Next Generation Sequencing (NGS) Market Assessment

Next Generation Sequencing (NGS) Market Assessment

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Author: Stephane Budel

Date: July 12, 2017

Pages: 112 pages

Price: $5100

  • Abstract

    Launched just over a decade ago, Next Generation Sequencing (NGS)* has transformed the genomics and molecular diagnostics landscape. 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 (i.e., RNA-Seq). 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**. 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).

  • Select NGS Companies

  • Major Trends

    Drivers

    • Accelerating adoption in clinical settings in general and clinical oncology in particular, most notably driven by liquid biopsy and tumor mutational burden (TMB) testing for immuno-oncology
    • Increased reagent usage on an expanding instrument installed base, across applications
    • Increased adoption of the technology by new customers (e.g., Applied markets such as AgBio, Biopharma for patient stratification during clinical trials)
    • Development of new protocols and reagents optimized to improve the single-cell DNA/RNA amplification
    • Increased usage for new scientific applications beyond pure sequencing (e.g., [single cell] RNA-Seq, ChIP-Seq, methylation studies)

    Moderators

    • Some excess capacity on the existing installed base
    • Pricing pressure, driven by the decrease cost per Gb, and the availability of more affordable instruments / reagents options
    • Reimbursement uncertainty and pushback in clinical settings limiting access to the vast majority of clinical samples
    • Bioinformatics and data analysis challenges, especially for translational and clinical applications (e.g., clinical variant interpretation), gating access to most potentially addressable samples
    • Low growth in research funding in the developed world

    Other interesting market 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
    • Continued decentralization of sequencing runs driven by the availability of low cost desktop sequencers (e.g., MiSeq), but in turn a centralization of sequencing volumes as high throughput platforms can cost-effectively run 1,000’s of samples
    • 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)
  • Report Segmentations

    Customer

    Buyers of NGS instruments, reagents, and consumables from manufacturers
    • Academia
    • Biopharma
    • Clinical
    • Applied Markets
    • Others

    Therapeutic Area

    Research focus including broad non-disease specific biological area as well as specific disease areas
    • Genomics
    • Oncology
    • Infectious Diseases / Microbiology
    • Methods
    • Others

    Type of platform that manufacturer sells to its customers
    • Workhorse
    • Benchtop
    • Other

    Platform throughput

    Type of platform that manufacturer sells to its customers, based on throughput
    • Low Throughput
    • High/ Mid Throughput
    • Ultra High Throughput
    • Other

    Application

    Key scientific research question being investigated
    • Human WGS
    • Targeted Resequencing
    • WES
    • Method
    • RNA-seq
    • Other

    Product Type

    Type of product that manufacturer sells to its customers
    • Instruments
    • Reagents

    Geography

    Country / region of the world
    • U.S.
    • Europe
    • Japan
    • Asia Pacific (APAC)
    • Rest-of-the-world (ROW)

    Company

    Companies that offer NGS products
    • Illumina
    • Roche
    • Thermo Fisher
    • Qiagen
    • Oxford Nanopore
    • Others

  • Authors

    Dr. Stephane Budel

    Dr. Stephane 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.

     

  • Table of Contents