Next Generation Sequencing Was The Largest Segment Of The Global Sequencing Market

11 Mar, 2020

The global sequencing market is segmented by technology into sanger sequencing, next generation sequencing (NGS), and third generation sequencing (3GS). Next Generation Sequencing was the largest segment in the global sequencing market with 97% of the market, worth $7.7 billion in 2018. This larger share in the market than sanger and third generation sequencing was due to the fact that NGS was more efficient than sanger sequencing, and third generation sequencing was comparatively new to the market. Additionally, the cost of NGS was lower (at $0.50 per 1000 bases) than sanger sequencing, which was about $500 per 1000 samples.

Next-generation sequencing (NGS) is a second-generation DNA sequencing method. It is also known as massive parallel sequencing. It is a high-throughput method that enables rapid sequencing of thousands to millions of DNA or RNA molecules simultaneously. It carries out sequencing at high speed and at lower cost than Sanger sequencing. It also minimizes the need for DNA fragment replication methods used with Sanger sequencing.

Examples of NGS platforms include Illumina’s MiSeq sequencing, Roche GS junior system sequencing, SOLiD sequencing. NGS has applications in the research of rare diseases, infectious diseases and cancer, drug discovery and the development of personalized medicines.

Despite being relatively new in the global sequencing market, Third Generation Sequencing had the highest compound annual growth rate (CAGR) of 15.5% between 2014 and 2018; this segment is expected to continue to grow the fastest at a CAGR of 20.7% between 2018 and 2023. This rapid growth can be attributed to the portability and the faster sequencing speed that 3GS offers than NGS and Sanger sequencing. Third generation sequencing also produces longer reads which reduces challenges relating to genome assembly, and metagenomics. Metagenomics is the study of genetic material extracted from environmental samples.

Third-generation sequencing is also known as long-read sequencing. This method is used for direct sequencing of a single DNA molecule. This method does not require breaking long strands of DNA into small segments for determination of the sequence. These technologies have the capability to produce significantly longer reads than second or next generation sequencing. Most 3GS enabled devices are portable.

Examples of commercially available third-generation DNA sequencing technologies include Pacific Biosciences (PacBio) Single Molecule Real Time (SMRT) sequencing, and the Oxford Nanopore Technologies sequencing platform.

The global sequencing market is also segmented by product type into instruments and consumables, and by service type into sequencing lab services and software services. Of these, consumables was the largest segment in the global sequencing market with 65.6% of the market, worth $5.2 billion in 2018. The largest share of the consumables segment was because consumables need to be replaced after a certain number of sequencing procedures are conducted, which increases the demand for them, thus driving the consumables segment.