Next-generation Sequencing Services Market by Service Type (Human Genome Sequencing Services, Single Cell Sequencing Services, Microbial Genome-based Sequencing Services, Gene Regulation Services, Animal & Plant Sequencing Services, and Other Sequencing Services), Workflow (Pre-sequencing, Sequencing, and Data Analysis), End-use (Universities & Other Research Entities, Hospitals & Clinics, Pharma & Biotech, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Next-generation Sequencing Services Overview

High-throughput sequencing and massively parallel sequencing are two other terms for next-generation sequencing (NGS) services, which are sophisticated DNA sequencing technologies that have completely changed genomics research and applications. Large volumes of genetic data can be quickly and affordably analysed using NGS services, enabling a variety of genomic studies and personalised medicine applications. Innovative sequencing methods used by NGS systems parallelize the sequencing process and enable the examination of dozens to millions of DNA fragments at once. Compared to conventional sanger sequencing, this massively parallel sequencing allows for faster and more effective DNA sequencing.

Global Next-generation Sequencing Services Market Analysis

The global next-generation sequencing services market size was $7,064.4 million in 2022 and is predicted to grow at a CAGR of 21.2%, by generating a revenue of $47,138.2 million by 2032.

COVID-19 Impact on Global Next-generation Sequencing Services Market

The research and surveillance efforts for COVID-19 benefited greatly from the use of next-generation sequencing (NGS). The coronavirus was sequenced using NGS methods, and viral mutations & variant transmission were tracked. NGS services were used in the diagnosis and testing of COVID-19, especially for extensive genomic monitoring programmes designed to comprehend the epidemiology and patterns of the spread of the virus.

The lessons from COVID-19 pandemic will cause an increasing emphasis on NGS-based infectious disease surveillance. Routine genomic surveillance of pathogens will be essential for the purpose of identifying and tracking newly developing infectious illnesses and their variations.

Rising Awareness About Sequencing to Drive the Market Growth

Growing awareness about the benefits of next-generation sequencing is one of the major factors predicted to foster the growth of the next-generation sequencing services market during the forecast period. Some benefits of NGS technology are low cost & pricing, high accuracy, high speed and precision in the results, which are expected to boost the global market growth. Additionally, the growing adoption of companion diagnostics for increasing the safety and efficacy of therapies, surge in the personal disposable income level, introduction of technologically driven products in hospitals, increasing investment for the development of advanced medical products and devices and growing awareness about the benefits of multiplex assays, positively affect the market growth rate.

Complexity of Data Analysis to Restrain Market Growth

It costs a lot of money to set up an NGS lab with cutting-edge sequencing technology and bioinformatics equipment. Small research institutes or organisations with limited resources may find this expense excessive. Massive volumes of sequencing data produced by NGS require extensive bioinformatics processing in order to be interpreted. Without specialized bioinformatics knowledge, researchers and physicians may encounter difficulties due to the complexity of data processing. The vast amount of NGS data requires sophisticated administration and storage tools. Terabytes or petabytes of data can be difficult to manage and store, especially for smaller research organisations with less developed IT infrastructure. All these factors may restrict the market growth during the forecast period.

 Advancements in NGS Technologies to Drive Excellent Opportunities

NGS services are now more widely available and more reasonably priced as a result of ongoing technological developments in NGS platforms, including increases in read lengths, throughput, and sequencing accuracy as well as a decrease in sequencing prices. Numerous NGS services are used in genomics research, including metagenomics, whole exome sequencing (WES), transcriptome profiling (RNA-seq), epigenetic analysis (ChIP-seq, ATAC-seq), whole genome sequencing (WGS), and transcriptome profiling (RNA-seq). Researcher demand for NGS services has expanded as a result of the wide range of applications. The demand for NGS-based diagnostics and genetic testing is being driven by the growing emphasis on personalised medicine. Moreover, growth and expansion of healthcare industry being driven by both public and private players especially in the developing economies will create lucrative market growth opportunities.

Global Next-generation Sequencing Services Market Share, by Service Type, 2022

The human genome sequencing services sub-segment accounted for the highest market share in 2022.  The presence of a substantial number of key players in this sub-segment is contributing to its growth. Companies operating in human genome sequencing services include BGI-Complete Genomics, Macrogen, Veritas Genetics, Full genomes.com, SureGenomics, Novogene, and many more.

Global Next-generation Sequencing Services Market Share, by Workflow, 2022

The sequencing sub-segment accounted for the highest market size in 2022. Sequencing services are becoming more effective and efficient due to the ongoing advancements in NGS systems, including as increased throughput, quicker turnaround times, and improved sequencing accuracy. The use of whole genome sequencing (WGS), whole exome sequencing (WES), transcriptome profiling (RNA-seq), epigenetic analysis (ChIP-seq, ATAC-seq), and metagenomics are just a few of the many genomics research uses for NGS services. NGS is increasingly being used in a variety of research initiatives due to its adaptability.

Global Next-generation Sequencing Services Market Share, by End-use, 2022

The universities & other research entities sub-segment accounted for the highest market share in 2022. The field of genomics research is being led by universities and research organisations. In fields including human genetics, cancer genomics, infectious illnesses, uncommon genetic disorders, and many more, they fuel innovations and discoveries. Large-scale genomic investigations can be carried out at these universities owing to NGS services and advancing science. In large-scale genomics programmes, universities and research organizations frequently work in collaboration with other academic institutions, business partners, and governmental organizations. These partnerships encourage data sharing, resource pooling, and multidisciplinary research, which results in thorough genetic analysis.

Global Next-generation Sequencing Services Market Share, by Region, 2022

The North America next-generation sequencing services market accounted for the highest market share in 2022. The presence of leading academic institutions, healthcare facilities, and research institutes in the region have the resources and training necessary to efficiently use NGS services. The colleges and research organisations in the North America region have carried out ground-breaking genomics studies in fields like cancer genomics, uncommon illnesses, population genetics, and precision medicine. The demand for NGS services has been fuelled by the focus on precision medicine in region because genomics is essential for customizing medicines based on unique genetic profiles of the patients.

Competitive Scenario in the Global Next-generation Sequencing Services Market

Partnerships and investments are the common strategies followed by the major market players. For instance, in September 2022,  Thermo Fisher Scientific (US) got FDA approval for the Oncomine DX Target test as the first NGS-based companion diagnostic to help patients with RET mutations or fusions in thyroid cancer choose a course of treatment.

Some of the leading next-generation sequencing services market players are Quest Diagnostics Incorporated, PacBio, ARUP Laboratories, Azenta Life Sciences, Applied Biological Materials, Inc., Veritas, Novogene Co, Ltd., NanoString, Beijing Genomics Institute, and Illumina, Inc.