The next generation global sequencing (NGS) market is experiencing rapid growth, driven by technological advancements and increasing prevalence of genetic and oncological disorders. Valued at approximately USD 7.7 billion in 2024, the market is projected to reach USD 8.6 billion in 2025 and expand significantly to USD 46.5 billion by 2035, growing at a compound annual growth rate (CAGR) of 18.4% during this period. This growth reflects the expanding adoption of NGS technologies in research, clinical diagnostics, and therapeutic development.
Market Growth Drivers
Key drivers fueling the NGS market include:
- Technological advancements enhancing the accuracy, efficiency, and accessibility of sequencing techniques.
- Rising incidence of chronic diseases, genetic disorders, and cancer, which necessitate advanced molecular-level disease analysis.
- Increasing demand for precision medicine and personalized therapies, supported by comprehensive genomic data.
- Growing government and industry initiatives, including national population genome mapping projects.
- Expansion of clinical trials leveraging NGS for improved drug evaluation and patient outcomes, with over 920 NGS-related clinical trials registered in the past five years.
Market Segmentation
The NGS market is segmented across multiple dimensions:
- By Type of Component: Consumables dominate with a 67% market share, driven by high demand in research applications, followed by services and instruments.
- By NGS Technique: Targeted sequencing holds the largest share at 45%, while whole genome sequencing/whole exome sequencing is expected to grow at a higher CAGR of 19.5% through 2035.
- By Technology Used: Sequencing by synthesis technology leads with 82% market share, though nanopore sequencing technology is projected to grow faster at a CAGR of 20.5%.
- By Application Area: Clinical applications account for 57% of the market and are anticipated to grow at a CAGR of 21.1%, reflecting the increasing use of NGS in diagnostics and treatment planning.
- By Target Therapeutic Area: Oncological disorders represent the largest segment with 50% market share, driven by the need for early cancer diagnosis and molecular-level prevention strategies. Other therapeutic areas are expected to grow at a higher CAGR of 26.6%.
- By Purpose: Diagnosis is the primary purpose, comprising 58% of the market, with other purposes such as risk assessment and screening growing at a CAGR of 20.1%.
- By End Users: Academic and research institutes lead with 45% market share, reflecting their significant role in oncological research and personalized medicine. Hospitals and clinics are expected to grow faster at a CAGR of 21.7%.
- By Geography: North America dominates with 51% market share due to advanced healthcare infrastructure and supportive regulatory frameworks. Asia-Pacific is the fastest-growing region with a CAGR of 20.6%, supported by government initiatives and expanding healthcare investments.
Competitive Landscape
The NGS market features a diverse range of players:
- Technology Providers: Leading companies include Illumina, Thermo Fisher Scientific, Pacific Biosciences, Oxford Nanopore Technologies, and Hoffman La Roche. Key platforms include Thermo Fisher’s Ion Torrent Genexus Dx Integrated Sequencer, Oxford Nanopore’s PromethiON, and Illumina’s iSeq 100.
- Service Providers: Approximately 90 companies offer NGS services globally, with 92% providing whole genome sequencing, 81% whole exome sequencing, and 57% targeted sequencing. Nearly half offer all three types of sequencing services.
- Research and Development: Market leaders are also investing in therapeutic drug development based on genetic research, exemplified by Psomagen’s collaboration with the Global Parkinson's Genetics Program to sequence genomes of nearly 80,000 patients for Parkinson’s disease research.
Challenges and Opportunities
Despite its growth, the NGS market faces challenges such as high installation costs, the need for skilled personnel, and limited in-house infrastructure for implementing NGS workflows. To mitigate these, outsourcing sequencing services has become a cost-effective and efficient alternative, attracting government and industry interest.
Emerging opportunities include:
- Development of portable, handheld sequencing devices aimed at reducing costs and enabling real-time analysis, such as Oxford Nanopore Technologies’ MinION sequencer.
- Integration of NGS with bioinformatics tools to enhance data interpretation and expand applications in clinical and epidemiological research.
- Increasing patent activity, with over 3,060 patents filed or granted since 2020, predominantly by industry players, indicating robust innovation.
Recent Developments
Recent initiatives underscore the market’s dynamism:
- The Government of India, in collaboration with Tata Memorial Hospital, launched genomic data portals to support global research (January 2025).
- Azenta opened a new genomics laboratory in the UK to expand NGS services (May 2024).
- Revvity Omics adopted Element Biosciences’ AVITI genome sequencing platform to enhance capabilities (October 2023).
- Thermo Fisher Scientific partnered with Pfizer to broaden access to NGS-based cancer testing globally (May 2023).
Conclusion
The next generation sequencing market is poised for substantial growth through 2035, driven by technological innovation, expanding clinical applications, and rising demand for precision medicine. With strong regional leadership from North America and rapid growth in Asia-Pacific, alongside active participation from key industry players and research institutions, NGS is set to transform genomic research and healthcare diagnostics on a global scale.
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