Report Overview
Global Next-generation Sequencing Services Market size was USD 5,851.97 Million in 2023 and the market is projected to touch USD 30,052.58 Million by 2031, at a CAGR of 22.69% during the forecast period. The Next-Generation Sequencing (NGS) Services Market is witnessing significant growth, the market's expansion is fuelled by factors such as technological advancements, increasing demand for minimally-invasive surgeries, and a growing preference for affordable and effective diagnostic and treatment options. The market is segmented by service type, workflow, end-use, and region. Service types include Human Genome Sequencing Services, Single Cell Sequencing Services, Microbial Genome-based Sequencing Services, Gene Regulation Services, Animal & Plant Sequencing Services, and Other Sequencing Services. Workflow encompasses Pre-sequencing, Sequencing, and Data Analysis. End-use sectors comprise Universities & Other Research Entities, Hospitals & Clinics, Pharma & Biotech Entities, and Others. Geographically, the market is divided into North America, Asia-Pacific, Europe, and Rest of the World.
The report highlights that targeted resequencing & custom gene panels represent the largest segment in the market, attributed to advantages over conventional methods and technological advancements. Sequencing by synthesis technology holds the largest market share due to its efficiency and cost-effectiveness. Diagnostics emerge as the largest application segment, driven by increasing target diseases and advancements supporting diverse applications. North America leads the market, followed by Europe, with the Asia-Pacific region showing the highest growth potential. Factors such as the presence of leading service providers, declining sequencing costs, rising awareness, and favourable reimbursement scenarios contribute to North America's dominance.
During the COVID-19 pandemic, Next-Generation Sequencing (NGS) assays emerged as vital tools for diagnosing the SARS-CoV-2 virus. Their rapid adoption showcased the technology's versatility beyond traditional applications, leading to a significant expansion of the market. This newfound awareness of NGS benefits prompted substantial growth, with its capabilities extending far beyond infectious disease diagnosis.
Simultaneously, regulatory approvals and the introduction of new tests accelerated market growth. The swift response from regulatory bodies, such as the FDA, in approving NGS-based tests for COVID-19 diagnosis further propelled market expansion. Additionally, ongoing innovation in NGS technologies fuelled the introduction of new applications, solidifying its position as a cornerstone in modern diagnostics. Underpinning this growth are declining sequencing costs and the development of various NGS platforms, making the technology more accessible. Moreover, the expansion of sequence databases has enhanced the specificity of medical condition targeting. These developments, coupled with NGS's ability to cater to a wide range of research needs while maintaining experiment specificity, ensure its continued relevance across diverse research centres and industries. The installation of in-house sequencing facilities in hospitals and universities poses a challenge to market growth. The NGS Services Market exhibits robust growth prospects driven by technological advancements, increasing applications, and expanding geographical reach. Understanding market dynamics and strategic collaborations remain pivotal for stakeholders to capitalize on emerging opportunities.
Global Next-generation Sequencing Services Market report scope and segmentation.
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Report Attribute |
Details |
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Base Year |
2023 |
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Forecast Years |
2024 – 2031 |
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Estimated Market Value (2023) |
USD 5,851.97 Million |
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Projected Market Value (2031) |
USD 30,052.58 Million |
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Segments Covered |
By Service Type, Workflow, End-use and Region. |
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Forecast Units |
Value (USD Million or Billion) |
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Regions Covered |
North America, Europe, Asia Pacific, Rest of the World |
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Countries Covered |
U.S., Canada, Mexico, Germany, France, Italy, Spain, UK, China, India, Japan, South Korea, India among others. |
Global Next-generation Sequencing Services Market dynamics
Next-Generation Sequencing (NGS) services encompass a range of genomic analysis solutions provided by specialized service providers, offering end-to-end sequencing workflows, including sample preparation, sequencing, and bioinformatics analysis. These services leverage state-of-the-art sequencing platforms and bioinformatics tools to generate high-quality genomic data, enabling researchers and clinicians to interrogate various aspects of the genome, transcriptome, and epigenome with unprecedented depth and precision. NGS services cater to diverse applications, including whole-genome sequencing, targeted sequencing, RNA sequencing, and epigenetic profiling, serving academic institutions, pharmaceutical companies, biotechnology firms, and clinical laboratories seeking to harness the power of genomics for research, drug discovery, and personalized medicine.
The Next-Generation Sequencing (NGS) services market represents a dynamic sector at the forefront of genomic research and precision medicine. NGS services encompass a suite of advanced genomic technologies that enable the rapid and comprehensive analysis of DNA and RNA, revolutionizing our understanding of genetics and its applications across various industries. Unlike traditional sequencing methods, NGS platforms allow for massively parallel sequencing of millions of DNA fragments simultaneously, facilitating cost-effective analysis of entire genomes, transcriptomes, and epigenomes. This unparalleled capability has fueled the adoption of NGS services across diverse sectors, including healthcare, pharmaceuticals, agriculture, and research institutions, driving the market forward.
The increasing demand for precision medicine stands as a key driver propelling the growth of the NGS services market. Precision medicine relies on the elucidation of individual genetic profiles to tailor treatment strategies, offering enhanced efficacy and reduced adverse effects. NGS services play a pivotal role in this paradigm shift, enabling clinicians to analyze patients' genomes for actionable insights, driving the uptake of personalized healthcare approaches. According to recent data, the global NGS services market is projected to reach a value of $XX billion by 20XX, driven by the growing adoption of precision medicine and the expanding application of genomic technologies in clinical diagnostics and drug development.
However, the market faces notable restraints, including data privacy concerns that hinder its growth trajectory. As NGS generates vast amounts of sensitive genomic data, stakeholders grapple with ethical and regulatory challenges surrounding data protection and privacy. Additionally, cost constraints and reimbursement issues pose challenges to market expansion, particularly in healthcare settings where budgetary constraints and uncertain reimbursement policies may impede the widespread adoption of NGS services. Despite these challenges, technological advancements continue to unlock vast opportunities in the NGS services market, with innovations in sequencing platforms, data analysis algorithms, and integration with other omics technologies enhancing the capabilities and scope of NGS applications.
Global Next-generation Sequencing Services Market drivers
- Increasing demand for personalized medicine and precision healthcare solutions
In the landscape of global next-generation sequencing (NGS) services, the burgeoning demand for personalized medicine and precision healthcare solutions serves as a pivotal driver of market growth. This driver is propelled by several factors shaping the healthcare industry. Firstly, the paradigm shift towards personalized medicine is driven by advancements in genomics and bioinformatics, enabling healthcare providers to tailor treatments to individual patients based on their genetic makeup. This approach offers more effective and targeted therapies, minimizing adverse effects and maximizing treatment efficacy.
The rising prevalence of chronic diseases, such as cancer and rare genetic disorders, underscores the need for precise diagnostic tools and therapies. NGS technology facilitates comprehensive genomic analysis, allowing for early disease detection, accurate diagnosis, and personalized treatment strategies. Furthermore, the increasing adoption of NGS in research, clinical trials, and drug development processes amplifies the demand for sequencing services. Pharmaceutical companies and research institutions utilize NGS to elucidate disease mechanisms, identify biomarkers, and develop innovative therapeutics, driving market expansion.
Moreover, supportive regulatory frameworks and initiatives promoting genomic research and precision medicine initiatives further stimulate market growth. Governments and regulatory bodies worldwide are investing in infrastructure, funding research programs, and implementing policies to accelerate the adoption of NGS technologies in healthcare. Overall, the escalating demand for personalized medicine and precision healthcare solutions catalyzes the growth of the global NGS services market. Companies operating in this space are poised to capitalize on these opportunities by offering innovative sequencing services, driving technological advancements, and forging strategic partnerships to meet the evolving needs of the healthcare industry. For instance: Informed Genomics provided NGS services for tumor profiling, sequencing cancer cells to identify mutations driving tumor growth for targeted therapies.
- Growing applications of NGS in agriculture and livestock breeding for improved yields and disease resistance
In the landscape of the global next-generation sequencing (NGS) services market, the burgeoning applications of NGS in agriculture and livestock breeding stand out as significant drivers for growth. NGS technology, with its ability to rapidly sequence large amounts of DNA, has found compelling utility in the agricultural sector. This is primarily attributed to its capacity to enhance agricultural practices by enabling precise genomic analysis for improved crop yields and disease resistance in livestock. NGS facilitates the identification and characterization of genetic variations in crops and livestock, offering insights crucial for breeding programs aimed at developing resilient varieties. By leveraging NGS data, agricultural researchers and breeders can pinpoint genetic markers associated with desirable traits such as high yield potential and disease resistance, thus expediting the breeding process.
Moreover, NGS contributes to precision agriculture by enabling personalized approaches to crop management. Through detailed genomic analysis, farmers can tailor their cultivation strategies to suit specific genetic profiles, optimizing resource allocation and maximizing productivity. Furthermore, in the realm of livestock breeding, NGS plays a pivotal role in accelerating genetic improvement programs. By deciphering the genetic makeup of individual animals, breeders can selectively breed for traits conducive to higher productivity and disease resilience, thereby fostering sustainable and efficient livestock production.
Overall, the growing adoption of NGS in agriculture and livestock breeding underscores its transformative potential in revolutionizing traditional farming practices. As stakeholders increasingly recognize the value of genomic insights in driving agricultural innovation, the demand for NGS services is poised to witness robust growth, thereby fueling expansion within the global NGS services market. For instance: In Nov 2021, Illumina and Genetic Alliance launched iHope Genetic Program, aiming to offer WGS access to thousands globally. Majority of efforts will focus beyond the U.S., with over one-third dedicated to African patients, enhancing sequencing capacity and efficiency.
- Restraints:
High initial investment costs and complexity in data analysis and interpretation
The Global Next-generation Sequencing (NGS) Services Market faces notable constraints, notably the substantial initial investment required and the intricacy of data analysis and interpretation. To begin, the considerable upfront costs to establish NGS infrastructure deter many potential entrants. Acquiring advanced sequencing equipment, setting up specialized laboratory facilities, and recruiting skilled personnel demand substantial financial resources. This financial hurdle limits market entry and hampers its growth trajectory.
Additionally, the complexity inherent in analysing and interpreting NGS data presents another significant challenge. NGS generates vast volumes of sequencing data that necessitate meticulous processing, analysis, and interpretation to extract meaningful insights. This process requires sophisticated computational capabilities, expertise in bioinformatics, and time-intensive workflows. Consequently, service providers may encounter delays in delivering results and struggle to ensure the accuracy and reliability of their services.
Moreover, the complexities of data interpretation may result in discrepancies among service providers, impacting the consistency and quality of NGS services industry-wide. This lack of standardization could undermine customer trust and impede market expansion. In essence, the high initial investment costs and the complexity of data analysis and interpretation serve as substantial impediments to the growth of the global NGS Services Market. Addressing these challenges will necessitate innovative solutions, cost-effective technologies, and collaborative efforts to establish industry-wide standards and best practices.
- Opportunities:
Rising adoption of NGS in oncology research and diagnostics
The rising adoption of Next-Generation Sequencing (NGS) in oncology research and diagnostics presents significant opportunities for the global NGS services market. Oncology, being a critical area of healthcare, demands precise and comprehensive genetic information for effective diagnosis, prognosis, and treatment selection. NGS technology offers high-throughput sequencing capabilities, enabling rapid and cost-effective analysis of the entire genome, exome, or specific gene panels.
In oncology research, NGS facilitates the identification of genetic mutations, biomarkers, and therapeutic targets associated with various cancers. This comprehensive genomic profiling enhances understanding of tumor biology, drug response mechanisms, and disease progression, driving advancements in personalized medicine and targeted therapies. Moreover, NGS enables the detection of minimal residual disease and monitoring of treatment response, aiding in clinical decision-making and patient management. Furthermore, NGS-based liquid biopsy assays provide a non-invasive method for detecting circulating tumor DNA, RNA, and other biomarkers, offering potential for early cancer detection, monitoring disease dynamics, and assessing treatment efficacy. The growing acceptance of liquid biopsy as a complementary diagnostic tool augments the demand for NGS services in oncology.
As the oncology community increasingly embraces precision medicine approaches, the demand for NGS services is expected to surge. Service providers catering to oncology research and diagnostics have the opportunity to expand their offerings, develop specialized assays, and collaborate with healthcare institutions and pharmaceutical companies. Additionally, advancements in NGS technology, such as improved accuracy, scalability, and data analysis capabilities, will further drive market growth. Therefore, capitalizing on the rising adoption of NGS in oncology represents a promising avenue for players in the global NGS services market to achieve sustainable growth and competitive advantage. For instance: Agilent Technologies, Inc. expanded its NGS product portfolio with the launch of three new microarrays in March 2020, catering to prenatal and postnatal research needs in cytogenetic laboratories, thereby driving future demand.
- Segment Overview
The Next-Generation Sequencing (NGS) Services Market is segmented into service type, workflow, and end-use, reflecting its multifaceted applications and expanding demand. By service type, the market encompasses Human Genome Sequencing Services, which dominate due to rising demand for precision medicine, Single Cell Sequencing Services, critical for cellular heterogeneity studies, and Microbial Genome-based Sequencing Services, essential for pathogen identification and microbiome research. Additionally, Gene Regulation Services, including Small RNA Sequencing and ChIP Sequencing, facilitate advanced genomic analysis, while Animal & Plant Sequencing Services cater to agricultural and veterinary sciences. The market also includes Other Sequencing Services, offering diverse specialized solutions.
By workflow, the market is segmented into Pre-sequencing, emphasizing sample preparation, Sequencing, the core process delivering genomic data, and Data Analysis, crucial for actionable insights through bioinformatics. This structured segmentation ensures seamless service delivery across the value chain. By end-use, the market serves Universities & Research Entities, driving scientific discovery, Hospitals & Clinics, advancing clinical diagnostics, Pharma & Biotech Entities, accelerating drug development, and Others, including government and industrial sectors. This segmentation underscores the broad utility of NGS services across research, clinical, and commercial domains, positioning the market as a cornerstone of modern genomic advancements.
Impact of COVID-19 Pandemic
The COVID-19 pandemic has significantly impacted the global next-generation sequencing (NGS) services market, ushering in both challenges and opportunities. With the pandemic necessitating stringent healthcare measures and prompting a surge in genomic research, the NGS market witnessed a dual effect. On one hand, disruptions in supply chains, reduced access to laboratory facilities, and a shift in healthcare priorities toward COVID-19 management led to a temporary slowdown in NGS service adoption. However, on the other hand, the pandemic highlighted the critical role of genomics in understanding viral evolution, tracking transmission patterns, and developing targeted therapies and vaccines, thereby accelerating the demand for NGS services.
The pandemic-induced challenges underscored the importance of resilience and adaptability within the NGS service providers. Companies that swiftly adapted their operations to remote working, implemented stringent safety protocols, and diversified their service offerings to cater to the emergent needs related to COVID-19 research managed to mitigate the adverse effects to a significant extent. Moreover, the pandemic acted as a catalyst for technological innovation within the NGS sector, leading to the development of faster, more cost-effective, and scalable sequencing platforms, which are essential for addressing the evolving demands of COVID-19 research and diagnostics.
Furthermore, the pandemic underscored the significance of collaboration and partnerships within the NGS ecosystem. Collaborative efforts between academia, industry players, and regulatory bodies facilitated the rapid sharing of genomic data, standardized protocols for COVID-19 testing, and accelerated the development and approval of NGS-based diagnostic assays. These collaborative endeavors not only bolstered the global response to the pandemic but also fostered a sense of collective responsibility and solidarity within the NGS community.
Looking ahead, as the world transitions into the post-pandemic phase, the NGS services market is poised for robust growth fueled by ongoing investments in genomic research, increasing adoption of precision medicine approaches, and expanding applications of NGS in areas such as oncology, infectious diseases, and agriculture. Moreover, the lessons learned from the pandemic are expected to drive continued innovation, collaboration, and resilience within the NGS industry, positioning it as a key enabler in addressing future public health challenges and advancing scientific discovery.
Global Next-generation Sequencing Services Market Overview by Region
The Global Next-Generation Sequencing (NGS) Services Market exhibits significant regional variation, driven by differences in technological adoption, healthcare infrastructure, and research funding. North America leads the market, supported by advanced genomic research initiatives, a robust presence of key players, and substantial government investments in precision medicine. Europe follows, driven by increased funding for personalized medicine and genomics research, along with supportive regulatory frameworks like the EU's Horizon 2020 program. The Asia-Pacific region is witnessing rapid growth, attributed to rising healthcare expenditure, expanding research capabilities in countries like China and India, and increasing awareness of genomic applications. Meanwhile, Latin America, the Middle East, and Africa (LAMEA) show steady market expansion due to improving healthcare systems, growing demand for advanced diagnostics, and collaborations to enhance local sequencing capabilities. Each region's growth trajectory reflects its unique socioeconomic and technological context, contributing to the global expansion of NGS services.
Global Next-generation Sequencing Services Market competitive landscape
The Next-generation Sequencing (NGS) Services Market is characterized by intense competition, with key players leveraging advanced technologies, strategic partnerships, and robust service portfolios to maintain their competitive edge. Leading companies such as Azenta Life Sciences, Bio-Rad Laboratories, Inc., and Thermo Fisher Scientific Inc. are at the forefront, offering comprehensive sequencing solutions and platforms that cater to diverse research and clinical needs. Quest Diagnostics Incorporated and Eurofins Scientific capitalize on their extensive laboratory networks and diagnostic expertise to enhance service accessibility and efficiency.
Innovative genomic analysis and research advancements position companies like Biomerieux SA, F. Hoffmann-La Roche Ltd, and Illumina, Inc. as pioneers, driving market growth through cutting-edge technologies and scalable sequencing services. BGI Group, recognized for its cost-effective solutions and high-throughput sequencing capabilities, continues to expand its global footprint, while Agilent Technologies, Inc. focuses on developing integrated systems that support streamlined workflows.
This competitive landscape is further intensified by players emphasizing R&D investments and collaborations with healthcare and research institutions to introduce novel applications, including precision medicine and oncology diagnostics. The market’s dynamic environment is marked by continuous innovation, geographical expansion, and the adoption of customized sequencing services, creating significant growth opportunities for industry leaders and emerging contenders alike.
Global Next-generation Sequencing Services Market Recent Developments
- In July 2021, Bio-Rad and 10x Genomics settled multiple litigations with a global patent cross-license, granting each other non-exclusive rights in single-cell genomics.
- In June 2021, Bio-Rad and Seegene partnered for the development and commercialization of infectious disease molecular diagnostic products for U.S. markets.
- In October 2023, Thermo Fisher Scientific has announced its intention to acquire Olink. This move underscores Thermo Fisher's commitment to expanding its capabilities in the rapidly growing field of proteomics. The acquisition of Olink is expected to bolster Thermo Fisher's portfolio with innovative technologies and solutions, further strengthening its position as a leader in life sciences research and diagnostics.
- In May 2023, Thermo Fisher Scientific and Pfizer collaborated to broaden access to next-generation sequencing (NGS)-based cancer testing in international markets. This partnership aimed to make advanced genomic testing more accessible to cancer patients worldwide, facilitating personalized treatment approaches and improving healthcare outcomes on a global scale.
- In January 2024, Quest Diagnostics and Ultima have joined forces to expand Ultima's technology in the rapidly growing fields of Minimal Residual Disease (MRD) and Whole Genome Sequencing (WGS). This collaboration aims to leverage Ultima's innovative technology in these areas, allowing Quest Diagnostics to enhance its offerings in genetic testing and precision medicine.
- In November 2023, Quest Diagnostics and Scipher Medicine collaborated to expand access to precision medicine for patients with rheumatoid arthritis (RA). This collaboration aims to leverage Scipher's expertise in molecular diagnostics and Quest Diagnostics' extensive testing capabilities to provide personalized treatment insights for RA patients. By combining their strengths, they intend to improve patient outcomes by identifying the most effective therapies tailored to each individual's unique genetic profile.
Scope of Global Next-generation Sequencing Services Market Report
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By Service Type: |
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By Workflow: |
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By End-use: |
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