Core Tip: In 2017, the size of the global gene sequencer market has significantly decreased with the cost of sequencing, and the ability of bioinformatics analysis has significantly increased. The United States and other Western developed countries have made forward-looking arrangements in this area: Encouraging research and development of high-end sequencing instruments. Commercialization, establishment of supporting biological information computing platforms, advancement of scientific research and development and clinical transformation in the genome area. The rapid growth of the gene sequencer market in recent years has grown from 470 million U.S. dollars in 2007 to 2.85 billion U.S. dollars in 2016. With a growth rate of 25%, it is tentatively expected that the market size in 2017 will be around US$3.3 billion. Chart 1: 20
2017 Global Gene Sequencer Market Size
With the significant reduction in sequencing costs and significant increase in bioinformatics analysis capabilities, the United States and other Western developed countries have made forward-looking arrangements in this area: Encouraging the development and commercialization of high-end sequencing instruments, and establishing supporting biometric computing platforms. Advance scientific research and clinical transformation in the genome area.
In recent years, the market for gene sequencing devices has grown rapidly, from 470 million U.S. dollars in 2007 to 2.85 billion U.S. dollars in 2016, with an average annual compound growth rate of 25%. It is estimated that the market size in 2017 will be approximately USD 3.3 billion.
Exhibit 1: Global Gene Sequencer Market Size 2007-2017
Global Gene Sequencer Competition Pattern in 2017
The core of the gene sequencer is gene sequencing technology. The second generation gene detection technology is the most stable and widely used gene sequencing technology. The NGS instrument market is monopolized by several leading foreign manufacturers. Illumina is the world's largest manufacturer of gene sequencing devices. , accounting for 84% of the global market, in 2016 Illumina released a total of two new products, namely the next generation of targeted sequencing system MiniSeq, and next generation tumor sequencing solution TruSightTumor170.
Figure 2: Global Gene Sequencer Competition Pattern
Specific to the sequencer model, Illumina's HiSeq 2000 is the most popular sequencer on the market and occupies an absolute advantage.
Exhibit 3: Global Second-Generation Sequencer Market Structure
Looking at the development history of the second-generation sequencing technology, we can see that the development mode of the sequencer is mainly independent research and development and outsourcing. In the early stage of development, the technology is not mature, and most of the enterprises are mainly independent research and development; after the market matures, the merger between the enterprises Gradually increase, such as Illumina's acquisition of Solexa in 2006, Roche's acquisition of 454 Life Sciences in 2007, and Life Technologies’ acquisition of Ion Torrent in 2010.
It is precisely because of this development model that the development of second-generation sequencing technology has emerged in the early stage of development. After a certain degree of development, with the continual growth of outstanding products and the occurrence of major mergers and acquisitions, the degree of industry concentration has increased. In the short term, the industry monopoly position of companies such as Illumina can hardly be broken, and other companies can hardly enter the market of sequencers to compete.
Exhibit 4: Global Sequencer Leading Companies M&A History
Chinese Gene Sequencer R&D and Market Mode
In contrast, domestically, as the global market has long been monopolized by several large-scale sequencer manufacturers in foreign countries, and adopting the model of cooperation with domestic leaders to enter the Chinese market, it is difficult for domestic enterprises to enter this field, such as Illumina in order to prevent any downstream The company grows, monopolizes the market through its strategy of cooperation with a number of companies, thereby gaining absolute control of the right to speak. At the same time, it cultivates the market through the agency and marketing of downstream companies.
Therefore, in order to enter the sequencer market, China's sequencing companies need to break through the following types: First, mergers and acquisitions of foreign sequencing machine manufacturers, transformation and upgrading based on its core technology, the introduction of its own brand of sequencer For example, BGISEQ-100, BGISEQ-1000, and BGISEQ-500 were successively introduced after the acquisition of Complete Genomics by Huada Genomics; the second is the independent R&D model, which is generally applied to those companies with large financial resources, such as Huainkang Gene, Zixin. Pharmaceuticals, Bohai Genes, etc. However, whether it is an M&A or independently developed sequencer, there are still disadvantages such as poor performance and high cost compared with the mainstream sequencers on the market.
Therefore, in cooperation with well-known foreign manufacturers of sequencing instruments, the prototype of the sequencer was modified to form a special-purpose self-branded sequencer that was the best model for breakthroughs, such as the Daan gene, Berry Hekang, and Bo. Austrian biological and so on.
Chart 5: Domestic Sequencing System R&D Models and Listing
2022 Global Gene Sequencer Forecast
According to the findings of the Industry Research Institute, the development of future upstream sequencers is expected to have the following characteristics:
1, According to the Frost & Sullivan survey, sequencing costs, sequencing quality, read length, and flux size are still the main considerations for the purchase of a sequencer. Second, Illumina's core technology 'bridge PCR generates DNA clusters' and 'reversible' Termination reaction is protected by patents. It is still monopolized by giants of foreign sequencing machines in the short-to-medium term, and the technical barriers formed by them are difficult to be broken for a long time. The development of home-made sequencers will take some time.
2. The growth of the sequencer market slowed down. Markets & Markets predicted that although the compounder growth rate of the sequencer was 15.4%, due to the rapid development of sequencing services and sequencing data analysis, the growth rate of the sequencer was still lower than the growth rate of the entire gene sequencing market.
3, With the development of three-generation sequencing technology, if it can improve the sequencing accuracy and sequencing throughput, the future needs of the third-generation sequencer market sequencing instrument is still worth the wait.
It is conservatively estimated that by 2022, the global gene sequencer market will reach 10.6 billion U.S. dollars.
Exhibit 6: Prospects for the Global Gene Sequencer 2016-2022
