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The global genomics market size was USD 23.12 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with genomics witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a stellar growth of 22.6% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 27.81 billion in 2021 to USD 94.66 billion in 2028 at a CAGR of 19.4% in the 2021-2028 period. The sudden fall in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Genomics has scientifically proven its abilities in the prevention, management, and treatment of diseases. From conventional treatment methods, the healthcare environment is gradually shifting toward precision medicine, and genomics has pivoted this transition through exceptional clinical properties over the past few years. The whole-genome sequencing has emerged as a useful tool for the diagnosis of critical diseases such as cancer. For instance, in December 2020, Personalis, Inc., a leader in advanced genomics for cancer, announced the launch of its proprietary Neoantigen Presentation Score (NEOPS). NEOPS combines analysis from Personalis’ state-of-the-art tumor neoantigen prediction tool, SHERPA, with mechanisms of immune evasion to better predict response to cancer therapy. The aforementioned factors have significantly contributed to the growth of this industry in recent years.
Additionally, several start-ups and service providers are now emerging, providing direct-to-customer (DTC) sequencing services, ancestry services, and others. Furthermore, the increased research spending and advancements in bioinformatics will have a positive impact on the growth of the market in upcoming years.
Increasing Government Efforts to Understand Genome of COVID-19 to Boost the Market
The COVID-19 pandemic has completely changed the healthcare industry as a whole, with the tremors of the pandemic being felt across the healthcare sector. Government and private pharmaceutical, as well as biotechnological companies, have accelerated their research activities and investments to develop an efficient vaccine or novel treatment for COVID-19. Monitoring the genome sequence of coronavirus can help track how the infection is moving between communities and how it is impacting the human genome. This information can then be used to develop an effective treatment for the infection. Researchers are using the virus genome data to track the origin of COVID-19 infection in their countries and the onset of community transmission.
An effort to study the genetic structure of coronavirus has increased drastically. Several countries, including China, the U.S., Vietnam, and Nepal, are sharing the whole genome sequence data isolated from patients. This will help researchers across the world to study several aspects of the coronavirus, including its origin and drug development. In April 2020, Genome Canada announced the launch of the Canadian COVID-19 Genomics Network (CanCOGeN), an initiative backed with USD 40 million funding. The initiative includes a partnership between Genome Canada and six regional Genome Centers for scaling up existing genome-based COVID-19 research in Canada and globally.
In addition to this, the increasing genomics-based research activities for the development of effective medications to treat COVID-19 infection are offering new opportunities to several start-ups and established businesses. Hence, increased government funding and a recent surge in research activities will create a massive demand for sequencing products, software, and services. For instance, deCODE genetics is conducting the demonic analysis of coronavirus and has also partnered with the Government of Iceland to sequence genomes of samples isolated from COVID-19 patients. Similarly, HaystackAnalytics, a start-up company, is studying the transmission of the virus and help the Government of India based on genome sequencing techniques. This is anticipated to surge the growth of the market in the upcoming years.
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The Influx of Start-up Companies is a Prominent Trend
The massive potential held by genome sequencing has resulted in an influx of start-ups in recent years. Several companies have started providing sequencing services for a variety of applications such as nutrition, ancestry, genetic diseases, and others. 23andMe is one such company, which has registered notable growth. Increasing funding in a start-up business is expected to foster market growth. For example, in July 2020, Genome Medical, a startup that provides telehealth genetic consultations, raised a US$ 14 million extensions for its US$ 23 million series B round. It plans to use the funds to expand its telehealth platform and clinical operations. It starts with an initial consultation to see if the individual would benefit from genetic testing and what tests would be most suitable.
Rising Number of Government Genome Projects to Drive the Market
One of the prominent factors that have contributed to the genomics industry growth is the increasing number of government-funded genome projects. Study of the genomes is an essential tool that can aid the development of effective therapies, a primary factor why several government organizations are investing in genome projects. For instance, Genomics England collaborated with the NHS and started the Genomic Medicine Service, which incorporated whole genome sequencing into routine medical care. Similarly, there are several projects such as the Saudi Human Genome Program, Personalized Medicine Programme, France Génomique, and others. These projects are expected to contribute to the expansion of the market during the forecast period.
New Products and Innovative Services to Favor the Adoption of Sequencing
The shift toward personalized medicines and decreasing cost of sequencing owing to the introduction of the NGS technology has yielded several new products and services. The market is gradually becoming more competitive with new key players entering the market, and hence, companies are introducing advanced products and services to consolidate their positions. For instance, in July 2020, Illumina announced the launch of e TruSight Software Suite and provided ready-to-use infrastructure for whole genome sequencing that can be used to identify genetic diseases.
Lack of Trained Technicians May Pose as a Major Hindrance to Growth
Despite the huge potential, the shortage of trained technicians is a significant factor, which is restricting the growth of the market in developing countries. Emerging nations either have a limited number of technicians, or they lack the skill set required for using sophisticated sequencers. Apart from this, the high cost of instruments is another factor restricting the market expansion.
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Launch of New Software and Automated Sequencer to Foster the Products Segment
Based on the type, the market is segmented into products and services. The products segment is further categorized into instruments & software, and consumables. The segment is estimated to dominate the market throughout the forecast period. Factors that can be attributed to the growth of this segment are the high volume demand and usage of consumables as well as the introduction of several new products in recent years. The increasing need for new platforms to analyze the huge amount of genetic information has resulted in the launch of new software and fully automated products. In October 2018, Helix OpCo LLC announced the launch of DNA Product Studio to enable the development of apps and tests, which is anticipated to augment the growth of the product segment.
On the other hand, the services segment is estimated to report remarkable growth owing to the increasing demand for next-generation sequencing services and decreasing sequencing cost, thereby encouraging patients to opt for genetic tests.
NGS Segment to Witness Considerable Growth Owing to Rising Research Activities
Based on the technology, the market is categorized into polymerase chain reaction (PCR), next-generation sequencing (NGS), microarray, Sanger sequencing, and others. The PCR segment accounted for the largest market share in 2020, owing to the prominent usage of the technology and its easy availability across the globe. The NGS segment is projected to witness remarkable growth due to the increasing number of government projects and fundings for understanding and developing treatment options for COVID-19. The microarray and Sanger sequencing segments are expected to grow owing to the rising adoption of these sequencing technologies for the diagnosis of diseases and the increasing number of projects in countries such as the U.K., the U.S., India, and others.
Rising Demand for Whole Genome Sequencing to Propel Growth of the Research Segment
Based on the application, the market is segmented into diagnostics, research, and others. The diagnostics segment held the highest genomics market share in 2020. The emergence of direct-to-consumer genetic testing and the use of NGS technology for clinical diagnostics are major factors contributing to the expansion of the diagnostic segment. Furthermore, the increasing number of nutrigenomics service providers that offer diet plans for disease conditions based on the unique genes of patients is propelling the diagnostics segment growth.
Whole-genome sequencing is being studied for the treatment of several diseases. Currently, various countries are contributing to the COVID-19 data by the whole genome analysis of the patient. This is the key reason for the expansion of the research segment. The rising prevalence of chronic diseases and the decreasing cost of sequencing are expected to accelerate the growth of the others segment.
Increasing Research Funding by Governments to Surge the Research Institutes Segment
In terms of the end-user, the market is segregated into research institutes, healthcare facilities & diagnostic centers, pharmaceutical & biotechnological companies, and contract research organizations. The increasing research funding by governments and strong government support is likely to propel the research institutes segment.
The rapid use of genome analysis for the treatment and early diagnosis of diseases is poised to augment the growth of the healthcare facilities & diagnostic centers segment. Increasing R&D investments by pharmaceutical giants for developing novel gene therapies to cure cancer and immunological diseases are likely to favor the pharmaceutical & biotechnological companies and contract research organization segments.
North America Genomics Market Size, 2020 (USD Billion)
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The market size in North America stood at USD 10.16 billion in 2020. The rapid adoption of new sequencing technologies and the shift toward personalized medicines are expected to render a leading position in North America. In August 2020, Ancestry announced the launch of AncestryHealth, featuring next-generation sequencing with the ability to screen the genes associated with heart disease, colon cancer, breast cancer, and blood disorders. This is further anticipated to boost the growth of the market in this region.
Active support from the government through research funding, especially in the U.K. and England, are projected to favor the expansion of the market in Europe. Asia Pacific is expected to register the highest CAGR during the forecast years owing to the higher demand for genetic sequencing and testing in China. The market in Latin America and the Middle East & Africa is expected to witness considerable growth owing to the active government support and improving healthcare scenario.
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Illumina, Inc. and Thermo Fisher Scientific to Acquire Leading Positions in the Market
In terms of the competitive landscape, Illumina, Inc., held a leading position owing to its diversified product portfolio, strong geographical presence, and prominent position in sequencing services. Thermo Fisher Scientific Inc. accounted for the second-largest position in the market. The company is estimated to witness lucrative growth owing to the increasing demand for its sequencers and consumables amid the COVID-19 pandemic. Other companies, such as Bio-Rad Laboratories, Inc., F. Hoffmann-La Roche Ltd., and IntegraGen, are focusing on improving their services by incorporating the latest technologies. This is also expected to change the competitive landscape of the market.
An Infographic Representation of Genomics Market
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The genomics market research report presents a comprehensive assessment of the global market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, it offers a detailed industry analysis and information as per the key market segments, helping our readers to get a comprehensive overview of the global market. In addition to this, the report also provides various key insights such as the overview of the projects for key countries, overview of service providers, new product launch, regulatory scenario for key countries, start-ups with their funding overview, recent industry developments such as mergers & acquisitions and partnerships, and key industry trends.
Value (USD Billion)
Type; Technology; Application; End User and Geography
The value of the global market was USD 23.12 billion in 2020.
Fortune Business Insights says that the market is projected to reach USD 94.66 billion by 2028.
The value of the market in North America was USD 10.16 billion in 2020.
The market is projected to rise at a CAGR of 19.4% during the forecast period (2021-2028).
The services segment is set to remain in the leading position in this market.
The rising number of government genome projects and new product launches are the key factors driving the global market.
Illumina, Inc. and Thermo Fisher Scientific Inc. are the top players in the global market.
North America is expected to hold the highest market share.
The increasing number of start-up businesses is the key trend of the market.
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