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The Next Generation Sequencing (NGS) market size is estimated to grow at a CAGR of 12.45% between 2022 and 2027. The market size is forecast to increase by USD 3,409.76 million. The growth of the market depends on several factors, including the increased utilization of NGS methods, the growing demand for early diagnosis of genetic disorders, and the availability of a wide range of NGS products.
This report extensively covers next generation sequencing market segments by end-user (academic research, clinical research, pharma and biotech companies, and others), product (consumables and equipment), and geography (North America, Europe, Asia, and Rest of World (ROW)). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increased utilization of NGS methods is notably driving the market growth, although factors such as the lack of clinical validation on direct-to-consumer genetic tests may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the growth of the next generation sequencing market is the increased utilization of next-generation sequencing methods. Rapid developments in next-generation sequencing techniques and the creation of a human genome database have allowed vendors to offer rapid diagnostic services and the capability to diagnose mutations and disorders in human gene sequences. The next generation sequencing techniques provide high processing speed and throughput that can generate a vast number of sequences with many applications in research, as well as in the diagnostic field. This has allowed the vendors to offer reliable genetic testing services and products using next generation sequencing in the market, which will propel the market growth.
Moreover, the next generation sequencing techniques have gained huge popularity for their use in whole viral genome sequencing. Researchers are thoroughly studying and developing further prospectus, which is expected to improve the performance of these techniques as a reliable solution and augment the growth of the market during the forecast period.
Reduced costs of gene sequencing are the primary trend shaping the market growth. Advances in gene sequencing techniques have enabled the reduction in turnaround time and cost of testing procedures. Advances in high-throughput genetic testing procedures, biochips, and NGS techniques have reduced the cost significantly. This has impacted the market by allowing vendors to offer low-cost services and overcome cost-related challenges.
This has led to a considerable increase in the consumer base for vendors (such as Illumina, QIAGEN, Thermo Fisher Scientific, Bio-Rad Laboratories, Danaher, and PerkinElmer) by providing access to more people with limited budgets and overcoming the challenge of unaffordable prices. With the adoption of NGS and fluorescence-based fully automated sequencing technologies, a sharp decline in the cost of sequencing and considerable improvements in accuracy have been witnessed. This will boost the growth of the market during forecast period.
The lack of clinical validation on direct-to-consumer genetic tests will be a major challenge for the next generation sequencing market during the forecast period. The clinical validity of direct-to-consumer genetic tests has been consistently questioned due to the presence of limited scientific evidence. This negatively impacts the commercialization of pre-disposition tests. Direct-to-consumer tests incorporate single-gene testing by Sanger sequencing as it is the most cost-effective method for the study of inherited disorders with low phenotypic and genetic heterogeneity. With the rise in the levels of heterogeneity, it is more efficient to use next generation sequencing panels to study multiple targets simultaneously.
Moreover, direct-to-consumer genetic tests have limited accuracy and can often generate false-positive or false-negative results, which can have a negative impact on the health of consumers and lead to emotional and mental distress. This has compelled regulatory authorities to bring vendors under scrutiny and made the disclosure of risk information (including the authorized tests) and instructions mandatory. Such factors will hinder the market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Next Generation Sequencing Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
10X Genomics Inc.: The company offers next generation sequencing such as chromium single cell, visium spatial, and xenium in situ. Also, the company focuses on manufacturing gene sequencing technology used in scientific research.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The next generation sequencing market share growth by the academic research segment will be significant during the forecast period. The next generation sequencing market can be segmented by end users into several categories, one of which is academic research. Academic research institutions, including universities and research institutions, are major users of NGS technologies for various applications.
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The academic research segment was valued at USD 1,423.35 million in 2017 and continued to grow until 2021. Academic researchers use NGS technology for a variety of purposes, including basic research, drug discovery, personalized medicine, and clinical diagnostics. This technology enables rapid sequencing of large amounts of genetic data, allowing researchers to analyze genetic variation and better understand disease mechanisms. Some of the key factors driving the adoption of NGS technology in academic research are the declining cost of sequencing, the availability of easy-to-use software and analytical tools, and the growing demand for personalized and precision medicine.
As a result, many NGS companies are focused on developing products and services that meet the needs of academic researchers. These include affordable sequencing instruments, easy-to-use software, and data analysis platforms that can be customized to your specific research needs. Overall, the academic research segment is an important and growing market for NGS technology and is expected to remain the leading end-user segment in the global next-generation sequencing market during the forecast period.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In 2022, North America was the major geographic segment of the global next-generation sequencing market. It had the largest sales share, and the United States was the leading country in the market. The advent of NGS has lowered the cost of genome sequencing. However, there is a growing demand for early detection of diseases such as cancer in this region. Furthermore, the presence of conglomerate companies such as Illumina, Thermo Fisher Scientific, and PerkinElmer, along with the growing focus on genome mapping programs, are also contributing significantly to the growth of the next generation sequencing market in North America.
In 2020, COVID-19 drove the growth of the regional next generation sequencing market owing to the increasing need for genomic testing and research activities to treat patients with COVID-19 in countries including the US, Canada, and Mexico. The genome sequences of the SARS-CoV-2 virus, which were deposited in public databases, were pivotal resources in understanding its virulence and providing approaches to the discovery of effective therapeutics and vaccines. Core NGS features in regional populations were used for comparative analysis to identify unique features of SARS-CoV-2 and assist in epidemiologic and public health endeavors. Such factors increased the demand for NGS products and services in the region in 2022. All these factors are expected to drive the market during the forecast period.
The next generation sequencing market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global next generation sequencing market as a part of the global life sciences tools and services market. The parent, global life sciences tools and services market covers products and companies engaged in research and development (R&D) of a variety of product categories, including capital equipment, instruments, accessories, and consumables that are used for R&D on pharmaceuticals and biotechnology products and laboratory diagnosis of various diseases. It also covers life sciences-related services, including contract research, contract manufacturing, and contract sales. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Next Generation Sequencing Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.45% |
Market growth 2023-2027 |
USD 3,409.76 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
11.55 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 38% |
Key countries |
US, Canada, Germany, UK, and China |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
10X Genomics Inc., Azenta Inc., BGI Genomics Co. Ltd., Bio Rad Laboratories Inc., Eurofins Scientific SE, F. Hoffmann La Roche Ltd., Illumina Inc., Konica Minolta Inc., Laboratory Corp. of America Holdings, Merck KGaA, Nabsys Inc., OPKO Health Inc., Oxford Nanopore Technologies plc, Perkin Elmer Inc., PierianDx Inc., Psomagen Inc., QIAGEN NV, Standard BioTools Inc., Takara Bio Inc., and Thermo Fisher Scientific Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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