Strategic Analysis of the U.S. Next Generation Sequencing Markets

Frost & Sullivan, March 2011, Pages: 50

This research service provides a strategic analysis of the next generation sequencing market. This study provides a detailed overview of the next generation sequencing instruments on the market, an analysis of competitors, market drivers, market restraints, and a market outlook. Furthermore, this study presents statistics on the National Institutes of Health (NIH) American Recovery and Reinvestment Act (ARRA) instrumentation grants awarded for next generation sequencing instruments. Lastly, a market outlook is provided describing market mergers, acquisitions, partnerships, expectations for third-generation sequencing instruments, and takeaways from 2010 market activities.

This Frost & Sullivan research service titled Strategic Analysis of the U.S. Next Generation Sequencing Markets provides an in-depth analysis of the market drivers and restraints, industry trends, and competitive environment in addition to the challenges and issues faced by market participants. In this research, Frost & Sullivan's expert analysts thoroughly examine the following technologies: next-generation sequencing, third-generation sequencing, and capillary electrophoresis (CE) sequencing.

Market Overview

Expanding Customer Base Ensures Double-digit Growth for the U.S. Next-generation Sequencing Market

With a slew of new instruments hitting the market with improved data output and decreasing cost per run, prospects for the next-generation sequencing market remain buoyant. By delivering systems with different throughput options and price points, vendors are broadening their potential end-user base. As sequencing becomes even more affordable, the technology will become accessible to smaller laboratories, while larger organizations may increase infrastructure more readily. “The market will remain in a strong adoption period with double-digit growth over the next 3 years as the technology reaches new customers and new research fields,” notes the analyst of this research service. In the near term, getting sequencers into smaller labs remains a major initiative for sequencing providers as they continue to introduce affordable benchtop systems,” notes the analyst of this research service. “In the long term, sequencing vendors are eyeing personalized medicine and clinical sequencing to open new end-user markets and drive major growth.”

Perhaps the most buzz-worthy technology in life sciences, next-generation sequencing remains a major growth area for life science tool vendors, including those providing sequencers, ancillary instrumentation, reagents, and software. This growth is attributed to several positive market factors. Besides affordable platforms bringing the technology to smaller laboratories, the price of sequencing a genome is decreasing, and the number of applications enabled by sequencing continues to grow. Faster, cheaper, and easier to use, the technology is becoming accessible to an ever-increasing customer base..

Effect of Services Providers on Sequencing Instrument Adoption

Along with a growing marketplace of sequencing instrumentation providers, the number of service providers and core facilities offering sequencing services is growing steadily. These providers remain a strong customer base for instrument suppliers. On the flip side, the use of sequencing core facilities and services providers rather than purchasing a sequencer and conducting work in-house has remained an underlying limitation for sequencing instrument adoption. For researchers with limited capital equipment budgets, bioinformatics infrastructure, or throughput requirements, services remain an attractive option. In addition, for small one-time sequencing projects, using a service provider will always be more cost effective. Thus, the ability to access sequencing technology through service providers remains a constant restraint to the potential customer base.

Sequencing developers have started to provide low-to-mid throughput “personal” sequencing instruments at lower price points for smaller laboratories in attempts to secure a wider customer base. These instruments have lower outputs, often half the Gb of data per run of their more expensive counterparts. With these more affordable benchtop sequencers, instrument providers hope to lure those researchers currently using their core facilities or services providers for sequencing needs. “In the near term, getting sequencers into smaller labs remains a major initiative for sequencing providers as they continue to introduce affordable benchtop systems,” says the analyst. “These instruments appear to be catching on with customers who previously viewed the technology as too expensive and complex for their needs.”

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

- Genomics
- Technologies

The following technologies are covered in this research:

- Next-generation sequencing
- Third-generation sequencing
- Capillary electrophoresis (CE) sequencing

1. Executive Summary

2. Product Analysis

3. National Institutes of Health American Recovery and Reinvestment Act

4. Funding Analysis

5. Market Drivers and Restraints

6. Market Outlook

7. About Frost & Sullivan

List of Figures

Next Generation Sequencing Market: NIH ARRA Instrumentation Grants Statistics (U.S.), 2009-2010
Next Generation Sequencing Market: NIH ARRA Instrumentation Grant Statistics for DNA Sequencing Technology (U.S.), 2009-2010
Next Generation Sequencing Market: NIH ARRA Instrumentation Grant Statistics for Illumina (U.S.), 2009-2010
Next Generation Sequencing Market: NIH ARRA Instrumentation Grant Statistics for Roche 454 (U.S.), 2009-2010
Next Generation Sequencing Market: NIH ARRA Instrumentation Grant Statistics for Life Technologies (U.S.), 2009-2010
Next Generation Sequencing Market: NIH ARRA Instrumentation Grant Statistics for Qiagen (U.S.), 2009-2010
Next Generation Sequencing Market: Market Drivers (U.S.), 2011-2013
Next Generation Sequencing Market: Market Restraints (U.S.), 2011-2013

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