Next Generation Sequencing (NGS) Informatics Market by Offering (Data Analysis, Interpretation & Reporting, Storage & Computing, LIMS) Application (Diagnostic, Drug Discovery, Precision Medicine, Biomarker Discovery) End User - Global Forecast to 2030

The Next Generation Sequencing (NGS) Informatics Market is projected to reach $4.3 billion by 2030, at a CAGR of 15.4% from 2023 to 2030. The demand for sequencing data analysis tools has increased due to the rising research on novel molecules, growing genomic research projects, and the need for a single informatics platform to query and analyze data at multiple scales. NGS data analysis has been widely adopted in clinical and research settings, driven by the emerging needs in precision medicine research and the demand for consolidating and validating data.

NGS software is also adopted for a variety of pharmaceutical applications, such as processing massive volumes of raw sequence information/data into reliable and high-quality data. This allows researchers to store large-scale data, including data processing and sharing for multi-omics, phenotypic, genomics, and other biomedical data. The NGS informatics platforms have also shown promising results for global collaboration within or across organizations for data exchange while ensuring privacy and security standards.

The growth of the NGS informatics market is driven by increasing R&D investments by pharmaceutical and biotechnology companies, the growing utilization of NGS in disease diagnostics and precision medicine, technological advancements in NGS analysis software, and government initiatives supporting large-scale genomic sequencing projects. However, data confidentiality concerns restrain the growth of this market.

The increasing adoption of NGS informatics tools among hospitals and clinical laboratories and the growing use of bioinformatics and genomic data management solutions for large-scale data analysis and interpretation are expected to create growth opportunities for the players operating in the NGS informatics market. However, the lack of skilled professionals required to operate NGS informatics tools is a major challenge for market growth.

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Growing Utilization of NGS in Disease Diagnostics and Precision Medicine to Drive Market’s Growth

NGS is widely used for cancer testing and is available in many diagnostic laboratories. Apart from cancer, NGS technologies are also increasingly utilized to diagnose several diseases. NGS can be used to diagnose a wide range of chronic diseases, from novel microbial agents that cause epidemics to heterogeneous mutations that cause complex inherited disorders. NGS is the best option for diagnosing complex diseases involving multiple genes. Autism, connective tissue disorders, cardiomyopathies, and disorders of sex development are a few such diseases. The traditional methods for detecting infectious diseases are time-consuming and sometimes require microbiological cultures. NGS, in contrast, can detect microorganisms directly from samples, including blood and cerebrospinal fluid (CSF).

NGS can effectively identify unculturable pathogens that routine culture and sensitivity assays cannot. Furthermore, NGS can also be used to identify pathogens in the early stages of a disease outbreak through genomic sequencing information. The causative factor for drug resistance can also be detected using whole genome sequencing. For instance, mecC is the causative factor for drug resistance in S. aureus infection, and ampC is the causative factor for drug resistance in E. coli infection.

NGS technology has gained significant traction in cancer treatment due to its speed, accuracy, and increasing affordability. It has played a crucial role in developing precision medicine, which involves customizing treatments based on specific molecular changes in a patient's body contributing to the disease. In oncology, NGS is utilized to sequence biopsy samples and identify genetic abnormalities responsible for tumor growth, enabling oncologists to select appropriate targeted therapies. These factors are expected to drive the NGS informatics market, as it becomes essential for managing the vast amount of data associated with disease diagnosis and treatment.

Growing Use of Bioinformatics and Genomic Data Management Solutions for Large-scale Data Analysis and Interpretation

The advent of NGS has accelerated biological and medical research and discovery, allowing biologists and medical scientists to collect massive amounts of DNA sequence data rapidly and cost-effectively. In the past few years, the availability of advanced NGS technologies has lowered sequencing costs and significantly reduced the time required for DNA sequencing. According to the National Human Genome Research Institute (NHGRI), the cost of sequencing a human genome decreased from $29,092 in 2010 to $562 in 2021, significantly increasing the adoption of NGS.

The huge volumes of data generated from NGS have created enormous pressure on healthcare providers in terms of data analysis, interpretation, reporting, and management. Sequening software has made it easier to create long sequencing runs, analyze sequencing data, monitor run status, and view results within shorter timeframes. Additionally, data flow from instruments can now be processed by software, making it easier to manage and analyze data using analysis applications.

Sequencing data analysis solutions offer additional features, such as data security and accuracy, by converting sequencing information into a standard format. This allows for the monitoring of instrument run quality and the streaming of data directly to on-premise or cloud servers. Also, benefits such as access to computing resources with minimum in-house infrastructure and increased efficiency with easy access to a multitude of genomic analysis applications have significantly increased the adoption of NGS informatics solutions.

Key Findings in the Next Generation Sequencing (NGS) Informatics Market Study:

Based on Offering, the Software Segment is Expected to Account for the Largest Share of 74% of the Market

The large market share of this segment is attributed to the benefits provided by NGS software, including data processing and validation, documentation of important news and updates, showcasing projects with special datasets, and the ability to efficiently categorize and analyze data. Additionally, the use of data storage and sequencing software for various applications, such as post-alignment processing, ensuring variant call accuracy and quality, and facilitating secure and private variant calling for variant identification, drives the growth of this segment.

Based on Application, in 2023, the Drug Discovery Segment is Expected to Account for the Largest Share of the Market

The largest share of this segment is attributed to the decreasing cost of sequencing procedures, increasing R&D by pharmaceutical and biotechnology companies for drug discovery, the increasing applications of NGS in multiple clinical and research settings, and the use of informatics solutions to find pharmacological targets, confirm therapeutic hypotheses, and predict the potential safety of inhibitory compounds aimed at molecular targets.

Based on End User, the Pharmaceutical & Biotechnology Companies Segment is Expected to Account for the Largest Share of 53% of the Market

The large market share of this segment is attributed to the declining costs of NGS, the increase in R&D activities among pharmaceutical and biotechnology companies, and the wide usage of NGS informatics solutions by pharmaceutical and biotechnology companies for high-throughput analysis. Pharmaceutical & biotechnology companies use NGS informatics solutions for R&D purposes, including new drug discoveries & development and biomarker discovery. The use of NGS informatics in pharmaceutical & biotechnology companies has further proven useful. Multiple levels of genomic data are generated from genomic modification to transcriptome quantification and profiling epigenetic modifications.

Asia-Pacific: Fastest-growing Regional Market

The growth of this regional market is attributed to the accelerated economic growth in many countries within the region, leading to increased government focus on improving the healthcare sector. This has resulted in heightened investments to enhance the accessibility of healthcare services, improve healthcare infrastructure, and support drug discovery programs. Additionally, the rising incidence and prevalence of cancer, the growing adoption of advanced diagnostic and therapeutic technologies, and government initiatives aimed at supporting genome sequencing programs also contribute to the market’s growth in the region.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market players between 2021 and 2022. The key players profiled in the next-generation sequencing (NGS) informatics market report are Illumina, Inc. (U.S.), Thermo Fisher Scientific Inc. (U.S.), F. Hoffmann-La Roche Ltd. (Switzerland), Qiagen N.V. (Netherlands), Agilent Technologies, Inc. (U.S.), Sapio Sciences, LLC (U.S.), DNASTAR, Inc. (U.S.), Fabric Genomics, Inc. (U.S.), Partek Incorporated (U.S.), and DNAnexus, Inc. (U.S.). The major companies in the NGS informatics market have implemented various strategies over the years to expand their product offerings & global footprints and augment their market share.

The key strategies followed by most companies in the next-generation sequencing (NGS) informatics market were product launches, product approvals & enhancement, agreements, partnerships, collaborations, acquisitions, and expansions. Partnerships, agreements, and collaborations were the most preferred growth strategies adopted by key players in the NGS informatics market. These strategies accounted for a share of 70%-73% of the total strategic developments from key players between 2020 and 2023. The leading players that actively focused on these strategies were Illumina, Inc. (U.S.), Sapio Sciences, LLC (U.S.), and Qiagen N.V. (Netherlands).

Scope of the Report:

Next Generation Sequencing (NGS) Informatics Market Assessment—by Offering

• Software
  • By Type
    • Data Analysis Software
    • Data Interpretation and Reporting Tools
    • Data Storage and Computing Tools
    • Laboratory Information Management Systems (LIMS)
  • By Deployment mode
    • Web and Cloud-based
    • On-premise
• NGS Informatics Services

 Next Generation Sequencing (NGS) Informatics Market Assessment—by Application

• Disease Diagnoses
• Biomarker Discovery
• Drug Discovery
• Precision Medicine
• Agriculture and Animal Research

Next Generation Sequencing (NGS) Informatics Market Assessment—by End User

• Pharmaceutical and Biotechnology Companies
• Hospitals & Diagnostic Laboratories
• Academic & Research Institutes
• Other End Users
  (Note: Other end users include forensic laboratories & security agencies, food and beverage companies, and agriculture companies.)

Next Generation Sequencing (NGS) Informatics Market Assessment—by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • Italy
  • U.K.
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa

Key questions answered in the report: