This document provides a summary of a report by Yole Développement on next-generation DNA sequencing and DNA synthesis technologies. The report provides an overview of the market and technology landscapes, including descriptions of established and emerging sequencing technologies. It also analyzes the supply chain and provides market data, forecasts, and analysis. The report finds that the number of sequencing instruments is expected to more than double by 2024, driving growth in the number of sequencing consumables from 1.28 million units in 2018 to 4.19 million units in 2024. This rapid adoption represents significant opportunities for companies along the semiconductor supply chain to provide enabling technologies for sequencing consumables.
22. DNA sequencing has many applications in
healthcare and life sciences and it is increasingly
used in myriad areas as cost reduction starts to
permit it. Research is progressing and enabling a
better understanding of the genetic content of
life. Sequencing therefore holds a bright future
in clinical applications, enabling clinical decisions
on the basis of sequencing information. Increasing
adoption paves the way for personalized medicine,
helping to better understand cancers and rare
genetic diseases. Sequencing even has potential
for non-invasive early cancer detection with
liquid biopsies. It is also increasingly used in
other applications, such as forensics, agricultural
sciences and drug development. Furthermore,
the possibility of encoding vast amounts of
information in DNA could replace our current
data storage solutions, offering an insanely space
efficient storage at low cost in the future.
The sequencing market is dominated by a handful of
players, all with their own sequencing technology,
and associated advantages and drawbacks.
However, Illumina currently holds more than 80%
of the sequencing market, leaving only crumbs to
its competitors. Nevertheless, newcomers such
as China’s BGI and the UK’s Oxford Nanopore
have the potential to change this along with other
technologies in development, some of which
might reach the market as soon as 2019. In total,
Yole Developpement’s (Yole) analysts identified
more than 50 companies developing sequencing
technologies. In the report, Yole's analysts provide
our analysis of how the sequencing landscape
will evolve in the coming years and how these
new technologies could change the game. Cost,
throughput, read length, accuracy, speed, portability,
ease of interpretation are criteria on which there is
room for improvement, and Illumina might win some
but not all of these races.
One thing remains clear: we are still in the early
days of sequencing and tremendous growth is
expected as the use of sequencing spreads. This
is why Yole’s analysts expect that the fleet of
sequencing instruments will more than double by
2024, from almost 30,000 sequencers today. As
a consequence of the razor/razor-blade business
model of sequencing consumables, the number of
sequencing flow cells, the disposable chips used
to perform and sometimes detect the sequencing
reaction, is poised to grow at a 21% Compound
Annual Growth Rate (CAGR), from 1.28 million
units in 2018 to 4.19 million units in 2024. But
this is only a first step: the $1,000 genome was
achieved years ago, and we’re now heading
towards the $100 genome. The continuous
improvement of sequencing technologies will
someday lead to a much more affordable and
practical sequencing, the $10 genome or even
below. At this point, it is not millions of flow cells
per year but hundreds of millions that one needs
to consider, representing an immense opportunity
for the entire semiconductor supply chain.
NEXT GENERATION SEQUENCING & DNA SYNTHESIS:
TECHNOLOGY, CONSUMABLES MANUFACTURING
AND MARKET TRENDS 2019
Market & Technology Report - April 2019
With the sequencer installed base doubling,the sequencing consumables market will reach $7.8B by 2024.
REPORT KEY FEATURES
• History of DNA sequencing
• Use of semiconductor technologies
in sequencing
• Market data, forecasts and market
shares including installed base of
sequencers, number of flow cells,
number of 8” equivalent wafers,
consumables market in $, fab market
in $ and raw material market in $
• Market analysis: applications, drivers,
competitive landscape, etc.
• Supply chain analysis
• Technology analysis: description,
segmentation and comparison of
sequencing technologies available
and in development. Sample
preparation, detection methods,
focus on semiconductor-based
consumables
• Company profiles: 50+ companies
developing sequencing technologies
• Dedicated part for DNA synthesis
technologies, applications and
market trends with a focus on
semiconductor technologies
REPORT OBJECTIVES
• Give an overview of the Next-
Generation Sequencing and
Next-Generation DNA synthesis
market and technology landscapes,
understand who the established and
upcoming players are, what their
technologies are along with their
advantages and drawbacks, and how
they will evolve in the next few years
• Understand how and why
semiconductor technologies are
leveraged in these fields, enabling
improvements areas such as cost,
size, speed, production scale-up and
reproducibility
• Describe the supply chain
• Identify where the opportunities are
for the different players all along the
supply chain, from materials suppliers
and MEMS/microfluidic foundries to
sequencing technology developers
• Provide detailed market data and
forecasts along with market shares
• Understand the different
technologies at the consumable
flow cell level, in terms of
microstructures, materials and
manufacturing processes (Yole Développement,April 2019)
Sequencing market forecasts of flow cells shipped
SEQUENCING IS A VERY DYNAMIC MARKET AND HAS APPLICATIONS IN
MANY FIELDS, HOWEVER IT IS ONLY THE BEGINNING OF THE STORY
0
1
2
3
4
5
2017 2018 2019 2020 2021 2022 2023 2024
Flowcells(inmillionunitsshipped)
Others
Pacific Biosciences
BGI
Thermo Fisher Scientific
Oxford Nanopore
Illumina
CAGR 2019-2024
= +21%
23. NEXT GENERATION SEQUENCING DNA SYNTHESIS – TECHNOLOGY, CONSUMABLES MANUFACTURING AND MARKET TRENDS 2019
THE TIME FOR NEW DNA SYNTHESIS TECHNOLOGIES BASED ON
SEMICONDUCTOR CHIPS HAS ARRIVED
Gene synthesis technology has revolutionized both
the understanding of DNA functions and the ability
to manipulate DNA for experimental, medical,
and industrial purposes. Until recently, DNA was
synthesized using enzymatic and chemical processes.
These methods include random errors, making the
DNA useless, and finding error-free DNA is a time-
consuming mission requiring further analysis and
sequencing.
Semiconductor chips are allowing important
advancements in the field of genomic research by
enabling the synthesis of thousands of genes in parallel.
This is revolutionizing the way DNA synthesis is
performed, enablingfasterandmoreefficientsynthesis.
Such technology leverages semiconductor processing
techniques to greatly increase throughput and has the
potential to make oligonucleotide synthesis cost 1000
times lower. On the other hand, the throughput can
be increased even further by scaling down the chips’
feature size. In this context, Yole’s analysts estimate
that the global market of semiconductor chips used
for DNA synthesis will reach $213.2M in 2024 with a
CAGR of 40% over the period 2018-2024.
A wide range of applications such as drug discovery,
agriculture and data storage will increasingly rely upon
gene synthesis to solve problems related to healthcare,
food supplies and storage modalities respectively. In
the report, Yole’s analysts explore the possibilities
envisioned thanks to emerging semiconductor-based
DNA synthesis technologies, identify the key players
leading the market, highlight the new needs for each
application and discuss the technology’s evolution.
Sequencing flow cells market shares per material (in units)
(Yole Développement,April 2019)
Glass flow cells
Silicon flow cells
72%
(0.92 million
units)
1.28 million flow cells
2018
2024
*CAGR2018-2024
= +21%
*CAGR: Compound Annual Growth Rate
52%
(2.17 million units)
4.18 million flow cells
28%
(0.36 million
units)
48%
(2.01 million units)
CHEAPER, BETTER, FASTER, LONGER SEQUENCING READS: SEMICONDUCTOR
TECHNOLOGIES HAVE A KEY ROLE TO PLAY IN DRIVING THIS ENDLESS RACE
Most sequencing technologies are using, to some
extent, microstructures. Beads, wells, membranes,
patterned surfaces and nanopores are all examples
of microstructures that can be found in sequencing
consumables. Sequencing consumables from most
players leverage semiconductor technologies to
manufacture these microstructures in a reproducible
and scalable manner. The key to scaling sequencing
power is always increasing flow cells’ density to
generate more data on the same surface area. It is no
coincidence that the cost of sequencing has dropped
much faster than Moore’s law over the past 15 years.
While glass is often used when optical detection
is the method of choice, the advent of electrical
detection methods has led to the increased use of
silicon and CMOS substrates. Silicon, especially
CMOS, is the material of choice for the flow cells
used by most technologies currently in development.
The expected market introduction of several of these
technologies in the next few years will boost the
associated number of wafers. Sequencing companies
need, or will need, to mass-manufacture these flow
cells, creating opportunities at all the levels of the
semiconductor supply chain. Indeed, most sequencing
players have made the choice to outsource this
production to specialized players. However, some
start-ups struggle in the development phase because
foundries seem not to realize the potential volumes
sequencing flow cells could represent in the future.
Consequently it is difficult for them to get access to
the equipment and processes they need. In this report,
Yole analyzes the supply chain and also focuses on
several leading and emerging flow cell technologies
from key and upcoming players including the type of
microstructures, process flow, and evolution over
time. Yole's analysts also talk about the limitation
of optical detection technologies leading to ever
larger glass flow cells, which represents a significant
opportunity for glass players as well.
History of DNA writing
(Yole Développement,April 2019)
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
100
1,000
10,000
100,000
100,00,000
10,00,000
1,00,000
77bpAgarwal:alatRNA
33bpKoester:angiotensinII
41bpItakura:somatostatin
Constructsize(bp)
514bpEdge:leukocyteinterferon
2.1kbYoung:plasmid
2.7kbStemmer:plasmid
7.5kbCello:poliovirus
32kbKodumal:polyketidesynthase
1.1MbGibson:M.mycoides
273kbAnnaluru:Sc2.0synIII
12MbSc2.0
PCR invention
Introduction of
commercial gene
synthesis
2020
The next generation
of DNA synthesis
Up to ~ 1M Oligos/Chip
Courtesy of Fisher Scientific
24. MARKET TECHNOLOGY REPORT
COMPANIES CITED IN THE REPORT (non exhaustive list)
AGC [Asahi Glass Co.], Agilent Technologies, Advanced Liquid Logic (Illumina), Apton Biosystems,
Armonica Technologies, Atum, Base4 Innovation, BGI [Beijing Genomics Institute], Bio Basic,
Biocat, Bioneer, Bio-Rad Laboratories, Biosearch Technologies, Caerus Molecular Diagnostics,
Catalog, Centrillion Technologies, Complete Genomics (BGI), Corning, Cygnus Biosciences,
Depixus, Desktop Genetics, Direct Genomics, DNA Electronics, DNA Script, Electronic
Biosciences, Electron Optica, Electroseq, Eurofins, Eve Biomedical, Evonetix, Gen9 Bio (Gingko
Bioworks), Genapsys, GeneArt, GeneOracle, Geneseque, Genewiz (Brooks Automation), Genia
Technologies, Genome Surveilllance, GenScript, Gingko Bioworks, GnuBio (Bio-Rad), Grail,
Helixworks, Heraeus, Hoya, Integrated DNA Technologies (Danaher), Illumina, IMT AG, IMT
MEMS, iNanoBio, inSilixa, Intelligent Biosystems (Qiagen), Invenios, Ion Torrent (Thermo Fisher),
Iridia, Jilin Zixin Pharma, Kilobaser, LabGenius, LaserGen (Agilent), Lightspeed Genomics, Little
Things Factory, MGI (BGI), Micralyne, Micronit, Mir Enterprises, Molecular Assemblies, Nabsys,
NanoString Technologies, NorthShore Bio, Novati (Skorpios Technologies), Ohara Corporation,
Omniome, Origene, Oxford Nanopore Technologies [ONT], Pacific Biosciences (Illumina),
Plan Optik, Personal Genomics, Powerchip Technologies, Quantapore, Qiagen, QuantuMDx,
QuantumSi, Roche, Roswell Biotechnologies, Schott AG, SeqLL, Silex Microsystems, SingularBio,
Singular Genomics, Solexa (Illumina), Stratos Genomics, Synthomics, Thermo Fisher Scientific,
TSMC [Taiwan Semiconductor Manufacturing Company], Twist Bioscience, Two Pore Guys,
Universal Sequencing Technology Corporation, Xgenomes, ZS Genetics, and more.
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Sébastien Clerc works as a Technology
Market Analyst, Microfluidics Medical
TechnologiesatYoleDéveloppement(Yole).
As part of the Life Sciences Healthcare
division, Sébastien has authored a collection
of market and technology reports dedicated
to topics such as microfluidics, point-of-
care, MEMS for healthcare applications
and connected medical devices. In parallel,
he is daily involved in custom projects such
as strategic marketing, technology scouting
and technology evaluation to help academic
and industrial players in their innovation
processes. Thanks to his technology
market expertise, Sébastien has spoken
in more than 10 industry conferences
worldwide over the last 2 years. Sébastien
Clerc graduated from Grenoble Institute
of Technology (Grenoble INP - Grenoble,
France) with a Master’s degree in Biomedical
Technologies. He then completed his cursus
with a Master’s degree in Innovation and
Technology Management in the same
institute.
AUTHORS
TABLE OF CONTENTS (complete content on i-Micronews.com)
Executive summary 14
DNA SEQUENCING PART 55
Context 56
Market forecasts 70
Installed base of sequencers
Flow cell market (units and 8” equivalent wafers)
Sequencing consumable market ($M)
Sequencing consumable fab market ($M)
Sequencing consumable raw material market ($M)
Market trends 83
Applications of NGS
Evolution of sequencing revenue by application
Applications driving the use of NGS
Leveraging semiconductor technologies
The value will switch from the optics to the chip
Clonal vs. single molecule technologies – A difficult
road to market
Consumables and sample preparation
Penetration of the clinical market
Why has Illumina won the sequencing race so far?
Why will Illumina be challenged at some point?
Competition on price
Advice to newcomers
Market shares and supply chain 104
Installed base of sequencers
Number of flow cells per player and per material
Potential sequencing output per player
Sequencing consumable revenue per player and per
flow cell material
8” equivalent wafers, per flow cell material
Flow cell fab market, per flow cell material
Flow cell raw material market, per flow cell material
Comments and conclusion
Supply chain analysis:
- DNA sequencing flow cell manufacturing
- Glass substrate providers
Technology trends 124
Methods for DNA sequencing
Clonal amplification vs. single molecule technologies
Sample preparation
Drivers for technology development: an endless race
Clonal vs. single molecule technologies – which ones
are solid-state?
Which substrates are used?
Detection methods
Use of semiconductor substrates
Size of the chips
Flow cell cost and price breakdown
Quality scores in sequencing
Performances comparison of sequencing technologies
Technology focus: Illumina, Oxford Nanopore, Pacific
Biosciences, Ion Torrent
Conclusion
Profiles of over 50 companies developing
sequencing technologies 161
DNA SYNTHESIS PART 193
Definition
Rapid growth in base pairs
A massive divergence in capacity
History of DNA writing
What can be synthesized?
How can DNA be synthesized?
Current DNA synthesis methods
Geographical location of DNA synthesis companies
Mergers and acquisitions
Market data and forecasts
Writing synthetic DNA on silicon chips
Company profiles
Applications for DNA synthesis
New types of DNA suppliers
Market opportunities and current developments
Adoption of silicon chip-based DNA synthesis technology
Conclusion of the report 215
As a Technology Market Analyst,
Biotechnologies Molecular Innovations,
Medical Technologies in the Life Sciences
Healthcare division at Yole Développement
(Yole), Asma Siari is involved in the
development of technology market
reports as well as the production of custom
consulting projects. After a Master’s degree
in Biotechnologies, Diagnostic Therapeutics
Management, Asma served as Research
Assistant at the Moores Cancer Center
(San Diego, CA). She is a coauthor in
three scientific publications published in
the Molecular Cancer Research Journal.
Asma Siari graduated with an Advanced
Master’s degree in International Strategy
Marketing BtoB from EM Lyon Business
School (France).
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