From 2025 to 2035, the short-read sequencing market is projected to grow at a strong CAGR of 18.46%, reflecting the accelerating adoption of genomics technologies across healthcare, agriculture, and research sectors. The market is estimated to reach USD 8,855.75 Million in 2025 and soar to approximately USD 48,653.12 Million by 2035, driven by the increasing need for high-throughput, cost-effective sequencing platforms.
As personalized medicine becomes mainstream and governments invest in national genomics initiatives, short-read sequencing is expected to remain the dominant approach due to its maturity, scalability, and rapidly improving accuracy. Nevertheless, the market’s trajectory will depend on how providers navigate the growing competition from long-read technologies and address challenges related to data interpretation and storage.
Key Market Metrics
| Metric | Value |
|---|---|
| Market Size in 2025 | USD 8,855.75 Million |
| Projected Market Size in 2035 | USD 48,653.12 Million |
| CAGR (2025 to 2035) | 18.46% |
In 2024, the short-read sequencing industry witnessed significant developments
Looking ahead to 2025 and beyond, the industry is poised for continued growth
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The short-read sequencing industry is on a robust growth trajectory, propelled by technological advancements and a heightened demand for genomic analysis across various sectors. Companies investing in innovation and strategic partnerships are well-positioned to capitalize on emerging opportunities, while those unable to adapt may face challenges in maintaining market relevance.
Invest in Advanced Technologies
To maintain a competitive edge, companies should allocate resources toward the development of next-generation sequencing platforms that offer higher accuracy, increased throughput, and cost efficiency.
Forge Strategic Partnerships
Collaborating with pharmaceutical companies, research institutions, and healthcare providers can facilitate the integration of sequencing technologies into clinical practice and drug development, expanding market reach.
Expand into Emerging Markets
Identifying and establishing a presence in high-growth regions, such as Asia-Pacific and Latin America, can diversify revenue streams and mitigate risks associated with market saturation in developed countries.
| Risk | Probability/Impact |
|---|---|
| Regulatory Challenges | Medium- High |
| Technological Obsolescence | High- High |
| Market Competition | High- Medium |
| Priority Item | Immediate Action |
|---|---|
| Enhance Data Security Measures | Implement robust cybersecurity protocols to protect sensitive genomic data. |
| Strengthen Supply Chain Resilience | Diversify suppliers and develop contingency plans to mitigate disruptions. |
| Monitor Regulatory Developments | Stay informed about global regulatory changes and adapt compliance strategies accordingly. |
To sustain growth and competitive advantage, it is imperative to prioritize investments in technological innovation, pursue strategic collaborations, and proactively address regulatory and competitive challenges. By focusing on these areas, the company can navigate the evolving landscape of the short-read sequencing industry and capitalize on emerging opportunities.
In Q4 2024, Future Market Insights conducted a survey involving 450 stakeholders, including manufacturers, distributors, and end-users across the United States, Western Europe, Japan, and South Korea. Key insights include:
Regional Variance:
Regional Variance:
Regional Differences:
Manufacturers:
Distributors:
End Users (Hospitals, Research Labs, Diagnostic Centers):
Global Alignment:
Regional Divergence:
| Countries/Regions | Government Policies & Regulations Impact |
|---|---|
| United States | CLIA (Clinical Laboratory Improvement Amendments) and FDA oversight guide diagnostic usage. 2024 saw new proposals to standardize next- gen sequencing in oncology panels. |
| Western Europe | The European Union’s IVDR (In Vitro Diagnostic Regulation) continued to tighten, requiring recertification of previously exempt devices. GDPR laws remain stringent for patient genomics. |
| Japan | MHLW (Ministry of Health, Labour and Welfare) relaxed rules on remote analysis using cloud platforms, helping diagnostics scale outside large cities. |
| South Korea | MFDS (Ministry of Food and Drug Safety) rolled out updated digital health compliance norms but still lacks harmonization with global bodies like FDA or EMA. |
The USA maintains the strongest ecosystem for short-read sequencing, with robust investments from both public (NIH, NCI) and private sectors. The FDA’s support for LDT (Laboratory Developed Tests) integration has enabled hospitals to rapidly adopt genomic diagnostics for oncology and rare disease screening.
In 2024, companies like Illumina, Thermo Fisher, and Agilent expanded their cloud-linked platforms to reduce turnaround time. Demand from personalized therapy developers and cancer research centers remains high. Additionally, the reimbursement structure has become more favourable for genetic testing post-COVID, unlocking further growth.
The UK’s Genomics England initiative continued to scale in 2024, adding rare disease cohorts and broadening research partnerships. While Brexit introduced regulatory divergence from the EU, the UK adopted a faster approval process for sequencing platforms. Hospitals in the NHS increasingly rely on in-house sequencing labs, and university spin-offs in Cambridge and Oxford drive innovation. However, cost containment pressures on the NHS pose moderate risks to growth velocity.
France's focus on bioethics and data protection has created a cautious regulatory environment, yet investment in healthcare digitization programs (like MaSanté2022) accelerated sequencing adoption. In 2024, the INSERM and CEA collaborated on a national genomics database that enabled quicker disease gene discovery. Private sector involvement lags behind Germany and the UK, which slightly tempers the growth outlook, but ongoing infrastructure upgrades support expansion in the mid-term.
Germany remains a power player due to its engineering backbone and emphasis on precision medicine. In 2024, several new federal grants were allocated to genomic data integration in hospital information systems. Biotech clusters in Berlin and Munich have pushed for real-time diagnostics in clinical workflows. Despite strict EU compliance costs, Germany’s emphasis on data sovereignty and local manufacturing continues to attract global vendors to establish partnerships and data centers.
Italy lags Western peers in genomic infrastructure but began catching up in 2024 through EU-funded digital health pilots in Lombardy and Lazio. The country suffers from high regional disparity; northern Italy shows strong adoption while the south remains under-equipped. Nonetheless, pharmaceutical companies are increasingly outsourcing genomic testing to domestic labs, creating tailwinds for the industry.
Japan’s aging population presents a growing need for diagnostic genomics, particularly in oncology and cardiogenetics. In 2024, the government subsidized over 100 sequencing centers as part of its aging-care transformation plan. However, conservative medical institutions and resistance to adopting foreign platforms slow down mass usage. Integration with AI is promising, but most implementations remain in pilot phases.
Korea’s strong ICT backbone makes it well-positioned for rapid digital integration of sequencing tools. In 2024, major conglomerates like Samsung and SK invested in local biotech firms focusing on bioinformatics pipelines. Regulatory clarity has improved, yet pricing restrictions remain stringent. Academic institutions have expanded genome sequencing for pediatric care, and public hospitals are partnering with cloud vendors to scale operations.
China is the fastest-growing geography due to aggressive government funding and the presence of domestic players like BGI Genomics. In 2024, sequencing became part of mandatory cancer screening in five provinces. IP challenges persist, especially for foreign companies, but the sheer scale of adoption and strong alignment with national healthcare goals give China a dominant role in the global landscape. AI-driven genomics and local manufacturing enable rapid cost reductions.
Australia’s universal healthcare system and digital health roadmap have promoted genomic diagnostics in oncology and infectious disease management. The 2024 introduction of Medicare reimbursement for panel-based sequencing widened access significantly. New Zealand, while slower, benefits from collaborative university research and cross-border funding. Together, the region is emerging as a genomics hub for the southern hemisphere.
The Consumables segment is currently the undisputed revenue leader and is projected to maintain dominance, expanding at a CAGR of 19-21% over 2025 to 2035. This is driven by the recurring demand for reagents, kits, and flow cells, which scale in direct proportion to sample volume. Unlike instruments, consumables benefit from repeat usage across both research and clinical settings.
Instruments, while essential, are witnessing slower growth (~11-13% CAGR) as many labs transition to as-a-service models or rely on centralized sequencing facilities. The high upfront cost and long lifecycle of platforms like Illumina’s NovaSeq or Thermo’s Ion Torrent contribute to this plateau.
Services are gaining traction, especially among smaller biotech firms and academic users lacking in-house infrastructure. This segment is poised for robust CAGR of ~17-19%, led by outsourcing of bioinformatics, sequencing-as-a-service, and sample preparation.
Data Analysis is emerging as the bottleneck-turned-opportunity, with a projected CAGR of 20-22%. As sequencing throughput explodes, the market for robust, AI-enhanced bioinformatics platforms is accelerating. Winners here will be companies that simplify variant calling, annotation, and clinical reporting.
Sequencing, the core step, remains strong with a CAGR of 17-19%, driven by continual improvements in read length, accuracy, and throughput.
Pre-Sequencing (sample prep, library construction, enrichment) is slightly slower at ~14-16% CAGR, but crucial for reducing turnaround time. Players offering automated, miniaturized, and multiplexed workflows are gaining share.
Whole Genome Sequencing (WGS) is set to witness the fastest growth (CAGR ~21-23%) as costs drop and its value in rare disease diagnosis, population genomics, and personalized medicine becomes more pronounced.
Targeted Sequencing & Resequencing is still widely adopted due to its cost-efficiency and clinical relevance, particularly in oncology. However, growth is tapering slightly, settling at ~15-17% CAGR, especially as WGS becomes more accessible.
Whole Exome Sequencing (WES) offers a mid-ground and will continue growing at ~16-18%, particularly in the clinical diagnostics of monogenic disorders.
Between DNA-based and RNA-based sequencing, the latter is catching up. RNA-seq is projected to grow at ~20-21% CAGR, fueled by cancer transcriptomics, cellular response profiling, and single-cell sequencing.
Pharmaceutical & Biotechnology Companies are the growth engines, with a forecast CAGR of 20-22%, leveraging short-read sequencing for biomarker discovery, drug target validation, and trial stratification.
Hospitals & Clinics are entering a high-growth phase (~18 to 20% CAGR) as regulatory pathways mature and genomic diagnostics become more mainstream, especially in oncology and prenatal care.
Academic & Research Institutes, while still a significant user base, are growing more modestly (~13-15% CAGR), constrained by funding cycles and shifting more toward data analysis and AI modeling.
Illumina
Thermo Fisher Scientific
BGI Genomics
Agilent Technologies
Roche Sequencing Solutions
QIAGEN
Pacific Biosciences (PacBio)
Oxford Nanopore Technologies
DNASTAR Inc. & Macrogen Inc.
Demand is driven by personalized medicine, infectious disease monitoring, and affordable high-throughput capabilities.
Regulatory clarity and companion diagnostic approvals are boosting clinical integration of short-read sequencing.
Asia-Pacific is seeing the fastest growth, while North America remains the dominant market.
Short-read is faster and cheaper; long-read is better for structural variation and genome assembly.
Pharma uses it for target discovery, biomarker identification, and patient stratification in trials.
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Short-read Sequencing Market
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