The Japan next-generation sequencing (NGS) market was valued at approximately USD 297.94 million in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 23.60% from 2024 to 2030. This strong growth is primarily driven by two key factors: the declining cost of genetic sequencing and technological advancements in fields such as cloud computing and data integration. These developments have made genome sequencing more accessible and efficient, significantly contributing to the market’s expansion.

In addition to technological progress, the rising healthcare expenditure—particularly in cancer treatment—along with the extensive application of NGS in cancer diagnosis and therapy, is expected to fuel market growth. The growing incidence of cancer across Japan further reinforces the demand for advanced diagnostic tools. A study published by the National Library of Medicine in December 2022 projected that there will be an annual average of 1.09 million new cancer cases in Japan from 2020 to 2054, underlining the critical need for precise and scalable genomic technologies like NGS.

Over recent years, the cost of genetic sequencing has declined significantly, making genome sequencing more attainable for both researchers and clinical use. This reduction is largely attributed to innovations introduced by major players in the industry. For example, Illumina, a leading company in the Japanese market, has been instrumental in reducing sequencing costs and supporting the $1,000 human genome project. The company also provides affordable NGS instruments, further broadening accessibility. Similarly, Nebula Genomics offers DNA sequencing services and reports priced between USD 149 to USD 999, making personal genome analysis more affordable to the general public. This convergence of lower sequencing costs and cost-effective instruments is expected to substantially boost the uptake of genetic sequencing technologies across the country.

The market is also benefitting from the growing use of cloud-based platforms, which enhance the management, processing, and analysis of the vast datasets generated by NGS. Cloud computing enables efficient parallel processing and distribution of data and user operations across multiple computing nodes, significantly cutting down on processing time. This advantage is making cloud solutions increasingly attractive for genomic research and clinical applications.

The integration of cloud computing into NGS workflows has already transformed the NGS data analysis landscape. Industry participants are now offering workflow optimization and data management solutions tailored to cloud platforms. For instance, a February 2023 study published by the National Library of Medicine highlighted how a research team in Japan successfully developed a hybrid cloud computing system for genomic analysis. These innovations not only simplify data handling but also improve the efficiency and scalability of genomic analysis.

Key Market Trends & Insights:

• By end-use, the market is segmented into clinical research, academic research, pharmaceutical and biotechnology companies, hospitals and clinics, and other users. These end-user groups represent the primary consumers of NGS technologies, each utilizing sequencing solutions for distinct purposes ranging from diagnostics and drug development to academic exploration and clinical applications.

• By product, the consumables segment dominated the market in 2023, accounting for a substantial 74% of total revenue. This significant share is attributed to the recurring need for reagents, kits, and other essential materials used in sequencing workflows. As sequencing experiments require fresh consumables for every run, this segment continues to generate consistent demand.

• By workflow, the sequencing segment held the largest revenue share in 2023. This indicates that the actual sequencing process—where DNA or RNA samples are read and digitized—is the most critical and revenue-generating step in the overall workflow. It underscores the importance of advanced sequencing technologies and platforms that ensure accurate, high-throughput, and cost-efficient results.

• By application, the oncology segment emerged as the largest revenue contributor in 2023. This reflects the growing adoption of NGS technologies in cancer research and treatment, particularly for tumor profiling, mutation detection, and personalized medicine. The increasing prevalence of cancer in Japan further reinforces the importance of sequencing in oncology-related applications.

• By technology, the targeted sequencing and resequencing segment accounted for the highest revenue share in 2023. This segment's dominance highlights the preference for focused sequencing approaches that allow researchers and clinicians to study specific genes or genomic regions of interest. Targeted methods are not only cost-effective but also offer higher sensitivity and depth, making them suitable for applications such as identifying cancer mutations or genetic disorders.

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Market Size & Forecast:

• 2023 Market Size: USD 297.94 Million

• 2030 Projected Market Size: USD 1,305.67 Million

• CAGR (2024-2030): 23.60% 

Key Companies & Market Share Insights:

• Illumina, Inc., BGI, Oxford Nanopore Technologies, Inc., and Myriad Genetics, Inc. are among the key players actively shaping the competitive landscape of the Japan next-generation sequencing (NGS) market. These companies have established a strong presence through comprehensive product portfolios, innovative services, and strategic initiatives aimed at supporting both research and clinical applications.

• Illumina Inc. stands out as a dominant force in the market. The company provides an extensive range of sequencing solutions, including whole-genome sequencing, next-generation sequencing (NGS) services, and noninvasive prenatal testing (NIPT). Its technology and platforms are widely used in clinical diagnostics, biomedical research, and genetic testing, making it a cornerstone in Japan’s genomic industry.

• BGI is another major player offering key services such as DNA sequencing, RNA sequencing, and bioinformatics solutions. Its comprehensive genomic services are utilized across Japan by institutions and researchers seeking reliable, large-scale sequencing capabilities. The company's integrated approach enables high-throughput and cost-effective solutions for a variety of genomic applications.

• QIAGEN delivers a variety of sequencing systems, including bench-top sequencers suited for small-scale laboratory use and high-throughput platforms designed for large-scale, genome-wide research. These versatile tools support diverse sequencing applications, from diagnostics to academic research.

• Bio-Rad Laboratories, Inc. contributes to the market through its broad portfolio of tools and technologies used in life sciences, food safety, and clinical diagnostics. The company provides solutions that promote innovation in areas such as proteomics, genomics, medical diagnostics, and drug discovery, playing a vital role in both research and applied science.

Key Players

• Illumina, Inc

• QIAGEN

• Thermo Fisher Scientific, Inc

• BGI

• Pacific Biosciences

• Bio Rad Laboratories

• Oxford Nanopore Technologies, Inc

• Myriad Genetics. Inc.

• Agilent Technologies, Inc

• Eurofins Scientific

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Conclusion:

The Japan NGS market is set for rapid expansion, fueled by declining sequencing costs, the rise of companion diagnostics, and growing adoption in oncology and clinical research sectors. Technological enhancements like cloud-based data integration, hybrid computing systems, and efficient workflows are accelerating uptake across academia and healthcare. Demand continues to be driven by increasing cancer incidence, personalized medicine, and emergence of cost-effective consumables and targeted sequencing technologies.