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

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

The next generation sequencing (NGS) informatics market was valued at approximately USD 2,250 million in 2020 and is expected to witness a revenue of USD 5,750 million in 2026, with a CAGR of 19% over the forecast period (2021-2026).

The NGS informatics market is expected to peak during the current COVID-19 pandemic. Next generation sequencing is considered a valuable tool in the characterization and identification of the SARS-CoV2 virus. Though qPCR is extensively used in the detection and quantification of coronavirus in the pandemic, the major disadvantage is that qPCR is unable to decipher accurate changes 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. According to a research article published in Clinical OMICS, 2020, approximately 84,000 viral genomic sequences of the coronavirus have been uploaded to the Global Initiative to Share All Influenza Data (GISAID) as of August 2020, and the analysis of 4,641 genomes revealed that the virus continues to mutate as it spreads, with one or two base changes per month. In this context, NGS plays a vital role in studying the evolving process of the SARS-CoV2 virus and the subsequent impact of these changes on the global population and environmental health, along with tracking the transmission of the virus globally. Thus, given the aforementioned factors, the COVID-19 pandemic is expected to impact the studied market significantly.

Additionally, the major factors driving the growth of the next-generation sequencing informatics market are the increasing clinical applications of NGS, technological advancements in NGS informatics tools, growing preference toward personalized medicines and early disease diagnosis, along with the increasing demand for NGS services and investments by key players. Applications include whole-genome and transcriptome sequencing, metagenomic characterization of microbial types in environmental and clinical specimens, explanation of DNA binding sites for chromatin and regulatory proteins, and targeted re-sequencing of specific sites in the human genome, identified by linkage analyses. There are various technological advancements in the field of medicine that are growing at a rapid pace and have led to the development of personalized medicines. There are a huge number of applications of next-generation sequencing in personalized medicine. Thus, the development of personalized medicine has opened up many avenues for the application of NGS, which could accelerate the market growth. When compared to Sanger sequencing, NGS has emerged as the dominant genomics technology because of its cost effectiveness and has been in use in a wide range of functional genomics applications, from sequencing a group of candidate genes, all coding regions (known as exome sequencing) to the entire human genome. Thus, the wide range of applications of NGS technology in turn increases the demand for NGS informatics, which in turn aids in the growth of the studied market over the forecast period.

However, the unavailability of skilled professionals for the analysis and interpretation of NGS data, along with the lack of knowledge of new informatics tools among medical professionals, is likely to limit the growth of the market studied. Additionally, the high cost involved in the maintenance and security of informatics tools is likely to contribute to the limitation.

Key Market TrendsGenetic Screening Segment, by Application, is Expected to Experience the Fastest Growth in the Market

In genetic screening, the NGS technology is highly useful in identifying monogenic diseases with locus heterogeneity, such as blindness, deafness, movement disorders, mitochondrial disease, hereditary cancers, etc. It generates a large amount of sequencing data in a massively parallel manner, in order to provide a differential diagnosis for the patient. There are several companies in the market that provide NGS services for a range of genetic disorders and screening of DNA, RNA, and specialized samples. There is a high scope for technological improvement in the application of NGS in genetic testing. According to the research article published in Trends in Genetics, 2019, the next-generation sequencing technologies have remarkable potential in the genetic testing and diagnosis of rare genetic disorders. NGS technologies are expected to be highly useful in clinical settings to identify specific causal mutations in the DNA sequence. According to the Rare Disease day, rare diseases are estimated to affect nearly 3.5% - 5.9% of the global population in 2020 with over 300 million people living with one or more of over 6,000 identified rare diseases around the world. Thus, the high incidence of rare diseases pushes the demand for genetic screening, and NGS technologies have promising results in genetic screening. Additionally, NGS technologies have been extensively harnessed in oncology screening and the high incidence of cancers worldwide is expected to drive the studied market.

Additionally, the growing NGS platform launches are also driving the market growth. For instance, in August 2020, Quest Diagnostics launched the Automated NGS engine to aid in faster and cost-effective genetic screening. The increasing NGS product launches raise the demand for subsequent bioinformatics and thus, the aforementioned factors are expected to drive the growth of the studied market over the forecast period.

North America Dominates the Market and Expected to do Similar Over the Forecast Period

North America is expected to dominate the overall market throughout the forecast period. The presence of high per capita healthcare expenditure, coupled with high patient awareness levels and high prevalence of target diseases, is contributing to the growth of the market studied in the region. In the North American region, the United States holds the largest market share. According to the GLOBOCON 2020, 2,281,658 new cancer cases were diagnosed in the United States in 2020, with 612,390 deaths. Among all types of cancers, breast cancer had the highest incidence with 253,465 cases, followed by lung (227,875), prostate (209,512), and colon (101,809). The increasing incidence of chronic diseases is expected to drive the need for next-generation sequencing panels, which in turn will likely surge the studied market growth. Also, various government bodies, like NHGRI (National Human Genome Research Institute, United States), have been supporting research related to human genome sequencing, while funding research related to the genome's structure, function, and role in health and disease. Moreover, these organizations support studies on ethical, legal, and social implications (ELSI) of genome research.

Additionally, the high concentration of major players in the region, along with high product approval and launches, is expected to be the major factor for the growth of the studied market in the region. For instance, in July 2019, Abbott launched a laboratory information management system, STARLIMS Life Sciences Solution 11.1, to help manage complex sample and testing workflows in pre-clinical, clinical research, biorepository, animal health, molecular, specialty diagnostics, and academic research. Thus, given the aforementioned factors, the NGS informatics market is expected to grow over the forecast period in North America.

Competitive Landscape

The next-generation sequencing informatics market is consolidated and consists of a few major players. In terms of market share, few of the major players currently dominate the market. With rising patient awareness levels and the high prevalence of target diseases, few other smaller players are expected to enter the market. Some of the major players of the market are Agilent Technologies Inc., F. Hoffmann-La Roche Ltd., Intrexon Bioinformatics Germany GmbH, and Illumina Inc., among others. Most of these companies are involved in strategic alliances, such as acquisitions, research, and development activities, along with new product launches, to expand the product portfolio globally. For instance, in January 2020, Illumina Inc entered into a 15-year non-exclusive collaboration agreement with Roche, and the launch of TruSight Software Suite v1.0 to accelerate adoption of genomics.

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Companies Mentioned

Agilent Technologies Inc.
Dnanexus Inc.
F. Hoffmann
La Roche Ltd
Intrexon Bioinformatics Germany GmbH (Genomatix AG)
llumina Inc.
Fabric Genomics Inc. (Omicia Inc.)
Partek Incorporated
Qiagen NV
Sapio Sciences
Thermo Fischer Scientific Inc.
DNASTAR Inc.
PerkinElmer, Inc
BIOVIA(Dassault Systemes)
IBM Corporation
GENEWIZ, Inc.
Eagle Genomics Ltd
Real Time Genomics Inc.
SoftGenetics, LLC
PierianDx, Inc.

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