A Look at the Billion Dollar Clinical Oncology NGS Market – Part II: Growth Driven by Competition, Data & Diagnostic Market Expansion

According to Nova One Advisor, the U.S. Clinical Oncology Next Generation Sequencing (NGS) market reached USD 500.45 million in 2023 and will grow from USD 577.02 million in 2024 to USD 2,078.04 million by 2033, reflecting a compound annual growth rate (CAGR) of 15.3% during the forecast period (2024-2033). Increased competition among industry players, technological advancements, and reduced genetic sequencing costs will drive this significant growth.

NGS Sequencing and Data Analysis Drive Market Expansion in Clinical Oncology

In 2023, the NGS sequencing segment was the highest revenue-generating segment in the global clinical oncology NGS market, driven by its widespread adoption in healthcare facilities. This technology allows for the simultaneous analysis of multiple genes and genetic alterations, offering comprehensive insights into tumor biology and helping to guide personalized treatment decisions for cancer patients. An example is Illumina’s introduction of the TruSight Oncology Comprehensive Panel (v2) in 2024, an NGS assay designed to identify a broader range of genetic variations linked to cancer.

Meanwhile, the increasing complexity of genomic data generated by NGS platforms is fueling the NGS data analysis segment’s rapid growth in the next few years. This growth is driving the demand for advanced bioinformatics tools and expertise to interpret large-scale datasets, enabling more precise oncology initiatives and personalized treatment strategies.

Several prominent companies in the NGS space, including Illumina, Thermo Fisher Scientific, QIAGEN, and Agilent Technologies, also cover advancements in the data analytics sector, developing tools to better interpret and manage complex genomic data. However, other key players focus more specifically on bioinformatics and data analysis solutions. DNAnexus and Seven Bridges are leading the way with cloud-based platforms designed to streamline the analysis of large genomic datasets. These platforms enable researchers and clinicians to collaborate efficiently while leveraging advanced analytics for personalized medicine, especially in oncology. Partek, acquired by Illumina in 2023, is another key player, focusing on user-friendly software solutions for analyzing NGS data, with particular emphasis on ease of integration into research and clinical workflows. Bio-Rad Laboratories, through its Droplet Digital PCR technology, is also moving into data analytics, offering precise quantification tools that complement NGS platforms for more sensitive analysis. 

Screening and Companion Diagnostics Drive Growth in Clinical Oncology NGS Market

The screening segment was the top revenue-generating area in the global clinical oncology NGS market, driven by a growing focus on early detection and preventive healthcare. NGS-based screening assays for cancer predisposition genes are in high demand as they help assess risk, enable early intervention, and support personalized management strategies for individuals at higher risk of cancer. An example of this trend is the collaboration between Qiagen and Illumina, to co-develop and market in vitro diagnostic (IVD) kits based on NGS for clinical oncology applications.

The companion diagnostics segment is experiencing significant growth, driven by the integration of NGS-based assays with targeted therapies for patient stratification and treatment monitoring. Companies such as Foundation Medicine and Guardant Health are developing NGS-based tests that identify genetic mutations, aiding in the creation of personalized treatment plans. Foundation Medicine’s FoundationOne test, for example, detects a wide range of genomic alterations to guide treatment decisions, while Guardant Health specializes in liquid biopsy tests, offering non-invasive methods for tracking tumor evolution and treatment response. These technologies are supporting more informed clinical decisions, which could lead to improved patient outcomes and potentially lower healthcare costs.

Laboratories Lead Market Growth, While Clinics Drive Rapid Expansion in Clinical Oncology NGS

The laboratories segment led the global clinical oncology NGS market in revenue, driven by the growing demand for laboratory-based NGS platforms and services to process the increasing volume of clinical and research samples. Pharmaceutical companies, research institutions, and healthcare providers are fueling this demand by outsourcing NGS testing services to ensure timely and accurate genomic analysis for cancer diagnosis, prognosis, and treatment decision-making. For example, Thermo Fisher Scientific received FDA approval for its Oncomine Dx Target Test, an NGS test designed to identify gene alterations that inform therapy choices for various solid tumor cancers.

Meanwhile, experts expect the clinics segment to experience significant growth during the forecast period. This is due to the rising demand for point-of-care NGS testing services in oncology, as healthcare providers seek rapid and actionable genomic insights in bedside or outpatient settings. This approach allows for timely treatment decisions, effective patient counseling, and better monitoring of treatment responses, all of which improve overall patient outcomes and satisfaction.

The need for rapid genomic insights in clinical environments is driving the increasing demand for point-of-care NGS testing in oncology. Companies like Tempus and Biocept have developed technologies that aim to provide real-time genomic data for treatment decisions. Tempus offers a range of NGS-based tests, including Tempus xT for solid tumors and Tempus xF for liquid biopsies, enabling clinicians to access genomic information quickly. Similarly, Biocept provides the Target Selector platform, which focuses on liquid biopsy testing to detect specific mutations from blood samples. These technologies facilitate timely treatment decisions and improve monitoring of treatment responses in oncology care.

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Author

Bernice Lottering