Next-Generation Sequencing (NGS) Market by Products & Services [Systems & Instruments, Consumables, and Software & Service], Technology [Sequencing by Synthesis, Ion Semiconductor Sequencing, Single-molecule Real-time Sequencing, and Nanopore Sequencing], Application [Diagnostics, and Drug Discovery & Development], End User [Hospitals and Clinical & Pathology Labs] – Global Outlook & Forecast 2021-2031
According to the deep-dive market assessment study conducted by Growth+Reports, the global next-generation sequencing (NGS) market was pegged at ~US$ 9.4 billion in 2020. The market is expected to witness a CAGR of ~20.5% from 2021 to 2031.
Rising prevalence of chronic diseases globally, the launch of technologically advanced systems, improving regulatory & reimbursement scenario for NGS-based diagnostic tests, and application of NGS in precision medicine & molecular diagnostics are some of the pivotal factors propelling the growth of next-generation sequencing (NGS) market. However, ethical concerns associated with NGS technology are likely to restrain the market growth to a certain extent.
Government bodies and numerous organizations across the globe are implementing several initiatives to fast-track the development of NGS technology providing the necessary funding, grants, permissions, clearances & approvals to meet the needs of the healthcare sector. For instance, in Jun 2020, The U.S. Food and Drug Administration 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 from respiratory specimens collected from individuals suspected of COVID-19 by their healthcare provider.
Improving reimbursement scenarios for NGS technology in various countries is likely to lead to higher adoption of NGS technology and thereby is expected to boost the growth of the market. For instance, in Jan 2020, the Centers for Medicare & Medicaid Services (CMS) announced to cover FDA approved or cleared laboratory diagnostic tests using next-generation sequencing (NGS) for patients with germline (inherited) ovarian or breast cancer.
In an effort to maintain their position in the market, prominent players are continuously launching several novel and technologically advanced systems that can be used for a broader range of applications and offer more advantages. For instance, in July 2020, Thermo Fisher Scientific and First Genetics JCS announced a strategic partnership focused on commercializing next-generation sequencing (NGS)–based diagnostics in Russia. The agreement enables First Genetics to market its F-Genetics NGS System and IVD assays to Russian labs for reproductive health testing and cancer diagnostics. The F-Genetics System is based on Thermo Fisher’s Ion GeneStudio S5 System.
NGS offers opportunities to advance medical diagnostics and treatments, but also raises complicated ethical issues. NGS poses particular challenges in three main ethical areas: privacy, informed consent, and return of results. These factors are expected to hamper the growth of the market to a certain extent.
The Asia Pacific region is projected to be the fastest-growing next-generation sequencing (NGS) market. The high growth of the region can mainly be attributed to developing healthcare infrastructure, rising pharmaceutical & life science research activities, growing government initiatives and high clinical unmet needs. Countries such as India, China, and Japan in the APAC region are projected to offer significant growth opportunities owing to the rising prevalence of chronic diseases and geriatric population in the region.
Some of the prominent players operating in the next-generation sequencing (NGS) market are Illumina, Inc., Thermo Fisher Scientific, PerkinElmer Inc., QIAGEN, Eurofins Scientific, F. Hoffmann-La Roche Ltd, Takara Bio Inc., GENEWIZ, BGI, Macrogen Oceania, among others.