Genomics Services Market Size, Share & COVID-19 Impact Analysis, By Service Type (Gene Expression Services (RNASeq), Epigenomics Services, Genotyping, Next-generation Sequencing, Sanger's Sequencing, and Others), By Technology (Polymerase Chain Reaction (PCR), Next-generation Sequencing (NGS), Microarray, Sanger Sequencing, and Others), By Application (Diagnostics, Research, and Others), By End-user (Research Institutes, Healthcare Facilities & Diagnostic Centers, Pharmaceutical & Biotechnological Companies, and Contract Research Organization (CRO)), and Regional Forecast, 2022-2029

The global genomics services market size was valued at USD 6.64 billion in 2021 and is projected to grow from USD 7.41 billion in 2022 to USD 15.40 billion by 2029, exhibiting a CAGR of 11.0% during 2022-2029. North America dominated the global market with a share of 40.36% in 2021.

Genomics is the branch of science that helps to understand the structure, function, and evolution of genes. Genomics includes genome sequencing, determination of sets of genes, analysis of proteins encoded by the organisms, their interactions, and understanding of metabolic pathways. Factors such as increasing government initiatives and funding to promote genome-based diagnosis & treatments are creating demand for genomics. Thus, the majority of companies providing genomics to research institutes, healthcare facilities, and pharmaceutical & biotechnology companies for research & diagnosis purposes is propelling the demand for genomic services in the market.

Key Takeaways:

• North America holds the largest market share, contributing USD 2.68 billion in 2021.


• On the basis of technology, polymerase chain reaction segment accounted for the largest share of the market in 2021.


• On the basis of technology, polymerase chain reaction segment generated over 39.8% of market share in 2021.


• Industry leaders Illumina, Inc., QIAGEN, PerkinElmer Inc., Macrogen, Brooks hold a dominating place with a strong portfolio of genomics services.

COVID-19 IMPACT

Decline in Demand for Genomics Services during COVID-19 to Impact Market Growth 

The impact of COVID-19 resulted in slower growth during the forecast period. Factors responsible for the decline in the market include reduced demand for genomics services due to reduced research activities regarding cancer research, personalized medicine, and others. However, the demand for several technologies such as polymerase chain reaction and next-generation sequencing was high during the COVID-19 pandemic as applications for these technologies were increased for diagnosis purposes. Also, PCR & NGS was used by various laboratories for the investigation of viral genetic material. Thus, many companies have launched next-generation sequencing tests for the detection of the coronavirus and research use.

• For instance, in June 2020, Illumina, Inc. received its first U.S. FDA approval for the emergency use of large-scale, next-generation sequencing-based (NGS) COVID-19 testing. The COVIDSeq Test is a high-throughput, sequencing-based, in vitro diagnostic (IVD) workflow test enabling the detection of SARS-CoV-2.

The market players witnessed a significant decline in revenue generated during 2020. For instance, Illumina Inc. registered a decline of 17.9% in revenues generated in 2020. In 2021, the company registered a growth of 10.7% in revenue.

However, the growing number of research studies for cancer, precision medicine, and others in 2021 supported the market growth.

LATEST TRENDS

Request a Free sample to learn more about this report.

Shifting Preference of People toward Precision Medicine to Fuel Market Growth

Precision medicine involves disease prevention and treatment, which are combined with the genetic makeup of the individual person, lifestyle, and environmental factors to produce targeted therapies for various diseases. Nowadays, the preference of the medical professionals is changing toward personalized approaches to deal with chronic disorders. Genomics plays a significant role in the emergence of precision medicine for the early disease diagnosis which increases the chances of successful treatment.

Major companies are collaborating with the companies providing genomic services to meet the increasing demand for precision medicine. For instance, in May 2022, Illumina Inc. announced a long-term strategic collaboration with Janssen Biotech, Inc. to accelerate the development of precision medicines.

Additionally, various government agencies are providing funding for the establishment of genome centers to accelerate the research of precision medicine. For instance, in September 2022, the Centers for Disease Control and Prevention (CDC) announced a funding of USD 90 million to support the Pathogen Genomics Centers of Excellence (PGCoE) network.

Thus, the shifting preferences of people toward the targeted therapy options to treat various diseases is creating demand for precision medicine globally.

GENOMICS SERVICES MARKET GROWTH FACTORS

Growing Prevalence of Cancer, Genetic Disorders, and Other Chronic Diseases to Increase Demand for Genomic Services 

The prevalence of various chronic diseases such as cancer and genetic disorders is increasing globally. Thus, the demand for various treatment options is rapidly increasing in the market. Genome analysis test is integrated for the advance detection of various disorders such as rare genetic diseases, cancer, among others. The genome analysis helps physicians understand the genetic changes, cause of the disease thus leading to the proper management & treatment of the disease. For instance, according to the Global Cancer Observatory (GLOBOCAN), approximately 19.3 million new cancer cases were reported across the globe in 2020. The role of whole genome sequencing in cancer detection is very crucial as the technology can provide information regarding unique mutations in a cancer tissue. It also aids in discovering novel cancer associated variants such as insertions, deletions, and changes in copy numbers, among others.

Many companies are expanding their geographical presence to make DNA sequencing services accessible to a wider patient population. For instance, in May 2022, Macrogen Europe announced the opening of its Sanger sequencing facility in Milan, Italy. This helped the company with the portfolio of technologically advanced products to help customers with the requirement of genomic services.

Additionally, the emergence of COVID-19 has increased the applications of genomics services in the detection of viral genetic material. Many countries have launched genome sequencing technologies to provide improved genomics services.

Thus, the rising burden of various chronic diseases such as cancer, rare diseases along with the increasing government initiatives to provide affordable genomics services to detect and screen these diseases is expected to support the market growth during the forecast period.

Government Initiatives and Funding to Promote Growth of Genome-based Clinical Diagnosis and Treatment

Governments of various countries are promoting the use of genome sequencing for an efficient diagnosis and treatment of various disorders. Such initiatives are likely to increase the adoption of analysis of genome sequences on multiple types of research concerning developing breakthrough drugs, drug delivery methods, new screening methods, and understanding the genetic diversity among the population. For instance, in April 2021, the Biden administration declared an investment of USD 1.7 billion to improve the detection, monitoring, and mitigation of COVID-19 virus variants and to establish infrastructure for upcoming genomic sequencing needs. In June 2021, The Rockefeller Foundation announced the funding in response to COVID-19 pandemic, for genomic platforms and technology, of over USD 20 million. The foundation also announced several non-financial collaborations. This helped the foundation in strengthening the global capabilities for detection, sequence, and share genomic information and other data rapidly during the COVID-19 pandemic.

 Apart from this, developing countries are also focusing on the implementation of various strategies to use genome sequencing to study the genetic makeup of the population for disease diagnosis and treatment. For instance, in October 2020, the Government of Canada invested USD 11.9 million through Genome Canada to support 10 new genomics projects focused on drug discovery and biomedicine by 2035.

Thus, the growing government initiatives across the globe to promote genome sequencing for various research & diagnosis purposes is expected to support market growth.

RESTRAINING FACTORS

High Cost Required to Establish Genomics Laboratory to Limit Market Growth

Despite the rising government funding to support genomics services, the high cost of setting up a genome analysis laboratory due to the high cost of instruments is likely to limit the market growth. Also, the lack of skilled professionals to perform genome sequencing in developing countries is expected to impede market growth.

For instance, in the U.S., according to the Association of Public Health Laboratories (APHL), the instrument cost of Illumina Inc.’s MiniSeq, MiSeq, NextSeq 500, and HiSeq 2500 are approximately USD 50,000, USD 100,000, USD 250,000, and USD 650,000, respectively. Furthermore, according to the APHL, the cost of genome sequencing instruments offered by Pacific Biosciences is around USD 300,000 – USD 750,000. As the cost of these instruments is very high, it becomes very costly for the companies operating in developing nations to purchase these instruments, which is projected to hamper the market growth.

Genome sequencing is an interdisciplinary field requiring vast knowledge in biology, chemistry, and bioinformatics, and the personnel working in this area requires adequate training. However, insufficient training due to the limited access to tools for genomic data & manipulation and limited capacity in education in developing nations is also attributed to restricting the growth of the market.

SEGMENTATION

By Service Type Analysis

 Next-generation Sequencing Segment to Experience Dynamic Growth during Forecast Period

On the basis of service type, the market is segmented into Gene Expression Services (RNASeq), epigenomics services, genotyping, next-generation sequencing, sanger's sequencing, and others.

The next-generation sequencing segment led the market by high share due to favorable reimbursement policies for next-generation sequencing technology, the establishment of new NGS laboratories, and others. For instance, in August 2020, GeneDx, Inc., formerly a BioReference Laboratories, Inc. subsidiary, and Pediatrix Medical Group agreed to offer next-generation genomic sequencing services to support clinical diagnosis in neonatal intensive care units staffed by Pediatrix's affiliated neonatologists.

The genotyping segment is expected to grow significantly during the forecast period due to the increasing adoption of genotyping in the field of pharmacogenomics, agro biotechnology, animal genetic testing and others.

By Technology Analysis

To know how our report can help streamline your business, Speak to Analyst

Polymerase Chain Reaction Segment to Hold Largest Market Share Owing to Diagnostic Benefits of PCR

On the basis of technology, the market is segmented into Polymerase Chain Reaction (PCR), Next-generation Sequencing (NGS), microarray, sanger sequencing, and others.

The polymerase chain reaction segment held the majority of the global genomics services market share during 2021 due to the rising applications of the PCR in genomic research. Also, during the COVID-19 pandemic, PCR was used for the diagnosis of COVID-19, which increased the demand for PCR services during the period.

The next-generation sequencing segment is projected to grow with the highest CAGR during the forecast period due to factors such as faster turnover time of NGS than other technologies and the ability of NGS to sequence million genes.

By Application Analysis

Research Segment to Dominate Market Due to Increasing R&D Activities in Genomics

On the basis of application, the market is segmented into diagnostics, research, and others.

The research segment dominated the market with a significant share owing to the increasing government funding for the research of various diseases such as cancer, rare diseases among others. Additionally, increasing usage of genome sequencing in broad application areas, such as precision medicine, is supporting the growth of the research segment. For instance, the Washington University School of Medicine initiated an interventional study on the feasibility of implementing ChromoSeq, a whole genome sequencing assay in addition to standard genetic testing, for patients diagnosed with Myelodysplastic Syndrome (MDS). Thus, an increase in genome-based research studies globally is expected to propel the market.

The growth of the diagnostics segment is attributed to the rise in collaboration among the key companies active in genomics product launch, development, and service offerings. This along with diagnostic labs to provide an early diagnosis for various diseases, such as cancer and rare diseases, among others, is likely to contribute to the segment growth in the region.

By End User Analysis

Research Institutes Segment to Dominate Market Due to Growing Number of R&D Activities Related to Genomics

On the basis of end user, the market is segmented into research institutes, healthcare facilities & diagnostic centers, pharmaceutical & biotechnological companies, and contract research organization (CROs).

The research institutes segment dominated the market with a significant share. Factors such as growing number of research & development activities related to genomics is expected to support the growth of this segment during forecast period. This along with increasing genome research fundings by governments of various countries is boosting the growth of this segment.

• For instance, in September 2021, the National Research and Innovation Agency (BRIN) established the building of the National Integrated Center for Genomic, Tropical Biodiversity and Environment in Cibiong area, Indonesia.

Healthcare facilities & diagnostic centers segment is projected to grow with the significant CAGR owing to factors such as the rising use of various genomic services for disease detection, prenatal screening, infectious diseases, among others. The growth of pharmaceutical and biotechnological companies segment is attributed to factors such as increasing collaborations of the pharmaceutical & biotechnology companies with genomic service providers to develop advanced genome based diagnostic platforms.

REGIONAL INSIGHTS

To get more information on the regional analysis of this market, Request a Free sample

The market in North America was valued at USD 2.68 billion in 2021. The North America genomics services market growth was attributed to the factors such as adequate reimbursement policies in the U.S. for the genomics, high per capita expenditure on advanced therapies, and increasing government initiatives for the research of genomics, supporting the market growth in the region.

• For instance, in May 2020, the Centers for Disease Control and Prevention (CDC) launched a national viral genomics consortium to efficiently map COVID-19 transmission. The launch of this consortium increased the use of whole genome sequencing of the virus.

In Europe, the market will be primarily driven by the increasing adoption of precision medicine, adoption of various technologies for the research & diagnosis of various diseases in the region. This along with the increasing launch of genomic services in the region to support the market growth.

• For instance, April 2021, the U.K. Health Secretary Matt Hancock announced funding of USD 51.4 million for genomics and data projects to support the life science sector. This was delivered through the Genome U.K. Implementation Plan and the U.K. Functional Genomics Initiative.

Asia Pacific is projected to grow at a significant rate owing to changing regulatory policies for the adoption of precision medicines, the rising prevalence of chronic diseases, and the launch of new genome research facilities in the region. This along with the technological advancement in genomics is projected to support market growth.

• In April 2021, Singapore launched the next phase of the National Precision Medicine Program. Singapore's National Precision Medicine (NPM) strategy is a 10-year plan to enhance and accelerate Singapore's biomedical research, health outcomes, and economic growth.

The market in Latin America is growing due to the increasing research activities related to genomics, increasing prevalence of cancer and other diseases among others. The Middle East and Africa market is projected to expand at a considerable market share during the forecast period attributable to the strategic initiatives taken by the governments of the various countries for genomic research.

KEY INDUSTRY PLAYERS

Illumina Inc. Leads the Market with Strong Portfolio of Genomics Services 

The market is fragmented, with many market players holding a major share of the market. Industry leaders Illumina, Inc., QIAGEN, PerkinElmer Inc., Macrogen, Brooks hold a dominating place with a strong portfolio of genomics services. Additionally, strong focus of the companies on collaborations and partnerships with the key healthcare providers is supporting the dominance of these key players in the market. In May 2022, Illumina, Inc. partnered with Deerfield Management, a healthcare investment management firm for 5 years to make use of a genetic-led approach for the discovery and development of novel therapies for disorders with unmet medical needs.

Other market players such as Eurofins Scientific, LGC Limited, BGI, GrandOmics, and others mark a global presence. The strategic decisions taken by these players are supporting the growth of these companies.

LIST OF KEY COMPANIES PROFILED IN GENOMICS SERVICES MARKET:

• Illumina, Inc. (U.S.)


• QIAGEN (Netherlands)


• PerkinElmer Inc. (U.S.)


• Eurofins Scientific (Luxembourg)


• Macrogen, Inc. (South Korea)


• GENEWIZ (U.S.)


• LGC Limited (U.K.)


• Q2 Solutions (U.S.)


• Bio Rad Laboratories, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2021- BGI in collaboration with Serbia Government and the Institute for Molecular Genetics and Genetic Engineering (IMGGI) established a genome sequencing platform in Belgrade to improve its position as a country which invests in science and new technologies.


• January 2021- LGC Limited acquired Technopath Clinical Diagnostics, a company leader in the development and manufacturing QC solutions and software to assess the accuracy of clinical lab equipment. The acquisition complements the company’s existing manufacturing capabilities across clinical genomics reference materials, viral antigens, and others.


• September 2021- Macrogen Europe, a branch of Macrogen, Inc., opened a new sequencing facility in Maastricht. The new sanger sequencing facility due to its strategic location offers sanger sequencing results within 24 hours of sample pickup throughout Belgium and the Netherlands.


• March 2021- Eurofins Scientific has provided its RNA sequencing technology to support ground-breaking research on diabetes in cooperation with the IMI2 INNODIA consortium.


• January 2019- QIAGEN entered into an agreement to acquire a U.S.-based privately-held company, N-of-One, Inc. The acquisition of the company enabled QIAGEN to significantly expand its decision support solutions by offering a broader range of software, content and service-based solutions.

REPORT COVERAGE

An Infographic Representation of Genomics Services Market

View Full Infographic

To get information on various segments, share your queries with us

The genomics services market report provides a detailed market analysis. It focuses on key aspects such as leading companies, service type, technology, applications, end-users, and competitive landscape. Besides this, it offers insights into the market trends, impact of COVID-19, and other key insights. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation