The Global NGS Automation Market was valued at USD 9.96 Billion in 2022 and is projected to reach USD 25.30 Billion by 2030, registering a CAGR of 18.43% for the forecast period 2023-2030.
Market Definition
Massively parallel sequencing technology known as next-generation sequencing (NGS) provides scalability, extremely high throughput, and quickness in determining the nucleotide order throughout the entire genome. Since DNA pre-sequencing involves preparing the sample for the subsequent sequencing reaction, it is one of the most important steps in the entire sequencing protocol. NGS is being used more frequently for disease diagnosis as a result of the declining cost of sequencing. The global market is being driven by the emergence of various test kits and testing services for non-invasive prenatal testing, genetic testing, cancer diagnosis, and other purposes. Furthermore, new market expansion prospects are anticipated as a result of the government's active support in the form of product approval and enhanced reimbursement coverage for these diagnostic tests. Furthermore, during the projected period, it is expected that the market will continue to grow due to the rising prevalence of chronic diseases, increased research, and the beginning of large-scale genomics projects.
Market Size:
- 2022: USD 9.96 Billion
- 2030: USD 25.30 Billion
- CAGR (2023-2030): 18.43%
NGS Automation Market Dynamics
Drivers : Growing use of next generation sequencing accelerates market expansion
Next-generation sequencing (NGS) has been incredibly useful in clinical and research settings in the last few years. Oncology, clinical research, reproductive health, immune system monitoring or typing of leukocyte antigen, metagenomics, epidemiology, drug development, Agri genomics, forensics, and consumer genomics are some of the major fields in which NGS finds a variety of applications. NGS is used to diagnose a variety of disorders in clinical settings. Furthermore, it is extensively employed in determining the targets of mutations for targeted therapy and pinpointing a high-risk group for specific inherited cancers. Tests for tumor mutation burden, microsatellite instability, a possible biomarker linked to immune checkpoint inhibitor therapy response, and tests for mutations from liquid biopsy are among the additional clinical applications of NGS. Research efforts in clinical and biological fields are growing as the cost of sequencing data continues to drop. The last 25 years have seen a significant increase in genomics innovations, which has resulted in a significant decrease in the price of sequencing a human genome. The decrease in sequencing costs supports genetic research, spurs more activity in the field of human genome sequencing research, and lowers the cost of genomic sequencing tests. The pharmaceutical and diagnostic industries can benefit more from genomic sequencing. During the forecast period, there is likely to be a rise in demand for genome sequencing products and services due to this cost decline.
For instance, in May 2023, according to Danaher, Next-generation sequencing (NGS) has revolutionized molecular biology and served as a universal tool for many research avenues across the spectrum of biology. NGS has become crucial in various applications. In agriculture, it is used for adapting crops to our changing world and as an essential infectious disease control tool for detecting novel SARS-CoV-2 variants and emerging outbreaks using wastewater surveillance. with the NGS market expanding from mostly academic research-based applications to now include biotech and biopharma companies eager to commercialize NGS solutions.
Several countries expanding genomics program are propelling the industry
Because of the growing demand from a range of industries, including research, pharmaceuticals, healthcare, and agriculture, for NGS services. New NGS technologies are being developed as a result of the growth of genomics programs. These technologies aim to improve the speed, accuracy, and affordability of NGS. The largest market for NGS is the US, where the US government is making significant investments in genomics research. China is the NGS market's second-biggest market, and the country's government is dedicated to creating a top-tier genomics sector. Numerous European nations are growing their genomics programs, and the European Union is also making significant investments in this field. The growth of genomics initiatives is advantageous for the NGS industry’s is increasingly being used in laboratory research, clinical testing, and illness treatments in the healthcare industry worldwide. NGS offers a number of advantages, including cost-effectiveness and speedy sample analysis. Over the anticipated timeframe, technological advancements will have a significant impact on the application of NGS technology. Pharmacogenomics has made extensive use of NGS to speed up the drug discovery process. The industry for next-generation sequencing will benefit from the expansion of genomics programs in various countries. Two factors driving the market's growth are the introduction of diagnostics based on next-generation sequencing and the proactive support of the relevant governments. One of the main factors propelling the global market for next-generation sequencing is the growing applications in clinical diagnosis.
For instance, in December 2022, UK Government announces USD 177 million funding to create the most advanced genomic healthcare system in the world, helping to save lives and improve health outcomes.
Recent Developments
- January 2023
QIAGEN announced an exclusive strategic partnership with California-based population genomics leader Helix to advance companion diagnostics for hereditary diseases. As the development of precision medicines accelerates, so does the need for companion diagnostics devices and tests detecting clinically relevant genetic abnormalities. Partnership to leverage the Helix® Laboratory Platform powered by QIAGEN’s biopharma relationships, NGS capabilities, and global regulatory expertise
- September 2022
Illumina, Inc. a global leader in DNA sequencing and array-based technologies, today announced the launch of the NovaSeq™ X Series (NovaSeq X and NovaSeq X Plus), new production-scale sequencers that will push the limits of what is possible with genomic medicine, enabling faster, more powerful, and more sustainable sequencing. Using revolutionary new technology, NovaSeq X Plus can generate more than 20,000 whole genomes per year 2.5 times the throughput of prior sequencers – greatly accelerating genomic discovery and clinical insights, to understand disease and ultimately transform patient lives.
Restraint
Ethical and juridical concern : Ethics and legality surround all types of DNA sequencing, including NGS. Identifiability, sharing research results, stereotyping, consent appropriateness, stigmatization, inclusion, and differential benefit are a few of these issues. Other issues unique to a particular culture and community are also included. In essence, these ethical dilemmas restrain market growth. Medical sequencing brings up ethical concerns for both individuals and groups, including issues related to specific cultures and communities, data release and identifiability, appropriate consent, reporting research findings, stigmatization and stereotyping, inclusion and differential benefit, and stereotyping. Genetic information carries the risk of being used to discriminate against people in hiring or insurance decisions, for example. This may make people reluctant to submit to NGS testing, and it may put businesses using NGS data in legal hot water. It can be difficult to get informed consent for NGS testing because people might not fully comprehend the consequences of disclosing their genetic information. This may give rise to legal disputes and complicate the use of NGS data in research projects. Regarding incidental findings, or genetic variants unrelated to the purpose of testing, there is no agreement. While some people might be interested in learning about incidental findings, others might not. Patients may become confused and anxious as a result, and healthcare professionals may find it challenging to handle the return of results.
For instance, in October 2022, according to Cambridge University, The UK Newborn Genomes Programme aspires to sequence up to 200,000 babies at birth, and analyze their genomic data aiming to identify ‘actionable genetic conditions which may affect their health in early years. This aims to ensure timely diagnosis, access to treatment pathways, and enable better outcomes and quality of life for babies and their families’ (Genomics England, 2021). This is a laudable aim, but the path from obtaining genome sequences to enabling better outcomes will not be straightforward and illustrates many of the ethical challenges raised by the use of new genomic technologies.
Challenges : Lack of standardization is a challenge for NGS automation market
Integrating data from several platform is difficult since proprietary data format are frequently used by various NGS automation systems. This may make it more difficult to evaluate and comprehend big datasets that were produced from several sources. It is difficult for laboratories to adopt standardized workflows because the protocols used by different vendors to operate NGS automation systems can differ significantly. Results of the analysis and data quality may become inconsistent as a result. NGS automation hardware compatibility can also be problematic because different parts might not work well together. This may reduce the freedom to choose and set up automation systems to suit particular requirements in the laboratory. The intricacy of integrating and overseeing various NGS automation systems is increased by the lack of standardization, necessitating specialist knowledge and instruction. Workflow automation may be hampered by a lack of standardization, leading to inefficiencies and manual interventions. The analysis and interpretation of large datasets may be hampered by the inability of different systems to exchange data seamlessly.
Opportunities
Microarrays are no longer the most advanced genomics technique; next-generation sequencing (NGS) has replaced the former as a discovery tool. Recent advancements and a precipitous decline in sequencing costs have led to a significant increase in the acceptance of NGS. For most genomic applications, researchers prefer NGS over microarrays because of the decreasing costs and growing popularity of the technique. Microarrays have a number of shortcomings, such as A major obstacle to microarray analysis is cross hybridization between identical sequences, which requires prior knowledge of the genome or its characteristics. The dynamic range of high-confidence data is limited by a high signal-to-noise ratio. These problems are resolved by NGS's infinite, fully quantitative dynamic range of the signal, which enables the monitoring of gene allele expression that differs by as little as one sequence nucleotide. It is not necessary to understand the genome or its sequence, though. By facilitating the quick identification of genetic variants linked to disease and the creation of targeted therapies, effective NGS techniques can hasten the drug discovery process. Patients may receive more individualized and efficient care as a result. The identification of genetic traits that strengthen resistance to pests and diseases, increase nutrient uptake, and improve yield potential can all contribute to higher crop yields when NGS techniques are used effectively. Global food security may benefit from this.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 9.96 Billion |
| Market Forecast in 2030 | USD 23.30 Billion |
| Compound Annual Growth Rate (CAGR) | 18.43 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Product, By Technology, By Application, By End-User & By Region |
| By Product |
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| By Technology |
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| By Application |
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| By End-User |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the NGS Automation Market
The NGS Automation Market is segmented by product, technology, application, end-user and region.
By Product
The services segment held the largest market share in 2022
By Product is sub segmented into services and software. The services segment accounted for highest market share 65% in global NGS automation market for 2022. The segmental growth is primarily driven by factors like the growing number of patients with genetic diseases, the demand for products based on sequences, the need for data management services to store vast amounts of data, and supportive government policies. The need for NGS-based diagnostics, the growing number of NGS service providers, and the growing demand for personalized medicine all contribute to the segment's growth rate. Additionally, the segment's growth rate is accelerated by the falling cost of NGS services and rising end-user awareness of NGS's benefits.
On the other hand, the software segment has the significant market share over the forecast period, due to segment's growth rate is boosted by factors like the increasing demand for effective data interpretation and analysis, the growing use of NGS technology in clinical and research applications, and the number of improvements in NGS data analysis software. The increasing integration of machine learning (ML) and artificial intelligence (AI) technologies in NGS data analysis software is another factor driving the segmental growth.
By Technology
The targeted re-sequencing segment was the leading segment in 2022
By technology, which is divided into targeted re-sequencing, whole genome sequencing, de novo sequencing, exome sequencing, other technologies. The beverages segment accounted for largest share in global NGS automation market for 2022. One of the primary drivers of segmental growth is the increasing application of targeted re-sequencing in oncology research. This method can be used to find possible mutations that cause disease since it detects gene-based protein mutations or variations. Whole-exome sequencing supports the variant finding and is appropriate for Mendelian disorders, such as cancer. In the upcoming years, it is anticipated that this trend will continue and support segmental growth. The segment's growth rate is also accelerated by the increasing number of technological advancements in targeted resequencing and the growing use of targeted resequencing in clinical applications.
On the other hand, the whole genome sequencing segment is anticipated to expand over the forecast period, it is regarded as a useful tool in genetic research because of its ability to generate large amounts of data and its continuously declining sequencing costs. Furthermore, there is a common connection between this method and human genomes. But the scalability and flexibility of next-generation sequencing (NGS) technology have made it possible to apply this WBS to any species, including bacteria that cause disease, plants, and animals used in agriculture. A high-resolution, base-by-base image of the genome and the capacity to detect both big and little alterations that targeted approaches might overlook are two advantages of this sequencing approach.
By Application
The Drug discovery and development segment was the leading segment in 2022
By application, which is divided into diagnostics, drug discovery & development, agriculture & animal research, others. The drug discovery and development segment accounted for largest share in global NGS automation market in 2022. Next-generation sequencing methods, which produce multiple layers of genomic data including genomic changes, transcriptome profiling and quantification, epigenetic modifications, and other genomic information relevant to the target disease, are essential for drug discovery and development. Thanks to NGS, high throughput research on genotype-phenotype interactions on human populations has opened up a new era in the development of genetics-based medicine.
Diagnostics segment is anticipated to register rapid growth in forecast period, particularly when used as a pathogen-detection method for infectious disease diagnosis, the NGS is rapidly emerging as a powerful and promising instrument for illness diagnosis. Roche and Illumina have entered into a 15-year non-exclusive partnership that gives Roche the right to create and market in vitro diagnostic (IVD) tests on Illumina's NextSeq 550Dx System and its upcoming line of diagnostic (Dx) sequencing systems. This collaboration is a reflection of the increasing importance that major players are giving to the introduction of NGS diagnostic products.
By End-User
The academic institute & research centers segment was the leading segment in 2022
By End-User, which is divided into academic institutes & research centers, pharmaceutical & biotechnology companies, clinical research, hospitals & clinics, reference laboratories, others. The academic institute & research centers segment accounted for largest share 53% in global NGS automation market in 2022. The largest share of this market segment can be attributed to the use of NGS solutions in research projects conducted in universities and research centers. Moreover, it is projected that the availability of scholarships for PhD programs in NGS will stimulate demand for NGS goods and services, leading to profitable expansion throughout the projection period. In the upcoming years, it is anticipated that offering on-site bioinformatics courses which include workshops on the practical application of NGS sequencing and data analysis will increase revenue from the academic research segment.
On the other hand, clinical research to register the significant share during the forecast period, The segment is anticipated to experience significant growth over the forecast period due to the use of NGS in cancer research, specifically in the discovery of new cancer-related genes, studying tumor heterogeneity, and identification of alterations that are contributing to tumorigenesis. Additionally, the availability of clinical research solutions for the goal of target through market players like Agilent Technologies, Thermo Fisher Scientific Corporation, and Illumina
Regional Analysis
North America occupied the largest market share in 2022: North America has the largest revenue market share 42% in 2022, Numerous clinical laboratories that use NGS to offer genetic testing services are what propel the regional market. Also, the region's WGS development is anticipated to play a significant role in the expansion of the North American market during the forecast period because of the high R&D investment and accessibility of a technologically sophisticated healthcare research framework. Furthermore, it is anticipated that the market will grow due to the regional presence of multiple major players and the initiatives they have undertaken. Pharmaceutical companies in North America have prioritized developing precision and customized treatments, established comprehensive genome sequencing programs, and developed regulatory and reimbursement policies for NGS-based diagnostic tools.
On the other hand, Europe accounted for the significant share over the forecast period, Germany holds a significant share of the NGS market. The country has made large expenditures in the domains of medical research and healthcare. The biotechnology and pharmaceutical sectors are making significant investments in personalized medicine, which primarily uses NGS tools. NGS facilities can be found in most academic institutions, and the public is welcome to use the general facilities. Because major market players are increasingly engaging in strategic activities, the next-generation sequencing market in Germany is expected to grow.
List of the prominent players in the NGS Automation Market:
- Illumina
- QIAGEN
- Thermo Fisher Scientific, Inc.
- F. Hoffman-La Roche Ltd.
- Oxford Nanopore Technologies
- Genomatix GmbH
- PierianDx
- DNASTAR, Inc.
- Eurofins GATC Biotech GmbH
- Perkin Elmer, Inc.
- BGI
- Bio-Rad Laboratories, Inc.
Segmentation Analysis of the NGS Automation Market
By Product
- Software
- Services
- Targeted Re-Sequencing
- Whole Genome Sequencing
- De Novo Sequencing
- Exome Sequencing
- Other Technologies
- Diagnostics
- Drug Discovery & Development
- Agriculture & Animal Research
- Others
- Academic Institutes & Research Centers
- Pharmaceutical & Biotechnology Companies
- Clinical Research
- Hospitals & Clinics
- Reference Laboratories
- Others
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the NGS Automation Market:
Three primary mechanisms exist for COVID-19 to impact the economy: first, it can directly impact the supply and demand for pharmaceuticals, vaccines, and medical devices; second, it can cause disruptions in the supply chain; and third, it can have a financial impact on businesses and financial markets. Many nations, including China, India, Saudi Arabia, the United Arab Emirates, Egypt, and others, are having trouble moving goods from one location to another as a result of national lockdowns. The COVID-19 pandemic did, however, have a beneficial effect on the global next-generation sequencing market because major players stepped up their research and development efforts to use next-generation sequencing techniques for COVID-19 infection diagnosis. For example, the first COVID-19 diagnostic test using next-generation sequence technology was authorized for use in June 2020 by the U.S. Food and Drug Administration through an emergency use authorization (EUA) granted to Illumina, Inc., a multinational company that creates novel array-based solutions for DNA, RNA, and protein analysis. The Illumina COVIDSeq Test was approved by the FDA to qualitatively detect SARS-CoV-2 RNA from respiratory specimens obtained from patients whose healthcare provider suspected they had COVID-19.
