Next-Generation Sequencing (NGS) Market: Industry Outlook by Offering (Sample Preparation [DNA Extraction, Library Preparation, Automation], Systems, Bioinformatics, Sequencing Services) Application (Clinical, Research) End User ΓÇö Global Forecast to 2031

Technological Advancements in NGS Informatics Solutions

The need for genomic data drives the demand for next-generation sequencing. The huge volumes of data generated from NGS have created enormous pressure on healthcare providers in terms of data analysis, interpretation, reporting, and management. Data storage and computing tools save money and time while scaling production, keep data secure with monitoring by security and compliance, and easily share volumes of genomic data in multiple working groups with user and team-specific access.

Technological advancements in NGS informatics solutions have 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 data analysis applications. NGS informatics technology has allowed the discovery of genetically targeted drugs and blood tests to detect cancer early. It has also enabled diagnoses for people with rare diseases. Thus, the technological advancements in NGS informatics solutions are expected to drive the growth of the NGS market.

Availability of Alternative Technologies

Cheaper and well-established alternatives to next-generation sequencing (NGS) for cell molecular profiling, such as microarray, Fluorescence In Situ Hybridization (FISH), and Polymerase Chain Reaction (PCR), are readily available. These methods have traditionally been used in cancer cell molecular profiling to detect actionable genetic alterations or biomarkers. Other alternative technologies include Allele-specific array Comparative Genomic Hybridization (aCGH), Sanger dideoxy sequencing, pyrosequencing, Multiplex Ligation-dependent Probe Amplification (MLPA), and Mass Spectrometry (MS) for gene studies. Therefore, the availability of these alternative technologies restrain the adoption of NGS, impeding the growth of the NGS market.

Increasing Application of NGS in Personalized Medicine

Precision medicine is an emerging approach to patient care. Physicians choose a treatment method based on the patient’s genetic makeup, also considering genetic changes resulting from a disease and lifestyle habits. It is an emerging disease treatment & prevention approach that considers variability in genes, environments, and lifestyles among individuals. Precision medicine can reduce the need for guesswork (trial and error in medication depending on how the medication affects the patient’s symptoms), help physicians overcome challenges related to variable diagnostic ability, and aid the development of treatment strategies based on generalized demographics. Moreover, precision medicine provides a more holistic view of an individual’s health. In clinical workflows, precision medicine facilitates more predictive and preventive care through targeted therapies. Thus, the use of NGS in precision medicine to enable more personalized approaches is expected to create market growth opportunities.

Rising Adoption of Bioinformatics and Genomic Data Management Solutions

NGS bioinformatics 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-premises or cloud servers. Moreover, 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 bioinformatics solutions.

By Offering: In 2024, the Commercial Sequencing/Outsourced Services Segment to Dominate the NGS Market

Based on offering, the NGS market is segmented into commercial sequencing/outsourced services, sample preparation, sequencing, and data analysis/bioinformatics. The commercial sequencing/outsourced services segment is further sub-segmented into targeted sequencing services, whole-genome sequencing services, RNA sequencing services, exome sequencing services, de novo sequencing services, ChIP sequencing services, methyl sequencing services, and other NGS services. In 2024, the commercial sequencing/outsourced services segment is expected to account for the largest share of 38.0% of the NGS market. The large market share of this segment can be attributed to the advantages offered by commercial sequencing/outsourced services, such as rapid delivery of results, access to advanced instruments and trained professionals, and lower costs compared to in-house sequencing.

By Application: In 2024, the Research & Other Applications Segment to Dominate the NGS Market

Based on application, the market is segmented into research & other applications and clinical applications. In 2024, the research & other applications segment is expected to account for the largest share of 62.2% of the NGS market. The large market share of this segment can be attributed to the growing prevalence of genetic disorders, the increasing adoption of sequencing-based tests in laboratories, the growing demand for personalized medicines, and the increase in NGS-based research.

By End User: In 2024, the Pharmaceutical & Biotechnology Companies Segment to Dominate the NGS Market

Based on end user, the NGS market is segmented into pharmaceutical & biotechnology companies, hospitals & diagnostic laboratories, academic & research institutes, and other end users. In 2024, the pharmaceutical and biotechnology companies segment is expected to account for the largest share of 43.5% of the NGS market. The large market share of this segment is attributed to the increasing R&D spending by pharmaceutical & biotechnology companies and the rising incidence of chronic diseases, which drive the adoption of next-generation sequencing products among pharmaceutical & biotechnology companies.

Geographical Analysis

In 2024, North America is expected to account for the largest share of 48.7% of the NGS market. North America’s significant market share can be attributed to the increasing R&D expenditures in the pharmaceutical & biotechnology sector, the presence of leading NGS market players in the region, favorable government initiatives for genomics research, growing applications of NGS-based research, rising awareness of NGS-based tests, increasing prevalence of cancer and genetic diseases, and favorable reimbursement scenario in the region.

However, the market in Asia-Pacific is projected to register the highest growth rate of 16.9% during the forecast period. Countries such as China and India are anticipated to offer significant growth opportunities for the vendors in this market. Many Asia-Pacific nations are increasing their efforts to enhance the healthcare sector, leading to increased investments in improving healthcare accessibility, infrastructure, and drug discovery programs. Other key factors driving the growth of this regional market include the increasing incidence of cancer, rising adoption of advanced diagnostic and therapeutic technologies, and government initiatives promoting genome sequencing programs.

The report offers a competitive landscape based on an extensive assessment of the product offerings and geographic presence of leading market players and the key growth strategies adopted by them over the past few years. The key players operating in the global NGS market are Illumina, Inc. (U.S.), Thermo Fisher Scientific Inc. (U.S.), F. Hoffmann-La Roche Ltd. (Switzerland), Revvity, Inc. (U.S.), QIAGEN N.V. (Netherlands), Agilent Technologies, Inc. (U.S.), Pacific Biosciences of California, Inc. (U.S.), Danaher Corporation (U.S.), Oxford Nanopore Technologies Plc. (U.K.), MGI Tech Co., Ltd. (China), Tecan Group Ltd. (Switzerland), Beijing Genomics Institute (BGI) (China), Eppendorf AG (Germany), Hamilton Company (U.S.), Hudson Robotics (U.S.), LGC Limited (U.K.), Fabric Genomics, Inc. (U.S.), DNASTAR, Inc. (U.S.), Eurofins Scientific SE (Luxembourg), Novogene Co. Ltd. (China), and Quest Diagnostics Incorporated (U.S.).

NGS Industry Overview: Latest Developments from Key Industry Players

• In January 2024, Illumina Inc. (U.S.) signed an agreement with Janssen Research & Development, LLC (U.S.). The agreement marks the start of Illumina's novel molecular residual disease (MRD) assay, a whole-genome sequencing (WGS) multi-cancer research solution for detecting circular tumor DNA (ctDNA) for understanding the recurrence or persistence of disease following clinical intervention.

• In March 2024, Thermo Fisher Scientific Inc. (U.S.) collaborated with Bayer AG (Germany) to develop NGS-based companion diagnostic assays (CDx) that offer decentralized genomic testing and rapid turnaround time to help increase patient access to Bayer’s precision cancer therapies.

• In January 2024, the QIAGEN Digital Insights (QDI) bioinformatics business of QIAGEN N.V. (Netherlands) launched the QIAGEN CLC Genomics Workbench with premium light technology, which supports next-generation sequencing for somatic cancer.
• In September 2023, Thermo Fisher Scientific Inc. (U.S.) partnered with Pfizer Inc. (U.S.) to expand access to localized NGS-based testing of breast and lung cancer patients in over 30 countries across Africa, Latin America, the Middle East, and Asia, where advanced genomic testing has previously been unavailable or limited.
• In March 2023, Illumina Inc. (U.S.) launched its Connected Insights, a cloud-based software that enables tertiary analysis of clinical NGS data.

Key questionsanswered in the NGS market report: