In-vitro Diagnostics (IVD) Market
Diagnostic tools account for considerable share of global healthcare revenue. Its reach ranges from hospitals and clinics to that in research centers. As such, In Vitro Diagnostic (IVD) market share has witnessed increase in recent past, further highlighted its key role in the healthcare industry. IVD has led to cut down in hospital staying costs along with faster diagnosis results. According to the U.S. FDA, in-vitro diagnostic products are those reagents, instruments, and systems intended for use in diagnosis of disease or other conditions, including determination of the state of health, in order to cure, mitigate, treat, or prevent disease or its sequela. Such products are intended for use in the collection, preparation, and examination of specimens taken from the human body.
Over the last decade, the In vitro diagnostics (IVD) market has witnessed substantial growth. However, the growth trajectory witnessed declining motion between 2008 and 2012. The effect was prolonged to 2014 in Europe. Economic downturn in Europe coupled with low healthcare expenditure are factors responsible for marginal demand in IVD. However, as the healthcare growth trajectory is on growth path post-2015, especially in Asia Pacific, the In vitro diagnostics (IVD) market is expected to re-bounce to higher growth trajectory. Also, growing point of care solution is expected to boost the molecular diagnostics, in turn driving growth of the market worldwide.
Though the market competition has heightened with advancement in molecular diagnostics, the market is expected to create lucrative market opportunity for industry players during the forecast period (2016–2024). Growth in the industry will be supported by favorable demographic population, rise in diagnostic centers, and increased healthcare spending along with emerging technologies. Also, the In vitro diagnostics (IVD) market outlook will change with lab automation. As of 2017, the In vitro diagnostics (IVD) market is estimated to account for 33% of global medical devices and diagnostics market and is expected to capture 35% of the market by 2024.
The global In vitro diagnostics (IVD) market revenue was estimated to be valued at US$ 20,459.3 million in 2016 and is expected to expand at a CAGR of 4.3% during the period 2016 – 2024.
Figure 1. Global In Vitro Diagnostics (IVD) Market Revenue (US$ Million), 2014-2024
Source: Coherent Market Insights Analysis (2016)
Infectious diseases has emerged as the highest revenue contributor among application segment
Infectious diseases has emerged as the highest revenue generating application for In vitro diagnostics (IVD) market industry players. The segment is expected to grow by 1.5X at a CAGR of 4.4% between 2016 and 2024. Infectious diseases prevalence has increased considerably in past. Morbidity cases in tuberculosis, salmonella and meningococcal disease was as high as 90,000 in U.S. in 2016. As a result, the demand for IVD from diagnostic centers has increased substantially. As per the Centers for Disease Control and Prevention (CDC), over 3.9 million patients visited hospital outpatient department for infectious and parasitic diseases. Demand for IVD is expected to register fastest growth in detection of autoimmune disorders and infectious diseases.
North America is expected to dominate the market revenue throughout the forecast period
North America is highest contributing region for In vitro diagnostics (IVD) market, with a projected market share of 46.7% by 2024, expanding at the fastest CAGR of 5.4% between 2016 and 2024. Changing healthcare landscape, favorable regulatory policies such as Medicaid and Medicare along with significant healthcare spending (16.7%) is expected to boost the market for IVD in the region. Though the market outlook seems lucrative in North America, reimbursement pressure, increased usage of companion diagnostic and significant growth potential of next generation sequencing (NGS) are key challenges for the industry players in the North America. Companion diagnostics market is proliferating at faster market pace compared to IVD. As such, product innovation in the segment is the key focus area for market players. North America has also seen some of the major mergers and acquisitions in the recent past, to tap into market opportunities. For instance, Roche acquired Ventana Medical in 2008. In 2011, Novartis acquired Genoptix to capture a greater chunk of market in the U.S.
Market players need to invest in R&D and follow inorganic growth to generate high ROI in longer run
Market players are focused towards research and development to expand their business reach in the market. Moreover, industry players are focused towards generating revenue from respective key product segment. For instance, while Roche and Siemens are active players in clinical chemistry IVD product segment, Allere and Abbott holds key market share in point of care IVD solutions. Furthermore, the In vitro diagnostics (IVD) market is expected to witness mergers and acquisition in near future, wherein leading players are expected to acquire regional companies based in emerging economies. Similar trends have been noticed in recent past where leading players acquired/partnered with regional players. For instance, Roche acquired majority stake in Foundation medicine with US$ 1.2 Bn in 2015.
In vitro diagnostics are diagnostic devices and equipment that extract vital information about an individual or patient after a sequence of tests. Introduction of novel diagnostics test applications on the backdrop of advancements and innovations in the IVD technologies by various organizations has resulted in rampant growth of the in vitro diagnostics (IVD) market, which is expected to sustain in the near future. Diagnoses and tests are precursors to any treatment, which makes in vitro diagnostic market highly lucrative. However, majority of the tests are remotely performed making their presence and use unnoticed. Furthermore, increasing elderly population base and rising demand for diagnostic testing is projected to spur growth of the in vitro diagnostics (IVD) market over the forecast period (2016–2024). Also, growing prevalence of diabetes has increased the demand for in vitro diagnostic tests in the recent past, which is further expected to add on to the sales revenue of the in vitro diagnostic market. In 2014, as per National Diabetes Statistics Report 2014, around 9.3% of the population in the U.S. suffered from diabetes and around 28.0% were undiagnosed.
Rapid strides made in technology and inclination of healthcare providers towards expanding their product portfolio is fueling growth of this highly lucrative market, especially in emerging economies, which are largely untapped. Furthermore, rise in prevalence of infectious disease globally, especially in Asia Pacific would inadvertently support market growth in the near future. Major organizations in the in vitro diagnostic market are actively focusing on introducing novel technologies in the testing and diagnostic segments of molecular biology. Such initiatives are projected to bring about a rapid shift in the dynamics of in vitro diagnostics (IVD) market, with Asia Pacific taking on the mantle from North America to emerge as the largest market for in vitro diagnostics, owing to latest technologies and uninterrupted investment in the health care sector is expected further to support the growth in in vitro diagnostic market in the near future.
This report segments the global in vitro diagnostics (IVD) market on the basis of product type, application, end user and geography. On the basis of product, the market is categorized into clinical chemistry, immunoassay, diabetes testing, blood testing, molecular diagnostics and others. On the basis of application the market is divided into infectious diseases, diabetes, oncology, cardiology, nephrology, autoimmune disorders and others. On the basis of end user, the market is divided into hospitals, laboratories, homecare diagnostics, research institutes and others. Among all end users, hospitals segment dominated the in vitro diagnostics (IVD) market, owing to rapid advancements in medical systems and developed infrastructure.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
Table of Contents
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