The year is a challenging year for sequencing industry. The improvement of technology makes it gradually plays a more important role in all kinds of research, especially the medical research.
Sequencing technology is Under the Spotlight
For three reasons people pay more attention to gene sequencing. The first and most important reason is the receding technical costs which exceed the Moore’s law. The 2008 is a historic year for sequencing. The appearance and spread of next generation sequencing(NGS) low the cost of sequencing and quickly made it go beyond the prediction according to the Moore’s law. The cost of human whole genome sequencing has been down to $1000, and it will continuously decline with the development of new sequencing technology.
Another one is the improvement of big data analysis tool. The sequencing is only the first step. To know the meaning of sequencing data, we need comprehensive analysis. The analysis tool makes rapid analysis of a huge amount possible.
The last one is the support from government and the promotion of medical needs. In February FDA approved a test made by 23andMe. This means the growing needs of medical application of sequencing.
The Challenge and Chance of Sequencing Industry
According to the budget of Illumina, the market scale of gene sequencing will reach $20 billion: $12 billion for oncology; $5 billion for life science(which include the life science tools, complex diseases, agricultural genetic research, and metagenomics);$2 billion for reproductive and genetic health;$1 billion for other application.
As you can see in the chart, the market of sequencing is divided into three parts. The market of supplier almost shared by monopolies:Illumina, Life Tech( purchased by Thermo Fisher in 2014), Roche and Pacific Biosciences. According to the market research of Genome Web in 2013, the illumina share the biggest cake– seventy percent of market share of supplier.
The service providers are facing the biggest challenge. Most of them are small and middle business. It’s hard to share a profit with big companies. To survival in this industry, they need improve their service of data analysis. The market for data analysis will divide into two parts: for company with the capacity of scientific research they will do this job by themselves; for small business and individual research, they will find a third company to do this work. Due to the increase of different needs of service, companies which provide data analysis service will increase. This part is the most challenge part in sequencing industry, but it also provides the biggest chance for people who want to find a position in this industry.
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