Next-generation Sequencing Data Analysis Market Size, Share & Trends Analysis Report By Product (Services, NGS Commercial Software), By Workflow, By Mode, By Read Length, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global next-generation sequencing data analysis market was valued at USD 883.1 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 22.89% from 2023 to 2030. A key factor contributing to the industry growth is the growing acceptance of sequencing platforms for clinical diagnosis due to a huge cost reduction of installation. Moreover, easy genomic and proteomic information availability is anticipated to create significant growth opportunities in this industry during the forecast period. Furthermore, the cost reduction of these sequencing technologies has resulted in increased adoption of NGS. During the COVID-19 pandemic, the industry was positively impacted. The latest technological developments coupled with growing applications of NGS for mitigation of the pandemic are projected to boost the growth further.

Constant advancements in algorithms and processing are leading to the adoption of next-generation data analysis platforms to solve complex genomic problems. For instance, in June 2021, QIAGEN N.V. entered into a strategic partnership with Verogen, Inc. to provide comprehensive human identification solutions in their laboratories. The COVID-19 pandemic has driven NGS adoption and related technologies for the identification and formulation of the viral variants of vaccines & therapeutic alternatives.

For instance, in June 2021, bioMérieux launched EPISEQ SARS-COV-2 cloud-based software that facilitates epidemiological surveillance of viral variants of SARS-Cov-2. NGS offered epigenomic studying and genomic patterns linked with several biological processes. However, challenges pertaining to management, storage, and accessing information are likely to provide the industry with possible R&D opportunities, thus driving its growth. For archiving and handling sequencing information researchers that use high-throughput sequencers require Laboratory Information Management Systems (LIMS) to handle sequencing information. Cloud-based platforms provide promising solutions for computationally rigorous tasks during the NGS data analysis.

The advancements in the services and cloud-based bioinformatics platforms at a large scale are anticipated to drive the industry. Bina, BaseSpace, LifeScope, DNAnexus, SevenBridges, and GeneSifter, and are some of the cloud-based NGS tools that are available in the market and have been adopted by end-users for sequencing information analysis. Furthermore, NGS protocol incorporation has been used for oncology precision medicine, majorly for breast and lung cancers. Market players are also focusing on the development of low-cost genome sequencing solutions to boost their performance.

Product Insights

The service segment dominated the global industry in 2022 and accounted for the maximum share of more than 54.06% of the overall revenue. This is owing to cost-effective NGS data analysis services. Companies, which do not have proper infrastructure for management and interpretation benefit from this service. For instance, ArrayGen Technologies Pvt. Ltd. offers a wide range of NGS data analysis services in the field of cancer genomics, disease association studies, agriculture biotechnology, and personalized medicine. Similarly, ThermoFisher Scientific also offers a variety of NGS data analysis services.

The NGS commercial software segment is anticipated to witness significant growth in the coming years owing to higher demand along with increased awareness about sequencing techniques. A huge amount of data generated through NGS requires a management platform, which has resulted in high demand for such algorithms. Several companies are engaged in developing data interpretation tools that enable researchers to handle a large amount of data. CLC Genomics Workbench offered by QIAGEN is a complete toolkit for metagenomics, transcriptomics, epigenomics, and genomics in one single program.

Workflow Insights

The NGS tertiary data analysis segment led the global industry in 2022 and captured the highest share of more than 49.18% of the overall revenue. Tertiary data analysis is the third step of analysis and involves gathering multiple samples, along with the phenotype, and experimental information. Several companies are entering into strategic initiatives to expand the scope of these tools. For instance, in October 2021, Verogen entered into a collaboration with Cellmark Forensic Services to establish NGS-based forensic services the in U.K. This would integrate the use of ForesnSeq DNA Signature Prep Kit, Universal Analysis Software, and MiSeq FGx System.

The secondary data analysis segment is projected to register the fastest growth rate during the forecast period. The increasing application scope of whole-genome sequencing needs faster secondary analysis tools to meet the increasing demand. The secondary analysis demands an enormous amount of data storage and computing resources. It is resource-intensive, yet it performs a set of bioinformatics and algorithms on a per-sample basis. This repeatable step can be incorporated into an analytic pipeline, which is entirely automated. This automated workflow enables more resource utilization through scheduling. In addition, it enables continuous improvement of the pipeline with the implementation of monitoring quality metrics and improving the algorithms as well as their associated parameters.

Mode Insights

The in-house mode segment dominated the global industry in 2022 and accounted for the largest share of more than 65.12% of the overall revenue. In-house NGS data analysis involves companies that are into disease diagnosis and testing using NGS while managing their own data analysis using available software tools. Companies operating in this segment are increasing rapidly. Moreover, various academic and research institutes conducting NGS research have been allocated annual budgets to perform in-house services. The in-house analysis provides rapid integration of scientific workflows into bioinformatics pipelines.

The outsourced mode segment is anticipated to witness the fastest growth rate during the forecast period. Several players offer outsourced NGS data analysis services for various applications. For instance, SciBerg offers services that allow the analysis of NGS data at a fraction of the total price incurred for DNA library preparation and deep sequencing. Scionics Computer Innovation GmbH offers NGS data analysis services for applications including differential gene expression analysis for RNA sequencing data and de novo assembly & annotation of the transcriptome. Thus, the availability of several options in this domain is an important factor contributing to its rapid growth.

Read Length Insights

Based on read length, the global industry has been further categorized into short, long, and very long read sequencing. The short-read sequencing segment dominated the global NGS data analysis industry in 2022 and accounted for the maximum share of 74.14% of the overall revenue. This is owing to the significant adoption and availability of alignment tools for short-read sequencing data. BaseSpace Sequence Hub, a cloud computing environment for genomics, involves the collection of apps that could easily manage sequencing data, which could further be used for a wide range of studies.

Similarly, DRAGEN by Illumina, Inc, a Bio-IT Platform offers a rapid secondary analysis of sequencing data from whole exome, whole genome, and targeted sequencing workflows. The market shows significant opportunities for long-read sequencing segments. A data processing toolkit, Guppy, by Oxford Nanopore includes base calling algorithms and bioinformatic post-processing characteristics. Base calling is profitable as it reduces the need for local infrastructure and a stable internet connection. The toolkit could be run on Linux or can be combined with the device control software MinKNOW.

End-use Insights

The academic and research institute segment led the industry in 2022 and accounted for the maximum share of more than 52.56% of the overall revenue. Decreasing NGS technology cost has increased the NGS software platforms usage by several research centers and academic institutions for their projects that need data interpretation. Moreover, the number of skilled professionals has gradually increased in research centers for handling the software and computational tools, which is anticipated to boost revenue generation in this segment. Various institutes offer on-site bioinformatics courses and training programs that aim at enhancing knowledge about various sequencing data analysis solutions. This benefits the growth of the academic research segment.

The clinical research end-use segment is estimated to register the fastest growth rate during the forecast period. The implementation of NGS for studying tumor heterogeneity, the discovery of new cancer-related genes, and the identification of alterations related to tumorigenesis are expected to result in significant growth of this segment. In the U.K., the National Health Service, through its Genomic Medicine Service, has adopted a sequencing-based approach for the clinical investigation of cancer with unknown etiology and evaluation of treatment options.

Regional Insights

North America dominated the global industry in 2022 and accounted for the maximum share of more than 49.00% of the global revenue. This is owing to the significant advancements in personalized medicine, companion diagnostics, and NGS. Moreover, growing emphasis on process optimization & reducing costs, and decreasing overall turnaround time for clinical processes are projected to create lucrative growth opportunities for the industry. These fields are capital-intensive, and hence require high R&D investment. In January 2020, Illumina Inc., entered into a multi-year partnership with ArcherDx, Inc. to expand access to NGS-based oncology testing along with companion diagnostics for the selection of therapeutics and personalized monitoring.

The Asia Pacific region is anticipated to witness the fastest growth rate during the forecast period. Several genomic programs are initiated in this region that focuses on integrating genomics into healthcare, consequently utilizing NGS technologies. For instance, The Australian Genomics or Australian Genomics Health Alliance is a collaborative research partnership of more than 80 organizations that aims at integrating genomics into healthcare. Furthermore, several advancements by companies are expected to enhance the availability of NGS technologies and associated software in this region. In March 2022, Vela Diagnostics launched NGS-based panels, Comprehensive (525 Genes) and Focused (60 Genes), that could detect RNA and DNA biomarkers.

Key Companies & Market Share Insights

Product developments and regional expansions are key strategies that contribute to market development. For instance, in March 2022, Spectrum Health collaborated with researchers from Michigan State University for the collection and analysis of genomic data for addressing the challenges posed by the COVID-19 pandemic and other emerging infectious diseases. In October 2021, Cue Health collaborated with Google Cloud for the integration of sequencing data with cloud-connected COVID-19 information to enable the addition of variant sequencing, variant tracking, and predictive analytics capabilities to its portfolio of offerings. Some of the key players in the global next-generation sequencing data analysis market include:

• Golden Helix, Inc.

• Bio-Rad Laboratories, Inc.

• SciGenom Labs Pvt. Ltd.

• DNAnexus Inc.

• Genuity Science

• Fabric Genomics, Inc.

• Congenica Ltd.

• QIAGEN

• DNASTAR, Inc.

• Pacific Biosciences of California, Inc.

• Eurofins Scientific

• Partek Incorporated

• Precigen Bioinformatics Germany GmbH

• PierianDx

• Agilent Technologies, Inc.

• F. Hoffmann-La Roche Ltd.

• Illumina, Inc.

• Verily Life Science

• Thermo Fisher Scientific, Inc.

Next-generation Sequencing Data Analysis Market Report Scope

Global Next-generation Sequencing Data Analysis Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the global next-generation sequencing data analysis market based on product, workflow, mode, read length, end-use, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Services

  • NGS Commercial Software

    • Platform OS/UI

    • Analytical Software

      • QC/Pre-processing Tools

      • Alignment Tools & Software

        • DNA Sequencing Alignment

        • RNA Sequencing Alignment

        • Protein Sequencing Alignment

      • Others

• Workflow Outlook (Revenue, USD Million, 2018 - 2030)

  • Primary

  • Secondary

    • Read Mapping

    • Variant Alignment & Variant Calling

  • Tertiary

    • Variant Annotation

    • Application Specific

      • Targeted Sequencing/Gene Panel

      • Exome

      • RNA Sequencing

      • Whole Genome

      • Chip Sequencing

      • Others

• Mode Outlook (Revenue, USD Million, 2018 - 2030)

  • In-house

  • Outsourced

• Read Length Outlook (Revenue, USD Million, 2018 - 2030)

  • Short Read Sequencing

  • Long Read Sequencing

  • Very Long Read Sequencing

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Academic Research

  • Clinical Research

  • Hospitals & Clinics

  • Pharma & Biotech Entities

  • Other Users

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait