Sequencing Prep Markets Boosted By Benchtop Systems, Firm Finds

Press Release
Oct 26, 2018
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Rockville (MD), October 26, 2018 — New York City-based Kalorama Information believes that smaller systems that perform next-generating sequencing tasks will drive sales growth for library preparation and target enrichment products. The introduction of smaller, cheaper benchtop NGS systems has expanded the market into smaller labs that could never afford the $500k for earlier systems. Due to their lower throughput, they are suitable for a variety of applications but not for most whole genome sequencing. These systems are largely being used for amplicon sequencing and targeted sequencing, as well as RNA or small/ micro RNA sequencing. Automation, streamlining of workflows, and other innovations have gradually made the library preparation process easier and less time-consuming. The science is also evolving to the point where labs are often designing their experiments to generate only the data that they expect to need.

Fluidigm, 10x Genomics, New England Biolabs and Agilent Technologies are among the companies in this market, along with sequencer suppliers Thermo Fisher Scientific and Illumina. Kalorama Information detailed the growth of the Library Preparation and Equipment market opportunity in its latest report.

“The rapid rate of adoption of the benchtop systems has fueled the growth for reagents and kits for these various applications. In particular, there has been a great demand for panels of genes related to specific disease areas,” said Bruce Carlson, Publisher of Kalorama Information.

The predominant technology trend in NGS has shifted over the last several years, from ever-increasing performance, to diversity and flexibility of systems, to greater options at the low end. The low cost systems appeal to a different segment of the market that is presumably much larger. The NGS systems themselves can now automate many more of the steps, and there have been liquid handlers and other robotics designed to simplify the upstream processes. Between the automated sample preparation and/or library preparation and increasingly user-friendly software, two of the major hurdles have been addressed for these smaller labs with limited personnel. One of the major efforts has been to do away with the library preparation equipment entirely; Thermo Fisher’s S5 was designed to simplify all of the steps from library preparation to sequence generation. Illumina has now introduced several low cost systems. Oxford Nanopore’s products are increasingly being geared for simplified use and even field use outside of the lab.

The situation in library preparation and target enrichment products is not without its challenges, according to the report. For one, there is a risk for competitors as the sequencer market has been dominated for several years by just two companies. This situation makes the market more subject to the repercussions of those companies’ actions. The top-heaviness in sequencing also makes the market more vulnerable to a new competitor emerging and more rapidly toppling the current paradigm due to lower prices or other advantages. Illumina and Thermo Fisher Scientific have over 80% of the overall market. The various steps in the NGS process have varying levels of exposure to this risk. Nucleic acid extraction is usually necessary regardless of the sequencer platform or protocol, but it is a small segment due to low prices. Although many library preparation and target enrichment techniques can also be used across different types of sequencers, there is still the requirement to closely follow the developments with the sequencer manufacturers, their chemistries, and their other various kits and products. There is the possibility of new sequencers that don’t require as many of these products.

About Kalorama Information

Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama’s website and are also available on www.marketresearch.com and www.profound.com.

We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog at https://www.kaloramainformation.com/.

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