Market and Technology Trends
Next-Generation Sequencing 2023
By Yole Intelligence —
Passive vs. active NGS flow cells: the momentum of Si/Glass players at the heart of the NGS market to reach $6.7B in 2028.
YINTR23366
Glossary
Table of contents
Report objectives
Scope of the report
Methodologies & definition
About the author
Companies cited
What we got right, what we got wrong
Who should be interested in this report
3-page summary
Executive summary
Context
Market data and forecasts
- Market segmentation
- Market data and forecasts – Conclusions
Market trends
- Passive Flow cells-based
- Active Flow cells-based
- Other players
- General trends
- Market trends - Conclusions
Market shares & supply chain
- Market shares – Vendors
- Market shares - Instruments
- Fundraisings and M&As
- Supply chain
Technology trends
- Materials & Manufacturing
- Polymer manufacturing
- Silicon / glass manufacturing
- Backend processes
- Materials & manufacturing conclusion and trends
- Detection and chemistry technologies
- Roadmap per type of technologies
Conclusion & Outlook
Yole Group related products
How to use our data?
About Yole group
Unlocking the Potential of NGS: Market Insights and Trends
The NGS microfluidics module market is expected to grow to $6.7 billion in 2028 from $4.4 billion in 2022, with a CAGR22-28 of 7.4%, driven these past two years by diagnostic tests and SARS-Cov2 sequencing for vaccine development during the pandemic. In terms of shipments, 6.1 million units (components or modules) are expected to be sold in 2028 from 4.3 million in 2022, with a CAGR22-28 of 6%. The NGS microfluidics market has gained increasing interest from R&D laboratories and diagnostic and pharmaceutical companies over the years, and this can be attributed to several key factors: the substantial reduction in the cost of sequencing, continuously improving accuracy, ease of use, automation of sample preparation processes, and improvements in data analysis. Nowadays, the majority of biology R&D laboratories have the ability to conduct next-generation sequencing. Whether through dedicated platforms, in-house resources, or services provided by private companies, NGS has evolved into a universal tool. Today, the NGS market is experiencing significant growth driven by its applications in oncology, genetic diseases, microbiology, cell analysis, reproductive health, non-invasive prenatal testing, environmental studies, agriculture, and a myriad of other fields. In comparison with current techniques, NGS has gained recognition for its significant value in the field of genomics, particularly from national public health agencies. In the USA, for instance, multiple programs have been instituted to offer financial support and aid to individuals, organizations, and entities engaged in NGS research and applications.
Looking to new horizons: the role of the new players in NGS
Almost 93% of the NGS microfluidics market (in value) is held by four players: Illumina, BGI Group, Thermo Fischer Scientific, and Oxford Nanopore Technologies, with Illumina maintaining its leading position. However, in 2022, the company experienced relatively flat growth, with only a 1% increase in revenue generated by its flow cells. Other players in the market have also encountered reduced dynamism, leading to negative year-over-year growth rates. However, a few exceptions, including Oxford Nanopore Technologies, Bionano, and Pacific Biosciences, have achieved remarkable growth rates of up to 20% year-over-year.
In 2022, a total of $934 million was secured in funding. However, the average annual funds raised were noticeably lower than in previous years. Interestingly, Chinese companies specializing in NGS, including MGI Tech and Axbio, raised substantial amounts of funding during the year.
In 2022, there was only one notable M&A related to NGS microfluidic technologies (Bionano Genomics – Purigen Biosystems). However, many collaborations and partnerships between NGS companies and diagnostics or pharmaceutical firms were announced. This aligns with the trend of NGS technology expanding into clinical diagnostics applications, particularly in the areas of oncology, infectious disease diagnostics, and treatment.
The market is highly competitive, Illumina continues to command a significant market share and is observed by customers as the reference. Given their long-standing presence in the field, customers hold a high regard for Illumina's products. However, this status quo could shift in the years to come.
Shaping the future of NGS with advanced microfluidics modules
The NGS microfluidics market exhibits significant dynamism in technology development. Evolving from first-generation sequencing, companies are engaged in a competitive race to advance technologies that are not only cost-effective but also deliver higher accuracy, longer read lengths, and increased throughput.
The NGS field demands expertise in multiple domains. Foremost among them is chemistry, which often represents companies’ core competency in this industry. Additionally, players must diligently design user-friendly instruments that provide a comprehensive workflow, spanning from sample preparation to sequencing, ensuring convenience for their customers. Lastly, bioinformatics is pivotal, particularly in clinical diagnostics applications, as it is essential for extracting meaningful insights from NGS data.
NGS modules can be assimilated at the core of the market. Players in the industry have structured their business models around the distribution of these essential consumables. These modules can be categorized into four primary NGS technologies that are commercially available: microstructured glass slides (passive flow cells), CMOS Image Sensor (CIS) (active optical flow cells), ion-sensitive field effect transistor (ISFET) (active electrical flow cells), and nanopore structures (active electrical flow cells)
These technologies encounter common challenges, including reducing manufacturing costs, maximizing active surface area, and enhancing nano-well density.
AGC, Agilent Technologies, Armonica Technologies, Astra Zeneca, Atomica (IMT MEMS), AxBio, BGI, bioMérieux, Bionano Genomics, Bristol-Myers Squibb, Centrillion Technologies, Cygnus, Depixus, DNA electronics (DNAe), Electronic Biosciences, Element Biosciences, GeneMind, Genesque, Genvida, IDEX Health & Science, Illumina, imec, IMEC, IMTAG, iNanoBio, Janssen Oncology, Lilly Oncology, Merck, MGI Tech(BGI), Micralyne (Teledyne Dalsa), Micronit, Nabsys, NanoString Technologies, Oxford Nanopore Technologies, Novartis, Pacific Biosciences (+Omniome), Perkin Elmer, Pfizer, Philips Engineering Solutions, Plan optik group (Little Things Factory), Qiagen, Qitan Technologies, Quantapore Inc., Quantum Si, RH Genentech, Roche (Stratos genomics, Genia), Rogue Valley Microdevices, Roswell Biotechnologies, Schott (MiniFAB), SequeLL, Singular genomics, Skywater Technologies, STMicroelectronics, Takeda pharmaceuticals, Thermo Fisher Scientific, Tower semiconductor, TSMC, Xfab, and more.
Key Features
- Market segmentation data for 2022 and forecasts for 2023 - 2028 are split into clinical diagnostics and research segments at the component, module, and instrument levels.
- Breakdowns by type of technologies in units and dollars.
- Companies profiles and trends for each main player in the field of NGS.
- Market share at the module level explaining the dynamics.
- Fundraising and M&A analysis to help understand the ecosystem’s dynamics.
- Description of the supply chain involving various players.
- Materials, manufacturing, and other technology trends, along with roadmaps
What’s new?
- Definitions and wording are standardized to the microelectronic wording.
- Market shares and analysis of the market at the instrument level.
Report objectives
- Provide market metrics and forecasts for the Next-Generations Sequencing microfluidics market, considering the trends for each application.
- Presents an overview of the best future growth opportunities for Next-Generation Sequencing, along with the key drivers of the market.
- Explores the ecosystem development product-wise and funding-wise and details the main stakeholders involved. A detailed analysis of the market shares at the module and instrument level is provided
- A broad overview of the technology trends from components up to modules for next-generation sequencing applications
- Oversee the main players across the Next Generation Sequencing supply chain.
- Analyze how the business models and supply chains are evolving.