Next Generation Sequencing Market Size, Share, Growth, Trends 2024 To 2033

Next Generation Sequencing Market Size and Growth 2024 to 2033

The global next generation sequencing market size was accounted at USD 11.48 billion in 2023 and is anticipated to reach around USD 42.34 billion by 2033, growing at a CAGR of 13.94% from 2024 to 2033.

The next neneration sequencing (NGS) market is a rapidly evolving sector in biotechnology that enables high-throughput sequencing of DNA and RNA. NGS technology allows for the simultaneous sequencing of millions of fragments, offering unprecedented speed and accuracy compared to traditional methods. This market is driven by increasing demand for personalized medicine, advancements in genomics, and the need for cost-effective and scalable sequencing solutions. NGS applications span various fields, including clinical diagnostics, drug discovery, agriculture, and genetic research. With ongoing technological advancements, the NGS market continues to expand, facilitating deeper insights into genetic data and enhancing healthcare outcomes.

• “Oxford Nanopore Technologies (ONT) is exploring protein sequencing with its nanopore technology. During the London Calling conference, CTO Clive Brown revealed that ONT is heavily invested in developing this capability, aiming to expand its sequencing solutions beyond nucleic acids to include proteins.”
• “At the American Society of Human Genetics (ASHG) annual meeting in Washington, D.C., next-generation sequencing firms showcased their latest technologies and business developments. They shared updates on recent commercial activities and offered insights into their product development pipelines, highlighting advancements and future directions in sequencing.”

Report Highlights

• North America has accounted highest revenue share of 49.34% in 2023.
• Europe has generated revenue share of 25.63% in 2023.
• By end use, academic research institutions segment has captured 34.71% revenue share in 2023.
• By product, consumables segment has calculated highest revenue share of 57% in 2023.

Next Generation Sequencing Market Growth Factors

• Rising Demand for Personalized Medicine: The growing focus on personalized medicine is a major driver for the NGS market. By enabling precise genetic profiling, NGS facilitates the development of tailored treatment plans based on an individual’s genetic makeup. This approach improves treatment efficacy and reduces adverse effects, leading to increased adoption in clinical settings.
• Technological Advancements in Sequencing Technologies: Continuous advancements in sequencing technologies have led to faster, more accurate, and cost-effective NGS solutions. Innovations such as improved sequencing platforms, enhanced bioinformatics tools, and automation have reduced the time and cost associated with genomic analysis.
• Increasing Applications in Clinical Diagnostics: NGS is increasingly being used in clinical diagnostics for various applications, including cancer diagnostics, prenatal testing, and infectious disease detection. The ability of NGS to provide comprehensive genomic insights enables early disease detection, accurate diagnosis, and monitoring of treatment responses.
• Government and Private Funding for Genomic Research: Substantial funding from governments and private organizations for genomic research and precision medicine initiatives is propelling the NGS market. Initiatives like the Human Genome Project and national genomics programs have accelerated advancements in sequencing technologies.
• Expansion of NGS in Agricultural and Animal Research: NGS is playing an increasingly important role in agriculture and animal research by enabling the study of genetic traits, disease resistance, and crop improvement. The technology helps in understanding genetic variations in plants and animals, facilitating breeding programs and improving yield and quality.

Next Generation Sequencing Market Trends

• Decreasing Cost of Sequencing: The cost of sequencing has significantly decreased over the years due to technological advancements and economies of scale. This reduction has made NGS more affordable for research institutions, clinical laboratories, and other end users.
• Integration with Artificial Intelligence and Machine Learning: The integration of artificial intelligence (AI) and machine learning (ML) with NGS data analysis is enhancing the speed and accuracy of genomic interpretations. AI-driven tools help in analyzing vast amounts of genomic data, identifying patterns, and predicting disease outcomes.
• Growing Prevalence of Genetic Disorders: The increasing prevalence of genetic disorders and rare diseases is driving the demand for advanced diagnostic tools like NGS. NGS offers comprehensive genetic analysis, enabling the identification of disease-causing mutations and guiding therapeutic interventions.
• Expansion in Emerging Markets: Emerging markets present significant opportunities for NGS adoption due to rising healthcare infrastructure development, increasing research activities, and growing awareness of precision medicine. As these regions invest in healthcare advancements, there is an increasing demand for cost-effective and high-throughput sequencing solutions.
• Development of Point-of-Care Sequencing Solutions: The development of point-of-care (POC) sequencing solutions represents a major opportunity for the NGS market. POC devices can provide rapid and accurate genomic analysis at the patient’s location, enabling immediate clinical decision-making.

Report Scope

Next Generation Sequencing Market Dynamics

Drivers

Advancements in Sample Preparation Technologies:

• Improvements in sample preparation techniques have streamlined the NGS workflow, reducing time and complexity. Innovations such as automated library preparation and novel sample enrichment methods enhance the efficiency and reliability of NGS processes. These advancements facilitate higher throughput and better data quality, encouraging more laboratories and research institutions to adopt NGS for various applications, thereby driving market growth.

Collaboration and Partnerships in Genomics Research:

• Increasing collaborations and partnerships between academic institutions, research organizations, and biotech companies are accelerating NGS technology development and adoption. These collaborations foster the sharing of resources, expertise, and data, leading to new discoveries and innovative applications in genomics. Such partnerships are pivotal in driving the expansion of NGS into diverse fields, including drug discovery, agriculture, and clinical diagnostics, thereby contributing to market growth.

Restraints

Data Management and Storage Challenges:

• The vast amount of data generated by NGS creates significant challenges in terms of data management, storage, and analysis. Handling large datasets requires advanced infrastructure, which can be costly and complex to maintain. Many laboratories and institutions face difficulties in efficiently storing and retrieving genomic data, which can slow down research and clinical applications. These challenges act as a barrier to widespread adoption, particularly for smaller organizations with limited resources.

Regulatory and Ethical Concerns:

• The NGS market faces regulatory and ethical challenges related to the use and interpretation of genetic information. Concerns about data privacy, consent, and the potential misuse of genetic data can hinder the adoption of NGS technologies. Additionally, the lack of standardized regulatory frameworks for NGS-based diagnostics and the complexities involved in gaining regulatory approval for new tests can slow market growth. Addressing these issues requires careful consideration and collaboration among stakeholders to ensure responsible and ethical use of NGS technologies.

Opportunities

Expansion into Non-Invasive Prenatal Testing (NIPT):

• NGS offers significant opportunities in the field of non-invasive prenatal testing (NIPT) by enabling the detection of genetic abnormalities in a fetus from maternal blood samples. As awareness and acceptance of NIPT increase among healthcare providers and expectant parents, there is a growing demand for accurate and reliable NGS-based tests. Expanding the application of NGS in prenatal care can lead to early detection of genetic disorders, offering significant market potential.

Application in Microbiome Research:

• The use of NGS in microbiome research is an emerging opportunity that has gained traction due to its ability to comprehensively analyze microbial communities in various environments. NGS can uncover insights into the role of the microbiome in human health, agriculture, and environmental science. As research in this area advances, there is potential for developing new therapeutics, probiotics, and agricultural solutions, opening new avenues for market growth and innovation in the NGS industry.

Challenges

Interpretation of Complex Genomic Data:

• One of the significant challenges in the NGS market is the interpretation of complex genomic data. While NGS technologies can generate vast amounts of genetic information, translating this data into meaningful clinical insights requires advanced bioinformatics tools and expertise. The complexity of genomic data, coupled with the need for accurate variant interpretation, poses a challenge for researchers and clinicians. 

Integration into Clinical Practice:

• Integrating NGS into routine clinical practice presents a challenge due to the need for standardized protocols, training, and infrastructure. Many healthcare systems face barriers in adopting NGS technologies, including limited expertise among clinicians and the need for extensive validation of NGS-based diagnostic tests. Ensuring the seamless incorporation of NGS into clinical workflows requires collaboration between stakeholders to address training needs, establish guidelines, and create supportive infrastructure, which can be a complex and time-consuming process.

Next Generation Sequencing Market Segmental Analysis

Product Type Analysis

Sequencing Platforms: Sequencing platforms segment has reported reveune share of 24% in 2023. Sequencing platforms are the core technologies used to perform next-generation sequencing (NGS). They have evolved rapidly, offering higher throughput, increased accuracy, and reduced costs per genome. Recent trends include the development of portable sequencers and the integration of real-time sequencing capabilities. Companies are focusing on enhancing speed and scalability to accommodate diverse applications such as clinical diagnostics, personalized medicine, and large-scale genomic research, driving demand for innovative platform solutions.

Consumables: Consumables segment has accounted reveune share of 57% in 2023. Consumables in the NGS market include reagents, kits, and other materials required for sample preparation and sequencing processes. The demand for consumables is rising due to the increasing adoption of NGS in clinical and research settings. Trends include the development of specialized kits for specific applications like cancer genomics and the shift toward automation-friendly consumables to improve efficiency and reduce errors. This segment is crucial for recurring revenue streams in the NGS industry.

Services:  Services segment has captured reveune share of 19% in 2023. NGS services encompass sequencing, data analysis, and bioinformatics support provided by specialized firms and institutions. The market for NGS services is growing due to the outsourcing of sequencing tasks by researchers and healthcare providers lacking in-house capabilities. Key trends include the expansion of personalized genomics services and the integration of artificial intelligence for enhanced data interpretation. Service providers are increasingly offering comprehensive solutions, from sample collection to detailed genomic analysis, to meet diverse customer needs.

Technology Analysis

Whole Genome Sequencing (WGS): Whole Genome Sequencing (WGS) involves sequencing the entire genome of an organism, providing a comprehensive view of its genetic makeup. It is widely used in research, clinical diagnostics, and personalized medicine. Recent trends in WGS include advancements in sequencing speed and accuracy, making it more accessible and cost-effective. The integration of artificial intelligence for data analysis is also enhancing its application in identifying genetic variants and understanding complex diseases.

Whole Exome Sequencing (WES): Whole Exome Sequencing (WES) focuses on sequencing the protein-coding regions of the genome, which comprise about 1% of the entire genome but contain most disease-related variants. WES is popular for its cost-effectiveness and efficiency in diagnosing rare genetic disorders. Trends in WES include improvements in capture techniques and the development of more targeted panels, allowing for faster and more precise identification of clinically relevant variants.

Targeted Sequencing & Resequencing: Targeted Sequencing & Resequencing involve sequencing specific areas of the genome, such as particular genes or regions of interest, making it a cost-effective option for specific applications. This technology is widely used in oncology for identifying mutations in cancer-related genes. Current trends include the development of high-throughput platforms and customizable panels that enable rapid and precise detection of genetic alterations, enhancing its utility in precision medicine.

Others: The "Others" category includes various emerging NGS technologies such as single-cell sequencing, metagenomics, and epigenomics. These technologies are gaining traction due to their ability to provide insights into cellular heterogeneity, microbial communities, and gene regulation. Trends in this segment focus on increasing resolution and sensitivity, enabling researchers to explore complex biological processes and uncover new therapeutic targets across diverse applications in health, agriculture, and environmental sciences.

Application Analysis

Clinical Applications: Clinical applications of NGS involve using sequencing technologies for diagnosing diseases, monitoring treatment responses, and personalizing medicine. This includes cancer genomics, rare genetic disorders, and infectious disease diagnostics. The clinical application of NGS is expanding rapidly due to its ability to provide comprehensive genomic insights that enable targeted therapies and early disease detection. Increased adoption in oncology for precision medicine and growing demand for non-invasive prenatal testing are significant trends.

Research Applications: NGS is extensively used in research applications to explore genetic variations, gene functions, and molecular mechanisms underlying diseases. It supports basic research, functional genomics, and biomarker discovery. Research applications are seeing growth due to advancements in sequencing technologies that enhance data accuracy and throughput. There is a growing focus on using NGS for large-scale genomic studies and integrative research across various biological systems.

Reproductive Health: In reproductive health, NGS is used for non-invasive prenatal testing (NIPT) to detect genetic abnormalities in fetuses, and for reproductive genetics to assess the genetic risk of inherited disorders. The trend is towards increased use of NGS for prenatal screening and fertility treatments. Innovations in NIPT are improving accuracy and accessibility, leading to broader adoption in prenatal care and fertility clinics.

HLA Typing/Immune System Monitoring: NGS in HLA typing and immune system monitoring involves identifying human leukocyte antigen (HLA) types to match organ donors with recipients and monitor immune responses. There is a growing focus on using NGS for detailed HLA typing to improve organ transplant outcomes and personalized immunotherapy. Advances in sequencing technology are enhancing the precision of immune monitoring and transplantation matching.

Metagenomics, Epidemiology & Drug Development: Metagenomics involves studying genetic material from environmental samples to understand microbial diversity. In epidemiology, NGS is used to track pathogen outbreaks, while in drug development, it aids in identifying drug targets and biomarkers. NGS is increasingly applied in metagenomics for environmental and microbiome studies. In epidemiology, it is crucial for tracking viral mutations and outbreaks, and in drug development, it accelerates the discovery of new therapeutic targets and personalized treatments.

Agrigenomics & Forensics: Agrigenomics applies NGS to improve crops and livestock through genetic analysis, while forensics uses NGS for identifying individuals and analyzing genetic evidence in criminal investigations. In agrigenomics, there is a trend towards using NGS for developing genetically modified crops with enhanced traits. In forensics, NGS is improving the resolution of genetic profiling and increasing accuracy in criminal investigations.

Consumer Genomics: Consumer genomics involves providing genetic testing services directly to consumers for ancestry, health risk assessment, and personalized wellness insights. The consumer genomics market is expanding with increased interest in direct-to-consumer genetic testing. Advances in NGS are making these tests more accurate and affordable, driving consumer adoption for personalized health and ancestry information.

Workflow Analysis

Pre-Sequencing: Pre-sequencing involves sample preparation steps such as DNA/RNA extraction, library preparation, and quality control. This phase ensures that the genetic material is adequately prepared for sequencing, with processes including fragmentation, adapter ligation, and amplification. Advances in automation and optimization of pre-sequencing protocols are improving efficiency and reducing errors. Innovations in library preparation kits are enhancing throughput and reducing costs, making NGS more accessible and scalable for diverse applications.

Sequencing: Sequencing is the core process of NGS, where the prepared samples are read using sequencing technologies to determine the order of nucleotides in the DNA or RNA. This phase involves the use of various sequencing platforms and technologies such as Illumina, Ion Torrent, and PacBio. Continuous improvements in sequencing technologies are leading to higher accuracy, faster turnaround times, and lower costs. Emerging platforms, like long-read sequencing technologies, are expanding applications and providing deeper insights into complex genomic regions and structural variations.

NGS Data Analysis: NGS data analysis involves processing and interpreting the vast amounts of data generated during sequencing. It includes steps such as alignment, variant calling, annotation, and visualization to extract meaningful biological insights from the raw sequencing data. The integration of advanced bioinformatics tools, AI, and machine learning algorithms is enhancing the efficiency and accuracy of NGS data analysis. Increased use of cloud-based platforms and data-sharing initiatives is facilitating collaborative research and improving data accessibility and management.

End Users Analysis

Academic Research Institutions: Academic research institution segment has reported share of 34.74% in 2023. Academic research institutions use NGS for a wide range of research applications, including genomics, functional genomics, and evolutionary studies. NGS enables researchers to explore complex genetic information, identify genetic variants, and understand gene functions. Academic institutions are increasingly adopting NGS due to its high-throughput capabilities and decreasing costs. The technology is being used for large-scale genomic studies, including cancer research, population genetics, and the study of rare diseases. The focus is on generating comprehensive genetic data to drive scientific discoveries.

Hospitals and Clinics: Hospitals and clinics segment has calculated share of 3.63% in 2023. Hospitals and clinics utilize NGS for diagnostic purposes, including genetic testing for rare diseases, cancer genomics, and personalized medicine. NGS provides detailed genetic information that aids in accurate diagnosis and treatment planning. There is a growing trend towards incorporating NGS into routine clinical diagnostics, driven by its ability to provide comprehensive and actionable insights. Hospitals are increasingly offering NGS-based tests for oncology and prenatal screening, as well as integrating NGS data into patient care and treatment strategies.

Pharmaceutical and Biotechnology Companies: Pharmaceutical and biotechnology companies segment has registed share of 7.32% in 2023. Pharmaceutical and biotechnology companies use NGS for drug discovery, development, and personalized medicine. NGS helps in understanding genetic targets, biomarker identification, and assessing drug responses. The adoption of NGS in the pharmaceutical sector is rising due to its role in accelerating drug discovery and development. Companies are leveraging NGS to identify novel drug targets, validate biomarkers, and design precision therapies. The trend includes increasing investment in NGS-based R&D for developing innovative treatments and personalized medicines.

Clinical Research Organizations: Clinical research organizations segment has garnered share of 28.83% in 2023. Clinical research organizations (CROs) employ NGS to support clinical trials and research studies. NGS assists in biomarker discovery, patient stratification, and monitoring treatment efficacy. CROs are increasingly integrating NGS into their services to enhance clinical trial outcomes and support drug development. The use of NGS for identifying biomarkers and understanding patient genetics is becoming more prevalent, leading to more targeted and effective clinical research strategies. The trend includes expanding NGS applications in multi-center trials and precision medicine research.

Next Generation Sequencing Market Regional Analysis

Why North America is leading in the NGS market?

North America NGS market was valued at USD 5.66 billion in 2023 and is projected to grow USD 20.89 billion by 2033 from USD 6.45 billion in 2024. North America is a leading region in the NGS market, driven by substantial investments in research and development, advanced healthcare infrastructure, and a high prevalence of genetic disorders. The trend includes a strong focus on integrating NGS into clinical diagnostics, with increasing adoption in personalized medicine and oncology. Additionally, the presence of major NGS companies and research institutions in the U.S. and Canada is contributing to rapid technological advancements and widespread application across various sectors.

Europe NGS Maket Trends

Europe NGS market was measured at USD 2.94 billion in 2023 and is projected to grow USD 10.85 billion by 2033 from USD 3.35 billion in 2024. Europe is experiencing significant growth in the NGS market due to increasing government funding for genomic research and the development of national genomics initiatives. The trend includes a rise in collaborative research projects across EU countries, aimed at advancing NGS technology and its applications in health and disease. Europe is also focusing on implementing standardized guidelines and regulations for NGS-based diagnostics, enhancing the integration of NGS into clinical practice and research.

Why Asia-Pacific is witnessing rapid growth in the NGS market?

Asia-Pacific NGS market was reported at USD 2.40 billion in 2023 and is predicted to grow USD 8.86 billion by 2033 from USD 2.74 billion in 2024. The Asia-Pacific region is witnessing rapid growth in the NGS market, driven by rising investments in healthcare infrastructure, increasing genomic research activities, and a growing focus on personalized medicine. The trend includes expanding NGS applications in agricultural genomics and drug development, as well as a surge in collaborations between local and international companies to enhance technological capabilities. The increasing demand for cost-effective NGS solutions and advancements in bioinformatics are also shaping market growth in this region.

LAMEA NGS Market Trends

In the LAMEA region, the NGS market is expanding due to increased awareness of genetic testing, improving healthcare infrastructure, and growing research initiatives. The trend includes a rising adoption of NGS for clinical diagnostics and research, supported by collaborations with international organizations and funding agencies. Additionally, there is a focus on addressing regional healthcare challenges through NGS, including the study of genetic diseases prevalent in specific populations and the development of targeted treatments.

Next Generation Sequencing Market Top Companies

• Illumina, Inc.
• Thermo Fisher Scientific Inc.
• Pacific Biosciences of California, Inc.
• Oxford Nanopore Technologies Limited
• Genomatix Software GmbH
• QIAGEN N.V.
• BGI Genomics Co., Ltd.
• Roche Holding AG
• Agilent Technologies, Inc.
• Guardant Health, Inc.
• Nimble Genomics Inc.
• Rhapsody Biosciences, Inc.
• 10x Genomics, Inc.
• Molecular Devices, LLC
• Beckman Coulter, Inc.

New entrants like Nimble Genomics Inc. and Rhapsody Biosciences, Inc. are focusing on innovative technologies to disrupt the NGS market. Nimble Genomics specializes in novel sequencing platforms with enhanced sensitivity and speed, while Rhapsody Biosciences offers advanced single-cell sequencing solutions, enabling more precise cellular analysis. Illumina, Inc. and Thermo Fisher Scientific Inc. dominate the market due to their extensive product portfolios, advanced technologies, and strong global presence. Illumina leads with its high-throughput sequencing platforms, while Thermo Fisher excels in integrating NGS with comprehensive bioinformatics solutions, driving widespread adoption in research and clinical settings.

Recent Developments

The Next Generation Sequencing Market has seen several key developments in recent years, with companies seeking to expand their market presence and leverage synergies to improve their offerings and profitability. Some notable examples of key development in the Next Generation Sequencing Market include:

• In 2023, Yourgene Health and PacBio have announced a collaboration to optimize long read sequencing workflows. PacBio has approved Yourgene Health’s LightBench instrument for size selection of long DNA fragments, enhancing the efficiency of sequencing processes.
• In 2023, Illumina has signed a memorandum of understanding with the African Society for Laboratory Medicine to enhance access to genomics across Africa, aiming to improve efforts in combating infectious diseases and advancing regional healthcare capabilities.
• In 2023, Oxford Nanopore has launched TurBOT in partnership with Tecan, a benchtop instrument for efficient basecalling, data analysis, automated extraction, and library preparation of multiple samples. Beta access is available, with products expected to be delivered in Q1 2024.
• In 2023, MedGenome and PacBio have announced a De Novo Genome Assembly and Annotation grant to support research and development in genomics. This initiative aims to advance industry research and foster innovation in genomic technologies.

This key development helped companies expand their offerings, improve their market presence, and capitalize on growth opportunities in the NGS market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

Market Segmentation

By Product Type

• Sequencing Platforms
  • Sequencers
  • Software
• Consumables
  • Reagents and Kits
  • Others
• Services
• • Sequencing Services
  • Bioinformatics Services

By Technology

• Whole Genome Sequencing
• Whole Exome Sequencing
• Targeted Sequencing & Resequencing
  • RNA-Seq
  • DNA-Seq
• Others

By Application

• Clinical Applications
  • Oncology
  • Reproductive Health
  • Rare Diseases
  • Infectious Diseases
• Research Applications
  • Drug Discovery
  • Genetic Research
  • Agriculture and Animal Research
• Reproductive Health
  • NIPT
  • PGT
  • Newborn Genetic Screening
  • Single Gene Analysis
• HLA Typing/Immune System Monitoring
• Metagenomics, Epidemiology & Drug Development
• Agrigenomics & Forensics
• Consumer Genomics

By Workflow

• Pre-Sequencing
  • NGS Library Preparation Kits
  • Semi-automated Library Preparation
  • Automated Library Preparation
• Sequencing
• NGS Data Analysis
  • NGS Primary Data Analysis
  • NGS Secondary Data Analysis

By End User

• Academic Research Institutions
• Hospitals and Clinics
• Pharmaceutical and Biotechnology Companies
• Clinical Research Organizations

By Region

• North America
• APAC
• Europe
• LAMEA