Table of Contents
Clinical Applications Grow, Regulations Stiffen, Acquisitions Mount
This study explores Western Europe’s dynamic next generation sequencing (NGS) market. The majority of the quantitative and qualitative information was acquired through primary research conducted with NGS providers. The market is broadly classified into 2 major segments: instruments and reagents, and 2 subsegments: research use only and clinical diagnostic use. Geographic segmentation covers the United Kingdom, Germany, France, Spain, Italy, Benelux, and Scandinavia. Also, the study includes a competitive analysis (SWOT), product analysis, revenue forecasts, and market share using a base year of 2013 and a 2014–2018 forecast period. A list of key sequencing service providers for each country or region is included.
The majority of the quantitative and qualitative information contained in this research service was acquired through primary research conducted with next generation sequencing (NGS) instruments and reagents providers. Most consultations were conducted with vice presidents (VPs) of business units, VPs of marketing, product managers, marketing managers, marketing directors, and business development directors from various competitors within the next generation sequencing. Industry-specific information obtained includes:
-NGS revenue breakdowns by technology segments and regions
-Company revenues, market share estimates, and projected growth rates of various competitors
-Top-level customer, regional, and technology market trend information
-Market drivers, restraints, and challenges Supplementary research was conducted utilizing secondary sources including scientific journals, online media, Frost & Sullivan databases and research services, and publicly available corporate filings. Forecasts are based on the data and analyses regarding industry challenges, market drivers and restraints, and market trends. If specific revenues or market sizes were unavailable, estimates were derived through the consultations with industry experts, augmented by secondary research. Growth trends specific to certain market participants are based on consultations, past growth rates, and technology reviews. For the instrumentation market, revenues were calculated based on a bottom-up approach using installed base per country.
-The Western European market for NGS generated $ million in 2013 and is expected to reach $ million in 2018. The market is expected to grow at a CAGR of %.
-Combined, the NGS instruments and reagents markets in Western Europe contribute close to % of the global market revenue, with Germany and the United Kingdom generating a combined value of % within Western Europe.
-The NGS instruments market generated $million in Western Europe in 2013, with an expected CAGR of % from 2013 to 2018. Meanwhile, the reagents market totaled $ million in Western Europe and is expected to grow at a CAGR of % through 2018.
-The market is driven by a wide range of clinical applications for NGS such as NIPT*, HLA* typing, and the food testing industry.
-The market is restrained by a lack of reimbursement codes for NGS-based tests and manufacturers adhering to the LDT* route rather than following the capillary electrophoresis (CE) marking route.
-Key vendors in the NGS instrumentation space include Illumina, Life Technologies, Pacific Biosciences, and Roche (until the company exits the market in 2015). Emerging competitors expected to enter the NGS instruments market include Oxford Nanopore Technologies and QIAGEN (Intelligent Bio-Systems).
-Key companies to watch in the NGS market include GenapSys, DNA Electronics, Genia Technologies, and Nabsys. These companies provide the latest and disruptive technology principles based on semiconductors, which create partnership opportunities for European companies looking to thrive and venture in the high growth genomic market.
oThe above mentioned companies aim to reduce the price of both sequencing and high throughput sequencers thereby making sequencing affordable.
oBio-Rad Laboratories acquired GnuBIO on 11 April 2014.
-Frost & Sullivan estimates that by 2016, clinical sequencing will be more welcomed and accepted by the physician community.
-Several databases on whole genome sequencing are being developed to accelerate the NGS toward the next level of application and a more confident platform.
-The key factors affecting the Western European NGS market forecast are summarized below:
oApplication Drivers: Clinical applications loom large, for example, whole genome sequencing and targeted sequencing for NIPT applications.
oTechnology Trends: Tremendous price decrease in human genome sequencing has given rise to many emerging platforms. Many bench-top sequencers have also given rise to the demand for adopting NGS over traditional forms of sequencing.
oMacroeconomic Trends: Whole genome sequencing, targeted sequencing, and genetic testing have created a surge for more sequencing facilities across Western Europe. Genetic tests with a prognostic and predictive ability and early stage diagnosis complemented by the companion diagnostic concept influence the uptake of low cost sequencers. Extensive genome heterogeneity offers a “driver“ for the adoption of NGS within the diagnostic pathway for oncology in the near term.
oRegulatory Trends: Although the United States has no clearly defined in vitro diagnostics (IVD) regulatory pathway for sequencing tests, the Western European scenario offers a different route for NGS. The CE marking of platforms makes sequencing tests possible in the clinical settings, and a few sequencing tests are also reimbursed in the European Union by payers. The less stringent regulatory pathway in Western Europe creates a favorable market to expedite the launch of innovative technologies.
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