Next-generation Sequencing Market Size, Share & Industry Analysis, By Type (Products {Instruments & Consumables}, and Services), By Technology (Sequencing By Synthesis (SBS), Nanopore Sequencing, ION Semiconductor Sequencing, and Others), By Application (Research & Applied and Clinical {Cardiovascular, Oncology, Genetic Diseases, Reproductive Health, and Others}), By End-User (Pharmaceutical & Biotechnology Companies, Academic & Research Institutes, and Others), and Regional Forecast, 2024-2032

The global next-generation sequencing market size was valued at USD 8.30 billion in 2023 and is projected to grow from USD 9.29 billion in 2024 to USD 27.55 billion by 2032, exhibiting a CAGR of 14.6% during the forecast period. Moreover, the U.S. next-generation sequencing (NGS) market size is projected to grow significantly, reaching an estimated value of USD 15.21 billion by 2032, driven by the strong focus of the research community on genomics, high R&D investments, and the strong presence of well-established companies.

Next-generation Sequencing (NGS) is a new technology that offers ultra-high throughput, scalability, and speed. The introduction of this technology has revolutionized the field of genomics by allowing researchers to perform a wide variety of applications and study biological systems at the deepest. With the growing demand for cost-effective, fast, and accurate DNA sequencing and data interpretation technologies, the market for next-generation sequencing has been rapidly expanding over the past few years. To meet the high demands, key market players, such as Illumina Inc., Thermo Fisher Scientific Inc., and others, have introduced various innovative products based on the NGS techniques. Along with this, governments across the world are also supporting the adoption of NGS through research grants. This is further aided by the fact that these technologies have a superior degree of cost-effectiveness compared to other diagnostic technologies.

Furthermore, the COVID-19 pandemic had a positive impact on the global market. This technology was used as an effective tool for the diagnosis, monitoring, and genomic studies of the SARS-CoV-2 virus. The pandemic accelerated research activities and investments in the development of vaccines against the virus. Post-pandemic, continued and sustained adoption of these technologies will contribute to the strong growth of this market during the forecast period.

Next-generation Sequencing Market Trends

Increasing Number of Government-aided Genome Projects Identified as Significant Market Trend

Sequencing technologies, such as next-generation sequencing, play a crucial role in disease diagnosis. With the emergence of NGS in the past decade, the landscape of disease diagnosis and management has tremendously changed. Owing to this, governments across the world have started investing a significant amount in genomic projects. For instance, in January 2020, the Genome India Project (GIP) was initiated by the Department of Biotechnology (DBT), Union Ministry of Science & Technology, India. The project aimed to map 10,000 genetic samples from Indian citizens to build a reference genome. In February 2024, the Indian government announced the successful completion of this project.

Various other projects, such as the Personalized Medicine Program, France Génomique, and The Saudi Human Genome Program have also been launched. Owing to this, several government organizations are investing in genome projects, which are expected to grow the market during the forecast period.

Next-generation Sequencing Market Growth Factors

Diversified Applications of Next-generation Sequencing in Diagnostics to Drive Market Growth

One of the prominent factors that have contributed to the growth of the market is the diversified and increasing applications of next-generation sequencing in diagnostics. The declining costs of sequencing have resulted in increasing applications of this technique in the diagnosis of various diseases. Various test kits and testing services are being launched by the operating players for several applications, such as non-invasive prenatal testing, genetic testing, cancer screening, and others.

• For instance, in March 2024, Thermo Fisher Scientific Inc. and Bayer AG collaborated on the development of companion diagnostic assays.

Moreover, active government support through product approvals and improved reimbursement coverage for such diagnostic tests is anticipated to drive market growth further. In addition, the growing prevalence of chronic diseases and the strong focus of the research community on expanding NGS applications have propelled the global next-generation sequencing market growth.

Technological Advancements in Products and Expansion of Services by Key Players Boosted Market Growth

With the increasing introduction and adoption of the NGS technique, there has been a visible shift toward personalized medicine. Along with this, the cost of genome sequencing has also declined in recent years. This is majorly due to the advancements in products and launches of new services by market players.

The market is witnessing increasing competition, with both well-established and new entrants introducing new, innovative products. The constantly growing demand, coupled with increasing competition, leads to the launch of innovative products and services. For instance, in June 2022, PerkinElmer Inc. launched BioQule NGS System, an automated benchtop system for NGS research.

RESTRAINING FACTORS

Shortage of Skilled Personnel in Developing Countries to Impede Market Growth

The global market for next-generation sequencing has witnessed tremendous growth, majorly driven by the rising usage of these techniques worldwide. However, the market’s growth is restricted to some extent by a few factors, such as the lack of skilled personnel having the required knowledge to handle this advanced equipment in developing nations. Along with this, the requirement of high investments in research projects, further impedes market growth.

Apart from this, the challenges associated with the secure storage of large volumes of generated data are another concern, limiting market growth to a certain extent. A large amount of data is generated through various genome projects. It is not economically feasible for many research institutes and biopharmaceutical companies to successfully and securely store this data. Thus, issues regarding the safe storage of this data are impeding market growth.

Next-generation Sequencing Market Segmentation Analysis

By Type Analysis

Introduction of Products with Improved Features to Spur Segment Expansion

Based on type, the market is segmented into products and services.

The products segment dominated the global next-generation sequencing market share in 2023. The segment is further divided into instruments & consumables. The dominance of the products segment is attributed to the high volume usage of consumables, easy availability of products, and constant new product launches by operating players.

• For instance, in March 2023, Illumina Inc. introduced cloud-based software - Connected Insights, to provide tertiary analysis for clinical Next-generation Sequencing (NGS) data.

The services segment is also anticipated to witness considerable growth in the future, fueled by the increasing number of service providers and the offering of innovative services at decreased costs.

By Technology Analysis

Ample Availability of Sequencing By Synthesis (SBS) Products to Propel Segment Growth

The market is categorized by technology into Sequencing by Synthesis (SBS), nanopore sequencing, Ion semiconductor sequencing, and others.

The Sequencing by Synthesis (SBS) segment held the major market share in 2023. Illumina Inc. is the leading player, offering products and services based on this technology. Thus, the company's broad portfolio has resulted in its dominance in this segment. Several advantages offered by this technology also increase its usage among end-users.

The Ion semiconductor sequencing technology segment also captured a significant market share in 2023. Thermo Fisher Scientific Inc. provides products and services based on this technology. The nanopore sequencing technology segment is also anticipated to record a significant CAGR during the forecast period due to its various advantages, such as its portability and the production of long reads up to hundreds of kilobases.

By Application Analysis

Emphasis on the Development of Innovative Products Using NSG Resulted in the Dominance of the Clinical Segment

The market is segmented by application into research applied and clinical. The clinical segment is further categorized into cardiovascular, oncology, genetic diseases, reproductive health, and others.

The clinical segment held the dominant position in the market in 2023, driven by the growing usage of NGS technology in clinical diagnostics. Moreover, biotechnology companies are collaborating with NGS product and service providers to introduce new diagnostic products, which is also supporting the segment’s growth.

• For instance, in January 2022, Boehringer Ingelheim and Illumina Inc. collaborated on the development of Companion Diagnostics (CDx) to support the former’s oncology pipeline.

The research & applied segment is also anticipated to grow at a considerable rate over the study period. An increasing number of large-scale research initiatives by various countries is anticipated to boost the segment’s growth.

By End-User Analysis

Increasing Research Investments by Pharmaceutical Companies to Aid Segment Growth

By end-user, the market is categorized into pharmaceutical & biotechnology companies, academic & research institutes, and others.

The pharmaceutical and biotechnology companies segment captured the largest next-generation sequencing market share in 2023. Various factors, including a strong focus on using NGS in drug discovery and development, the introduction of new products, and research collaborations with other players, have driven the segment’s growth.

• For instance, in October 2022, Illumina Inc. and AstraZeneca signed a strategic research collaboration to enhance the pharmaceutical pipelines. The latter company aims to use Illumina’s expertise to identify genetic variants responsible for human diseases.

The academic & research institutes segment is assessed to grow notably in the near future. Rising government research funding for genomic projects based on next-generation sequencing and strong government support are likely to propel the growth of the research institutes segment in the coming years.

REGIONAL INSIGHTS

The market is divided regionally into Europe, North America, the Middle East and Africa, Asia Pacific, and Latin America.

North America captured the largest market share in 2023, generating a revenue of USD 4.60 billion, and is estimated to maintain its dominance over the study period. This can be attributed to factors such as the strong focus of the research community on genomics, high R&D investments, and the strong presence of well-established companies in the region. In addition, the rising introduction of new products and collaborations and partnerships between players will support the regional market’s growth.

• For instance, in November 2023, PacBio and MedGenome announced a De Novo Genome Assembly and Annotation grant for genomic research.

Asia Pacific is supported by various elements, such as strong support by the government authorities, growing demand for genetic sequencing and testing in China, and advancements in bioinformatics tools used in genomic research. Furthermore, growing research and development for the development of drugs for rare diseases and technological advancement with the grouping of next-generation sequencing and companion diagnostics in this field are stepping up the growth of the market. As a result, the region is becoming a rapidly growing market for NGS.

Europe has a well-established healthcare sector and R&D infrastructure. Support from the government and research and academic institutes for genomic analysis based on NGS through high research funding, especially in the U.K. and England, is expected to favor market expansion.

Furthermore, the markets in the Middle East & Africa and Latin America are projected to witness moderate growth over the forecast period. Factors, such as collaborations between global and domestic players to expand the usage of next-generation sequencing, have supported the regional market’s growth.

• For instance, in December 2023, Illumina Inc. and the African Society for Laboratory Medicine collaboratively signed a memorandum of understanding to expand access to genomics within the African region. This initiative aims to effectively fight infectious diseases.

List of Key Companies in the Next-generation Sequencing Market

Illumina Inc., Thermo Fisher Scientific, and F. Hoffmann-La Roche Ltd. Dominated Market Due to Strong Product and Service Portfolio

The market for next-generation sequencing is highly consolidated, with prominent players, such as Illumina Inc., Thermo Fisher Scientific, and F. Hoffmann-La Roche Ltd., capturing the majority of the market share in 2023. These companies' dominance can be attributed to their strong portfolio of sequencing products and services, coupled with their wide presence globally. In addition, these players are constantly focusing on undertaking various strategic initiatives, such as the introduction of innovative products and expansion of their offerings through collaborations, partnerships, and other initiatives.

• For instance, in December 2023, Illumina Inc. and HaploX collaborated to provide locally manufactured sequencing instruments in China.


• In March 2022, Thermo Fisher Scientific introduced the CE-IVD marked NGS instrument that can be used in clinical labs.

Other key companies in the market include BGI, Perkin Elmer Inc., PacBio, Oxford Nanopore Technologies, and others. These players are emphasizing the introduction of advanced products with sustainable properties to gain a prominent share of the global market.

• For instance, in September 2023, Integrated DNA Technologies (IDT) introduced xGen NGS products, which include adapters, primers, and universal blockers for the Ultima Genomics UG 100 platform. Such advancements in the NGS platforms further enable the company's strong growth prospects.

List of Top Next-generation Sequencing Companies Profiled:

• Illumina Inc. (U.S.)


• Thermo Fisher Scientific Inc. (U.S.)


• F. Hoffmann-La Roche Ltd. (Switzerland)


• QIAGEN (Germany)


• PacBio (U.S.)


• Oxford Nanopore Technologies (U.K.)


• Perkin Elmer, Inc. (U.S.)


• BGI (China)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: Integrated DNA Technologies (IDT) collaborated with Element Biosciences, Inc. to develop more streamlined NGS workflows.


• November 2023: Element Biosciences, Inc. and QIAGEN signed a strategic partnership to provide complete next-generation sequencing workflows for the AVITI System.


• October 2023: Element Biosciences, Inc. and Revvity, Inc. collaborated to enhance the NGS research workflow.


• October 2023: GenDx introduced NGS-Turbo, which can be used for HLA typing using Oxford Nanopore Technologies’ sequencing instruments.


• March 2023: Illumina Inc., along with GenoScreen, introduced BGS-based GenoScreen Deeplex Myc-TB assay in India.

REPORT COVERAGE

The report provides an in-depth analysis of the industry segments, such as leading types, technologies, applications, and end-users. It also offers the global market forecast in relation to the current dynamics and the latest trends. The report also discusses several factors that have contributed to the market’s growth and provides the competitive landscape of the market.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 14.6% from 2024-2032
Unit	Value (USD Billion)
Segmentation	By Type Products Instruments Consumables Services
By Technology Sequencing By Synthesis (SBS) Nanopore Sequencing ION Semiconductor Sequencing Others
By Application Research & Applied Clinical Cardiovascular Oncology Genetic Diseases Reproductive Health
By End-User Pharmaceutical & Biotechnology Companies Academic & Research Institutes Others
By Region North America (By Type, Technology, Application, End-User, and Country) U.S. Canada Europe (By Type, Technology, Application, End-User, and Country/ Sub-Region) U.K. Germany France Italy Spain Scandinavia Rest of Europe Asia Pacific (By Type, Technology, Application, End-User, and Country/ Sub-Region) China Japan India Australia Southeast Asia Rest of the Asia Pacific Latin America (By Type, Technology, Application, End-User, and Country/ Sub-Region) Brazil Mexico Rest of Latin America Middle East & Africa (By Type, Technology, Application, End-User, and Country/ Sub-Region) GCC South Africa Rest of the Middle East & Africa