Next-generation Sequencing (NGS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The next-generation sequencing market was valued at about USD 7,580 million in 2020, and it is expected to reach approximately USD 18,550 million in 2026, registering a CAGR of nearly 19.1% over the forecast period, 2021-2026.

Next-generation sequencing (NGS) diagnostic technology has the potential advantage of determining the genetic sequence of a virus and helping scientists understand the mutation of the virus. Throughout the COVID-19 pandemic, government authorities across the world are constantly working with the private sector to bring NGS technology as the potential diagnostic tool in the market. In June 2020, the United States Food and Drug Administration (US FDA) issued an emergency use authorization (EUA) to Illumina Inc. for the first COVID-19 diagnostic test utilizing next-generation sequence technology. The FDA authorized the Illumina COVIDSeq Test for the qualitative detection of SARS-CoV-2 RNA.

The major factors such as increasing research and development activities utilizing the NGS technologies, growing applications of NGS in clinical diagnosis, and discovery applications demanding NGS technology are expected to drive the growth of the overall market.

In January 2020, in the United States, the Intelligence Advanced Research Projects Activity provided USD 23 million to the Broad Institute and Harvard University and DNA Script. The organizations have been working together to explore the possibility of combining the enzymatic DNA synthesis technology and NGS into a single instrument for more than four years. Such developments are a major boost to the clinical studies and organizations progressing with NGS as their basis of innovation.

In the recent past, NGS has been considered the most potent tool in diagnostics and in researches to understand the treatment regimen for various diseases, including cancer, infectious diseases, cardiovascular diseases, etc. According to the United States National Institutes of Health, National Human Genome Research Institute, in 2017, most of the rare diseases were genetic in nature. There has been continuous progress in understanding diseases at the genomic level and molecular level, and various companies are deploying resources in the testing of these diseases to leverage opportunities which is also fueling the market opportunities. For instance, in August 2020, GeneDx Inc., a subsidiary of BioReference Laboratories Inc., and OPKO Health entered an agreement with Pediatrix Medical Group to offer state-of-the-art, next-generation genomic sequencing to support clinical diagnosis in rare diseases for neonatal intensive care units. Also, in 2017, Myriad Genetics Inc. launched the EndoPredict test for patients with ER+ HER2- early-stage breast cancer.

The rapid speed, cost, and accuracy of the NGS technology have also helped in the growth of the market. However, the current market is facing challenges due to the difficulty in the management of large data and complications associated with Big Data management. In addition, some of the ethical issues associated with whole-genome sequencing, coupled with the lack of awareness among people, are pulling back the growth of the market.

Scope of the Report

As per the scope of this report, NGS is a technology in which millions of DNA strands can be sequenced through massive parallelization; this technique is also known as high throughput sequencing. The low cost, high accuracy and speed, and precise results even from low sample inputs are the main advantages NGS offers over Sanger’s sequencing method. The market is segmented by type of sequencing (whole genome sequencing, targeted resequencing, whole-exome sequencing, RNA sequencing, CHIP sequencing, de novo sequencing, and methyl sequencing) product type (instruments, reagents and consumables, and services), end user (hospitals and healthcare institutions, academics, and pharmaceutical, and biotechnology companies) application (drug discovery and personalized medicine, genetic screening, diagnostics, agriculture and animal research, and other applications), and geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions, globally. The report offers market size and forecasts in value (USD million) for the above segments.

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Key Market Trends

The Whole Genome Sequencing Segment is Expected to Grow at a Good Rate Over the Forecast Period

By type of sequencing, whole-genome sequencing is expected to grow positively. Whole-genome sequencing (WGS) has been widely accepted in providing the highest possible resolution information about COVD-19 and is believed to have the potential to transform COVID-19 infectious disease management. For instance, in earlier 2020, the UK government launched a new alliance to sequence the genomes of SARS-CoV-2, the virus responsible for the current COVID-19 pandemic. The COVID-19 Genomics UK Consortium (COG-UK) is comprised of the NHS (National Health Service), public health agencies, the Wellcome Sanger Institute, and several academic institutions, helping in creating funds and developing diagnostics and treatment. In the United States, the National Institutes of Health is one of the primary organizations supporting innovative studies via sequencing by growing funds for the same.

Also, there are various technological advancements in the field of whole-genome sequencing, fueling the market growth. For instance, in February 2019, Machaon Diagnostics launched a 48-hour STAT Hemophagocytic Lymphohistiocytosis (HLH) Genetic Panel, one of the fastest NGS genetic testing panels for Hemophagocytic Lymphohistiocytosis, a rare disease in young children and infants due to cancer. Such developments by the major players and their collaborations with innovative upcoming companies in sequencing and diagnostics are propelling the growth of the whole genome sequencing segment of the market.

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