Pharmacogenetic Testing Market size is expected to reach USD 123 Billion by the end of 2036, growing at a CAGR of 9% during the forecast period i.e., 2024-2036. In the year 2023, industry size of pharmacogenetic testing was USD 12 Billion. The market for pharmacogenetic tests is driven by the growing body of information showing how genes affect pharmaceutical efficacy. Additionally, throughout the forecast period, the growing need for precision diagnosis and individualized medications is anticipated to support the growth of the market. New technology could be used by researchers in Boston and New York to cure or perhaps prevent diseases in ways that are not achievable with conventional medications. These researchers are striving to build genetic medicines.
The market expansion of pharmacogenetic tests is anticipated to be impacted by an increasing number of insurance companies' reimbursement policies for these tests. Over the course of the forecast period, rising healthcare spending and a greater uptake of cutting-edge products in developed and high-income nations are anticipated to boost the market for pharmacogenetic tests.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~9% |
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Base Year Market Size (2023) |
~USD 12 billion |
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Forecast Year Market Size (2036) |
~USD 123 billion |
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Regional Scope |
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Therapeutic Area (Cardiology, Gastroenterology, Anesthesiology, Genomics, Endocrinology, Immunology & Hypersensitivity, Dermatology, Gynecology, Oncology, Neurology)
In terms of therapeutic area, the oncology segment in the pharmacogenetic testing market is anticipated to hold the highest CAGR of 20% by the end of 2036. The growth of this industry can be primarily driven by increasing focus and massive expenditure on cancer research. The global number of cancer cases has grown in the last few years and they are expected to double and triple by the end of 2050. Therefore, this would create a lucrative demand for effective and personalized cancer treatments. Cancer is the leading cause of death worldwide, accounting for nearly 10 million deaths in 2020, or nearly one in six deaths, reported as of World Health Organization.
Distribution Channel (Hospital Pharmacy, Retail Pharmacies, Mail-Order Pharmacies, Direct-to-Customer Services)
Based on distribution channel, the hospital pharmacy segment is expected to hold 40% share of the global pharmacogenetic testing market during the time period between 2024-2036. Pharmacogenetic testing can aid in identifying patients who are unlikely to respond to certain medications or at risk of severe side effects leading to more targeted and effective plans. This translates to enhanced clinical outcomes, reduced hospital readmissions and lowered healthcare costs.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Gene Type |
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Drug Type |
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Sample |
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Therapeutic Area |
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Application |
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End User |
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Distribution Channel |
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North American Market Forecasts
The pharmacogenetic testing market in the North American region is set to hold the highest revenue share of 35% by the end of 2036. The growth of this market can be ascribed on the back of increasing healthcare expenditure and presence of manufacturers in the region. The US spent USD 4.5 trillion on health care in 2022, up 4.1 % from the previous year, or USD 12,493 per person. Health spending accounted for 17.2 percent of the nation's GDP. Shifting healthcare landscape emphasizes tailoring treatment to individual needs based on genetic variations. Pharmacogenetics offers insights into individual drug response variability leading to more effective treatments with fewer side effects. Next generation sequencing and other technologies make testing cheaper, faster, and more accessible. Enhanced accuracy and wider test panels encourage broader adoption.
European Market Statistics
The market in the European region is set to grow significantly by the end of forecast period. The growth of this market be attributed on the account of increasing demand by end users owing higher healthcare spending in the region. Advancements in DNA sequencing technologies are making pharmacogenetic testing more affordable and accessible. This is making it more feasible for healthcare providers to offer pharmacogenetic testing in their patients. Furthermore, some European governments are implementing policies that support the use of pharmacogenetics testing.
Author Credits: Radhika Gupta, Shivam Bhutani
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