Metagenomic Sequencing Market Size and Share Analysis by Application (Drug Discovery, Clinical Diagnostic, Soil Microbiome Applications, Industrial Applications, Ecological and Environmental Applications, Veterinary Applications), Workflow (Sample Processing & Library Preparation, Sequencing, Data Processing & Analysis), Technology (Shotgun Metagenomic Sequencing, 16S rRNA Sequencing, Metatranscriptomics, Whole-genome Sequencing, De novo assembly), Offerings (Reagents & Consumables, Instruments, Services, Analysis & Data Interpretation Solutions) - Global Industry Demand Forecast to 2030

Market Overview

The global metagenomic sequencing market generated revenue of USD 1,938 million in 2022, which is expected to witness a CAGR of 17.20% during 2022–2030, reaching USD 6,899 million by 2030. This can be ascribed to the declining cost of this technique. Moreover, the adoption of this technique is rising in agricultural biotechnology, wherein it enables the analysis of whole genomes in an environmental sample without the requirement for culturing.

This industry is majorly driven by the growing demand for the associated techniques in drug discovery, clinical diagnostics, and carrier screening, in part, due to the increase in the prevalence of genetic disorders. Furthermore, the continuous advancements in NGS platforms, high requirement for such technique in several fields, and increasing funding by private and government organizations to encourage large biotechnology projects are leading to the expansion of the market.

The rising interest of researchers in the application of metagenomics in numerous domains, including metatranscriptomics, metaproteomics, and metabolomics, has a significant impact on the industry. Additionally, the availability of cloud computing technology for data management provides lucrative opportunities to market participants. Moreover, the market is booming as a result of the recent significant decrease in the cost of genome sequencing, brought about by technological advancements, and the rising adoption of DNA sequencing for research.

Numerous market players have launched metagenomic programs for efficient mutation monitoring, to aid in the creation of vaccines for infectious diseases. For instance, in December 2021, scientists from the University of Calgary conducted a study on the use of the approach for the detection of COVID-19 and its variants. The study came to the conclusion that when the disease first appears, the metagenomics technique can be helpful.

Furthermore, it is projected that the strategic efforts made by academic institutions and industry players to promote breakthrough technologies would assist the market growth. Although it is forecast that the sequence analysis business would expand fast as a result of the low pricing, variable expenses have a significant impact on revenue generation. Metagenomics sequencing is a useful addition to PCR-based diagnostic procedures because of its lowering cost and increasing sensitivity. As a result, clinics are using a variety of genomics services more frequently.

Technological Advancements in Metagenomics Field

Moreover, advanced sequencing methods offer a number of benefits over traditional approaches. Accurate results and less turnaround times have increased the demand for these technologies in the life sciences industry. Furthermore, the rising prevalence of viral diseases, including influenza, virus-induced diarrhea, HIV/AIDS, and hepatitis B, and an increase in the number of genes being discovered are impelling biotechnology companies and academic institutions to conduct metagenome studies.

Moreover, these advanced technologies are more beneficial than the conventional microarrays because of a variety of characteristics, such as the requirement for a low input sample concentration and capability of providing rapid and accurate results, apart from a lack of experimental bias in microarrays. The total number of sequencing reads produced in each run has risen since the substantial parallelization of procedures was introduced. Scientists worldwide are looking at a platform that brings down the count of pre-sequencing steps, guarantees accurate sequences with long reads with each run, operates on a DNA molecule without pre-amplification, and has greater read accuracy.

For instance, in August 2022, a personalized medicine company, OpGen Inc., announced that its subsidiary, Ares Genetics, would begin offering NGS services. The infectious illnesses component of its business is being expanded across the U.S. as part of its revenue growth strategy. The use of such technology for metagenomics was crucial to the creation of a COVID-19 vaccine.

Drug Discovery Category Dominates Industry

By application, the drug discovery category accounted for the largest revenue share, of more than 26%, in 2022, and it is further expected to maintain its dominance during the forthcoming period. This can be attributed to the increasing research activities in the pharmaceutical and biotechnical industries for novel drug discovery, often as part of collaborations among market players and academic institutes.

Around the world, governments and market players are strongly focusing on drug discovery and development, which is why scientists are adopting the metagenomic technology for accurate and fast results. Many new applications for this type of sequencing, such as the genome analysis of microbial populations, have emerged as a result of the development of improved technologies.

The clinical diagnostics category is expected to register the highest CAGR during the forecast period, owing to the creation of tools and software for genomic research and rising incidence of infectious diseases.

Shotgun Metagenomic Technique Accounted for Largest Share

The shotgun technique accounted for the largest share in the metagenomic sequencing market. It is further expected to maintain its dominance during the forthcoming period, owing to the advantages offered by this procedure over other techniques and the surge in the number of genomic-based research activities conducted by academic and research institutes.

This method allows for the reading of all the genomes contained within a DNA molecule. For instance, a paper published by the Arthritis & Rheumatology journal in July 2022 claims that the genetic makeup and the presence of a disease have an effect on the composition of the gut microbiota. To achieve this outcome, the shotgun technique was used in the study.

Further, the whole-genome sequencing method would witness significant growth in the industry during the forthcoming period. Companies are working hard to expand their product portfolios offered for diagnosing uncommon diseases. Moreover, researchers are rapidly adopting this method due to its clearance in DNA profiling. For instance, in June 2021, Pacific Biosciences and the Rady Children's Institute for Genomic Medicine collaborated on whole-genome sequencing research. The program was designed to boost the success rates of treating rare disorders and find the potential disease-causing genetic variations.

Sequencing Category Held Largest Share

The sequencing category accounted for the largest share in 2022 in the workflow segment, and it is further expected to maintain its dominance in the future. Sequencing techniques are frequently used by healthcare institutions and research scientists for genetic studies, which is a crucial component of genetic testing. The cost of sequence modeling has fallen by about 28% yearly due to technological advancements, which would drive its adoption.

According to a report published in September 2022, African countries underperformed in the sequencing of genomes during the early days of COVID-19. However, more than 100,000 genomes from the region have been sequenced till date as a result of the increased funding.

The data processing & analysis category will show significant growth due to the rising complexities in maintaining the read data of billions of sequences. Hence, in order to extract relevant information, the data must be reduced to a meaningful nucleotide sequence confirming the stated premise. Different software is created and committed to a certain function, in order to evaluate the massive volumes of this data, which is a key factor driving the growth in the usage of the technology.

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North America Is Prime Revenue Contributor

Geographically, North America occupied the largest share, of more than 42%, in 2022, and it is expected to experience a strong CAGR during the projection period. This will be due to the substantial research and development activities in the pharmaceutical and biotechnology sectors, elevated risk of diseases in the region, existence of reputable healthcare businesses, and robust support for the setup of new R&D facilities in the region. Additionally, the earlier adoption of new technologies here than in other regions and the rising prevalence of chronic diseases support this expansion. Furthermore, the market is expanding in North America due to the rising use of genomics in genetic research and diagnostics and the accessibility of high research funding and NGS data analysis tools.

Additionally, the North American metagenomic sequencing market is witnessing numerous collaborations among academic institutions and companies. For instance, the Broad Institute partnered with the CDC and Theiagen Genomics in September 2021 to expedite support for public health labs in the U.S. The partnership's main goal is to make it possible to monitor pathogenic genomes across the country.

Moreover, Europe is showing significant growth in the adoption of this technology due to the presence of prominent research institutions and market participants. Additionally, the expansion of the partnerships between government institutions and the providers of sequencing solutions is responsible for the market progress. The market is also booming as a result of the availability of advanced genomic sequencing technology.

Furthermore, Germany is showing significant growth in the adoption of this sequencing method. This is owing to the increasing spending of the Deutsche government on healthcare and rising compliance for advanced technologies among researchers as well as healthcare providers, in part, due to the increasing awareness of early disease diagnosis.

The market in France is expected to witness notable growth during the forecast period as well. This can be attributed to the improving healthcare infrastructure, presence of market players offering enhanced tools for genome sequencing, and increasing prevalence of chronic diseases, which is driving the use of metagenomics in diagnostics. Moreover, the growing adoption of next-generation sequencing is another factor behind the market growth in the nation.

Top Providers of Metagenomic Sequencing Solutions Are:

• Illumina Inc.
• Thermo Fisher Scientific
• PerkinElmer Inc.
• Oxford Nanopore Technologies Plc
• QIAGEN N.V.
• F. Hoffmann-La Roche Ltd.
• Novogene Co. Ltd.
• Swift Biosciences Inc.
• Agilent Technologies Inc.

Market Size Breakdown by Segment

This report offers deep insights into the metagenomic sequencing market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based on Application

• Drug Discovery
• Clinical Diagnostic
• Soil Microbiome Applications
• Industrial Applications
• Ecological and Environmental Applications
• Veterinary Applications

Based on Workflow

• Sample Processing & Library Preparation
• Sequencing
• Data Processing & Analysis

Based on Technology

• Shotgun Metagenomic Sequencing,
• 16S rRNA Sequencing
• Metatranscriptomics
• Whole-genome Sequencing
• De novo Assembly

Based on Offerings

• Reagents & Consumables
• Instruments
• Services
• Analysis & Data Interpretation Solutions

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.