Companion Diagnostics Market Analysis North America,Europe,Asia,Rest of World (ROW) - US,UK,Germany,France,Japan - Size and Forecast 2023-2027

Companion Diagnostics Market Forecast 2023-2027

The Global Companion Diagnostics Market size is forecast to increase by USD 11.03 billion at a CAGR of 22.59% between 2022 and 2027. The primary factors driving the market growth include the rising use of personalized medicine, the increased industry collaborations, and the growing investments in the life sciences sector. One of the major challenges hindering the growth of the market size is the limited sustainability of smaller companies. Trends such as the rising occurrence of breast cancer, and the increase in product approvals to treat cancer will boost the market growth. This market growth analysis report also includes an in-depth analysis of drivers, trends, and challenges. 

What will be the size of the market During the Forecast Period?

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The market is experiencing significant growth propelled by advancements in drug development and the increasing focus on personalized medicine, particularly in cancer treatment. With the rise of genetic sequencing and genomics, companion diagnostics play a pivotal role in identifying biomarkers and patient-selection diagnostic frameworks. Pharmaceutical and biopharmaceutical companies are leveraging next-generation sequencing (NGS) technologies to develop NGS-based companion diagnostic tests tailored to individual patient profiles. By analyzing tumor genomes, these diagnostics aid in the selection of therapeutic medications, revolutionizing cancer treatment strategies and improving patient outcomes.

Market Segmentation

In the end-user segment of the market, personalized diagnostic systems play a crucial role in enhancing treatment outcomes for patients with various chronic diseases and malignancies. These systems leverage cutting-edge sequencing technologies to analyze molecular data from the tumor genome, enabling healthcare providers to tailor therapeutic medications and immunotherapies to individual patients. For diseases like lung cancer, particularly NSCLC (non-small cell lung cancer), and neurological disorders, companion diagnostics provide invaluable insights into disease pathology and guide therapy choices. Pharmaceutical companies like Gilead Sciences utilize companion diagnostics to develop personalized immunotherapies and CAR T-cell therapies, revolutionizing disease treatments. By incorporating hereditary sequencing and patient-choice diagnostic systems, companion diagnostics empower patients and healthcare professionals to make informed decisions about treatment strategies. The end-user segment of the companion diagnostics market continues to expand, offering personalized solutions that optimize patient care and improve treatment outcomes across various chronic diseases and malignancies.

By End-user

The life science segment is estimated to witness significant growth during the forecast period. This segment comprises pharmaceutical and biotechnology companies. With the growing prevalence of chronic diseases across the globe, there is an increasing need for pharmaceutical and biotechnology companies to manufacture high-quality and regulatorily compliant drugs and therapeutic treatments. The screening of clinically relevant compounds by the use is carried out as part of the discovery process.

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The life science segment was the largest segment and was valued at USD 1.03 billion in 2017 and continued to grow by 2021. In order to assess drug response biomarkers, toxicity, and immunotherapies responses, these diagnostics are used at the preclinical and clinical stages of drug development. The significant number of samples and the time needed to process them can be reduced, enabling users to obtain a complete set of information on each analyte they care about through testing several targets at one reaction in drug discovery. Thus, the increasing advantages provided by companion diagnostics are driving the demand for diagnostics products.

Regional Analysis

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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is growing at a steady rate, owing to significant investments in healthcare research and testing. The strong distribution networks in countries such as the US and Canada and the increasing focus of pharmaceutical companies and medical device manufacturers on drug discovery and device development drive the market in the region.

Market Dynamics and Customer Landscape

The Global Companion Diagnostics Market is witnessing significant growth, fueled by advancements in drug development, particularly in cancer treatment. Genetic sequencing and genomics play a pivotal role in identifying biomarkers for patient-selection diagnostic frameworks. Next-generation sequencing (NGS) enables the development of NGS-based companion diagnostic tests, aiding in the analysis of tumor genomes and guiding the selection of therapeutic medications, including immunotherapy. Pharmaceutical and biopharmaceutical companies are increasingly investing in companion diagnostics to enhance treatment outcomes and personalize patient care. As precision medicine continues to gain traction, the demand for companion diagnostics is expected to rise, shaping the future of cancer therapy. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market  Driver

The rising use of personalized medicine is driving growth in the market share. Personalized medicine is a multi-faceted method of patient care that not only improves the capacity to diagnose and treat diseases but offers the potential to distinguish diseases at an earlier stage, which makes it easier for practitioners to treat them effectively. Personalization of medical care is gaining popularity due to its specificity in treating diseases based on the genetic characteristics of individuals. A significant number of people in the US who seek medical care undergo medical misdiagnose, and the factors causing this can be delayed and lead to inaccurate diagnoses.

Moreover, there is growing popularity  in the development of personalized medicines for the early detection of diseases and the selection of accurate treatment methods that can reduce mortality rates. Identification and assessment of the genetic composition of an individual play a vital role in determining the health and susceptibility to severe diseases. Increasing awareness about genetic diseases will assist in the development and commercialization of personalized medicines, which are dedicated to developing targeted drugs. Furthermore, the demand for companion diagnostic tests is expected to increase over the forecast period with a view to providing accurate patient diagnosis and development of personalized medicine.

Key Market Trends

The growing importance of promotional activities is a primary trend in the market growth. The are not as frequently marketed as other test kits and devices that are available in the market due to their specificity, wherein they can be used only for a particular drug. Improvements in the distribution network and increased availability of products to end users must therefore be given greater attention. Given the low return on investment and a lack of visibility for other media, internet channels and search engines are among the most important advertising sources.

In addition to increasing sales, product functionality, accuracy, and the companies' aftersales services are highlighted, with marketing communication taking a back seat. Limited promotion activities make it difficult for products to reach their target market and understand a company's competitive position. Attracting customers to a company website can be helped by the publication of several blogs and newsletters. This allows businesses to keep their marketing campaigns going over a longer period of time and attract visitors back. As product enhancements continue in the market, companies realize the importance of promotional activities, and this trend will pick up in the market, thereby supporting the growth of the global market during the forecast period.

Key Market Challenge

The lack of manpower is a major challenge in the market. Companion diagnostic tests are highly technical, and care must be taken at each step to facilitate the successful execution of these tests to generate reproducible results. A major challenge in these scientific fields is the lack of technically skilled and trained staff.  The companion diagnostic tests can often be complex and require sophisticated techniques and instruments in some analytical procedures, such as image processing. The presence of professional and experienced staff who have a good technical capacity is the most important part of biopharma companies, academic institutions, R&D laboratories, and organizations. However, It require a lot of prior knowledge before its analysis process, as it requires specific information about its mechanism.

However, there is a reduction in proper training programs for laboratory professionals, as the laboratories are under undue pressure to deliver faster turnaround times. Consequently, the programs for training laboratory managers or preparing them to become experts are not given a lot of attention. Another reason is that the compensation package is not high. This results in a high turnover rate. Therefore, lack of recognition of the profession and lack of proper knowledge pertaining to the importance of laboratory professionals are some other reasons contributing to the dwindling of professionals in the laboratory. This is expected to continue during the forecast period, thereby offsetting the growth of the market in focus during the forecast period.

Market Customer Landscape

The Market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market forecasting and growth strategies.

Global market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Abbott Laboratories - The company offers companion diagnostics such as m2000 REALTIME SYSTEM AND ASSAYS, ALINITY m SYSTEM, AND ASSAYS.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Abnova Corp.
• Agilent Technologies Inc.
• Amoy Diagnostics Co. Ltd.
• ARUP Laboratories
• Bayer AG
• BioGenex Laboratories Inc.
• bioMerieux SA
• F. Hoffmann La Roche Ltd.
• Guardant Health Inc.
• Illumina Inc.
• Invivoscribe Inc.
• Liquid Biotech USA Inc.
• Myriad Genetics Inc.
• NG Biotech

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, robust, tentative, and weak.

Market Analyst Overview

The market is witnessing significant growth, driven by advancements in genetic sequencing and genomics, particularly in the pharmaceutical and biopharmaceutical sectors. Patient-selection diagnostic frameworks, including Next-generation sequencing (NGS) and NGS-based companion diagnostic tests, are becoming increasingly prevalent in personalized medicine approaches. These diagnostics play a crucial role in analyzing tumor genomes and facilitating therapies like CAR T-cell treatment. Clinical trials across various therapeutic areas such as cardiovascular diseases (CVDs), neurological diseases, and infectious diseases rely on technologies like PCR (Polymerase Chain Reaction), ICH (In Situ Hybridization), and ISH (Immunohistochemistry) for accurate patient stratification. Reference laboratories are pivotal in conducting comprehensive genetic analyses, further driving the demand for Polymerase Chain Reaction (PCR)--based diagnostics in the companion diagnostics market.

The market is witnessing exponential growth, driven by collaboration between pharmaceutical and biopharmaceutical companies to develop innovative therapeutic medications. Immunotherapy, particularly CAR T-cell therapy, has emerged as a revolutionary approach in cancer treatment, with companies like Gilead Sciences leading the way. In lung cancer, especially NSCLC (non-small cell lung cancer), companion diagnostics play a crucial role in identifying suitable patients for targeted therapies. Moreover, in neurological disorders, hereditary sequencing aids in personalized medication selection. Advanced molecular data and cutting-edge sequencing technologies empower clinicians to make informed therapy choices, leading to more effective disease treatments and personalized immunotherapies. This underscores the pivotal role of patient-choice diagnostic systems in enhancing healthcare outcomes.

In the realm of malignant growth treatment, companion diagnostics are pivotal in guiding therapeutic decisions. They play a crucial role in tailoring treatment strategies such as chemotherapy and radiation treatment to individual patients, optimizing efficacy and minimizing adverse effects. Additionally, companion diagnostics are indispensable in the management of inflammatory diseases and acquired conditions, offering personalized insights into disease pathology and treatment response. Drug and biotechnology companies heavily rely on companion diagnostics to develop targeted therapies and precision medicines, ensuring better patient outcomes and accelerating drug development pipelines.

Segment Overview

The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • Life science
  • Health centers
  • Others

• Indication Outlook 
  • Oncology
  • Neurology
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia
    • China
    • India
  • ROW
    • Australia
    • Brazil
    • South Africa 

 

Companion Diagnostics Market Scope
Report Coverage	Details
Page number	168
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 22.59%
Market growth 2023-2027	USD 11.03 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	24.34
Regional analysis	North America, Europe, Asia, and Rest of the World (ROW)
Performing market contribution	North America at 36%
Key countries	US, UK, Germany, France, and Japan
Competitive landscape	Leading companies,Market growth and forecasting Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Abbott Laboratories, Abnova Corp., Agilent Technologies Inc., Amoy Diagnostics Co. Ltd., ARUP Laboratories, Bayer AG, BioGenex Laboratories Inc., bioMerieux SA, F. Hoffmann La Roche Ltd., Guardant Health Inc., Illumina Inc., Invivoscribe Inc., Liquid Biotech USA Inc., Myriad Genetics Inc., NG Biotech, QIAGEN NV, Quest Diagnostics Inc., Siemens AG, Sysmex Corp., and Thermo Fisher Scientific Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across North America, Europe, Asia, and Rest of the World (ROW)
• Through analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market growth and trends of factors that will challenge the growth of market companies

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