Global Next Generation Sequencing (NGS) Market - Analysis and Forecast (2017-2024)

Market Overview

Sanger sequencing technology was utilized for the sequencing of first human genome, which took around 1.5 decades while costing approximately $2.7billion. Advancements in sequencing chemistry, molecular biology, and technical engineering over the years have profoundly increased the sequencing efficiency while decreasing the cost. Impressive progress in these fields have paved the way for development of massively parallel, high-throughput sequencing technology, known as Next Generation Sequencing (NGS). As compared to Sanger sequencing, NGS technology allows sequencing of millions of fragments in a single run, while decreasing the time and cost per run. Till date, progress in NGS technology has decreased the cost of sequencing from $10 million to $1000 and further evolution of this technology is aimed at decreasing the cost of sequencing to $100.

NGS technologies have evolved in terms of high resolution and accuracy, sequencing speed, throughput, and cost-effectiveness in genomic analysis to accelerate biological and biomedical research. The NGS technologies are implemented in several applications namely pharmaceuticals, diagnostics, forensics, agriculture and animal research. Additionally, the double digit growth rate of the NGS market was largely fuelled by the rise in the demand for precision medicine, liquid biopsy tests, and Non-Invasive Prenatal Testing (NIPT), among others.

The purpose of the study is to gain a holistic view of the next generation sequencing market in terms of various factors influencing it such as recent trends, technological advancements, and regulatory aspects of the market. The scope of this report is centred upon conducting a detailed study of the technologies allied with the next generation sequencing market. The global next generation sequencing market is segmented in to four different parts namely by product, by technology, by application and by geography. The global market value was estimated using these four different approaches and was validated with one another. These segments are further segmented into several sub-segments to ease the market estimation and to gain holistic view of the market.

The global next generation market was estimated at $4.14 billion in 2016 and is estimated to grow over $11.92 billion by 2024. The global next generation sequencing market is expected to grow with a double digit compound annual growth rate between the years 2017 and 2024. With substantial increase in the demand for genome mapping programs and diagnostics tests based on sequencing, the NGS market is expected to witness impressive growth and promises to be a lucrative field for investment. Kits & consumables sub segment dominated the product segment of global next generation sequencing market in 2016.  However, the software sub segment is expected to witness the highest CAGR in the forecast period from 2017 to 2024. 

Additionally, the reversible terminator sequencing technology currently dominates the global NGS market. ,. The emerging technologies such as Nanopore technology is estimated to witness the highest CAGR in the forecast period.

And by application, presently, the pharmaceuticals field makes up the largest dominating share of the global next generation sequencing market and is expected to grow at 11.29% CAGR in the forecast period from 2017 to 2024.  However, with the growing demand for non-invasive diagnostic procedures, the diagnostic field is expected to witness an impressive CAGR in the forecast period from 2017 to 2024. 

The global next generation sequencing market is segmented by the geographical region into North America, Europe, Asia Pacific and Rest of the World (RoW). North America is a leading contributor to the global next generation sequencing market and contributed 50% of the global market values in 2016. However, Asia Pacific is expected to grow at 17.53% CAGR in the forecast period from 2017 to 2024. Moreover, the Asia Pacific market contributed approximately 13% of total global market value in 2016.

A paradigm shift in the dynamics market is expected in the year 2020 with the introduction of portable technologies in full scale. The leading players in the market are taking the necessary steps to tackle the shift in the dynamics and sustain in the competition. The global next generation sequencing market is majorly dominated by the U.S. players. Companies belonging to the U.S. such as Illumina, Inc. and Thermo Fisher Scientific have been reported to contribute more than 60% of the market value in 2016. The key players which have significant contributions to the NGS market are 10x Genomics, Agilent Technologies, Inc., bioMerieux SA, Bio-Rad Laboratories, Inc., F. Hoffmann-La Roche AG, GenapSys, Inc., Illumina, Inc., New England Biolabs, Inc., NuGEN Technologies Inc., Oxford Nanopore Technologies Limited, Pacific Biosciences of California, Inc., Partek, Inc., PerkinElmer, Inc., QIAGEN, and Thermo Fisher Scientific, among others.

The field of service providers for sequencing tests and the applications based on genome sequencing is perceived to be a lucrative business all across the globe. With the impressive rise in demand for sequencing based diagnostics applications namely NIPT and liquid biopsy, the service providing companies have gained popularity and acceptance all across the globe. Additionally, substantial investments are being made in bioinformatics startups and service providing companies. With the growing demand for genome mapping programs, a large pool of genomic data is being generated and key players of the market are seeking help from the bioinformatics startups to meet the market requirement. Service providing companies help in expanding the global reach of key players of the market and also play a significant role in increasing the adoptability of sequencing technologies all across the globe.

Some of the opportunities on which significant work is being carried out presently in the market are hybridization of technologies and development of portable technologies. A best sequencer would be the one with the ability to sequence long reeds, in short run time and with great accuracy. The present available sequencers on the market possess any one of the mentioned features, but not all three. Despite the substantial investments made by the prominent companies to develop the instrument with the features mentioned, it is not expected to be the reality at any time soon. Thus the hybridization of available technologies such as SMRT and reversible semiconductor sequencing technology, is acknowledged to be a promising approach to cater the needs of the market