Next-Generation Sequencing Informatics Market Size

Next-Generation Sequencing Informatics Market Analysis

The Next-Generation Sequencing Informatics Market size is estimated at USD 10.47 billion in 2024, and is expected to reach USD 19.66 billion by 2029, growing at a CAGR of 13.43% during the forecast period (2024-2029).

Next-generation sequencing is considered a valuable tool in the characterization and identification of the SARS-CoV-2 virus. The main drawback of qPCR, despite its widespread usage in coronavirus identification and quantification during the pandemic, is that it is incapable of accurately detecting alterations or mutations in the viral genome. Thus, NDS technologies play a vital role in studying the mutations in the viral genome and their impact on human health. For instance, an article published in the Journal of Frontiers in Medicine in March 2021 showed an extensive interaction between the gut microbiome and the SARS-CoV-2 virus. The microbiome sequencing services have mainly helped the research by studying the gut microbiome at varying stages of infection. Thus, the increased use of microbiome sequencing services during the COVID-19 pandemic increased the demand for NGS services. In this context, NGS plays a vital role in studying the evolving process of the SARS-CoV-2 virus and the subsequent impact of these changes on the global population and environmental health, along with tracking the transmission of the virus globally. Owing to the increasing NGS research and development activities and bioinformatics in the development of diagnostic tools or effective therapeutics for COVID-19, the market is likely to continue its significant growth rate during the forecast period.

The major factors driving the growth of the next-generation sequencing informatics market are increasing clinical applications of NGS, technological advancements in NGS informatics tools, growing preference toward personalized medicines and early disease diagnosis, increasing demand for NGS services, and rising investment by key players. For example, in November 2021, BMJ Publishing Group Ltd published an article stating that whole exome sequencing is now available for highly selected patients for the routine diagnosis of rare childhood genetic diseases.The article also reported that next-generation sequencing allows hundreds or thousands of genes to be sequenced in a short period of time at a much lower cost. Furthermore, in July 2022, the World Health Organization (WHO) reported that 37.7 million HIV cases were recorded globally. Due to the rise in the prevalence of these disorders and the information that these genomic sequencing methods provide on genetic mutations that can cause disease, the market for RNA sequencing will eventually increase as a result of growing demand.

Furthermore, the key market players' increasing product innovation and collaboration support the market's growth over the forecast period. In January 2022, Illumina Inc. and Nashville Biosciences LLC, a wholly-owned subsidiary of Vanderbilt University Medical Center (VUMC), entered a multi-year agreement to accelerate medicine development through large-scale genomics and the establishment of a preeminent clinical genomic resource using Illumina's next-generation sequencing (NGS) platforms. As a result, increased collaboration in improving NGS and launches are expected to drive overall demand for NGS informatics, resulting in high market growth over the forecast period.

But the lack of skilled technicians for NGS informatics services and problems with storing and integrating data are likely to slow the growth of the market over the next few years.