Growing demand from molecular diagnostics, biopharmaceutical, and academic institutions and customers compounds growth opportunities, finds Frost & Sullivan’s Transformational Health team
Santa Clara, Calif. – August 29, 2017
The United States (U.S.) next-generation sequencing (NGS) informatics market is witnessing double-digit growth, supported by the increasing demand from molecular diagnostics, biopharmaceutical, and academic institution customers. Pharmaceutical companies’ strong focus on developing precision and personalized therapies, the launch of large-scale genome sequencing projects, and expected reimbursement and approval policy developments for NGS-based diagnostic tests will augment the requirement for NGS informatics solutions.
Frost & Sullivan’s market research, “Transformation and Growth Opportunities in the US Next-generation Sequencing Informatics Market, Forecast to 2021,” finds that the U.S. NGS informatics market generated revenues of $416 million in 2016 and is expected to register a compound annual growth rate (CAGR) of 19.0 percent through 2021.
“End-to-end informatics solutions focused on clinical applications is the greatest unmet need of customers,” explained Transformational Health Senior Industry Analyst Piyush Bansal. “Researchers’ reluctance to move onto external platforms due to the lack of end-to-end informatics tools and limited availability of a clinical application-focused analysis pipeline is a key industry challenge. Overcoming this challenge will be critical to success.”
Several trends and developments bolster the U.S. NGS informatics market:
“The expected entry of big data information technology companies will integrate healthcare (such as EHR and imaging data) and genomics data to develop and provide artificial intelligence (AI)-based computation and interpretation solutions,” noted Bansal. “This will intensify market competition and force smaller players to innovate as clinical interpretation and reporting capabilities become key differentiators among service providers.”
Source: Frost & Sullivan
Illustration Photo: Prenatal Genome Sequencing (credits: Ernesto del Aguila III, NHGRI / Flickr Creative Commons Attribution-NonCommercial 2.0 Generic (CC BY-NC 2.0))