Global Sequencing Market Drivers- Investments In R&D, And Implementation Of Advanced Sequencing Technologies

14 Nov, 2019

The global sequencing market is expected to grow from $7.9 billion in 2018 to $18.2 billion in 2023 at an annual growth rate of more than 18%. The rapid growth in the forecast period is expected due to continued investment in research and development projects relating to chronic diseases and increased demand for sequencing lab services for diagnosis of immunological and neurological disorders.

The sequencing market is expected to benefit from the use of sequencing techniques in research, diagnosis and treatment of diseases such as cancer. Sequencing techniques are being used to find treatment methods for rare diseases by identifying the mutations in the genome which are causing the disease. For instance, in 2018, scientists from Cambridge sequenced the entire genetic code of around 85,000 people with rare diseases, to find new ways for the diagnosis and treatment of these diseases. This study also included mapping of around 15,000 tumors from people with cancer. These developments in medical research, diagnosis and treatment are expected to boost the demand for sequencing techniques, thereby driving the market in the forecast period.

Increasing investment in genomic research will be another driver of the global sequencing market during the forecast period. Genomics involves the study of structure, function and other parameters of genetic material. It aids in identification of genomic variations associated with diseases. In 2018, the UK Biobank announced a major initiative to sequence the genomes of 50,000 UK Biobank volunteer participants. This increase in the use of sequencing techniques for a wider range of research and treatment purposes is likely to drive the market going forward.

The entry of new advanced technologies such as nanopore and semiconductor sequencing technologies will further help maintain high growth rate of the global sequencing market between the period 2018-2023. Nanopores are very small holes with an internal diameter of 1 nanometer. This technology uses nanopore channels to attract larger segments of DNA using an electric field and also to allow single molecule sequencing, thereby enabling sequencing companies to accelerate research and development activities. For example, in 2017, a Northeastern University research team and Pacific Biosciences developed a new technology that optimizes DNA sequencing using nanophysics and electric currents. Semiconductor sequencing is a type of next-generation sequencing that enables reading DNA sequences electronically. For example, in 2014, DNA Electronics Ltd (DNAe) commercialized its semiconductor DNA sequencing technology consisting of semiconductor chips for the diagnosis of infectious diseases.

Sequencing is the process of determining the order of nucleotides in nucleic acids such as DNA or RNA. The sequencing market can either be segmented by technology or by products and services. Based on technology, the sequencing market is further segmented into sanger sequencing, next generation sequencing (NGS) and third generation sequencing (3GS). Segmentation by products covers instruments and consumables, and segmentation by services covers sequencing lab services and software services.