U.S. Next-generation Sequencing Services Market (By Service Type; By Workflow: Pre-sequencing, Sequencing, Data Analysis; By End-use) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

U.S. Next-generation Sequencing Services Market Size and Trends

The U.S. next-generation sequencing services market size was estimated at around USD 2.51 billion in 2023 and it is projected to hit around USD 18.98 billion by 2033, growing at a CAGR of 22.42% from 2024 to 2033.

Key Pointers

• By Service Type, the human genome sequencing services segment held the largest revenue share of 33% in 2023.
• By Service Type, the gene regulation services are expected to expand at the highest CAGR during the forecast period.
• By Workflow, the sequencing services registered the maximum market share of 56% in 2023.
• By Workflow, the pre-sequencing services are estimated to expand the fastest CAGR from 2024 to 2033.

U.S. Next-generation Sequencing Services Market Overview

The U.S. next-generation sequencing (NGS) services market stands at the forefront of innovation in genomic research and clinical diagnostics. As a pivotal component of precision medicine and biomedical research, NGS services offer unparalleled insights into genetic variation, disease mechanisms, and therapeutic targets.

U.S. Next-generation Sequencing Services Market Growth Factors

The growth of the U.S. next-generation sequencing (NGS) services market is propelled by the technological advancements continue to drive innovation in sequencing platforms, making NGS more efficient, accurate, and cost-effective. The increasing demand for personalized medicine is another significant growth factor, as NGS enables tailored treatment strategies based on individual genetic profiles. Expanded clinical utility, particularly in areas such as oncology, reproductive health, and infectious diseases, is driving the adoption of NGS services in clinical practice. Additionally, efforts to reduce sequencing costs and improve accessibility through cloud-based analysis platforms are democratizing genomic data analysis.

U.S. Next-generation Sequencing Services Market Trends:

• Rising Adoption of Single-Molecule Sequencing: The U.S. NGS services market is witnessing a trend towards the adoption of single-molecule sequencing technologies, which offer advantages such as longer read lengths and reduced amplification bias, enabling more accurate genomic analysis.
• Expansion of Clinical Applications: There is a notable trend towards the expansion of NGS services into clinical applications beyond research, including diagnostics, prognosis, and monitoring of diseases such as cancer, genetic disorders, and infectious diseases, driving market growth in the healthcare sector.
• Increased Integration of NGS in Drug Discovery: Pharmaceutical companies are increasingly utilizing NGS services in drug discovery and development processes to identify therapeutic targets, stratify patient populations, and assess treatment response, contributing to the growth of the market.
• Emergence of NGS in Non-Invasive Prenatal Testing (NIPT): Non-invasive prenatal testing using NGS technology is gaining momentum in the U.S., offering pregnant women and healthcare providers a safer and more accurate alternative to traditional invasive prenatal diagnostic procedures, thereby fueling market growth in the reproductive health sector.
• Growing Demand for Companion Diagnostics: With the rise of precision medicine, there is an increasing demand for companion diagnostics that leverage NGS technology to guide treatment decisions based on patients' genetic profiles, leading to market expansion in the oncology and personalized medicine segments.
• Focus on Standardization and Quality Assurance: As NGS technology becomes more integrated into clinical practice, there is a growing emphasis on standardization and quality assurance measures to ensure the accuracy, reproducibility, and reliability of NGS-based tests, shaping market trends towards regulatory compliance and accreditation initiatives.

U.S. Next-generation Sequencing Services Market Restraints:

• Regulatory Uncertainties: The U.S. NGS services market faces challenges due to evolving regulatory frameworks governing the use of NGS technologies in clinical diagnostics, which can create uncertainties for industry players and impede market growth.
• Reimbursement Challenges: The lack of standardized reimbursement policies for NGS-based tests poses a significant barrier to market expansion, as payers may be hesitant to cover the costs of these services without clear evidence of clinical utility, hindering adoption in clinical settings.
• Complex Data Analysis and Interpretation: Despite advancements in bioinformatics tools, the complexity of NGS data analysis and interpretation remains a challenge, particularly in clinical applications where accurate and timely results are essential, leading to potential delays and errors in patient care.
• High Initial Capital Investment: The initial capital investment required to establish NGS facilities with state-of-the-art sequencing platforms and infrastructure can be prohibitive for smaller laboratories and healthcare institutions, limiting market entry and competition.
• Ethical and Privacy Concerns: The widespread adoption of NGS raises ethical and privacy concerns regarding the storage, sharing, and use of genetic data, necessitating robust data protection measures and adherence to strict regulatory guidelines, which can add complexity and cost to NGS services.

Service Type Insights

In 2023, human genome sequencing services emerged as the dominant force in the market, accounting for nearly 33% of the total revenue share. These services are pivotal in uncovering the origins of monogenic disorders like sickle-cell anemia, retinoblastoma, and cystic fibrosis, while also shedding light on complex diseases such as diabetes and cancer. By delving into human genetic information, these services facilitate personalized medicine, biomarker discovery, identification of cancer-associated genes, and exploration of how genes influence drug responses (pharmacogenomics).

Moreover, advancements in precision medicine and related fields, which gather human genome data, have significantly contributed to the development of suitable human reference genomes for tailored medication design. Consequently, these factors, coupled with cost reductions and the growing adoption of genome mapping projects, are poised to propel market growth throughout the projected period.

Gene regulation services are projected to exhibit the fastest compound annual growth rate (CAGR) during the forecast period. Next-generation sequencing (NGS) provides an advanced platform for gene regulation studies, enabling the comprehensive examination and analysis of transcriptional complexity within samples. These services play a critical role in identifying cardiovascular disorders and offer insights into actively expressed genes and transcripts across diverse medical conditions.

Workflow Insights

In 2023, sequencing services emerged as the dominant force in the market, capturing 56% of the total revenue share. Furthermore, this segment is projected to maintain the highest compound annual growth rate (CAGR) throughout the forecast period. This substantial growth can be attributed to the pivotal role sequencing services play in the entire workflow. The prevalence of numerous sequencers in the market, which are the primary platforms utilized in sequencing workflows, further reinforces this dominance. Moreover, the competitive landscape within the market is expected to intensify as companies innovate and introduce benchtop or portable sequencing platforms. This development is poised to drive growth within the segment over the forecast period.

Pre-sequencing services are forecasted to witness lucrative growth from 2024 to 2033. These services encompass library preparation and clonal amplification services, tailored to individual barcoded libraries and/or pooled libraries based on customer preference. Advancements and the introduction of new products in library preparation solutions have broadened the application scope of sequencing technologies in epigenetics and transcriptomics. Additionally, the development of advanced library preparation kits by key companies enhances the reproducibility and consistency of standard molecular biology reactions, while also offering access to innovative preparation strategies

End-use Insights

In 2023, universities and other research entities secured the largest market share, comprising nearly 54% of the total revenue. Next-generation sequencing (NGS) services find extensive use among researchers spanning various sectors, including universities and research entities, hospitals and clinics, pharmaceutical and biotechnology entities, and other end-users, for a wide array of research endeavors.

The adoption of NGS services by universities and research entities is driven by key factors such as increased R&D funding, rising demand for NGS technology, and the expansion of genomic studies. This growth presents numerous opportunities for NGS providers focusing on the development of NGS-based solutions. Notably, in October 2022, the American Society for Microbiology received funding from the CDC to bolster pathogen genomic sequencing for pandemic preparedness.

Hospitals and clinics are projected to experience the fastest growth rate over the forecast period, primarily propelled by the extensive applications of NGS in clinical studies related to cancer prognosis. Advanced NGS tools play a pivotal role in pathogen detection, molecular diagnostics, personalized medicine research, and identification of genetic mutations. Consequently, NGS services support clinical studies on infectious diseases, cancer detection, infection control, and antimicrobial resistance testing, thereby aiding clinicians in making informed treatment decisions. Furthermore, strategic collaborations among hospitals, clinics, and service providers contribute to market growth in this sector.

U.S. Next-generation Sequencing Services Market Key Companies

• Illumina, Inc.
• Thermo Fisher Scientific Inc.
• Eurofins Scientific SE
• PerkinElmer, Inc.
• QIAGEN
• Quest Diagnostics Incorporated
• Azenta Life Sciences (GENEWIZ)
• NanoString
• PacBio
• bioMérieux
• BGI Group
• F. Hoffmann-La Roche Ltd
• ARUP Laboratories
• Novogene Co, Ltd.
• Gene by Gene Ltd.
• Lucigen Corporation

Recent Developments

• In April 2022, LGC acquired Rapid Genomics to strengthen its position in NGS applications and offer advanced solutions to the agricultural sector. This acquisition enhances their capabilities in genetic analysis for crop improvement and animal breeding.
• In March 2022, LetsGetChecked, a prominent health testing company, acquired Veritas Genetics to leverage their genome sequencing services. This move enables LetsGetChecked to provide more comprehensive and personalized health insights to their customers.
• In July 2021, ARUP Laboratory opened a state-of-the-art facility spanning 220,000 sq. ft. at the University of Utah Research Park in the U.S. The lab's objective is to enhance the quality of laboratory testing and support research advancements.

U.S. Next-generation Sequencing Services Market Segmentation:

By Service Type

• Human Genome Sequencing Services
• Single Cell Sequencing Services
• Microbial Genome-based Sequencing Services
• Gene Regulation Services
  • ChIP Sequencing Service
  • Small RNA Sequencing Service
  • Other Gene Regulation-based Service
• Animal & Plant Sequencing Services
• Other Sequencing Services

By Workflow

• Pre-sequencing Service
• Sequencing Service
• Data Analysis Service

By End-use

• Universities & Other Research Entities
• Hospitals & Clinics
• Pharma & Biotech Entities
• Other End-uses