Next Generation Sequencing Market Poised for Robust Growth through 2030

Next generation sequencing (NGS) is growing at a rapid rate. According to Precedence Research, the next generation sequencing market was valued at $6.37 billion in 2021 and forecast to grow to $24.48 billion by 2030. That represents a compound annual growth rate (CAGR) of 16.% from 2021 to 2030.

The 2022 research forecasts a significant demand for next generation sequencing throughout the decade, including the development of customized therapeutics and research in chronic diseases and oncology.

Growth by Regions

North America remains the largest market for NGS based on the significant number of clinical labs that have invested in next generation sequencing for genetic testing.

The fastest-growing market is Europe, where companies are deploying NGS to developing nations to also meet the growing demand for whole-genome sequencing for personalized medicine and genomic therapeutics.

The Asia Pacific region is also showing significant growth.

Overall growth is being driven by global demand for NGS services and products. Increased application of next generation sequencing in genome mapping, along with tech advancements and scientific partnerships are leading to significant investments in this growing field.

NGS creates a robust toolset for scientists and researchers to explore and address questions that can’t be answered with traditional DNA sequencing technology. NGS allows labs to sequence entire genomes, target regions with deep sequences, and use RNS-Seq (RNA-sequencing) to find novel RNA variants. Other uses include quantifying mRNA for analysis of gene expression.

The Evolving Dynamics of the Next Generation Sequencing Market

There are powerful economic drivers and additional opportunities with advancements in NGS platforms and technology. At the same time, there are also concerns about the lack of clinical validation in direct-to-consumer products and budgetary challenges in underdeveloped countries.

Economic drivers: increasing research and development

There is increased demand for NGS methodologies in research and development, especially in the area of the treatment of genetic disorders.

NGS market growth is also being fueled by government action in developing nations that have enacted policies encouraging additional investment by researchers and scientists to explore cutting-edge treatments for chronic and rare diseases. This has fueled investments and brought new entrants into the marketplace.

Additional opportunities: advancements in NGS platforms and market applications

The evolution in NGS sequencers allows efficient and portable NGS platforms that are easier to use and produce results much more quickly. Companies are widely investing in R&D for next generation sequencing for whole-genome sequencing, targeted sequencing, resequencing, and whole-exome sequencing.

End-users include research facilities and diagnostic labs, clinics and hospitals, and biotech and pharma companies working across an array of segments, including:

  • Reproductive health
  • Epidemiology
  • Therapeutics
  • Drug development
  • Oncology
  • Human leukocyte antigen typing
  • Immune system monitoring
  • Metagenomics
  • Hereditary disease detection

Other use cases include clinical investigation, consumer genomics, forensic investigation, agrigenomics, biotechnology, and other life science applications.

Potential restraints: lack of clinical validation

The clinical validation of consumer genetic tests has yet to be firmly established and can create a negative impact on the commercialization of direct-to-consumer products. As these tests have limited accuracy and have been shown to produce false-positive and false-negative results, regulatory authorities are taking a close look at vendors.

Challenges: budgetary concerns

Academic research in developing nations is generally contingent on outside funding. Advancing research and properly equipping facilities in underdeveloped countries continue to occur at a slow pace and may hinder growth in some markets.

There are also concerns about a lack of skilled scientists and researchers with the knowledge and experience that are available.

An Expanding Global Market for Next Generation Sequencing

Despite challenges, the global next generation sequencing market continues to expand as researchers and scientists develop next use cases and continue to evolve applications.