Genetics market size surges amid sequencing boom and therapy wins

The big picture: a rapidly scaling genetics economy

In the Genetics sector, The genetics market—spanning genomics tools, next‑generation sequencing (NGS), clinical genetic testing, and gene therapies—has entered a faster growth phase as research applications spill into clinical care. On the tools side, the global genomics segment was valued at roughly the low‑$30 billions in 2023 and is poised to more than double by 2030, according to industry reports. That trajectory reflects not only new instrument placements but, more importantly, a rising base of recurring consumables and informatics revenue.

Within clinical services, payers and health systems are integrating hereditary cancer, carrier, and pharmacogenomic testing into care pathways, creating durable demand. Meanwhile, the therapeutics segment—still smaller today—adds a long runway as gene therapy moves beyond rare disease pilots into mainstream indications. Together, these segments suggest a maturing market with multiple, diversified growth engines.

For investors and operators, the implication is clear: genetics is transitioning from a research‑centric niche to a healthcare platform. As data volumes compound and clinical utility strengthens, revenue visibility improves—particularly for companies positioned at the junction of hardware, chemistry, and software.

Segment dynamics: testing, sequencing, and gene therapy

Genetic testing is the most visible clinical wedge, supported by broader reimbursement and provider adoption. The global genetic testing market reached the high‑teens billions in 2023 and is projected to approach $30 billion by 2028, industry reports show. Growth is led by oncology (hereditary risk, tumor profiling and minimal residual disease), prenatal and carrier screening, and a re‑emerging interest in pharmacogenomics as payers refine coverage policies.

NGS—anchored by installed platforms from Illumina, Thermo Fisher Scientific, Roche, Qiagen, and BGI—continues to expand through lower run costs, higher throughput, and improved bioinformatics. While instrument revenue can be cyclical, the consumables model remains resilient as labs increase utilization. The NGS market has been hovering around low‑double‑digit billions, with the installed base and workflow automation suggesting sustained mid‑teens growth in clinical and translational use cases.

Gene therapy has become a pivotal growth catalyst. Approvals in hematology and neuromuscular diseases have validated the modality and paved the way for broader indications. In late 2023, the U.S. Food and Drug Administration approved the first gene therapies for sickle cell disease, marking a watershed moment for patient access and commercial scale, as documented by the agency. As more programs clear regulatory hurdles, therapy revenues and companion diagnostic demand should rise in tandem.

Growth drivers: cost curves, data platforms, and policy

The single biggest structural tailwind remains the cost curve. Over two decades, the all‑in cost of sequencing a human genome has fallen from hundreds of millions of dollars to near the $1,000 mark, compressing by orders of magnitude and enabling population‑scale research and routine clinical use, according to NHGRI data. That cost deflation—paired with cloud-based analytics and AI-assisted interpretation—has turned genomics into a scalable service.

Population genomics programs (e.g., national biobanks and health system cohorts) are building longitudinal datasets that feed drug discovery, risk prediction, and precision screening. As those datasets link to real‑world evidence, they increase the utility of polygenic risk scores and pharmacogenomic panels, raising the ceiling for testing adoption in primary and specialty care.

Regulatory momentum is also constructive. Frameworks that clarify manufacturing, long‑term follow‑up, and benefit‑risk assessments for gene therapies are emerging across major markets. The FDA’s recent approvals in sickle cell, along with advancing guidance on complex diagnostics, underscore a policy environment increasingly attuned to precision medicine scale‑up, according to the agency’s announcement.

Competitive landscape and outlook

The competitive map is stratified. Platform leaders in sequencing and sample prep compete on accuracy, throughput, and total cost of ownership, while service players differentiate on clinical breadth, turnaround time, payer contracts, and outcomes evidence. Specialty companies in oncology (e.g., minimal residual disease and liquid biopsy), women’s health, and rare disease are carving defensible niches through assay innovation and data assets.

Capital allocation is shifting toward products and services with recurring revenue and clear reimbursement pathways. After a volatile period for consumer genomics, the market’s center of gravity has moved decisively toward B2B clinical workflows and biopharma partnerships. Expect consolidation in niche testing and bioinformatics, as well as continued investment in manufacturing scale for gene therapies as programs progress from pilot to commercial supply.

Looking ahead, consensus points to sustained double‑digit growth across the genetics stack through the decade, led by clinical testing volume, therapy launches, and secular data monetization. Risks—pricing pressure, reimbursement variability, and data privacy—remain, but the combination of falling cost curves, stronger clinical utility, and regulatory clarity suggests the market is positioned to compound. For business and tech leaders, the imperative is to build capabilities that span wet lab, compute, and payer engagement to capture share in a market that is finally moving from promise to platform.