The global in-vitro diagnostics market is estimated to garner a revenue of USD 105 Million by the end of 2033 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 70 Million in the year 2022. The growth of the market can be attributed to the rising demand for PoC and home tests, and laboratory-based tests as these are more dependable due to their higher accuracy, providing them an advantage in the market. Moreover, the increase in hospitalizations that need support from quicker diagnostics. Hence, it is projected that the continued expansion of the healthcare infrastructure would improve the current hospital facilities. As a result, there is a growing need for IVD testing performed in hospitals. Hospitals purchase the majority of IVD equipment and use it extensively. Because IVD tests yield quicker and more precise findings, approximately 6,093 hospitals in the U.S. was predicted to depend constantly on IVD assistance for essential decision-making in 2022.
Get more information on this report:The FDA will give home-based molecular diagnostic testing priority in 2021. The release of BATM Advanced Communications Ltd.'s molecular diagnostics self-test kit for COVID-19 detection was announced in March 2021. Furthermore, these tests provide a reduced threat of replacements by enabling early disease detection. All these factors are estimated to boost market growth. Additionally, the number of routine check-ups has been increasing as a result of the aging population and increasing understanding of early detection, as the majority of deaths from infections and chronic illnesses affect people over 75. According to the Office for Budget Responsibility in the UK, healthcare expenses have increased at an exponential rate, putting financial strain on countries that are rapidly aging. Therefore, this expenditure is estimated to have a favorable impact on the IVD market and industry.
Base Year |
2022 |
Forecast Year |
2023-2033 |
CAGR |
~5% |
Base Year Market Size (2022) |
~ USD 70 Million |
Forecast Year Market Size (2033) |
~ USD 105 Million |
Regional Scope |
|
Increasing Awareness Towards Point-Of-Care Testing from Centralized Testing - With rising cases of COVID-19 across the globe have increased the adoption of point-of-care testing devices that are a great influence on the need to make healthcare more focused on patients. For instance, till October 2022, there have been 623,000,396 confirmed cases of COVID-19, including 6,550,033 deaths, as reported by WHO. The need to deliver care closer to the patient has increased the volume of testing performed outside the conventional laboratory.
Rise in Incidences of Chronic and Infectious Diseases - The substantial rise in chronic diseases such as cardiovascular, respiratory, and gastrointestinal infections, asthma, diabetes, arthritis, tuberculosis, and cancer patients is expected to increase the demand for diagnostic devices, which is likely to drive the IVD market. According to the data from the WHO, 262 million people suffer from asthma.
Incorporation of Artificial Intelligence and Internet of Things in IVD Equipment - Advanced technologies such as artificial intelligence and the internet of things infused in in-vitro diagnostics work in assisting remote monitoring and patient management, which creates new opportunities for the coming years, which leads to the growth of the IVD market. As per the data from the World Bank, 2.33% of the global GDP was spent on research and development activities in 2019, which increased to 2.63% in 2020.
Rising Healthcare Expenditure- As per the data by the World Bank, 9.83% of the global GDP was spent on health expenditure in 2019.
Growing Adoption and Rising Demand for Personalized Medicine - The growth in self-monitoring personalized treatment such as cholesterol testing, blood glucose monitoring, hemoglobin sensors, and more, is likely to rise demand for personalized care and medicines, which leads to the growth of the IVD market. For instance, in 2020, 3 million people were using self-glucose monitoring machines, which rose to 4 million people in 2021.
High Cost of Diagnostic Services and Machinery Maintenance
Unfavorable Reimbursement Scenario
The routine tests performed at hospitals and laboratories are being reduced due to unfavorable reimbursement policies. Considering this, many market players have observed a decline in sales. For instance, Abbott Laboratories has witnessed a decline of -3.9%.
Lack of Awareness among People
The global in-vitro diagnostics market is segmented and analyzed for demand and supply by product type into reagents & kits, instruments, and services. The faster detection of chronic diseases and genetic disorders is most likely to drive the growth of this segment. Based on application, it is segmented into infectious diseases, cardiology, oncology, gastroenterology and others. The oncology segment is expected to grow in the forecast period, owing to the growing cases of cancer worldwide. According to the WHO data, over 10 million deaths were caused by cancer in 2020.
The North America in-vitro diagnostics market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The market in North America is driven by the increasing requirement of genetic testing for personalized health care, diabetes, and cancer. According to the International Diabetes Federation (IDF), it was estimated that around 32.2 million people in the U.S., were suffering from diabetes in 2021. On the other hand, the market in the Asia Pacific region is also expected to be the fastest-growing regional market during the forecast period, with driving factors such s, the presence of stabilizing economies, the rapid growth of the middle-class population, and rapid urbanization.
Our in-depth analysis of the global in-vitro diagnostics market includes the following segments:
By Product Type |
|
By Test |
|
By Application |
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Abbott Laboratories
Abbott Laboratories received US FDA clearance for the Freestyle libre 2 iOS application for use with compatible iPhones.
Roche Diagnostics launched the Cobas pulse system, a blood glucose management solution with mobile digital health capabilities to improve patient care.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Radhika Gupta, Shivam Bhutani
Ans: Increasing awareness towards point-of-care testing from centralized testing, and increase in chronic and infectious diseases are anticipated to be the major factors driving the growth of the in-vitro diagnostics market.
Ans: The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2023 – 2033.
Ans: High cost of diagnostic services and machinery maintenance and unfavorable scenario are the challenges affecting the market growth.
Ans: The market in North America is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Abbott, Roche Diagnostics, DiaSorin, Johnson & Johnson, Becton, Dickinson and Company, Siemens Healthineers, Danaher Corporations, Bio-Rad Laboratories, and Thermo Fisher Scientific.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product type, test type, application, end-user, and by region.
Ans: The oncology is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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