Global IVD Market to Top $135B in the Next Decade

Not surprisingly, the worldwide in-vitro diagnostics (IVD) market is primed for considerable profitability over the next decade.  

The IVD market generated $87.23 billion in revenue last year and is projected to reach $135.16 billion by the end of 2031, growing 4.6% annually, according to Kenneth Research data. The market’s growth is attributable to rising health expenditures and increasing healthcare R&D supported by numerous government initiatives throughout the world. World Bank statistics indicate current health expenditures as a share of GDP worldwide increased from 9.09% in 2008 to 9.84% in the year 2019. Moreover, the growing preference for point-of-care (POC) diagnostic technologies is also expected to contribute to the IVD market’s expansion in the coming years.

The concern for different types of chronic and infectious diseases worldwide is growing at a significant pace. According to the statistics by the World Health Organization (WHO), each year 41 million people die from noncommunicable diseases (NCDs), which is equivalent to 71% of total deaths worldwide. Additionally, between the ages of 30 and 69 years, more than 15 million people die as a result of NCDs. Of all deaths caused by NCDs, cardiovascular disease results in 17.9 million deaths annually, followed by cancer with 9.3 million, respiratory diseases with 4.1 million, and diabetes with 1.5 million deaths. On the other hand, the coronavirus pandemic has raised the need amongst healthcare workers and researchers to develop advanced diagnostic devices for treating the disease. The surge in concern for such deadly diseases worldwide is therefore projected to raise the need for advanced diagnosis, and in turn, contribute to the IVD market’s growth.
 
The IVD market is segmented on a regional basis into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The North American market generated the largest revenue ($36.98 billion) in 2021 and is expected to reach $57.17 billion by the end of 2031. North America’s market growth can primarily be attributed to rising cancer cases as well as other chronic diseases in the region. Centers for Disease Control and Prevention (CDC) statistics indicate that six in 10 U.S. adults have a chronic disease, while four in 10 adults have two or more diseases. On the other hand, National Cancer Institute (NCI) data indicate that 1,806,590 new cases of cancer were expected to be diagnosed in 2020 in the United States. The North American market’s growth also can also be attributed to rising healthcare expenditures in the region, which according to the World Bank, was 16.32% in 2019, up from 12.2% in 2000.
 
The North American IVD market is further segmented on the basis of the country into the United States and Canada. The U.S. market is projected to garner the highest market share by the end of 2031, growing at 4.6% annually. Canada’s market is projected to reach 7.34 billion next year.
 
Europe’s IVD market is forecast to garner the second-largest revenue ($36.50 billion) by the end of 2031, up from $23.29 billion last year. The European market is further segmented by country into Germany, France, Italy, United Kingdom, Spain, Russia, and the Rest of Europe. Germany’s market garnered the largest revenue ($5.61 billion) in 2021 and is expected to reach $9.01 billion by the end of 2031. The U.K. market is forecast to achieve the highest annual growth rate (5.2%) during the forecast period.
 
The IVD market is segmented on the basis of application into oncology, cardiology, autoimmune diseases, neurology, infectious diseases, gastroenterology, and others. The infectious diseases segment generated the largest revenue ($21.37 billion) last year and is expected to reach $33.94 billion by the end of 2031. North America registered the largest revenue ($9.06 billion) in 2021 and is expected to reach $14.35 billion by the end of 2031. In Europe, the segment is projected to reach $9.05 billion by the end of 2031, up from $5.63 billion last year.
 
The IVD market is segmented on the basis of end-user into hospitals and clinics, research institutes, diagnostics laboratories, and others. The hospitals and clinics segment generated the largest revenue ($42.16 billion) in 2021 and is expected to reach $64.70 billion by the end of 2031. The North American segment is forecast to generate the most revenue ($27.27 billion) by the end of 2031, up from $17.82 billion last year. The Asia Pacific segment registered the largest revenue ($9.81 billion) in 2021 and is expected to reach $15.47 billion by the end of 2031.