Metagenomic Sequencing Market

The global metagenomic sequencing market in terms of revenue was estimated to be worth $2.0 billion in 2023 and is poised to reach $4.5 billion in 2028, growing at a CAGR of 17.5% from 2023 to 2028. The new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market. NGS platforms have undergone continuous technological innovations over the last several years. This has led to reduction in timelines as well as costs associated with genome sequencing and its related applications including metagenomic sequencing. This is one of the key factors driving the growth of this market. However, developing countries still have a lower adoption rate for sequencing products, services due to lack of funding support and budget constraints. This factor is expected to restraint the market to certain extent.

Attractive Opportunities in the Metagenomic sequencing market

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Metagenomic Sequencing Market Dynamics

DRIVER: Continuous technological innovations in NGS platforms

The development of effective, portable, and user-friendly NGS platforms that can deliver quick, accurate findings and faster turnaround times has been made possible by ongoing technological advancements in sequencers. Popular companies are increasingly focusing on R&D to increase their market position and share because the release of such items and technologies gives competitors an immediate competitive edge.  For instance, in March 2022, Thermo Fisher Scientific launched Ion Torrent Genexus Dx Integrated Sequencer, an automated next-generation sequencing (NGS) platform. Also, in April 2019, Pacific Biosciences of California launched the Sequel II System. This system reduces project costs and timelines by approximately eight times the data output compared to the previous Sequel System. The iSeq 100 (Illumina) and Ion GeneStudio S5 System (Thermo Fisher Scientific) are other revolutionary platforms that ensure high sequencing efficiency at decreased costs.

RESTRAINT: End user budget constraints in developing countries

Academic R&D is heavily reliant on outside financing in emerging nations. Many research and academic institutions confront budget restrictions when it comes to the purchase and usage of cutting-edge and expensive equipment and technologies, in spite of ongoing efforts by government and commercial agencies to provide funding for research across the globe. NGS sequencers remain expensive even if the cost of NGS sequencing has decreased. Priced at USD 850,000 and USD 985,000, respectively, are Illumina's two most sophisticated sequencing platforms, the NovaSeq 5000 and 6000. These sequencers can be upgraded with new hardware and software to provide sequencing capabilities that are roughly 70% quicker than most of Illumina's current platforms. The Pacific RS II and its Latest sequencing platform-sequel system are offered by Pacific Biosciences in California, another major competitor in the NGS market, for USD 750,000 and USD 350,000, respectively. Despite the introduction of inexpensive sequencing platforms like iSeq, many end users in developing APAC and LATAM nations still find their price to be prohibitive. As a result, the usage of cutting-edge technology like NGS is restricted at academic and research institutions in developing nations, which is impeding the uptake of relevant NGS products for metagenomics.

OPPORTUNITY: NGS data analysis using big data

The amount of data generated during whole genome sequencing often ranges in the terabyte range. The management of such massive amounts of data is a top concern for the NGS-based metagenome sequencing end users. Due to inconsistent data formats and a lack of industry-wide standardisation for data output from various NGS platforms, data storage requirements can be rather complex. The yield of NGS runs has, however, been greatly boosted by the use of big data technologies and AI for NGS analysis and the management of workflows. With improvements in sequencing technology, more data is generated during a sequencing run. Approximately 743 terabytes (743,000 gigabytes) of data are generated during the sequencing of a single human genome, compared to 16.2 gigabytes at the beginning of the human genome project in 2001, according to a report from the National Human Genome Research Institute as of July 2017. In order to examine and analyse this enormous amount of genetic data, which is beyond the scope of human analysis, powerful computational technologies can be used. As a result, a number of businesses are integrating cutting-edge computational technology into their sequencing solutions. As an illustration, Illumina introduced connected analytics (ICA) in January 2021. ICA is a fresh, integrated bioinformatics solution for managing, analysing, and exploring sizable volumes of multi-omics data. The market for metagenomic sequencing will see significant growth as improved NGS solutions centred around big data analytics and cloud computing are developed for handling, storing, and retrieving the massive amounts of data generated.

CHALLENGE: Challenges related to metagenomic NGS

Metagenomic sequencing or metagenomic NGS has a lot of potential, but there are still a lot of barriers to remove before this technology is widely used in laboratories. Interpreting results, such as separating contaminant colonisation from actual infections, choosing and validating databases for research, and forecasting antibiotic susceptibilities present significant hurdles. Despite the fact that metagenomic NGS is analytically more sensitive than conventional culturing techniques, the necessity of removing enormous amounts of human nucleic acid during the preparation for sequencing and the post-analytic process in some cases can reduce the sensitivity in comparison to targeted PCR approaches for many organisms.  Due to the fact that metagenomic NGS has a higher analytical sensitivity than conventional culture methods, contamination of materials during specimen collection is a major concern. From evaluating reagent purity to determining acceptable genome coverage controls, there needs to be a validated quality control method. To guarantee that high quality and validated genomes are available with few database errors, bio informatic quality controls are required. The majority of clinical microbiological laboratories lack the bioinformatic specialists necessary to evaluate sequencing results for each test. Since the majority of the nucleic acids in clinical samples come from the host, the sequence reads for metagenomic NGS are heavily influenced by the host genome. As a result, infections present at relatively modest burdens may be harder to detect analytically. Metagenomic NGS testing is projected to become increasingly important in the future as sequencing and bioinformatics processing capabilities increase. However, despite its clinical relevance in the contemporary landscape of medical practise, this technology is quite difficult.

Metagenomic Sequencing Market Ecosystem

Prominent companies in the market includes companies operating in the market for several years and posess diversified product and services portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in the metagenomic sequencing market include Illumina, Inc. (US), Thermo Fisher Scientific, Inc. (US), QIAGEN N.V. (Netherlands), PerkinElmer, Inc. (US), Oxford Nanopore Technologies plc. (UK), and Pacific Biosciences of California, Inc. (US).

The 16S rRNA Sequencing technology accounted for the largest share of the technology segment in overall metagenomic sequencing industry in 2023.

Based on technology, the metagenomic sequencing market is segmented into 16S rRNA Sequencing, Shotgun Metagenomic Sequencing, Whole-Genome Sequencing & De Novo Assembly and Metatranscriptomics. The 16S rRNA Sequencing technology accounted for the largest share of this market owing to benefits such as high accuracy and affordability are few of the factors driving the growth of the 16S rRNA sequencing market.

The subcutaneous administration segment dominated the route of administration segment in overall metagenomic sequencing industry in 2023.

Based on the workflow, the segment of the metagenomic sequencing market is categorized into sample preparation, sequencing and data processing and analysis. Sample preparation accounted for the largest share of the market owing to factors such as the growing number of metagenome sequencing research projects being conducted, the availability of technologically advanced sample processing and library preparation assay kits among others.

North America was the largest market for overall metagenomic sequencing industry in 2022 and also during the forecast period.

Geographically, the metagenomic sequencing market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. The metagenomic sequencing market was dominated by North America in 2022 and this dominance is anticipated to continue throughout the forecast period between 2023 and 2028. The market for metagenomic sequencing is expanding in the region as a result of factors like the growing application of metagenomics in genomics and diagnostics research, the availability of research funding, and the development of NGS data analysis tools.

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The prominent players in the metagenomic sequencing market are Illumina, Inc. (US), Thermo Fisher Scientific, Inc. (US), QIAGEN N.V. (Netherlands), PerkinElmer, Inc. (US), Oxford Nanopore Technologies plc. (UK), and Pacific Biosciences of California, Inc. (US).  

Scope of the Metagenomic Sequencing Industry

This report categorizes the Metagenomic Sequencing Market market to forecast revenue and analyze trends in each of the following submarkets:

By Product & Service

• Reagents and Consumables
• Instruments
• Sequencing Services
• Analysis and Data Interpretation Solutions

By Workflow

• Sample Preparation
• Sequencing
• Data Processing and Analysis

By Technology

• 16s Rrna Sequencing
• Shotgun Metagenomic Sequencing
• Whole-Genome Sequencing and De Novo Assembly
• Metatranscriptomics

By Type

• Drug Discovery
• Clinical Diagnostic
• Soil Microbiome
• Industrial Applications
• Ecological and Environmental
• Veterinary
• Other applications

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Rest of Europe (RoE)
• Asia Pacific (APAC)
  • China
  • Japan
  • India
  • Rest of Asia Pacific (RoAPAC)
• Latin America
• Middle East and Africa

Recent Developments of Metagenomic Sequencing Industry

• In September 2022, Illumina, Inc. (US) launched the NovaSeq X series production-scale sequencers, which are capable of generating more than 20,000 whole genomes per year (which is 2.5 times the throughput of prior sequencers from Illumina).
• In September 2021, Thermo Fisher Scientific, Inc. (US) and AstraZeneca(UK) co-developed an NGS-based companion diagnostic. The collaboration was focused on commercializing NGS-based diagnostics in Russia.  

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