Santa Monica, CA November 03, 2015 – Today, DeciBio announced the publication of its 3rd edition Next Generation Sequencing (NGS) market report. In this updated edition, we detail the market size, segmentation, growth and trends of the NGS industry from 2011 to 2019.The 3rd edition contains the following updates:

• 2015 financials: Company revenue / growth forecasts have been updated to include estimated 2015 financials for major public market players (e.g., Illumina, Thermo Fisher, Roche, Pacific Biosciences, other players); This analysis is based on a bottoms-up market model for each of the major top 25 platforms over the forecast period (2011 – 2019)
• Market forecast to 2019: For each of the 25 sub-segments assessed in this report (see below), we provide growth estimates through 2015.
• Additional expert feedback: This report includes feedback from 21 key opinion leaders and NGS users, including quotes from conversations we’ve had with them in the last 3 months

Report abstract

Next generation sequencing (NGS)* is a disruptive genomics technology that allows scientists to sequence and assemble billions of short DNA reads. This technology is used for applications including human whole genome sequencing (WGS), whole exome sequencing (WES; 1-2% of the genome that encodes proteins), targeted sequencing using panels of a few to thousands of genes, and expression profiling (a.k.a. RNA-Seq). NGS is the fastest growing and the most attractive segment of the genomics space, estimated at $7-8 billion. With an estimated market size of ~$2.4B in 2015, and a double digit growth rate, we forecast that the NGS manufacturer market will reach $4.5B in 2019, driven primarily by adoption from clinical customers worldwide**. NGS is poised to revolutionize not only medical research in academic laboratories and Biopharma, but also the health care landscape and applied markets (e.g., AgBio, food testing).This third edition report reviews the market size, segmentation, growth and trends of the manufacturer NGS (excluding NGS research or clinical services) 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, Reagents
• Customer: Academia, Biopharma, Applied Markets, Clinical, Other
• Instrument Type: Workhorse, Desktop Instruments
• Geography: U.S., Europe, Japan, Asia/Pacific, Others
• Application: Genomics, Oncology, infectious Diseases, Method Development, Others

For each of these segments, we provide an annual market size and growth from 2011 to 2019, as well as commentary on key growth drivers and moderators.

Major factors driving future growth include:

• Increased reagent usage on an expanding instrument installed base
• Increased adoption of the technology by new customers (e.g., Applied markets such as AgBio, Biopharma for patient stratification during clinical trials
• Increased usage for new scientific applications beyond pure sequencing (e.g., expression profiling, ChIP-Seq, methylation studies)

Key factors moderating growth including:

• Increased pricing pressure driven by the availability more affordable instruments and reagents options
• Continued workflow and bioinformatics issues, especially for more translational applications, gating usage of instruments at full capacity
• Continued unfavorable research funding dynamics in the developed world

We also review interesting market trends, such as:

• 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
• Continued decentralization of sequencing driven by the availability of low cost desktop sequencers (e.g., Illumina’s MiSeq)
• 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
• Increasing competitive intensity on dimensions others than cost per base pair (e.g., workflow, portability, clinical content)

Please contact info@decibio.com for more information.Disclaimer: Some of the companies listed in this report may be DeciBio clients or customers

Authors: Stephane Budel, Partner at DeciBio, LLCConnect with Stephane Budel on Google+ or Linkedin