The global next-generation sequencing (NGS) market continues its strong growth momentum, reflecting rising adoption of genomic technologies across clinical, research, and industrial applications. Valued at US$ 13.92 billion in 2023, the market is projected to grow at a robust CAGR of 11.0%, reaching US$ 13.28 billion in 2024 and an impressive US$ 22.38 billion by 2029. As sequencing becomes faster, more accurate, and more affordable, NGS is transforming precision medicine, clinical diagnostics, drug development, and population-scale genomics.

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Market Growth Drivers: Precision Medicine & Sequencing Affordability Lead the Way

Two major macro-level trends are fueling the acceleration of the NGS market:

1. Rising Demand for Precision Medicine

Healthcare systems are increasingly adopting NGS to:

• Identify genetic mutations
• Detect biomarkers
• Enable targeted therapeutic decisions
• Support large-scale clinical genomics programs

NGS plays a critical role in oncology, rare disease diagnostics, pharmacogenomics, infectious disease tracking, and personalized treatment pathways. This shift from one-size-fits-all medicine to individualized care continues to drive investment in sequencing technologies and workflows.

2. Declining Sequencing Costs

The cost of sequencing has decreased dramatically over the past decade. This has:

• Expanded adoption in clinical diagnostics
• Enabled large-scale sequencing initiatives
• Made genomic insights accessible to mid-sized laboratories
• Lowered the barrier for routine sequencing in outcomes-based care

As affordability improves further, NGS is becoming a core component of healthcare and research systems globally.

Segment Analysis: Offerings, Product Types, Platforms & Services

The next-generation sequencing market is structured across multiple dimensions. Below is a breakdown of the major segments and their performance.

1. By Offerings: Products Dominate the Market

The market is segmented into:

• Products
• Services

The products segment held the largest share in 2023 due to the recurring need for workflow essentials such as:

• Reagents
• Library preparation kits
• Flow cells
• Sequencing instruments
• Data analysis software

NGS instruments are long-term investments, while consumables generate continuous revenue — making this segment the primary revenue contributor.

2. By Product Type: Consumables Lead with Strong Recurring Demand

NGS products include:

• Consumables
• Platforms
• Bioinformatics Tools

Consumables accounted for the largest share in 2023, driven by their indispensable role in sample preparation, amplification, sequencing, and data output. Every sequencing run requires fresh consumables, ensuring a robust recurring business model for suppliers.

3. By Technology Platforms: Sequencing-by-Synthesis (SBS) Dominates

The market is segmented by technology into:

• Sequencing by synthesis (SBS)
• Ion semiconductor sequencing
• Single-molecule real-time sequencing
• Nanopore sequencing
• Other technologies

SBS technology, widely employed by Illumina platforms, held the largest market share in 2023 due to:

• High accuracy
• Scalability
• Cost-efficiency
• Widespread adoption in clinical and research applications

Ion semiconductor sequencing ranked second, supported by demand for targeted sequencing workflows.

4. By Services: Sequencing Services Lead the Demand Curve

NGS services include:

• Sequencing services
• Pre-sequencing services
• Bioinformatics & data analysis
• Platform-specific services

Sequencing services accounted for the largest share in 2023. Many research institutions, hospitals, and pharmaceutical companies outsource sequencing due to:

• Lack of in-house infrastructure
• Cost-saving needs
• Access to advanced sequencers
• Skilled interpretations via specialized providers

Bioinformatics services continue to grow as NGS datasets become more complex and require deeper computational analysis.

5. By Applications: Diagnostics Remain the Largest Segment

NGS is used across:

• Drug discovery & development
• Diagnostics
• Agriculture & animal research
• Other fields

Diagnostics accounted for the largest share in 2023 due to:

• Increased cancer genomics testing
• Rare disease identification
• Non-invasive prenatal testing (NIPT)
• Infectious disease genotyping

NGS-based diagnostic strategies continue to expand in hospitals, genetic centers, and clinical laboratories.

6. By End Users: Academic & Research Institutes Lead the Market

NGS services are consumed by:

• Academic & research institutes
• Pharmaceutical & biotechnology companies
• Hospitals & clinical laboratories
• Other end users

Academic & research institutes held the largest share in 2023, driven by large-scale genomic research, cancer genomics programs, and government-funded population studies.

Regional Insights: North America Leads; Asia Pacific Speeds Ahead

The market is segmented into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East
• Africa

North America – Largest Market (2023)

Growth is supported by:

• Advanced healthcare infrastructure
• Strong adoption of precision medicine
• Presence of leading companies (Illumina, Thermo Fisher)
• Major investments in genomics research

Europe – Second-Largest Market

Driven by strong regulatory frameworks, academic collaboration, and R&D investments.

Asia Pacific – Fastest-Growing Region

Growth catalysts:

• Large population-scale genomics initiatives
• Expanding healthcare modernization
• Rise of regional sequencing companies
• Rapid adoption of genetic testing

Countries like China, India, Japan, and South Korea are key contributors.

Competitive Landscape: Consolidated Market with Strong Innovation Leadership

The NGS market features several major players including:

• Illumina (US)
• Thermo Fisher Scientific (US)
• Roche (Switzerland)
• QIAGEN (Netherlands)
• Agilent Technologies (US)
• PacBio (US)
• Oxford Nanopore (UK)
• BGI Group (China)
  …and others.

Illumina – Global Market Leader

Strengths:

• Dominant SBS technology
• Broad platform portfolio (NovaSeq, NextSeq, MiSeq, NovaSeq X)
• Strong clinical genomics footprint
• Comprehensive consumables and software ecosystem

Thermo Fisher Scientific – Strong Clinical Sequencing Adoption

Key offerings:

• Ion Torrent platforms
• Targeted oncology & infectious disease panels
• High-quality reagents
• End-to-end sequencing workflows

Agilent Technologies – Leader in Sample Prep & Enrichment

Key contributions:

• SureSelect target enrichment technology
• Automation systems for high-throughput workflows
• Strong presence in oncology and rare disease research

These companies continue to innovate through product launches, partnerships, and clinically validated workflows.

Conclusion: The Future of NGS is Scalable, Affordable & Clinically Integrated

The next-generation sequencing market is entering a new phase of maturity driven by:

• Lower sequencing costs
• Expanding clinical diagnostics
• Precision medicine initiatives
• AI-powered bioinformatics
• High-throughput scalable platforms

As NGS becomes increasingly embedded within healthcare and research ecosystems, stakeholders across biotechnology, pharmaceuticals, academia, and clinical diagnostics will continue to invest in next-generation genomic technologies to accelerate insights and improve outcomes.

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