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The companion diagnostics market size is forecast to increase by USD 28.98 billion, at a CAGR of 36.5% between 2024 and 2028. The Companion Diagnostics Market is experiencing significant growth due to the rising adoption of personalized medicine. This approach to healthcare identifies and treats diseases based on an individual's unique genetic makeup, necessitating precise diagnostic tools. Industry collaborations are increasingly common, with pharmaceutical companies partnering with diagnostic solution providers to develop and commercialize companion diagnostics. Furthermore, the life sciences sector is witnessing substantial investments, fueled by the potential of these advanced diagnostic solutions to improve patient outcomes and reduce healthcare costs. The companion diagnostics market is poised for robust expansion, driven by these trends and the increasing demand for personalized healthcare solutions.
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Drug development in the field of cancer treatment has been revolutionized by advancements in genetic sequencing and genomics, enabling the identification of specific biomarkers. Pharmaceutical and biopharmaceutical companies utilize next-generation sequencing (NGS) to develop NGS-based companion diagnostic tests for precise patient selection. By analyzing the tumor genome, targeted therapeutic medications can be developed, including immunotherapy and CAR T-cell therapy, pioneered by companies like Gilead Sciences. These innovations have significantly impacted the treatment landscape for chronic diseases such as lung cancer (NSCLC) and neurological disorders, as well as cardiovascular diseases. Hereditary sequencing informs medication choices, guiding patient-choice diagnostic systems and enabling personalized molecular data analysis for tailored therapy choices. With cutting-edge sequencing technologies, malignant growth treatment is evolving towards personalized immunotherapies and disease treatments based on individual patient profiles.
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 misdiagnoses, 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.
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 market growth and trends during the forecast period.
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 requires 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.
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 growth and forecasting strategies.
Market Customer Landscape
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:
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, strong, tentative, and weak.
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 1.33 billion in 2018 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.
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North America is estimated to contribute 34% 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.
Segment Overview
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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Patient-selection diagnostic frameworks play a crucial role in guiding treatment decisions, utilizing techniques such as PCR (Polymerase Chain Reaction), ICH (In Situ Hybridization), and ISH (Immunohistochemistry) to analyze gene sequences in various therapeutic areas. This is particularly relevant in CAR T-cell treatment and clinical trials across cardiovascular diseases (CVDs), neurological diseases, and infectious diseases. Reference laboratories employ advanced technologies like Lumipulse G ?-Amyloid 1-42 Plasma and Lumipulse G ?-Amyloid 1-40 Plasma to detect SARS-CoV-2 variants and biomarkers associated with conditions such as breast cancer and central nervous system (CNS) disorders. Targeted therapies, such as those targeting Epidermal Growth Factor Receptor (EGFR) mutations, offer alternatives to conventional treatments like chemotherapy and radiation treatment. As research progresses, there is growing interest in exploring the role of these techniques in managing inflammatory diseases and other acquired diseases, driving innovation in drug and biotechnology companies.
Industry Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 36.5% |
Market growth 2024-2028 |
USD 28.98 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
26.88 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 34% |
Key countries |
US, UK, Germany, Japan, and France |
Competitive landscape |
Leading Companies, 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 Forecasting growth, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Indication
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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