Next-generation Sequencing Services Market By Service Type, By Workflow, By End-Use - Global Market Analysis & Forecast, 2024 to 2032

Market Overview

The next-generation sequencing (NGS) services market encompasses services offered for advanced DNA sequencing technologies. Unlike traditional Sanger sequencing, NGS allows for the sequencing of millions of fragments of DNA in parallel, leading to substantial time and cost reductions while increasing the depth and accuracy of sequencing. This revolutionary advancement has enabled a wide range of applications in various fields like healthcare, agriculture, forensic biology, and environmental genomics. Next-generation sequencing services market is estimated to grow at a CAGR of 22.8% from 2024 to 2032. In the healthcare sector, NGS services play a critical role in personalized medicine, genetic disease diagnosis, and cancer genomics. For example, in oncology, NGS is used to identify specific mutations in cancer cells, helping in the customization of treatment plans for patients. In the field of genetic disease diagnosis, NGS aids in detecting mutations associated with diseases, enabling early and accurate diagnoses.NGS services are also crucial in the field of agriculture for crop improvement and livestock breeding programs. By understanding the genetic makeup of plants and animals, breeders can select for desirable traits, thereby enhancing productivity and sustainability.

Next-generation Sequencing Services Market Dynamics

Precision Medicine Driving Market Growth

The next-generation sequencing (NGS) services market is primarily driven by the burgeoning field of precision medicine. Precision medicine aims to tailor medical treatment to the individual characteristics of each patient, and NGS is pivotal in this endeavor due to its ability to rapidly and accurately sequence entire genomes. This sequencing uncovers genetic mutations responsible for various diseases, particularly cancer, enabling clinicians to develop more targeted and effective treatment plans. For instance, in cancer treatment, NGS identifies specific mutations within tumor cells, which can then be targeted with specific drugs, enhancing treatment efficacy and patient outcomes. This application of NGS in precision medicine has garnered significant attention and investment, fueling the growth of the NGS services market.

Opportunities in Genetic Disease Diagnosis

The NGS Services Market also sees significant opportunities in the diagnosis of genetic diseases. NGS’s ability to sequence whole genomes or exomes at an unprecedented speed and cost has transformed the field of genetic diagnostics. It enables the identification of rare and novel genetic mutations associated with various genetic disorders, which were previously undetectable with traditional sequencing methods. This advancement has been crucial in early diagnosis and management of genetic diseases, thereby improving patient outcomes. The increasing prevalence of genetic disorders and the growing awareness among populations about genetic diseases further amplify the demand for NGS services in this sector.

High Costs as a Restraint

Despite its advantages, the high cost associated with NGS services remains a significant restraint. While the cost of sequencing itself has decreased over time, the overall cost of NGS, which includes specialized equipment, reagents, and skilled personnel, remains prohibitive for many healthcare providers, particularly in developing regions. This high cost limits the accessibility and widespread adoption of NGS, especially in resource-limited settings where such advanced technologies are most needed.

Bioinformatics Expertise as a Challenge

A major challenge in the NGS Services Market is the need for substantial bioinformatics expertise to analyze and interpret the vast and complex data generated by NGS. The interpretation of sequencing results requires specialized knowledge in bioinformatics, which is not universally available. The shortage of skilled professionals in this field can hinder the effective utilization of NGS data in clinical and research settings. Additionally, the rapid evolution of NGS technologies necessitates continual learning and adaptation, adding to the challenge of maintaining adequate bioinformatics expertise.

Market Segmentation by Service Type

In the next-generation sequencing (NGS) services market, segmentation by service type includes Human Genome Sequencing Services, Single Cell Sequencing Services, Microbial Genome-based Sequencing Services, Gene Regulation Services, Animal & Plant Sequencing Services, and Other Sequencing Services. Human Genome Sequencing Services have historically generated the highest revenue in this market segment, driven by their widespread application in medical research, clinical diagnostics, and personalized medicine. The demand in this sector is fueled by the increasing prevalence of genetic disorders and cancer, where human genome sequencing plays a crucial role in diagnosis and treatment planning. On the other hand, Single Cell Sequencing Services are expected to exhibit the highest Compound Annual Growth Rate (CAGR). This growth can be attributed to the service's ability to provide detailed insights at the cellular level, crucial for understanding complex biological processes and disease mechanisms, particularly in cancer and neurological disorders.

Market Segmentation by End-Use

Regarding market segmentation by end-use, the NGS Services Market is divided into Universities & Other Research Entities, Hospitals & Clinics, Pharma & Biotech Entities, and Others. Universities and other research entities have been the leading contributors to market revenue. This dominance is due to the extensive use of NGS services in academic research, ranging from basic biological studies to applied medical research. However, the Hospitals & Clinics segment is expected to experience the highest CAGR. This growth is propelled by the increasing adoption of NGS in clinical settings for diagnostics, particularly in oncology and genetic disease testing. The expansion of precision medicine and the need for more accurate diagnostic methods are driving the integration of NGS services into clinical practice. Pharma & Biotech Entities also represent a significant portion of the market, utilizing NGS for drug discovery, development, and biomarker research. As the field of genomics continues to evolve, all these end-use segments are likely to see sustained growth and diversification in their application of NGS services.

Regional Insights

In the next-generation sequencing (NGS) services market, geographic segmentation highlights significant trends and disparities in market growth and revenue across different regions. In 2023, North America was the leading region in terms of revenue, largely due to the advanced healthcare infrastructure, high adoption of NGS technologies in clinical and research settings, and substantial investments in genomics research. The United States, in particular, has been a hub for genomic research and innovation, with extensive government and private sector funding driving the market. However, the Asia-Pacific region is expected to exhibit the highest Compound Annual Growth Rate (CAGR) from 2024 to 2032. This anticipated growth can be attributed to the increasing focus on healthcare research and diagnostics, rising investments in healthcare infrastructure, and the growing presence of pharmaceutical and biotechnology companies in countries like China, Japan, and India. The expanding population base and rising incidence of genetic diseases in the region also contribute to the increasing demand for NGS services.

Analysis of Key Players

In terms of competitive trends and key players in the NGS Services Market, 2023 saw a dynamic and competitive landscape. Leading companies such as Quest Diagnostics Incorporated, ARUP Laboratories, Applied Biological Materials, Inc. (abm), Novogene Co, Ltd., Azenta Life Sciences (GENEWIZ), NanoString, Illumina, Inc., PacBio, Veritas, BGI (Beijing Genomics Institute), Gene by Gene Ltd., Lucigen Corporation dominated the market, leveraging their extensive technological expertise, comprehensive service portfolios, and strong global distribution networks. These companies have been focusing on innovation, expanding their service offerings, and forming strategic partnerships and collaborations to enhance their market presence. For example, Illumina's continued innovation in sequencing technology and its collaborations with pharmaceutical companies and research institutions have been integral to its market leadership. Moving forward, from 2024 to 2032, the market is expected to witness intensified competition and an influx of new entrants, particularly in emerging markets. The trend towards personalized medicine and the increasing application of genomics in clinical diagnostics are likely to drive market growth and innovation. Companies are expected to focus on strategic alliances, mergers, and acquisitions to expand their capabilities and access new markets. Additionally, advancements in NGS technologies, such as the development of more cost-effective and rapid sequencing methods, are anticipated to shape the competitive landscape, with companies striving to offer more efficient and scalable solutions. This period will likely see a continued emphasis on research and development, with key players and emerging companies alike seeking to address the evolving needs of the healthcare and research sectors in genomics.