According to the Market Statsville Group (MSG), the global next generation sequencing market size is expected to grow from USD 9,345.0 million in 2022 to USD 58,254.4 million by 2033, at a CAGR of 18.1% from 2023 to 2033.

Next generation sequencing is a technique used to fragment the DNA/RNA into multiple pieces, adding adapters, sequencing libraries, and reassembling them to form a genome. It is commonly known as massively parallel sequencing as it can sequence multiple DNA strands simultaneously. The widespread usage of NGS technologies due to their low cost and high efficiency propels the NGS market growth. Globally, NGS is used in healthcare for disease diagnostics, testing, and other laboratory analysis. It is also being used widely in pharmacogenomics to enhance the drug discovery process.

Many companies scaled up their research during the pandemic. The outbreak of Covid-19 and the urgent need for vaccines accelerated the research process, and NGS got the edge, as NGS is capable of sequencing 2 trillion DNA bases per slide. A number of nations have invested in initiatives for mapping the genome of their national population to understand the connection between genetics and disease better. With rigorous research, they wish to cure/find treatment for the most prevalent (like cancer) or unknown, uncommon diseases.

COVID-19 Impact on the Global Next Generation Sequencing Market

The COVID-19 pandemic has significantly impacted the global economy, putting further pressure on healthcare institutions and pharma companies to produce vaccines against the virus. As a result, healthcare companies accelerated the research and development in this direction. COVID-19 has had a complex and multifaceted influence on the next generation sequencing market. However, it was mostly in favor of NGS. Due to its capability of sequencing multiple strands simultaneously, companies started to adopt NGS. The fast spread of Covid 19 variants such as Alpha, Beta, Gamma, Delta, and Omicron highlighted the need for more sequencing to detect such mutations quickly and prevent the spread of new strains. In June 2021, Molecular Loop Biosciences Inc. (NGS Experts) sequenced the viral RNA, ultimately combating the spread of Coronavirus. On the other hand, the United States Food and Drug Administration (US FDA) authorized Illumina Inc. for the first diagnostic test using NGS technology. The FDA also approved Illumina Covid Seq Test.

Global Next Generation Sequencing Market Dynamics

Drivers: Low-cost benefit of Next Generation Sequencing Technique

The presence of high, efficient, and accurate NGS machines combined with the low cost of genomic studies has considerably increased the adoption of the most recent NGS technologies worldwide. One of the key players in the NGS market, Illumina, shares its cost per sample i.e., 23 USD for Targeted gene expression profiling and 18 USD for 16S metagenomic sequencing. The cost to generate a whole genome sequence is fairly low in NGS as compared to other technologies. Hence the cost-benefit adding to the accuracy makes it a superior technology in DNA sequencing.

Restraints: Lack of Sophisticated Equipment & Systems

Next generation sequencing requires certain fast data processing capabilities, sophisticated bioinformatics systems, and large data storage capacity, which can be costly for some. Many developing countries encourage research and development; however, due to the dependency on external funding, certain technologies seem expensive, such as NGS. Despite ongoing attempts by government and corporate organizations to offer funds for research around the world, many academic and research institutions struggle with budget restrictions when purchasing cutting-edge and expensive equipment and technology. This hampers the deployment of technology like NGS in developing countries. Despite the fact that many institutions might be able to buy next-generation sequencing equipment, many lack the computational power and personnel to analyze and interpret the data clinically.

Opportunities: Increase In Genome Mapping Programs

Significant growth is expected in the field of genome mapping in the coming 15 years. With a substantial improvement in the sequencing technology, complete sequencing of human genomes and specific model organisms is projected. NHGRI (National Human Genome Research Institute) states, “A wide range of technological issues require attention, including automation, system and process integration, miniaturization, parallelization, sequencing accuracy, and efficient integration between physical mapping and sequencing.”

For next generation sequencing market, this can be a golden opportunity, as sequencing multiple DNAs simultaneously with accuracy is one of its distinctive features.

Scope of the Global Next Generation Sequencing Market

The study categorizes the next generation sequencing market based on product & service,  application and end-user at the regional and global levels.

By Product & Services Service Outlook (Sales, USD Billion, 2019-2033)

• Consumables

• Sample Preparation

• DNA Fragmentation
• End Repair
• A Tailing & Size Selection
• Library Preparation

• Other Consumables

• Platforms

• HiSeq
• MiSeq
• Ion Torrent
• SoLiD
• Pacbio RS ll
• Sequel System
• Others

• Services     
  • Sequencing Service

• RNA Sequencing
• Whole Exome Sequencing
• Whole Genome Sequencing
• ChIP Sequencing
• Methyl Sequencing
  • Data Management

• NGS Data Analysis and Software
• NGS Storage
• Cloud Computing Solutions

By Application Outlook (Sales, USD Billion, 2019-2033)

• Diagnostic
• Drug Discovery
• Agriculture and Animal Research

By End-User Outlook (Sales, USD Billion, 2019-2033)

• Pharma
• BioTech
• Academic
• Others

By Region Outlook (Sales, USD Billion, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Drug discovery segment accounts for the highest CAGR during the forecast period by application

Drug Discovery forms the largest segment of the global next generation sequencing market based on its application. Increasing rates of diseases like cancer call for DNA sequencing to identify and understand the mechanics of cancer or tumor cells, but using the same sequence, a customized drug can be prepared for its treatment. According to the World Health Organization, International Agency for Research on Cancer (IARC), in 2018, nearly 18 million new cancer cases were reported and expected to rise to 30 million cases by 2040. Hence ongoing drug trials and research activities are being conducted by companies individually, in partnership, or in collaboration with NGS market players to utilize the sequencing technique for drug discovery. Demand for cancer & tumor treatment, genetic analysis to detect abnormalities & production of related drugs increases the requirement for technologies like next generation sequencing.

North America is projected to account for the largest market share, by Region

Based on the regions, the global next generation sequencing market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. North America will dominate the global next generation sequencing market in 2021. North America has huge research and development investments, especially in healthcare. Many clinical laboratories in North America use the NGS Technique of DNA sequencing.

With the rise in usage of NGS technologies in healthcare research in countries like Japan and China, the Asia Pacific region is also progressing. Developing economies like India are also adopting this methodology.

Competitive Landscape - Global Next Generation Sequencing Market

The global next generation sequencing market is highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.

Major players in the global next generation sequencing market are:

• Roche Life Sciences
• Thermo Fisher Scientific
• Illumina
• Applied Biosystems
• Pacific Biosciences
•  Perkinelmar
• Angilent Technologies Inc.
• Spiral Genetics Inc.
• BGI Group
• Bio Rad Laboratories Inc.

Key Issues Addressed

• What is the market size by various segmentation of the next generation sequencing by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the next generation sequencing market?
• What are the key opportunities and trends for manufacturers involved in the next generation sequencing supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of next generation sequencing in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.