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Frost & Sullivan: Next-Generation Sequencing Services is one of the Fastest Growing Markets in the Life Sciences Industry

MOUNTAIN VIEW, Calif., June 28, 2012 /PRNewswire/ -- The growing list of applications enabled by next-generation sequencing technology has allowed sequencing service providers to make inroads into new customer segments and research fields, such as cancer research, genetic disease research, metagenomics, newborn sequencing, and clinical sequencing. Researchers lacking in-house sequencing infrastructure or experience are gaining access to the latest technologies through service providers offering complete sequencing workflows.   

New analysis from Frost & Sullivan's ( Strategic Analysis of the U.S. Next-Generation Sequencing Services Market research finds that the market earned revenues of $160.0 million in 2011 and estimates this to reach $550.0 million in 2016.

If you are interested in more information on this research, please send an email to Britni Myers, Corporate Communications, at, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

"When new sequencing applications emerge, researchers do not always have the expertise to conduct them with in-house infrastructure, providing a significant opportunity for service providers," said Frost & Sullivan Senior Industry Analyst Christianne Bird. "In particular, the two emerging applications of RNA-sequencing and exome sequencing are proving lucrative to service providers."

Genome centers and core facilities account for a larger percentage of the next-generation sequencing installed base than commercial service providers. Academic researchers may use core facilities for at-cost services (reagents and labor only); however, unlike commercial service providers that offer sample-to-answer services, these facilities do not always provide full bioinformatics and analysis capabilities.

While users of sequencing core facilities and non-profit genome centers must have experience with genomic data as well as in-house expertise and software to conduct analyses, customers of commercial service providers require little to no familiarity with the technology as they purchase turnkey services with comprehensive data analysis.

Nevertheless, despite researchers' eagerness to use sequencing services, the decreasing sequencing costs, influx of new competitors, and increasing adoption of sequencing in basic laboratories has placed the market in a state of flux. Commercial sequencing service providers can stay afloat in this dynamic market by differentiating themselves with value-added services.

In the next five years, next-generation sequencing is expected to gain currency in clinics for the diagnosis of rare genetic diseases, in clinical trials for patient stratification and drug response studies, and in preventative medicine of genetically related diseases. Commercial service providers must continue to adapt to emerging applications in the research, clinical and pharmaceutical fields to take advantage of growth opportunities.

"Many sequencing service providers are preparing for the emergence of clinical sequencing," said Bird. "Providers are seeking Clinical Laboratory Improvement Act (CLIA)-certification, launching direct-to-consumer sequencing services for physicians and patients, ramping up analysis capabilities for diagnostics, and translating genetic information for clinics in anticipation of clinical applications."

Strategic Analysis of the U.S. Next-Generation Sequencing Services Market is part of the Life Sciences Growth Partnership Services program, which also includes research in the following markets: End-User Trends in the U.S. Next-Generation Sequencing Market, Strategic Analysis of the U.S. Next Generation Sequencing Market, U.S. Nucleic Acid Purification and Isolation Markets, and U.S. Epigenetics Markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Strategic Analysis of the U.S. Next-Generation Sequencing Services Market

Britni Myers
Corporate Communications – North America
P: 210.477.8481
F: 210.348.1003


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