The Global Next Generation Sequencing Market Size was valued at USD 8.3 Billion in 2023 and is anticipated to reach USD 39.1 Billion by 2032 with a CAGR of 19.1% from 2024 to 2032.

The next generation sequencing (NGS) is a modern technique that provides high throughput, scalability and high speed for sequencing whole genomes or specific genomic DNA or RNA fragments. This revolutionary approach has brought a major change in the biological sciences as it provides the capability to investigate biological systems in a way that was almost impossible before. The cost has now come down and the bench top systems have made it possible for almost all the labs to adopt NGS. Its speed and accuracy make it a very useful tool for working with large gene sets, giving far more valuable information than common sequencing techniques.

In the following years, NGS technology has expanded the range of research questions that are possible to investigate in biology. The instrument’s sample preparation and data analysis capabilities are further enhanced to cover multiple applications. NGS enables fast whole-genome sequencing, whole-genome targeted sequencing, and RNA sequencing (RNA-Seq) to identify new RNA variants, splice sites and quantify mRNAs for gene expression. It also allows for the examination of epigenetic features like genome-wide DNA methylation and DNA-protein interactions and cancer samples for sequencing to determine rare somatic variants and tumor subclones, studying the human microbiome, and identifying novel pathogens.

Next Generation Sequencing Market Dynamics

The increasing incidence rate of genetic disorders as well as cancer is a major factor that will fuel the next-generation sequencing (NGS) market. The WHO has estimated that 400000 children are diagnosed with cancer every year, underlining the importance of improving the knowledge of the genetic profile of cancer to create new methods for its treatment. The increasing number of applications for NGS is one of the leading factors to market growth. The principal drivers of the NGS market include the expanding utility of NGS in cancer care and research, reduced costs of genome sequencing, advancements in the methods of sequencing, higher spending on pharmaceutical research, increasing mapping initiatives, and favorable policies and reimbursements for NGS-based diagnostics.

But the pace of market development is limited by the high price of NGS systems and reagents, the availability of competitive technologies, low effectiveness of mutation detection for personalized medicine, and legal and ethical issues related to NGS diagnostics.

The market has several opportunities such as, increasing usage of NGS in various sectors, increasing awareness about bioinformatics and genomic data management solutions and government driven genomic sequencing projects. Some of the limitations are that there are not enough qualified personnel and that there are problems with diagnostics. The current trends in the NGS market include manufacturing alliances and affiliations, portability of sequencing equipment, and growing calls for automated NGS workstations.

The increasing awareness of precision medicine is one of the key factors that fuel the development of the NGS market. Precision medicine or personalized medicine delivers therapies based on the patient’s genetic makeup, behavior, and geographical location. These technologies are central to this field as NGS technologies provide high-resolution genomic data to researchers and clinicians to identify rare genetic changes, structural changes and genetic markers associated with disease susceptibility and drug response.

Global Next-Generation Sequencing Market Segment Analysis

Next Generation Sequencing Market By Technology

·       WGS

·       Whole Exome Sequencing

·       Targeted Sequencing & Resequencing

o   DNA-based

o   RNA-based

·       Others

In the year 2023, the targeted sequencing and resequencing segment occupied the largest share of the next generation sequencing (NGS) market, which is around 70%. This segment is used often due to its ability to target certain genomic regions, and is ideal for use in tasks such as detecting mutations as well as helping diagnose cancer. Its popularity is further fueled by growing use of whole genome sequencing that produces voluminous data that can only be analyzed in a targeted manner through targeted sequencing.

Next Generation Sequencing Market By Product Type

·       Platform

o   Sequencing

o   Data Analysis

·       Consumables

o   Sample Preparation

o   Target Enrichment

Next generation sequencing consumables segment held the largest share of the global next generation sequencing (NGS) market in 2023 due to the high demand of sample preparation kits and target enrichment products. These consumables are used for both research and commercial purposes in order to achieve accurate sequencing results. The segment’s growth is further backed by the improvements in Sample preparation technologies and increasing usage of NGS in various fields such as oncology and personalized medicine.

Next Generation Sequencing Market By Application

·       Oncology

·       Clinical Investigation

·       Reproductive Health

·       HLA Typing/Immune System Monitoring

·       Metagenomics, Epidemiology & Drug Development

·       Agrigenomics & Forensics

·       Consumer Genomics

As per market analysis, oncology segment has emerged as the largest segment of the Next Generation Sequencing (NGS) market mainly because of the increasing incidence of cancer and the increasing use of NGS in oncology. Next-generation sequencing technologies are useful for identifying mutations in cancer-related genes, epigenetic modifications and chromosomal rearrangements. These applications facilitate the study of cancer biology and hence open the door for targeted therapy and personalized medicine. Due to constant decrease in the costs of sequencing and growing incorporation of CGP in oncology research and diagnostics, this segment continued to hold a large market share globally.

Next Generation Sequencing Market By Workflow

·       Pre-Sequencing

·       Sequencing

·       NGS Data Analysis

The sequencing segment is expected to hold the largest share of the Next Generation Sequencing (NGS) market’s workflow category in the forecast period of 2024 to 2032. This segment is very important in the overall process because it is the actual process of reading DNA or RNA sequences which is a key point in the decoding of genetic information. It is dominated by technology that increases the speed, precision and reduces the cost of the entire process. Sequencing in clinical diagnostics such as in cancer and rare diseases, and the advancement in the concept of precision medicine are the major drivers of its revenues.

Next Generation Sequencing Market By End-Use

·       Academic Research

·       Clinical Research

·       Hospitals & Clinics

·       Pharma & Biotech Entities

·       Other Users

The academic research segment is likely to emerge as the largest revenue contributor in the NGS market during the forecast period of 2024-2032. This dominance can be explained by the popularity of NGS technologies in different researches in universities and research institutes. Also, grants for NGS-oriented Ph.D. programs and seminars on bioinformatics and actual NGS application increase demand in this segment. The segment based on the NGS integrated in the academic facilities and the focus on the genomic research will be the key revenue generator in the future.

Next Generation Sequencing Market Regional Analysis

The largest share of the next generation sequencing (NGS) market is in North America due to the region’s well-developed healthcare system, prominent clinical laboratories, and the growing popularity of genetic testing services. The market has significant support from the government and has well-established leading manufacturers and research institutions that contribute to the further development of the market. Also, the focus of the region on R&D especially on Whole Genome Sequencing (WGS) and precision medicine has a great impact on the growth of the market. The high incidence of cancer in North America also drives the need for NGS technologies hence making it a hub for genomic studies and development.

However, Asia-Pacific region is gradually becoming a fast growing market for NGS due to government support and increasing demand for genetic sequencing in countries such as China and India. The availability of new bioinformatics tools, together with the higher investment in genomics for rare diseases and drugs are driving the market growth. Also, the utilization of NGS with companion diagnostic is also fostering technological advancements and thereby fueling the market. The development of healthcare and research facility in the region makes it one of the promising regions for NGS market.

Next Generation Sequencing Market Leading Companies

The Next Generation Sequencing market players profiled in the report is Agilent Technologies, Inc., PerkinElmer, Inc, Qiagen N.V, Pacific Biosciences of California, PRECIGEN INC, ILLUMINA INC., Thermo Fisher Scientific Inc., F. HOFFMANN-LA ROCHE AG., Oxford Nanopore Technologies, Genomatix GmbH, PierianDx, DNASTAR, Inc., and Eurofins GATC Biotech GmbH.

Next Generation Sequencing Market Regions