Nextgen Sequencing Market

Part
01
of two
Part
01

Market Size - Nextgen Sequencing Market

The US nextgen sequencing market was valued at $4.1 billion in 2018.

US NEXTGEN SEQUENCING MARKET

  • According to Global Market Insights (GMI), the 2018 next generation sequencing market size was $4.1 billion. Their findings show that the majority of the industry's market size in 2018 was in consumables.
  • The market is expected to "witness 20.4% CAGR from 2019 to 2025."
  • The consumables category will continue to lead as the largest segment of the next generation sequencing market through 2025. The consumables segment is expected to account for 21% of the nextgen sequencing market growth from 2018 to 2025.
  • A Market Study Report analysis finds that the nextgen sequencing market will surpass $15 billion by 2025.
  • According to GMI, "technological advancements integrated in next generation sequencing techniques will positively influence next generation sequencing (NGS) industry growth throughout analysis period."
  • GMI reports that the "clinical application segment is projected to grow around 20.5% from 2019 to 2025. Considerable segmental growth can be attributed to growing use of NGS technology in predicting probability of an individual acquiring diseases."
Part
02
of two
Part
02

Overview - Nextgen Sequencing Market

The Next Generation Sequencing (NGS) is a DNA sequencing technology that enables sequencing of millions of small DNA fragments simultaneously which generates a massive pool of data. Some of the key players operating in the global NGS market include Illumina, Inc., Thermo Fisher Scientific, Inc., Pacific Biosciences of California, Inc., Beijing Genomics Institute, Qiagen N.V., and 454 Life Sciences Corporation.

Next Generation Sequencing Overview

  • Next Generation Sequencing (NGS) is a new method of high-speed sequencing of genomes at low cost. It is also known as 'Second Generation Sequencing' (SGS) or 'Massively Parallel Sequencing' (MPS).
  • It refers to a DNA sequencing technology that enables sequencing of millions of small DNA fragments simultaneously which generates a massive pool of data. NGS has played a pivotal role in revolutionizing and simplifying genomic research studies.
  • The high-speed NGS is corroborated by the fact that it is capable of sequencing an entire genome, with the size running in gigabytes (the equivalent of 1 billion base pairs of DNA), in just one day. By contrast, it took more than ten years to produce the final drafts, through the previously used Sanger sequencing method which was used to determine the human genome.
  • One of the key advantages of NGS is that it minimizes the requirement for fragment-cloning methods used in Sanger sequencing of genomes which leads to low cost, high accuracy, impeccable speed, and precise results even from low sample input.
  • NGS is used to execute various applications such as biomarker discovery, oncology studies, personalized medicine, agricultural and animal research, and others. In addendum, it has helped in streamlining nucleotide analysis and has widely replaced conventional tools of genomics, especially microarray efficiently.
  • In terms of end-use segments, academic research was the largest end-use segment of NGS in 2018 and is likely to expand further on account of wide usage of NGS methodologies in research and Ph.D. projects, on-site bioinformatics courses, and workshops. Other major end-use segments included clinical research, hospitals & clinics, and pharma & biotech entities.

Background

  • The development and evolution of NGS were to a great extent promulgated by the discoveries made during the Human Genome Project (HGP). Sanger DNA sequencing was the predecessor of NGS and laid the foundation stone for the same.
  • The use of radioisotope labels was replaced by fluorescent detection, polyacrylamide slab gels were replaced with polymer-filled capillaries, and X-ray film was abandoned in favor of laser fluorescent detection.
  • The first drafts of the human genome sequence were completed at the beginning of the twenty-first century. Over the next decade, "NGS technologies were developed that could provide high throughput sequencing and produce 20,000 times more data in a single run than the technologies used for the HGP."
  • In 2008, the first paper on the production of a human genome sequence was published using NGS. It was from the DNA of Nobel Laureate James Watson. Since then, numerous studies of single genomes was published by researchers using a variety of NGS methodologies.
  • Since HGP over the years, the sequencing has evolved to such an extent that the sequencing of the HGP era appears low throughput and instead of using numerous capillary sequencers, institutes only need to run just a few NGS devices.

Key Market Players

  • The key players operating in the NGS market globally include Thermo Fisher Scientific, Inc., Illumina, Inc., Pacific Biosciences of California, Inc., Beijing Genomics Institute, 454 Life Sciences Corporation (Roche Holding AG), Agilent Technologies, Inc., Qiagen N.V., Perkinelmer, Inc., Genomatix GmbH, and PierianDx.
  • Other prominent players in the value chain include Gatc Biotech AG, Macrogen, Inc., Eurofins Scientific, Oxford Nanopore Technologies, DNASTAR, Inc., Ltd., Bio-Rad Laboratories, Inc., Biomatters Ltd., Partek Inc., Myriad Genetics, Inc., and New England Biolabs, Inc.
  • The most widely used NGS-based platforms/products include Illumina’s MiSeq, MiniSeq and NextSeq, Thermo Fisher’s Ion PGM, Ion Proton System, and Ion GeneStudio S5 NGS system and Oxford Nanopore Technologies' MinION.

NGS SWOT ANALYSIS

STRENGTHS
  • The major strength of next-generation sequencing is that the method can detect abnormalities across the entire genome, including substitutions, deletions, insertions, duplications, copy number changes, and chromosome inversions/translocations.
  • NGS is capable of detecting all the above-mentioned abnormalities using less DNA than required for traditional DNA sequencing approaches.
  • Additionally, some other key strengths of NGS include its low cost, high accuracy, impeccable speed, and precise results even from low sample input as compared to other traditional methods such as Sanger's sequencing method.
  • The NGS has the potential to accelerate the early detection of disorders and the identification of pharmacogenetics markers to customize its treatments.

WEAKNESS
  • NGS requires sophisticated bioinformatics systems, fast data processing and large data storage capabilities which adds on the infrastructure costs associated with the same.
  • One of the other weaknesses/limitations of NGS is that it provides information on a number of molecular aberrations but for many of the identified abnormalities, the clinical significance is currently unknown. This greatly hampers the trenchant application of NGS to a wider arena.
  • Some of the NGS platforms like '454 Platform' can involve time-consuming sample preparation protocols which include emPCR.

OPPORTUNITIES
  • The development and growth of the personalized medicine sector have opened many avenues for the usage of NGS which has a huge number of applications in personalized medicine field. The various technological advancements in the field of personalized medicine act as a key opportunity for NGS.
  • Another key opportunity area for NGS is genetic screening, where the same is extremely trenchant in identifying "monogenic diseases with locus heterogeneity, such as blindness, deafness, movement disorders, mitochondrial disease, hereditary cancers".
  • Infectious disease diagnostics is the next opportunity area where NGS can emerge as a more powerful and promising pathogen-detection method. It helps in the identification and genomic characterization of bacteria, fungi, parasites, and viruses, without the need for prior knowledge of a specific pathogen, directly from clinical specimens.
  • The utilization of cloud computing in NGS for data management and untapped emerging economies are expected to provide new market opportunities to NGS manufacturers in the near future.

THREATS/RISKS
  • One of the major threats/risks associated with NGS pertains to the difficulty in the management of large data and complications, associated with Big Data management. NGS uses a colossal amount of data and wrong or inefficient data handling can be a great threat to the efficacy of NGS.
  • In addendum, the NGS market faces the threat/risk of some ethical issues associated with whole-genome sequencing along with the lack of awareness among people.
  • The costs involved in 'Library preparation' for human whole-genome sequencing at $50 sample can be a risk in its application in areas such as sequencing bacterial genomes or low-depth RNA sequencing (RNA-seq) where this constitutes majority of the cost.
Sources
Sources

From Part 01
Quotes
  • "Technological advancements integrated in next generation sequencing techniques will positively influence next generation sequencing (NGS) industry growth throughout analysis period."
  • "Consumables segment is expected to witness 21% growth throughout the analysis timeframe. Consumables and other chemicals are highly preferred for labelling the DNA strands that are utilized in the sequencing process"
  • "Clinical application segment is projected to grow around 20.5% from 2019 to 2025. Considerable segmental growth can be attributed to growing use of NGS technology in predicting probability of an individual acquiring diseases"
  • "North America next generation sequencing market was valued more than USD 1 billion in 2018 and will witness robust growth over the forecast period. Increasing prevalence of cancer and genetic diseases will surge adoption of advanced NGS instruments that will drive the regional business growth. Moreover, collective focus of industry players on development of technologically upgraded NGS instruments will positively impact industry growth during the upcoming years."