North America NGS Automation Market by Product {Workstations, Consumables}, Sequencing Type {Whole Genome, Exome, Targeted Genome}, Application {Drug Discovery, Diagnostics, Oncology}, End User {Hospitals, Pharmaceutical, Diagnostic Labs} - Forecast to 2030

The North America NGS Automation Market is expected to reach $776.1 million by 2030, at a CAGR of 14% during the forecast period 2023–2030. Next-generation Sequencing (NGS) is a genome sequencing technology usually used for research purposes and applied in clinical diagnostics. NGS determines the order of nucleotides in the entire genomes or targeted regions of DNA or RNA. It is used for various clinical applications such as disease diagnosis, prognosis, therapeutic decision, and follow-up of patients. Also, its massive parallel sequencing capacity offers new opportunities for personalized or precision medicine. The process of NGS includes processes like sample pre-processing, library preparation, sequencing, and bioinformatics. Library preparation plays a crucial role in NGS workflow, but it is still time-consuming and repetitive despite the ongoing technical advances in high-throughput sequencing. Library preparation consists of numerous, repetitive steps wherein samples are required to be pipetted in small volumes with high precision, making it highly prone to human error and compromising the entire NGS process. This has increased the demand for NGS automation.

The automation of library preparation can increase efficiency and generate consistent results. The purpose of bringing automation to NGS is to generate more precise results and increase lab efficiency. NGS automation helps in maintaining turnaround times and expanding sample workload.

The North America NGS automation market is driven by the increasing prevalence of cancer cases, rising demand for NGS automation in laboratories, growing demand for optimized & streamlined workflows, and increasing pharmaceutical R&D investments & healthcare expenditures. Furthermore, the rising application of NGS technology and collaborations between vendors to develop library preparation protocols are expected to offer immense growth opportunities for market expansion. However, the high cost of automation workstations is expected to restrain the growth of this market to some extent. In addition, regulatory & standardized concerns associated with diagnostic testing and lack of training of laboratory personnel for the use of NGS automation software are the major challenges to the market’s growth.

Rising Prevalence of Cancer Cases Drive the North America NGS Automation Market

Cancer is one of the most complex and expensive diseases in terms of diagnosis and treatment. It is a prominent cause of death and a major obstacle to improving life expectancy in the region. According to the American Cancer Society, cancer is a leading cause of death, accounting for around 608,570 deaths in the U.S. in 2021. Prostate, lung, and colorectal cancers are common in men, while breast and colorectal cancers are in women. Cancer incidence is increasing due to unhealthy diets, tobacco use, alcohol consumption, sedentary lifestyles, carcinogen exposure, obesity, and pollution.

As per GLOBOCAN estimates, the number of new cancer cases is expected to increase from 2,556,862 in 2020 to 3,525,597 in 2040, while the mortality rate from cancer is expected to increase from 699,274 deaths in 2020 to 1,044,049 deaths in 2040.

With the increased prevalence and incidence of cancer, precision or personalized medicine is becoming increasingly important in oncology, and developing effective therapies is becoming critical for researchers. Precision medicine is being used to treat certain tumors to help determine which tests and treatments are most effective. It is sometimes used for people who have certain cancers or are at a higher risk of getting specific cancers. Precision medicine for cancer uses the unique genetic makeup of individual patients and genetic information from the patient’s tumors to discover and determine an appropriate and effective course of treatment, which is expected to increase the demand for NGS services, leading to increased throughput in laboratories. The increased throughput in labs is expected to boost the demand for automation to increase efficiency and generate consistent and reproducible results. Thus, the rising prevalence of cancer and increasing efforts to develop targeted treatment approaches are expected to drive the NGS automation market in North America.

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Increasing Pharmaceutical R&D Investments & Healthcare Expenditures Driving the North America NGS Automation Market

One of the major applications of NGS is in the drug discovery processes of pharmaceutical and biotechnology companies. Pharmaceutical companies constantly focus on R&D as it is a core aspect of drug development processes. The biotechnology industry also continues to witness substantial growth due to increased investments in R&D to cater to the growing demand for innovation and new medical breakthroughs. The importance of R&D is evident due to the rising number of drug approvals. For instance, from 2012-2021, approximately 430 novel drugs, an average of 43 approvals per year, were approved by the FDA’s Center for Drug Evaluation and Research (CDER). High R&D investments in the pharmaceutical and biotechnology industries are expected to drive the NGS automation market due to the importance of NGS automation in the drug discovery process.

According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), in the U.S., pharmaceutical R&D expenditure increased from USD 40,688 million in 2010 to USD 72,412 million in 2020. This increase in pharmaceutical R&D expenditure can enable laboratories to acquire automation workstations, which is expected to propel the growth of the NGS automation market in North America.

Additionally, the rising healthcare expenditure is expected to increase the demand for NGS automation for clinical diagnostic applications. According to the World Bank, in North America, the healthcare expenditure per capita increased from USD 7,567.27 in 2010 to USD 11,076.74 in 2020. Thus, growing healthcare expenditures are also expected to drive the demand for NGS automation in the region, mainly for clinical diagnostic applications.

Key Findings of North America NGS Automation Market Study:

The Workstations/Robotic Platforms Segment is Expected to Dominate the North America NGS Automation Market in 2023

Among all the products, in 2023, the workstation/robotic platforms segment is expected to account for the largest share of the market. The increasing demand for the adoption of NGS automation workstations/robotic platforms can contribute to the largest share of the segment. The NGS workstations are usually used in very large sequencing centers and feature high levels of parallel sequencing. Automation of the library preparation improves the consistency and reproducibility of the results and increases the process efficiency. It also helps to maintain turnaround times despite expanding sample workloads. Therefore, there is an increasing demand for the adoption of NGS automation workstations/robotic platforms in the NGS workflow to increase efficiency and reduce errors.

The Whole Genome Sequencing Segment is Expected to Dominate the North America NGS Automation Market in 2023

Among all the sequencing types, in 2023, the whole genome sequencing segment is expected to account for the largest share of the market. Whole genome sequencing is a comprehensive method for analyzing entire genomes. It helps identify inherited disorders, characterize the mutations that drive cancer progression, and track disease outbreaks. The largest share of this segment is mainly attributed to the advantages of whole genome sequencing, such as analysis of both small and large variants, which might get missed in focused approaches, variants in non-coding regions can also be identified, and delivery of large volumes of data within a short time. Additionally, the U.S. FDA utilizes whole genome sequencing technology to identify basic foodborne pathogens during foodborne illness outbreaks. Hence, this type of sequencing can potentially help to reduce foodborne illnesses and deaths.

The Drug Discovery Segment is Expected to Dominate the North America NGS Automation Market in 2023

Among all the applications, in 2023, the drug discovery segment is expected to account for the largest share of the market. The large share of the segment contributed to factors such as growing demand for personalized medicines, rising prevalence of genetic disorders, and increasing adoption of NGS technologies in several stages of drug development. Traditionally, the development of new therapies and drugs usually takes a long time and requires considerable patient pools. The adoption of NGS automation has cut down the cost of drug development and time due to its potential to improve workflow efficiency. Additionally, the rapidly decreasing cost of sequencing per base, in conjunction with the introduction of cost-effective bench-top laboratory sequencers, has highlighted the need to incorporate NGS data in the field of personalized medicine.

In 2023, the Pharmaceutical & Biotechnology Companies Segment is Expected to Account for the Largest Share of the North America NGS Automation Market

Among all the end users, in 2023, the pharmaceutical & biotechnology companies segment is expected to account for the largest share of the North America NGS automation market. NGS is widely used for drug discovery applications in pharmaceutical & biotechnology companies. In 2019, 48 new drugs were approved, and the U.S. FDA launched 11 cancer treatments. In 2021, 50 novel drugs were approved by the U.S. FDA. Pharmaceuticals and biotech companies have driven an increase in the number of large-scale genome sequencing projects to support their genomics drug development programs. Hence, the increasing number of large-scale genome sequencing projects that support genomics drug development programs is expected to drive the demand for NGS automation, thereby contributing to the significant market share of the segment.

U.S.: Accounted for the Largest Market Share in 2023

The U.S. is expected to account for the largest share of the North America NGS automation market in 2023. The large market share of the segment is attributed to the increasing government support and initiatives toward personalized medicine research and rising R&D investment by pharmaceutical & biopharmaceutical companies. The increasing government support and initiatives to boost the adoption of personalized medicine research would, in turn, increase the demand for NGS automation. For instance, In July 2021, the National Institutes of Health announced a USD 80 million investment to encourage the establishment of the GREGoR (formerly the Mendelian Genomics Research Consortium) and the development of novel methods and approaches that will aid researchers in identifying the genetic causes of single-gene diseases.

Key Players

The report offers a competitive landscape based on an extensive assessment of the product portfolio offerings, geographic presence, and key strategic developments adopted by leading market players in the industry over the years (2020–2023). The key players profiled in the North America NGS automation market are Agilent Technologies, Inc. (U.S.), Danaher Corporation (U.S.), Eppendorf AG (Germany), Hamilton Company (U.S.), PerkinElmer, Inc. (U.S.), Tecan Group Ltd. (Switzerland), BRAND GMBH + CO KG (Germany), Hudson Robotics (U.S.), SPT Labtech (U.K.), Thermo Fisher Scientific Inc. (U.S.), and F. Hoffmann-La Roche Ltd. (Switzerland).

Report Summary:

Scope of the Report:

North America NGS Automation Market Assessment, by Product

• Workstations/Robotic Platforms
• Reagents & Consumables

North America NGS Automation Market Assessment, by Sequencing Type

• Whole Genome Sequencing
• Whole Exome Sequencing
• Targeted Genome Sequencing
• Other Sequencing Types
  (Note: The sequencing type comprises degradome sequencing, chromatin immunoprecipitation (ChIP) sequencing, and methylation sequencing)

North America NGS Automation Market Assessment, by Application

• Drug Discovery
• Clinical Diagnostics
  • Reproductive Health Diagnostics
  • Oncology Diagnostics
  • Infectious Disease Diagnostics
  • Other Clinical Diagnostics Applications
• Other Applications
  (Note 1: The other clinical diagnostics applications comprise cardiovascular diseases, detection of genetic aberrations in neurological disorders, rare diseases, metabolic and immune disorders, and foodborne illnesses, among others
  Note 2: The other applications comprise basic research (genomics, molecular biology, and other life sciences), agriculture & animal research, and forensics & food microbiology)

North America NGS Automation Market Assessment, by End User

• Pharmaceutical & Biotechnology Companies
• Hospitals & Diagnostic Laboratories
• Academics & Research Institutes
• Other End Users
  (Note: The other end users comprise forensic laboratories & security agencies, the food industry, and the agriculture industry)

North America NGS Automation Market Assessment, by Country

• U.S.
• Canada

Key questions answered in the report: