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The global genomics market size was USD 23.11 billion in 2020 and is projected to grow from USD 27.81 billion in 2021 to USD 94.65 billion in 2028, at CAGR of 19.4% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with genomics market growth witnessing a positive demand shock across all regions amid the pandemic. Based on in depth analysis, the global market has exhibited a stellar growth of 22.3% in 2020. The sudden rise 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 prevention, management, and treatment of diseases. The healthcare environment is gradually shifting from conventional treatment methods towards precision medicine and has pivoted this transition through exceptional clinical properties over the past few years. Whole genome sequencing has emerged as a useful tool for the diagnosis of critical diseases such as cancer. For example, as per National Cancer Institute, by 2040, it is anticipated that the number of new cancer cases will increase by 29.5 million, and the number of cancer-related deaths to 16.4 million per year. The need for storage, sequencing, and analysis of large DNA information has paved the way for newer products and software. The aforementioned factors have significantly contributed to driving the market in recent years.
Additionally, several start-ups and service providers are now emerging which provide direct-to- customer (DTC) sequencing services, ancestry services, and others. For instance, in August 2021, Arcensus GmbH announced the launch of its direct-to-consumer myLifeHeart service, which is on the basis of Whole Genome Sequencing (WGS) in Saudi Arabia. Furthermore, the increased research spending and advancements in bioinformatics will have a positive impact on the growth of the market in the coming years.
Increasing Government Efforts to Understand Genome of COVID-19 to Boost Market Growth
The Covid-19 pandemic has completely changed the healthcare industry as a whole, with the tremors of the pandemic being felt across individual healthcare sectors. Both, the government and private pharmaceutical as well as biotechnological companies have accelerated their research activities and increased their investments to develop an efficient vaccine or novel treatment for COVID-19. Monitoring the genome sequence of coronavirus can help track the manner of spread of infection and its impact on the human genome. This information can then be used to develop effective treatment of the infection. Researchers are using the virus genome data to track the origin of COVID-19 infection in their countries and onset of community transmission. For example, in September 2020, with many African countries now expanding COVID-19 testing, the WHO launched a network of laboratories in collaboration with the Africa Centers for Disease Control and Prevention (Africa CDC) to highlight genome sequencing of the SARS-CoV-2, the pathogen responsible for COVID-19, in Africa.
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 the patients. This will help researchers across the world in study of several aspects of the coronavirus including its origin and drug development. In April 2020, Genome Canada announced the launch of the Canadian COVID Genomics Network (CanCOGeN), an initiative backed with USD 40 million funding. The initiative includes partnership between Genome Canada and six regional Genome Centers, genome sequencing centers through CGEn, national and provincial public health labs, universities, hospitals, and the private sector, for scaling up existing genome-based COVID-19 research in Canada and globally.
In addition to this, the increasing research activities on COVID-19 are offering several opportunities for several start-ups and established businesses. Increased government funding and 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 the genomes of samples isolated from COVID-19 patients. Similarly, HaystackAnalytics, a start-up company, is using genomics to study the transmission of the virus and help the government of India. This is anticipated to surge the market growth in the coming years.
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Technological Advancements in the Field of Genomics to Advance Market Growth
The massive potential held by genome sequencing has resulted in an influx of start-ups in recent years. Owing to the massive potential held by genome sequencing, 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 start-up businesses is expected to emerge in favor of market growth. For example, in August 2020, consumer genomic company Ancestry, planned to launch a new product which features next-generation sequencing. The new product aims to help customers get insights into their health and risk factors, called as Ancestry Health, which is powered by Next Generation Sequencing (NGS), the tool can screen for genes associated with breast cancer, heart disease, colon cancer and blood disorders.
Rising Number of Government-aided Genome Projects to Aid Growth
One of the prominent factors that have contributed to the growth of the market is the increasing number of government-funded genome projects. Genomic study 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 Program, France Génomique, and others. For example, as per Press Information Bureau, March 2020, Department of Biotechnology (DBT) had sanctioned a project, cataloguing the Genetic Variation in Indians for a three-year period to 20 institutions from varied disciplines across the country. The proposed target of this project for a total of 10,000 individuals signifying the country’s diverse population in three years. The data generated from whole genome sequencing can accelerate forthcoming human genetics research in the country with better precision, and to design a genome wide association array for the Indian population to develop precision healthcare and diagnostics for major diseases at reasonable costs. This will emerge in favor of market growth during the forecast period.
New Products and Innovative Services to Favor Adoption of Genomic Sequencing
The shift towards personalized medicines and decreasing costs of sequencing owing to the introduction of NGS technology, have yielded several new products and services. The market is gradually becoming more competitive with new players entering the market, and hence the companies are introducing advanced products and services to consolidate their position. 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. This is anticipated to aid the market growth.
Lack of Trained Technicians Pose a Major Hindrance to Market Growth
Despite the huge potential, shortage of trained technicians is a significant factor which is restricting the growth of the market in the developing countries. Many of the emerging nations either have less 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 market expansion.
Additionally, the stringent regulatory framework to develop new products is limiting the market growth. With the continuous rise in COVID-19 infections globally, the demand for improved, safer, and earlier detection instruments to deliver successful treatment to patients has created havoc in the market, however, manufacturers have to pass stringent regulatory restrictions to launch new products. For example, every country has its own regulatory authority applying different regulations and guidelines for manufacturers. To make sure the safety of products, the Centers for Disease Control and Prevention (CDC), the U.S Food and Drug Administration (FDA), and other regulatory bodies have restructured their guidelines.
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Launch of New Software and Automated Sequencer to Foster the Products Segment
Based on type, the market is segmented into products and services.
The products segment is further categorized into instruments & software and consumables. The product segment is estimated to dominate the market throughout the forecast period of 2021-2028. The 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 August 2020, Quest Diagnostics announced the launch of an automated next generation sequencing (NGS) engine to power Ancestry Health. This will now enable individuals to access precise genetic testing offering insights into inherited diseases comprising cancers of the colon and other conditions through Ancestry Health.
On the other hand, the services segment is estimated to report remarkable growth owing to the increasing demand for next-generation sequencing services and decrease in sequencing cost encouraging patients to opt for genetic tests. For instance, in August 2021, PerkinElmer, Inc. announced the launch of PerkinElmer Genetics’ clinical genomics testing services. Company offers a global genomic lab testing platform through its integrated laboratories in the U.S., India and China. It performs screening and diagnostic testing, focusing on newborn screening and high throughput next generation sequencing for rare inherited diseases.
NGS Segment to Witness Considerable Growth Owing to Rising R&D Activities
Based on technology, the market is bifurcated into polymerase chain reaction, next-generation sequencing, microarray, Sanger sequencing, and others.
The PCR segment accounted for the maximum share in the market in 2020, owing to the prominent usage of the technology and ease of availability across the globe. The NGS segment is projected to witness remarkable growth due to the increasing number of government projects and funding for understanding and developing treatment for COVID-19. 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 genome projects in countries like the U.K., the U.S., India and others.
Rising Demand for Whole Genome Sequencing to Propel Growth of Research Segment
Based on application, the market is segmented into diagnostics, research and others.
The diagnostics segment held the highest share of the market in 2020. Emergence of direct-to-consumer genetic testing and the use of NGS technology for clinical diagnostics are factors contributing to the expansion of the diagnostic segment. Furthermore, the increasing number of nutrigenomics services providers that provide diet plans for disease conditions based on the unique genes of the patients is propelling the diagnostics segment growth.
Whole genome sequencing is being studied for treatment of several diseases. Currently, many 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 decreasing cost of sequencing are expected to accelerate the growth of the others segment.
Increasing Research Funding by Government to Drive Research Institutes Segment
In terms of end-user, the market is bifurcated into research institutes, healthcare facilities & diagnostic centers, pharmaceutical & biotechnological companies, and contract research organizations.
Increasing research funding by the government and strong government support is likely to propel the research institutes segment.
Rapid use of genome analysis for the treatment and early diagnosis of diseases is poised to augment the healthcare facilities & diagnostic centers segment growth. Increasing R&D investment 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 10.15 billion in 2020. The rapid adoption of new sequencing technologies and shift towards personalized medicines are expected to render a leading position to North America. Additionally, government support is playing a pivotal role. For example, In April 2021, Biden Administration made an announcement of the USD 1.7 billion investment to Fight COVID-19 Variants of which USD 1 billion investment is for the expansion of genomic sequencing and USD 400 million to back the innovation initiatives including the launch of new innovative centers of excellence in genomic epidemiology. This is further anticipated to boost the growth of the market in North America.
Active support from the government through research funding and genomic analysis and research and academic institutes, 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 and advancements in bioinformatics. Furthermore, increasing prevalence for the development of drugs for rare diseases and technological advancement with the grouping of next-generation sequencing and companion diagnostics in this field is stepping up the growth of the market.
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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.
Recent Acquisition of Pacific Biosciences to Strengthen Market Position of Illumina, Inc.
Illumina, Inc. held a leading position in the market owing to its diversified product portfolio, strong geographical presence, competitive landscape and prominent position in sequencing services. In August 2021, Illumina, Inc., an international leader in DNA Sequencing announced the acquisition of GRAIL, a healthcare company dedicated to life-saving early detection of multiple cancers. This acquisition will help by creating the availability of this test to as many people as possible. The first COVID-19 viral sequence was on an Illumina machine and now genomic surveillance has developed as an indispensable tool in the universal fight against the pandemic. Thermo Fisher Scientific Inc. accounted for the second prominent position in the market. The company is estimated to witness a lucrative growth owing to the increasing demand of its sequencers and consumables amid the COVID-19 pandemic.
An Infographic Representation of Genomics Market
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The global genomics market research report gives a comprehensive assessment of the global market by presenting valuable insights, facts, industry-related information, and historical data. Numerous methodologies and approaches are implemented to make significant conventions and prospects. Moreover, the report offers a detailed analysis and information as per 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 genomic 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
By End User
The value of the global market was USD 23.11 billion in 2020.
Fortune Business Insights says that the market is projected to reach USD 94.65 billion by 2028.
The value of the market in North America was USD 10.15 billion in 2020.
The market is projected to rise at a CAGR of 19.4% during the forecast period (2021-2028).
The product segment is the leading segment 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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