Next generation sequencing (NGS) is a disruptive technology that allows scientists to sequence and assemble millions to billions of short DNA reads. This technology is used for applications such as whole genome sequencing, whole exome sequencing (1-2% of the genome that actually encodes proteins) or expression profiling. NGS is the fastest growing and the most attractive segment of the $7.1B genomics space (manufacturer market). With an estimated market size of ~$1.2B in 2012, and a double digit growth rate, we forecast this market will reach $2.1B in 2015, driven by adoption in non-academic customers, especially clinical customers. NGS is poised to revolutionize not only medical research in academic laboratories and Biopharma, but also the healthcare landscape and applied markets (e.g., AgBio, food testing).
The second edition of this report reviews the market size, segmentation, growth and trends of the NGS (and third generation sequencing) market. We assess the NGS market across 5 segments: company (Illumina, Life Technologies (Ion Torrent), Roche / 454 Life Sciences, Pacific BioSciences, and Others), product type (Instrument, Reagents, Services), customer (Academia, Biopharma, Applied Markets, Clinical, Other), instrument type (Workhorse, Desktop) and geography (U.S., Europe, Japan, Asia/Pacific, Others). For each of these segments, we provide an annual market size and growth from 2009 to 2015, as well as key growth drivers and moderators.
In addition, we review major factors driving future growth including
1) increased reagent usage on an expanding instrument installed base,
2) continued decentralization via desktop sequencers such as Illumina’s MiSeq that make the technology accessible to individual academic laboratories and in clinical settings,
3) increased adoption of the technology by new customers (e.g., Applied markets such as AgBio, patients in clinical trials),
4) increased usage for new scientific applications beyond pure sequencing (e.g., expression profiling, ChIP-Seq, methylation studies) and
5) broader adoption of sequencing services (e.g., BGI/Complete Genomics).
On the other hand, we discuss four key factors moderating growth including
1) increasing pricing pressure driven by more affordable instrument options and continued technological improvements leading to cheaper cost per base pair and technology commoditization,
2) increasing use of service providers offering an alternative to in-house platform adoption, as many customers don’t have the budget for / interest in large capital expenditures for such fast-evolving technologies,
3) continuing workflow and bioinformatics issues, especially for more translational applications, and
4) continuing unfavorable research funding dynamics in the U.S. – especially in light of budget sequestration – and abroad.
In this second edition, we also highlight two key topics: 1) emerging adoption of NGS in clinical settings, as we expect 2015 to an inflection point for this market segment, 2) the continued decentralization driven by desktop sequencers (e.g., Ion Proton, MiSeq).
Please note: the online download version of this report is for a Site License.