Next Generation Sequencing Market Expected to Reach $97.8 Billion by 2035

According to a new report published by Allied Market Research, titled, “Next Generation Sequencing Market," The next generation sequencing market was valued at $13 billion in 2023, and is estimated to reach $97.8 billion by 2035, growing at a CAGR of 18.3% from 2024 to 2035.

Next-generation sequencing (NGS) is a high-throughput DNA sequencing method that enables rapid and cost-effective analysis of genetic material. It utilizes parallel sequencing of millions of DNA fragments to generate vast amounts of data, allowing for comprehensive analysis of genomes, transcriptomes, and epigenomes. Next generation sequencing industry has revolutionized biomedical research, clinical diagnostics, and personalized medicine by facilitating the identification of genetic variations, understanding of disease mechanisms, and development of targeted therapies. Its efficiency, accuracy, and scalability have significantly advanced the understanding and application in genetics and genomics driving the next generation sequencing market trends.

The increasing demand for precision medicine is a pivotal driving factor behind the next generation sequencing industry growth. Precision medicine, which customizes healthcare decisions and treatments to individual genetic characteristics, relies heavily on NGS technologies for comprehensive genomic analysis. With its ability to swiftly and affordably sequence large amounts of genetic data, NGS facilitates the identification of genetic variations crucial for personalized medical interventions. Consequently, the increasing adoption of precision medicine practices fuels the expansion of the NGS market, offering transformative prospects in healthcare and research domains.

Depending on product, the next generation sequencing market analysis is segmented into consumables, platforms, and services. The consumables segment accounted for the largest share in terms of revenue in 2023 and is expected to maintain its lead during the forecast period. This is attributed to recurring nature of consumable purchases, such as reagents, cartridges, and other materials necessary for sequencing experiments, ensures a steady revenue stream for sequencing companies. Additionally, the growing adoption of sequencing technologies across research, clinical, and industrial settings increases the demand for consumables.

However, the services segment is expected to exhibit the fastest CAGR during the next generation sequencing market forecast period owing to several factors. As the adoption of next-generation sequencing (NGS) technologies increases, there's a parallel rise in demand for associated services such as sequencing data analysis, interpretation, and consulting. Additionally, outsourcing sequencing tasks to specialized service providers offers cost-efficiency and expertise, further driving the growth of this segment.

Depending on application, the market is divided into biomarkers & cancer, diagnostics, reproductive health, personalized medicine, agriculture & animal research, and other applications. The biomarkers & cancer segment accounted for the largest next generation sequencing market share in terms of revenue in 2023 and is expected to maintain its lead during the forecast period. Next-generation sequencing (NGS) plays a pivotal role in identifying genetic biomarkers for cancer diagnosis, prognosis, and treatment selection. With advancements in NGS technology, the segment continues to thrive, offering tailored approaches to cancer management, driving its sustained leadership in revenue during the forecast period.

However, the agriculture and animal research segment is expected to exhibit the fastest CAGR during the forecast period. Next-generation sequencing (NGS) technologies are increasingly utilized in agriculture and animal research for genome analysis, trait mapping, and breeding programs. The efficiency and precision of NGS enable accelerated genetic improvement in crops and livestock, addressing challenges such as food security and disease resistance. This drives the segment's rapid growth, presenting transformative opportunities in agricultural innovation and animal science.

By technology, the market is segregated into sequencing by synthesis, ion semiconductor sequencing, sequencing by ligation, pyrosequencing, single molecule real time sequencing, and other technologies. The sequencing by synthesis segment accounted for the largest next generation sequencing market share in terms of revenue in 2023 and is expected to maintain its lead during the forecast period. This is attributed to its efficiency in generating high-quality sequencing data at scale, meeting the increasing demand for rapid and economic genomic analysis in diverse applications.

However, the pyrosequencing segment is expected to exhibit the fastest CAGR during the forecast period. This is attributed to the increase in prevalence of chronic diseases and rise in demand for personalized medicine. This technology has various advantages such as faster detection technique and short reading time are further driving the next generation sequencing market growth by the pyrosequencing segment. 

Depending on the end user, the market is segmented into academic & research centers, pharmaceutical and biotechnology companies, and hospitals & clinics. The academic & research centers segment accounted for the largest share in terms of revenue in 2023 and is expected to maintain its lead during the forecast period, owing to increase in prevalence of genetic diseases, increased application-based usage in these institutes, and rise in oncology research. However, the pharmaceutical and biotechnology companies segment is expected to exhibit the fastest CAGR during the forecast period, owing to the increasing demand for personalized medicine and targeted therapies, which rely heavily on genomics and molecular diagnostics. Pharmaceutical and biotechnology companies are investing heavily in genomic research to develop tailored treatments for various diseases, including cancer, rare genetic disorders, and infectious diseases.

Region-wise, North America garnered the largest next generation sequencing market size in terms of revenue in 2023 and is expected to maintain its lead during the forecast period. This is primarily attributed to the rise in adoption of technologically advanced next generation sequencing, developed healthcare infrastructure, and increase in patient awareness about precision medicine. However, Asia-Pacific is expected to exhibit the fastest growth during the forecast period. This is attributed to the surge in demand for sophisticated next generation sequencing, large number of healthcare reforms, high prevalence of genetic disorders, and increase in focus of key players to develop technologically advanced & cost-effective technologies.

Key Findings of the Study 

• On the basis of product, the consumables segment dominated the next generation sequencing market size in terms of revenue in 2023. However, the services segment is anticipated to register the fastest CAGR during the forecast period.
• By application, the biomarkers and cancer segment was the major revenue contributor in 2023. However, the agriculture and animal research segment is anticipated to register the fastest CAGR during the forecast period.
• Depending on technology, the sequencing by synthesis segment accounted for the highest revenue in 2023. However, the pyrosequencing segment is anticipated to register the fastest CAGR during the forecast period.
• On the basis of end user, the academic and clinical research centers segment accounted for the highest revenue in 2023. However, the pharmaceutical and biotechnology companies segment is anticipated to grow at the fastest CAGR during the forecast period.
• Region-wise, North America generated the largest revenue in 2023. However, Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period.