The global in vitro diagnostics market was valued at $59.8bn in 2016 and is forecast to grow at a modest 5.6% CAGR between 2017 and 2024, culminating in 2024 global sales of $92.6bn.
The global In vitro diagnostics market is witnessing rapid growth owing to the technological advancements, rising prevalence of chronic diseases such as cancer, cardiovascular diseases, neurological diseases, and the explosion of the geriatric population across the globe.
The life style factors such as smoking, alcohol consumption, substance abuse, physical inactivity, and poor dietary habits are driving the growth of several chronic diseases. The rise in disposable income levels is acting as a double edge sword and is leading to undesirable consequences. The growing consumption of junk food coupled with degrading life style habits is leading to rapid increase in obesity and diabetes cases.
As per the Administration of Aging (AoA), the U.S. has witnessed a significant increase in the geriatric population base. In 2014, it was estimated that around 46.2 million people were aged 65 and above and by 2060, this population is expected to hit nearly 98 million. The increase in average life span is expected to drive the number of diseased patients who require advanced diagnostics for their diagnosis and treatment.
“Optimal Price Point (OPP) for In Vitro Diagnostic Products”
Estimated Average medical imaging product cost – $ xx globally. However, with improving access and availability of options, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
The product pricing and accessibility play a vital role in market expansion across different regions. Due to the continuous investment in R&D, several new products are launched each year. The presence of strong reimbursement framework and regulatory oversight in the U.S. and Europe are amongst the key factors for the high market dominance by these regions. However, the rising healthcare expenditure and growing patient volumes are increasing the burden on the healthcare system and driving the market competition and pricing strategies adopted by the leading multinational players such as Abbott, Roche, and other players.
Product and Service Outlook
The market is segmented based on product and service as follows, instruments, reagents, software, and services. Instruments are the highest revenue generating segment due to their advanced technology and high prices. Each instrument can perform multiple diagnostic tests and on an average, the old instruments are replaced after 5-7 years of usage.
Over the forecast period, the reagents category is expected to grow at the highest CAGR of over 6.4%. The introduction of several new biomarkers and reagents has significantly improved the diagnostic capabilities, and companies are developing instruments which can perform diagnostic tests using multiple biomarkers and lead to significant cost savings in the healthcare system.
Based on technology, the market is categorized as Immunochemistry/Immunoassays, Clinical Chemistry, Molecular Diagnostics (MDX), Clinical Microbiology, Hematology, Coagulation and Hemostasis and others. In 2016, Immunoassays was the largest segment due to its application in a wide number of diseases. However molecular diagnostics is expected to register the maximum CAGR from 2017 to 2024. The introduction of several new instruments and reagents for performing molecular diagnostics is a key thrust factor for the anticipated growth over the forecast period.
Based on the application the market is segmented into diabetes, infectious diseases, oncology, cardiology, nephrology, autoimmune diseases, drug testing, HIV/Aids and others. Infectious diseases category was the largest segment in 2016, owing to the high prevalence of HIV/AIDS, malaria, hepatitis, and other tropical diseases.
By 2024, oncology is expected to emerge as the fastest growing segment due to the rapid growth in breast, liver, lung, skin, gastric and other forms of cancer across the globe. For instance, in the U.S., as per 2014 National Cancer Institute data, nearly 40% men and women were expected to be diagnosed with cancer in their lifetime. As per 2016 estimates, approximately 1,685,210 new cases of cancers were anticipated, and nearly 595,690 people were expected to die to due to the disease.
End Use Insights
The In Vitro diagnostics market is segmented based on the end user as hospitals, laboratories, point-of-care testing, patient self-testing, academic institutes and others. In 2016, hospitals accounted for nearly 70% of the share and are expected to continue their dominance over the forecast period. The presence of well-developed hospital network equipped with advanced diagnostic facilities is a key reason for the high share. However, the other categories such as point-of-care testing and self-testing are giving high competition to the hospitals.
The key regions analyzed in the study include North America, Europe, Asia-Pacific, Latin America and the Middle East and Africa. In 2016, North America dominated the market with a revenue share of over 42%. North America has a high share mainly due to the high healthcare expenditure in the U.S, the introduction of new products, access to highly advanced healthcare technologies, the presence of a large patient pool and strong support from government agencies to promote preventive screening diagnostics for all major diseases.
By 2024, Asia Pacific is anticipated to outgrow other regions in terms of growth rate. The high demand for diagnostics from countries such as Japan, China, India and other South Asian economies is a key factor driving the market expansion. Moreover, the rise in healthcare expenditure and growing insurance penetration in this region is encouraging people to opt for advanced diagnostics and therefore these developments are expected to reinforce the growth prospects in over the next few years.
Merger and Acquisition Insight
The market is majorly dominated by players such as Roche Diagnostics, Siemens Healthineers, Abbott, Bio-Rad, Beckman Coulter, Johnson & Johnson, Alere, BioMerieux and others. The market is moving toward consolidation due to the growing R&D costs, pricing pressure and the need to retain the market share. The top players usually grow or retain their market share by acquiring small or mid-sized players with a niche portfolio and lucrative growth prospects.
Top Players & Company Share
As of 2016, The market is majorly dominated by players such as Roche Diagnostics, Siemens Healthineers, Abbott, Bio-Rad, Beckman Coulter, Johnson & Johnson, Alere, BioMerieux and others.
In Vitro Diagnostics Market by Product & Service (Revenue, USD Million, 20124- 2024)
- Reagents and Kits
In Vitro Diagnostics by Technology (Revenue, Million, 2014 – 2024)
- Clinical Chemistry
- Molecular Diagnostics (MDX)
- Clinical Microbiology
- Coagulation and Hemostasis
- Other IVD Technologies
In Vitro Diagnostics by Application (Revenue, USD Million, 2014 – 2024)
- Infectious Diseases
- Autoimmune Diseases
- Drug Testing
- Clinical Chemistry
- Molecular Diagnostics (MDX)
In Vitro Diagnostics by End Use (Revenue, USD Million, 2014 – 2024)
- Point-of-Care Testing
- Patient-Self Testing
- Academic Institutes
In Vitro Diagnostics Regional Outlook (Revenue, USD Million, 20124- 2024)
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
- South Africa
- Saudi Arabia