Sequencing Reagents Market Size, Trends and Growth Analysis by 2027

The global market for sequencing reagents is projected to grow significantly, reaching an estimated US$ 14,195.60 million by 2028, up from US$ 5,530.32 million in 2020. This growth represents a compound annual growth rate (CAGR) of 12.5% from 2020 to 2028.

Several factors are contributing to this market expansion, including increased funding for genomics research, a decrease in the costs associated with sequencing technologies, and a rising incidence of chronic diseases. However, the shortage of skilled professionals in the field poses a challenge to market growth.

Sequencing reagents play a crucial role in the sequencing process, with their application depending on the specific outcomes desired. These reagents are integral to sequencing reactions and are applicable in various other contexts. The anticipated rise in research and development activities globally is expected to further propel market growth during the forecast period.

Five years ago, genomic sequencing was primarily confined to research settings. Today, it is increasingly being integrated into clinical practice, with projections indicating that genomic data from over 60 million patients will be generated in healthcare over the next five years. The transition of genomic sequencing into clinical settings has been bolstered by significant government investments, exceeding US$ 4 billion across at least 14 countries. These national initiatives in genomic medicine are facilitating transformative changes in real-world applications, addressing implementation barriers, and gathering evidence to support broader adoption, thereby enhancing market growth.

The UK has initiated the world?s largest genome project, part of a ?200 million public-private partnership involving charities and pharmaceutical companies. This initiative builds on the UK?s achievement of creating the largest genome database globally through the 100,000 Genomes Project. Spearheaded by Innovate UK under the UK Research and Innovation umbrella, this project aims to fund researchers and industry collaborations to merge data and real-world evidence from UK health services, ultimately leading to the development of new diagnostic products and services.

In November 2018, Stilla Technologies announced the successful completion of a US$ 18.3 million (EUR 16 million) Series A funding round, led by Illumina Ventures. The funds are intended for the commercialization of their Naica digital PCR system and the development of clinical applications.

In August 2018, a Massachusetts-based company, Boston, secured US$ 4.3 million in seed funding and announced a partnership with Veritas Genetics, a genome sequencing firm. This funding will support their goal of advancing personal genome sequencing by establishing a secure, decentralized marketplace for genomic data.

In April 2020, MedGenome, a genetic diagnostics and research company based in Bengaluru, raised US$ 55 million (approximately INR 419 crore) in a funding round led by LeapFrog Investments. MedGenome claims to have established the largest database of South Asian genetic variants for diagnostics and research in India, having conducted over 200,000 genomic tests and collected samples from more than 550 hospitals and 6,000 clinicians across the country.

With ongoing investments from both manufacturers and government entities in genomics, the sequencing reagent market is poised for substantial growth in the coming years.

Technology Insights

The global sequencing reagents market is categorized by technology into next-generation sequencing, Sanger sequencing, and third-generation sequencing. In 2020, the next-generation sequencing segment dominated the market and is expected to continue its rapid growth through 2028. This technique allows for massive parallel decoding of RNA or DNA fragments, utilizing principles of single-molecule sequencing or sequencing-by-synthesis. It generates vast amounts of sequencing data, necessitating specialized bioinformatics tools for analysis, which is likely to drive demand for sequencing reagents globally during the forecast period.

Reagent Type Insights

In terms of reagent type, the market is divided into control kits, library kits, template kits, sequencing kits, and other types. The control kits segment held the largest market share in 2020 and is projected to maintain its dominance by 2028. These kits are essential for quality control during cluster generation, sequencing, and alignment, as well as for calibration control in various sequencing processes.

Application Insights

From an application perspective, the market is segmented into agrigenomics and forensics, clinical investigation, oncology, reproductive health, and other applications. The oncology segment was the largest in 2020 and is expected to continue leading the market through 2028. The integration of next-generation sequencing (NGS) with bioinformatics tools is revolutionizing oncology research, diagnosis, and treatment.

End User Insights

Regarding end users, the market is segmented into hospitals and clinics, research institutes, pharmaceutical and biotechnology companies, among others. The hospitals and clinics segment accounted for the largest market share in 2020 and is anticipated to remain the leading segment by 2028, as these facilities are the primary points of contact for patients seeking diagnosis and treatment options.

Key sources referenced in the preparation of this report include the World Health Organization (WHO), genome-wide association studies (GWAS), the Centers for Disease Control and Prevention (CDC), the International Diabetes Federation (IDF), and various other prominent organizations in the field of genomics and healthcare.