Next-generation sequencing (NGS) is a groundbreaking technology that has transformed genomics and molecular biology. NGS allows for the rapid sequencing of DNA and RNA, providing detailed genetic information that helps to understand various biological processes and diseases. The global NGS market was valued at approximately USD 11.06 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 14.90% from 2025 to 2034. By 2034, the market is projected to reach a value of approximately USD 44.36 billion. This growth is primarily driven by increased government funding for large-scale genomic projects and advancements in sequencing technology that have made it more accessible and affordable.
Market Overview
Next-generation sequencing (NGS) market is widely considered a game-changer in the field of genomics. It has made significant contributions to understanding human genetics, improving disease diagnosis, and developing new therapeutic approaches. NGS technology has allowed researchers and clinicians to sequence whole genomes or transcriptomes at an unprecedented speed and accuracy. With its ability to provide insights into genetic variations, gene expression, and epigenetic modifications, NGS plays a crucial role in advancing personalized medicine, drug development, and clinical research. As technology continues to evolve, NGS is expected to become even more integral in clinical settings and research laboratories, further driving market growth.
Market Size and Share
The next-generation sequencing market was valued at USD 11.06 billion in 2024, and it is anticipated to grow at a CAGR of 14.90% during the forecast period from 2025 to 2034. By 2034, the market is expected to reach a value of about USD 44.36 billion. This growth is supported by increasing government initiatives to promote genomics research, rising funding for large-scale genome projects, and advancements in NGS technologies that make sequencing more accurate, faster, and cost-effective. The key application areas driving market expansion include drug discovery, biomarker discovery, and personalized medicine.
Get a free sample request: https://www.expertmarketresearch.com/reports/next-generation-sequencing-market/requestsample
Market Trends
- Government and Private Sector Investments in Genomics
The rise in government-funded genomic research programs and increased private sector investments have significantly contributed to the market’s growth. Countries worldwide, particularly in North America and Europe, are investing heavily in genomic research to develop innovative healthcare solutions. Public-private collaborations, such as the Human Genome Project and various national genome initiatives, are fueling demand for NGS technology to support large-scale sequencing efforts. - Technological Advancements and Cost Reduction
Technological advancements have played a pivotal role in reducing the cost of sequencing. Innovations in sequencing platforms, such as Illumina’s NovaSeq and Thermo Fisher’s Ion Proton, have increased throughput and reduced the time required for sequencing. These advancements have made NGS more accessible to a broader range of applications, from clinical diagnostics to research, leading to increased adoption and market growth. - Growing Use in Personalized Medicine
NGS has become an essential tool in the field of personalized medicine, which tailors treatments based on individual genetic profiles. By analyzing a patient’s genetic makeup, clinicians can predict their response to specific drugs, optimize therapeutic strategies, and reduce adverse drug reactions. As the demand for personalized healthcare increases, the adoption of NGS for disease diagnosis, prognosis, and treatment planning is expected to grow significantly. - Applications in Drug Discovery and Development
Next-generation sequencing plays a crucial role in drug discovery by enabling the identification of novel drug targets, biomarkers, and genetic factors involved in disease pathways. Researchers use NGS to analyze the genomic data of both patients and disease-causing organisms, improving the accuracy and efficiency of drug development. The growing need for new treatments, particularly for rare diseases and cancers, has increased the use of NGS in pharmaceutical and biotechnology companies.
Market Analysis
- Breakup by Type
NGS technology can be categorized into DNA sequencing, RNA sequencing, and epigenomics. DNA sequencing is the most commonly used type, enabling the complete mapping of genetic information. RNA sequencing is used to study gene expression, and epigenomics provides insights into the regulatory mechanisms that influence gene expression. These types are widely applied in research, drug development, and diagnostics, driving growth in the market. - Breakup by Consumables
Consumables in the NGS market include sample preparation kits, reagents, and other necessary laboratory supplies. Sample preparation is a critical component of the NGS workflow, as the quality and integrity of the samples directly affect sequencing accuracy. As the adoption of NGS increases, demand for consumables is expected to grow, particularly for high-throughput sequencing applications in clinical research and pharmaceutical development. - Breakup by Application
NGS is applied across a wide range of applications, including drug discovery, biomarker discovery, biopharmaceutical development, vaccine development, pharmacogenomics, polypharmacology, and pharmacoepidemiology. Drug discovery and development account for the largest share of the market, as NGS allows researchers to identify potential therapeutic targets and biomarkers for various diseases. Additionally, NGS is increasingly being used in clinical diagnostics to detect genetic disorders and personalize treatment strategies. - Breakup by End-User
End-users in the NGS market include clinical research organizations, academic research institutions, pharmaceutical and biotechnology companies, hospitals, and diagnostic laboratories. Pharmaceutical and biotechnology companies are the largest consumers of NGS technology, as they use it extensively for drug discovery and clinical trials. Clinical research organizations and academic institutions are also significant users, as they leverage NGS for basic research and disease-specific studies.
Regional Insights
- North America
North America holds the largest share of the NGS market, primarily driven by strong government support for genomic research and the presence of major players in the region. The U.S. National Institutes of Health (NIH) and other organizations have invested heavily in genomic research, leading to increased demand for sequencing technologies. Additionally, the high adoption of NGS in clinical diagnostics, personalized medicine, and drug development has further contributed to market growth in North America. - Asia Pacific
Asia Pacific is expected to experience the highest growth rate in the NGS market over the forecast period. The increasing investments in healthcare infrastructure, particularly in countries like China, Japan, and India, are driving the demand for advanced genomic technologies. Additionally, the rising prevalence of genetic disorders, along with government initiatives aimed at enhancing genomic research, is boosting the adoption of NGS in the region.
Market Growth
Several factors are driving the growth of the next-generation sequencing market. Increased government funding for genomic research, especially large-scale projects like the Human Genome Project and national genome initiatives, has significantly contributed to market expansion. Additionally, technological advancements in sequencing platforms have reduced costs and improved the accuracy and speed of sequencing, making it more accessible to a broader range of applications. The growing demand for personalized medicine, drug discovery, and the identification of genetic biomarkers is further accelerating market growth.
Recent Developments Challenges
- Technological Advancements
Recent advancements in NGS technology have improved sequencing speed, accuracy, and cost-effectiveness. Companies like Illumina and Thermo Fisher are continually developing new platforms that enhance sequencing throughput and data analysis capabilities. These innovations are expected to increase the adoption of NGS in clinical settings, driving market growth. - Regulatory Changes
The regulatory environment for NGS technologies is evolving, with agencies like the FDA and EMA working on guidelines for the use of NGS in clinical diagnostics. As NGS moves closer to becoming a mainstream diagnostic tool, regulatory approval will be crucial for ensuring its safety and efficacy in clinical applications. - Data Management Challenges
The large volume of data generated by NGS platforms presents significant challenges in terms of data storage, analysis, and interpretation. Advances in bioinformatics and cloud-based solutions are helping to address these issues, but data management remains a critical challenge for the broader adoption of NGS. - Cost Barriers
Despite significant cost reductions in NGS, the technology is still relatively expensive, especially for large-scale clinical applications. The cost of sequencing can be a barrier for smaller research institutions and developing regions. However, as competition increases and technological innovations continue, the price of NGS is expected to decrease over time, making it more accessible to a wider audience.
Key Players
- Illumina Inc.
Illumina Inc. is a global leader in next-generation sequencing technologies. The company's sequencing platforms, such as the NovaSeq and HiSeq systems, are widely used in both research and clinical applications. Illumina has a strong market presence due to its high-throughput sequencing capabilities, accuracy, and affordability, making it one of the dominant players in the NGS market. - Thermo Fisher Scientific, Inc.
Thermo Fisher Scientific is another key player in the NGS market, offering a broad range of sequencing solutions. The company’s Ion Proton and Ion S5 systems provide high-quality sequencing with faster turnaround times. Thermo Fisher’s focus on improving sequencing workflows and integrating bioinformatics tools has helped it maintain a competitive edge in the market. - F. Hoffmann-La Roche Ltd.
Roche is a global healthcare company that offers a comprehensive suite of NGS solutions, including sequencing platforms and associated reagents. Roche’s NGS solutions are used in various applications, including clinical diagnostics, drug discovery, and biomarker research. The company’s commitment to advancing personalized medicine has positioned it as a significant player in the NGS market. - Bio-Rad Laboratories, Inc.
Bio-Rad Laboratories is a major player in the NGS market, offering a variety of tools and reagents for sequencing applications. The company’s products are used in research, clinical diagnostics, and biomarker discovery. Bio-Rad's focus on improving sample preparation and data analysis capabilities has helped it become a key player in the expanding NGS market.
Other notable companies in the NGS market include PierianDx, Genomatrix GmbH, and Perkin Elmer, Inc.
FAQs
- What is the size of the next-generation sequencing market?
The NGS market was valued at USD 11.06 billion in 2024 and is expected to grow at a CAGR of 14.90%, reaching approximately USD 44.36 billion by 2034. - What are the key applications of NGS?
NGS is widely used in drug discovery, biomarker discovery, personalized medicine, vaccine development, pharmacogenomics, and more. - What factors are driving the growth of the NGS market?
Factors such as increased government funding, advancements in sequencing technology, and the growing demand for personalized medicine are driving market growth. - Who are the major players in the NGS market?
Key players include Illumina Inc., Thermo Fisher Scientific, F. Hoffmann-La Roche Ltd., and Bio-Rad Laboratories.
