector. NGS has several benefits, including quick sample analysis and cost-effectiveness. Technological developments will strongly influence the use of NGS technology over the projected timeline.

NGS has been widely used in pharmacogenomics to accelerate the drug discovery process. Expanding genomics programs in several nations will also help the next-generation sequencing industry. The introduction of next-generation sequencing-based diagnostics and proactive backing by respective governments are two market growth drivers. Increasing applications in clinical diagnosis is a major driving factor in the global next-generation sequencing market.

Opportunity

Diversified Applications of Next-Generation Sequencing in Diagnostics Will Create Large Opportunities.

Certain advantages offered by NGS platforms, such as cost efficiency, rapid and accurate sample analysis, and technological advancements, are estimated to drive the adoption of NGS technology during the forecast period. Developing genomics programs in many countries is expected to benefit the next-generation sequencing market.

The emergence of next-generation sequencing-based diagnostics, along with aggressive government support, is also one of the significant growth drivers of the market. The rising adoption of NGS technologies by pharmaceutical and biopharmaceutical companies is the key factor expected to drive the market during the forecast period.

The clinical segment is expected to be the leading segment in the global next-generation sequencing market during the forecast period.

Restrains

Ethical and Juridical Concerns.

Issues including identifiability, disclosing research findings, the appropriateness of consent and inclusion, as well as problems with specific communities and cultures, this factor may restrain this market growth.

Trends

Replacement of Traditional Technologies with Efficient Methods

Government organizations are sequencing millions of genomes to enhance science and develop better cancer and rare condition treatments. Through initiatives like the French Plan for Genomic Medicine 2025 or the 100,000 Genomes Project in the U.K., the EU is working to improve large-scale genomic data in the region. The NGS informatics services have increased in this region due to these initiatives.

Regional Analysis

In 2022, North America was the major market player, accounting for the largest share of 43% of total revenues. This regional Next-Generation Sequencing market is influenced by several clinical labs that use Next Generation Sequencing to provide genetic testing services owing to the rise in demand.

This region invests heavily in R&D initiatives and has a robust framework for conducting medical research. As a result, these elements are expected to play a significant role in North America’s growth over the forecast period.

Markets in the Asia-Pacific are anticipated to expand quickly over the coming decade due to significant technological advancements made by Japan and China in the field of Next Generation Sequencing methodologies.

Additionally, improving healthcare, clinical development frameworks and R&D in emerging economies like Australia and India have positioned this region’s next-generation sequencing market to benefit from lucrative growth opportunities.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The market sees significant competition from other medium and large-sized companies. For example, in March 2022, Integrated DNA Technology (IDT) announced the acquisition of Swift Biosciences, a pioneer in developing genomic NGS library preparation kits for clinical research, coding, and academia.

High competition levels are a hallmark of this industry. Major players are quickly implementing collaborations, geographic expansion initiatives, mergers & acquisitions, and partnerships in economically promising and developing regions.

Listed below are some of the most prominent significant key market players in the next-generation sequencing industry.

Market Key Players

• Illumina, Inc.
• Hoffman-La Roche
• QIAGEN
• Thermo Fisher Scientific Inc.
• Bio-Rad Laboratories, Inc.
• Oxford Nanopore Technologies
• PierianDx Inc.
• Genomatix GmbH
• DNASTAR, Inc.
• Perkin Elme Inc.
• Eurofins GATC Biotech GmbH
• BGI
• Precigen Inc.
• Macrogen Inc.
• Pillar Biosciences Inc.
• Agilent Technologies Inc.
• Other key players

Recent Developments

• August 2024: Bio-Rad Laboratories announced a significant executive change with Jon DiVincenzo set to join the company as President and Chief Operating Officer, effective September 2024. DiVincenzo’s prior experience includes various leadership roles at Labcorp Holdings Inc. and other prominent organizations in the healthcare and biotechnology sectors. This leadership update is pivotal as Bio-Rad continues to expand and innovate in areas including Next Generation Sequencing.
• In July 2024: QIAGEN announced its Q2 2024 financial results, highlighting stable net sales at $496 million and an improved adjusted operating income margin of 28.4%. The company updated its FY 2024 outlook with expected net sales of at least $1.985 billion, reflecting strong core business trends and adjustments in its NeuMoDx clinical PCR system sales.
• In February 2024: Hoffmann-La Roche launched a new next-generation sequencing (NGS) platform, which offers advanced capabilities for genetic and genomic analysis. This development is poised to enhance the detection and analysis of complex genetic markers, furthering research in personalized medicine and improving diagnostic accuracy across various diseases.
• In January 2023: PierianDx merged with two other companies, Seven Bridges and UgenTec, to form a new entity called Velsera. This merger is intended to enhance their capabilities in the genomics and clinical data analysis sectors, significantly expanding their reach and resources in the next-generation sequencing market.
• In March 2023: PerkinElmer completed a significant restructuring by divesting its applied science, food, and enterprise services businesses to New Mountain Capital for $2.45 billion. This strategic move led to the creation of a new, standalone company focused on life sciences and diagnostics, aligning more closely with high-growth areas like Next Generation Sequencing. The newly formed company, which was temporarily still using the PerkinElmer name, was expected to be rebranded later in 2023.

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