Incremental Growth Forecast for In-Vitro Diagnostic Market

Small and slow, but steady.

Those adjectives describe the growth expected over the next seven years in the global in-vitro diagnostics market. GrewViews forecasts the sector to expand 2.6% annually, swelling from $109.7 billion in 2021 to $132.63 billion by 2029.

The world’s aging population (WHO estimates one in six people will be 60 or older by 2030) will help fuel the market’s growth. Companies vying for market share include Roche Diagnostics, Siemens Healthineers, Danaher Corporation, Abbott, Thermo Fisher Scientific, Johnson & Johnson, Becton, Dickinson and Company, Bio-Rad Laboratories, and Sysmex Corporation, among others. To achieve a substantial market share and strengthen their position, manufacturers are pursuing expansion methods such as product development, mergers and acquisitions, collaborations, partnerships, and joint ventures. Among these, Siemens Healthineers is one of the most significant manufacturers and distributors present in the global in-vitro diagnostics (IVD) market.

IVD tests are usually conducted in test tubes or similar equipment. It is conducted on samples such as blood, stool, urine, and tissue to provide medical information used to diagnose conditions ranging from minor infections to life threatening cancers. In addition to this, the IVDs are used by patients to monitor chronic conditions such as diabetes. Hence, these tests enhances convenience of patient through self-tests including blood glucose monitors or pregnancy tests. Such tests can be conducted wherever the patient is and enables them to keep a record of their condition. 
 
The product and service segment includes reagents and kits, instruments, services, and data management software. Data management software segment is expected to witness highest growth rate during the forecast period. The data management software is used in hand-held personal IVDs, with various devices in laboratory based or point of care analyzers, as software upgrades to existing systems, and as a standalone software. For instance, recently EKF Diagnostics launched POC Connect, a data management smartphone-based software for its DiaSpect hemoglobin analyzer.
 
Infectious disease segment is expected to be the fastest growing segment in 2021.
 
On the basis of application, the market is segmented into infectious diseases, diabetes, oncology, cardiology, drug testing/ pharmacogenomics, autoimmune diseases, HIV/AIDS, nephrology, and other applications. Infectious disease application dominated the global market in 2021 due to prevalence of life-threatening infections such as HIV/AIDS, hepatitis, pneumonia, and tuberculosis. In addition, in January 2020, Quest Diagnostics, an American clinical laboratory announced its collaboration with Memorial Hermann Health System, the largest not-for-profit health system in southeast Texas to provide cost-efficient, improved, and innovative diagnostic services for 21 hospital laboratories in the Houston region in United States. Such initiatives are opportunistic for growth of this segment.
 
The North American region has registered highest value for the year 2021. Growth of the IVD market in this region is mainly driven by factors such as growing geriatric population and associated diseases, favorable funding and reimbursement scenarios, and comparatively higher spending on healthcare in the region. However, Asia-Pacific is expected to witness highest growth rate during the forecast period due to upsurge in a number of diagnostic centers and hospitals.
 
Germany’s IVD sector was valued at $10.97 billion in 2021 and is expected to grow 2.5% annually through 2029 to reach $13.22 billion. Germany is one of the largest IVD market shareholders in Europe and has a strong healthcare system, especially in regards to hospital beds, infrastructure, equipment, and trained staff. The increasing number of private hospitals, rising demand for personalized medicine and point-of-care testing, and an upsurge in the number of independent testing laboratories has driven growth of the German IVD sector. Also fueling growth is the prevalence of diabetes in German adults (15.3% in 2020, according to the International Diabetes Federation). 

China’s IVD sector was worth $21.94 billion in 2021 and is expected to reach $26.22 billion by 2029, rising 2.4% annually. China has become one of the prominent IVD markets due to economic growth, an aging population, and expanding basic health insurance sector. In addition, by 2030, the Chinese government has planned a broader healthcare ecosystem of about 16 trillion RMB with continuous optimization of healthcare management and services. Furthermore, according to the National Health Commission of the People’s Republic of China, about 1.71 million cases of infectious diseases were reported for December 2019 in the country. This prevalence of infectious diseases has boosted demand for IVDs in the country.

India’s IVD market size was valued at $4.39 billion in 2021 and is expected to reach $5.38 billion by 2029, expanding 2.8% annually. India is one of the strongest-growing economies in Asia. This country is seeing increased government spending on the development of healthcare facilities. For instance, in December 2019, the government introduced its plans to partner with private firms operating in diagnostic services to provide enhanced diagnostic services under the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
 
IVDs have played an important role in diagnosing and screening patients infected with COVID-19. Hence, the upsurge in point-of-care testing and the need for patient care during the pandemic has driven growth of the global IVD market.