Today, we published the updated version of our NGS report. We forecast that the manufacturer market size will reach ~$3.2B in 2017, and grow at 12% p.a. to $4.6B in 2020, driven primarily by adoption from clinical customers worldwide.

Here is a summary of some of the report findings:

• As the NGS manufacturer market starts to mature, we expect to see a bifurcation as observed in other industries, with sample volumes being run either on centralized ultra-high throughput platforms (when price per sample is a concern), or decentralized low throughput platforms (when sample control or fast turnaround time is required)
• By 2020, clinical customers will generate most of the market spend
• Oncology will remain the primary therapeutic area; Oncology represents over 1/3 of the market today and is expected to grow faster than the overall market, driven by the update of liquid biopsies in clinical trials and clinical diagnostics (where reimbursements continue to improve slowly)
• Many factors are expected to gate market growth, including continued declining cost per sample (and Gb), shift of volumes to more cost-effective platforms (e.g., NovaSeq), and excess capacity on the existing instrument installed base
• Illumina is expected to maintain a significant leadership position, but lose market share given exposure to academia (growing in mid-single digits) and competition from new players (e.g., Oxford Nanopore, QIAGEN)

This report also discusses the following trends:

• Increased use of long read technologies, most notably PacBio (in the short term), Oxford Nanopore, 10X Genomics
• Diversification of sequencing options driven by the launch of multiple new platforms by new players (e.g., BGI’s BGISEQ-50, QIAGEN’s GeneReader, Oxford Nanopore’s PromethION)
• Consolidation of applications on increasingly differentiated platforms, based on their workflow, turnaround time and cost (e.g., human WGS on the X Ten, field-based pathogen sequencing on the MinION)
• Simplification of the overall workflow, with the launch of more automated instruments (e.g., S5) or automated sample preparation instruments (e.g., Ion Chef, NeoPrep, VolTRAX), saving time, and increasing reproducibility
• Increasing use of service providers offering an alternative to in-house platform adoption, as many customers don’t have the budget for or interest in large capital expenditures for such fast-evolving technologies
• Increasing number of players participating in this fast growing market, typically offering front end (sample preparation) or backend (bioinformatics) solutions, with most targeting (clinical) oncology
• Increasing competitive intensity on dimensions others than cost per base pair (e.g., workflow, portability, clinical content)

The fourth edition of this report reviews the market size, segmentation, growth, and trends of the manufacturer NGS (i.e., excluding NGS services [e.g., Foundation Medicine]) market.We assess the NGS market across 6 segments:

• Company: Illumina, Thermo Fisher (Ion Torrent), Roche (454 Life Sciences, Genia), Pacific Biosciences, and others***
• Product Type: Instruments (including software) and Reagents (including consumables)
• Customer: Academia, Biopharma, Applied Markets, Clinical, and Other
• Instrument Type: Workhorse, and Desktop Instruments
• Geography: U.S., Europe, Japan, Asia/Pacific, and Rest of the world (RoW)
• Application: Genomics, Oncology, Infectious Diseases, Method Development, and Others

The report is available at the following link: https://www.decibio.com/intelligence/market-reports/ngs/

Author | Stephane Budel, PhD

Google+ | Linkedin | budel@decibio.comDr. Budel specializes in the market analysis of private to mid-cap companies with emerging to established technologies in the life science research tools and diagnostic spaces. He has deep genomics expertise, especially as it relates to clinical NGS. He has supported clients facing a broad range of challenging business issues, including R&D prioritization, evaluation of disruptive technologies, and commercial due diligences.Schedule a 15-minute call with Stephane today!Disclaimer: Companies listed above may be DeciBio Consulting clients and/or customers