SANTA CLARA, California, Dec. 13, 2016 /PRNewswire/ -- The $1,000 genome price milestone achieved in 2015 is compelling next-generation sequencing (NGS) service providers to review their strategies for long-term growth. Decreasing sequencing costs are driving larger-scale projects, expanding the utility of sequencing across various industries and applications, and causing service providers to increase capacity to meet demand. In order to provide turnkey services to labs that continue to outsource their sequencing work, the industries for sequencing, informatics, and clinical interpretation services will converge through partnerships and acquisitions.
Click here for complimentary access to more information on this analysis and to register for a Growth Strategy Dialogue, a free interactive briefing with Frost & Sullivan's thought leaders.
"Over the next 10 years, Frost & Sullivan projects the $100 genome will be achieved, leading to projects on the scale of sequencing 1 million+ genomes," said Transformational Health Senior Industry Analyst Christi Bird. "This milestone will disrupt the services space both positively and negatively, as bringing NGS in-house will become more cost-effective for labs, while others will view it as an opportunity to greatly expand their outsourced large-scale sequencing projects."
Frost & Sullivan's recent analysis, US Next-generation Sequencing Services Market, is part of its Life Sciences Growth Partnership Service (GPS) program. It finds that the US NGS services market revenues will reach $855.0 million in 2022. The market is fiercely competitive, with nearly 50 service providers serving US customers, with many more competitors globally.
"On the flip side, the push to make sequencing more accessible has triggered the launch of smaller, easy-to-use, 'personal' genome sequencers," noted Bird. "The ease-of-use of these instruments allows novice sequencing users to acquire systems and ramp up sequencing without significant in-house expertise. This may detract from outsourcing use in the future."
For now, NGS service providers must position their service offerings, pricing and end-user focus to capitalize on emerging opportunities. These include clinical sequencing, population-sized sequencing projects, diversified applications and end users, increasing installed base with demand, pushing the boundaries of sequencing costs per genome, adding bioinformatics capabilities, and development of clinical diagnostics as an additional revenue stream.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion
US Next-generation Sequencing Services Market
Corporate Communications – North America
P: +54 (11) 4778 3540
SOURCE Frost & Sullivan