THIRD GENERATION SEQUENCING MARKET ANALYSIS

The global Third Generation Sequencing market was valued at US$ 600.8 Mn in 2023 and is forecast to reach a value of US$ 2,297.3 Mn by 2030 at a CAGR of 21.1% between 2023 and 2030. The third-generation sequencing (TGS) market refers to the market for technologies and services related to third-generation sequencing platforms. These platforms offer advantages over traditional second-generation sequencing methods by providing longer read lengths, real-time sequencing capabilities, and the ability to directly sequence DNA or RNA molecules.

TGS technologies, such as Pacific Biosciences' Single Molecule Real-Time (SMRT) sequencing and Oxford Nanopore Technologies' nanopore sequencing, have gained significant attention in the field of genomics research, clinical diagnostics, and other applications. They enable researchers to obtain more comprehensive and accurate genomic information, which has implications for understanding genetic diseases, precision medicine, agricultural research, and environmental studies, among others.

Third Generation Sequencing Market Regional Insights

• North America, particularly the United States, has been a leading market for TGS technologies, driven by significant investments in genomics research, advancements in healthcare, and the presence of major sequencing companies. For instance, in September 2022, The Centers for Disease Control and Prevention (CDC), the U.S. national public health organization, announced 5-year grants to five state public health departments. The Pathogen Genomics Centers of Excellence (PGCoE) network will be established as a result of the awards. The goal of the PGCoE network is to develop and improve innovation and technological capability in pathogen genomics, molecular epidemiology, and bioinformatics in order to better prevent, regulate, and respond to microbial threats to public health.
• Europe: European countries have also been active in the TGS market. Countries like the United Kingdom, Germany, and France have made significant investments in genomics research and are home to prominent academic and research institutions. The European Union has supported genomics initiatives, which have fostered the development and adoption of TGS technologies.
• Asia Pacific has emerged as a rapidly growing market for TGS technologies. Countries such as China, Japan, and South Korea have made substantial investments in genomics research and have a growing biotechnology industry. These factors contribute to the increasing adoption of TGS platforms and the development of regional market opportunities.

Figure 1. Global Third Generation Sequencing Market Share (%), by Region, 2023

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Analyst Viewpoint:

The third generation sequencing market shows promising growth prospects over the coming years. The reducing cost of sequencing due to technological advances is a major driver for this market. Further innovations are expected to reduce sequencing timescales which will boost adoption rates across healthcare and life science industries. However, data storage and analysis remains a challenge due to the complexity of the massive amounts of data generated through third generation sequencing. Data transfer, integration with other datasets and meaningful clinical interpretations require specialized skillsets which act as a restraint. Asia Pacific region especially China is expected to experience highest growth due to increasing R&D investments and focus on precision medicine. North America will continue to dominate due to presence of major players and large-scale research projects.

Third Generation Sequencing Market Drivers:

• Increasing demand of TGS technologies: TGS technologies offer significantly longer read lengths compared to traditional second-generation sequencing methods. This enables researchers to obtain more complete and accurate genomic information, including the ability to sequence long repetitive regions, structural variations, and complex genomes. For instance, on March 07, 2023, PacBio, a leading producer of high-quality, highly accurate sequencing solutions, has announced that the first customer shipments of Revio long-read sequencing systems will begin on March 8, 2023. As previously stated, the Revio system incorporates significant advances in SMRT Cell design, computing, and system architecture. This, combined with the trusted power of HiFi chemistry, enables a dramatic increase in throughput and lower sequencing costs while providing exceptional accuracy and direct methylation detection.
• Real-Time Sequencing: TGS platforms provide real-time sequencing capabilities, allowing researchers to monitor the sequencing process as it happens. This feature enables rapid data generation and analysis, facilitating applications such as infectious disease surveillance, monitoring of viral outbreaks, and time-sensitive clinical diagnostics.
• Direct Sequencing: TGS technologies have the ability to sequence DNA or RNA molecules directly, without the need for amplification or PCR (polymerase chain reaction). This reduces the risk of bias or errors introduced during amplification and streamlines the sequencing workflow, making it more efficient and cost-effective.
• Growing Demand for Precision Medicine: The field of precision medicine, which aims to tailor medical treatments to individual patients based on their genetic makeup, is driving the demand for comprehensive genomic information. TGS technologies play a crucial role in providing detailed genetic data that can be used to guide personalized treatment decisions. For instance, on January 5, 2023, QIAGEN, a molecular testing solutions provider, announced an exclusive strategic partnership with Helix, a population genomics company based in California, to enhance companion diagnostics for genetic disorders. According to the terms of the agreement, QIAGEN will be Helix's exclusive marketing and contracting partner in the U.S. The partnership will leverage the Helix Laboratory Platform, which recently received the first-ever de novo class II U.S. Food & Drug Administration authorization for a whole exome sequencing platform.

Third Generation Sequencing Market Opportunities:

• Genomics Research: TGS technologies provide researchers with the ability to generate long-read sequences and capture complex genomic information. This opens up new opportunities for advancing genomics research, including the discovery of novel genetic variations, understanding gene regulation mechanisms, and studying the structure and function of genomes in greater detail. For instance, on August 2023, PacBio, a leading provider of high-quality, highly accurate sequencing solutions, and GeneDx, a leader in improving health outcomes through genomic and clinical insights, have announced a research collaboration with the University of Washington to investigate the capabilities of HiFi long-read whole genome sequencing (WGS) to increase diagnostic rates in pediatric patients with genetic conditions.
• Clinical Diagnostics: TGS platforms offer potential applications in clinical diagnostics, especially in the identification and characterization of genetic variants associated with diseases. TGS can provide more comprehensive and accurate genetic information, enabling improved diagnosis, personalized treatment strategies, and monitoring of treatment response. For instance, on April 14, 2023, Oxford Nanopore Technologies plc, company that provides a new generation of nanopore-based molecular sensing technology, and bioMérieux SA, a world leader in in vitro diagnostics, announced a collaboration to improve global health outcomes by exploring specific opportunities to bring nanopore sequencing to the infectious disease diagnostics market. The companies are working together to identify and pursue opportunities to improve patient care through access to nanopore-based clinical research and in vitro diagnostic (IVD) solutions.
• Infectious Disease Surveillance: TGS platforms with real-time sequencing capabilities offer opportunities for rapid identification and characterization of infectious pathogens. This can aid in the surveillance and response to outbreaks, enabling timely intervention strategies and informed public health decisions. According to an article published by WHO on July 12, 2023, Turkey is intensifying efforts to improve its national capacity for genomic surveillance. The program, sponsored by the European Union (EU) and carried out by the Ministry of Health (MoH) and the WHO Country Office in Türkiye, aims to improve laboratory capacities for the detection and surveillance of various infections, including SARS-CoV-2, in order to strengthen health security in the country.
• Agriculture and Crop Improvement: TGS technologies have applications in agriculture, allowing for the sequencing of plant and animal genomes with high accuracy and resolution. This can facilitate the identification of genetic variations associated with desirable traits, disease resistance, and yield improvement, leading to advancements in crop breeding and livestock management.

Third Generation Sequencing Market Trends:

• Technology Advancements: TGS technologies are continuously evolving, with ongoing advancements in sequencing chemistry, instrument performance, and data analysis tools. These advancements aim to improve accuracy, read lengths, sequencing speed, and cost-effectiveness of TGS platforms. Trends include the development of novel sequencing chemistries, miniaturization of sequencing devices, and improved base-calling algorithms.
• Increasing Adoption of TGS Platforms: The adoption of TGS platforms has been steadily increasing across various industries and research fields. Researchers and healthcare professionals are recognizing the benefits of long-read sequencing and real-time sequencing capabilities offered by TGS technologies. As the technologies become more established and accessible, their adoption is expected to continue to grow. According to an article published by Science X, one of the largest online communities for science-related topics, an international consortium of scientists proposed the Earth BioGenome Project in April 2018 to understand the evolution and organization of life on our planet by sequencing and functionally annotating the genomes of 1.5 million known species of eukaryotes, a massive group that includes plants, animals, fungi, and other organisms whose cells have a nucleus that houses their chromosomal DNA.
• Expansion of Applications: TGS technologies are finding applications in an expanding range of fields beyond genomics research. This includes clinical diagnostics, precision medicine, agriculture, environmental studies, and more. The ability to generate long-read sequences and capture complex genomic information opens up new possibilities and drives the exploration of diverse applications. For instance, on October 6, 2023, following three years of study and testing of PacBio HiFi sequencing, the research team at Children's Mercy Kansas City, a healthcare center in Kanas, U.S., is bringing long read sequencing to clinical care. The transition is expected to shorten the diagnosis journey for critically ill patients and their families.
• Integration with Existing Workflows: TGS platforms are increasingly being integrated into existing sequencing workflows and laboratory protocols. This includes complementing second-generation sequencing methods, leveraging the strengths of both technologies, and enabling comprehensive genomic analyses. Integrating TGS into established workflows improves efficiency and facilitates the adoption of TGS technologies in research and clinical settings.

Third Generation Sequencing Market Restraints:

• High Cost & Technical Challenges: TGS technologies can be relatively expensive compared to traditional second-generation sequencing methods. TGS technologies face technical challenges that can limit their adoption and performance. According to an article published by National Institutes of Health in April 2022, fresh material or whole cells are required for the DNA library, and techniques for handling ultra-long high molecular weight DNA need to be improved. Furthermore, TGS faces issues due to greater sequencing error rates and systematic error. The TGS is more expensive than the NGS (US$ 65-US$ 200 per Gb in PacBio and US$ 22-US$ 90 per Gb in ONT). Furthermore, because database systems for interpreting complex Structural variants are rare, thus bioinformatic analysis based on TGS is challenging.
• Data Analysis Complexity: TGS platforms generate large volumes of data with complex read structures, requiring advanced bioinformatics tools and computational resources for data analysis and interpretation. The complexity of TGS data analysis can be a barrier for researchers and healthcare professionals without specialized bioinformatics expertise, limiting the adoption and utilization of TGS technologies.

Figure 2. Global Next Generation Sequencing Market Share (%), by Technology, 2023

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Recent Developments

New product launches

• On March 14, 2023, Illumina Inc., a global leader in DNA sequencing and array-based technologies, announced the availability of its first product based on its revolutionary Illumina Complete Long Read technology. The Illumina Complete Long Read Prep, Human high-performance, long-read human whole-genome sequencing (WGS) test is compatible with the Illumina NovaSeq X Plus, NovaSeq X, and NovaSeq 6000 Sequencing Systems.
• In November 2022, Element Biosciences, Inc., a developer of an innovative DNA sequencing platform disrupting the genomics industry, announced the availability of its Element LoopSeq long-read sequencing technology kits for AVITI, giving the Element AVITI System the ability to perform both short- and long-read sequencing on the same instrument. Element is the first firm to own a general-purpose long-read technology that is powered by its native short-read sequencer.
• In October 2022, PacBio, a leading provider of high-quality, highly accurate sequencing solutions, announced the Revio long-read sequencing system, which will allow customers to rapidly scale their use of PacBio's renowned HiFi sequencing technology. Revio is intended to allow users to sequence up to 1,300 human entire genomes each year at 30-fold coverage for less than US$ 1,000 per genome.

• Merger, and collaborations

• On August 7, 2023, PacBio, a leading developer of high-quality, highly accurate sequencing solutions, and GeneDx, a leader in improving health outcomes through genomic and clinical insights, announced a research collaboration with the University of Washington to study the capabilities of HiFi long-read whole genome sequencing (WGS) to increase diagnostic rates in pediatric patients with genetic conditions.
• On May 1, 2023, Aptorum Group Limited, a pharmaceutical company, announced that its wholly owned subsidiary Aptorum Therapeutics Limited has entered into a non-binding Letter of Intent and Term Sheet to merge its 100% subsidiary, Paths Innovation Limited, and its underlying business with Universal Sequencing Technology Corporation, a San Diego and Boston-based US company dedicated to the development and commercialization of advanced proprietary DNA sequencing technologies.

Top companies in Third Generation Sequencing Market

• PacBio
• Oxford Nanopore Technologies, Ltd.
• BGI Genomics Co., Ltd.
• F. Hoffmann-La Roche AG
• Illumina, Inc.
• Thermo Fisher Scientific Inc.
• QIAGEN N.V.
• Agilent Technologies, Inc.
• GenapSys Inc.
• Loop Genomics
• Nabsys, Inc.
• Genia Technologies, Inc.
• Stratos Genomics, Inc.
• GATC Biotech AG
• Phase Genomics, Inc.

Definition: Third-generation sequencing (TGS), also known as long-read sequencing, is an advanced DNA sequencing technology that enables the rapid and accurate determination of the nucleotide sequence of DNA molecules. Unlike traditional methods, TGS allows for the sequencing of long stretches of DNA in a single read, providing valuable insights into complex genomic regions, structural variations, and epigenetic modifications.