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The global COVID-19 diagnostics market size was valued at USD 6.22 billion in 2020 and is projected to reach USD 8.04 billion by 2027, exhibiting a CAGR of 2.7% during the forecast period.
Coronavirus outbreak was declared by the World Health Organization (WHO) as a Public Health Emergency in January 2020. Since then the number of cases in many countries have surged exponentially. According to WHO statistics in August 2020, the U.S recorded the highest number of cases at around 59 lakhs. The sudden emergence of the crisis has brought increased diagnostic activities, treatment procedures, and rise in R&D for development of vaccines. Countries are racing to slow the spread of the disease by implementing necessary measures and increasing sample testing. Growing demand for diagnostic procedures and products has created immense opportunities in the healthcare industry, thus augmenting the coronavirus diagnostics market value. Diagnostic companies in this industry such as Thermo Fischer Scientific, Roche, and Bio-Rad, among others have developed various technologies to improve detection and treatment against the COVID-19 infection. Therefore, increasing prevalence of the infectious disease coupled with demand for accurate diagnostic procedures is anticipated to give momentum to the global market.
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Introduction of Novel Therapies for COVID-19 Treatment to Drive Market Growth
Emergence of COVID-19 pandemic has led to an explosion of research on various combinations of compounds in laboratories to develop COVID-19 diagnostics and therapies. Multiple pharmaceutical and biotechnology companies have registered their preclinical as well as clinical studies for testing novel therapies against the deadly virus. Plasma therapy, immunotherapy, and stem therapy trials are currently in the pipeline. This trend is likely to increase the potentiality of the coronavirus detection market during the forecast period. According to the Biopharma Reporter, as of March 2020, the U.S holds the highest position by registering 255 therapies against this highly infectious disease. Additionally, the first epicenter of the virus, China, has 39 therapies in the pipeline. Other countries such as the UK, Switzerland, Germany, France, and India also have their therapies in the pipeline. Such extensive research projects and investments are likely to boost the COVID-19 diagnostics market growth during the forecast period.
Rising Prevalence of the Coronavirus Disease to Fuel Demand for Diagnostic Devices & Kits
Sudden rise in the communicable coronavirus disease leading to a global pandemic has resulted in escalating demand for diagnostic procedures and products. According to Worldometer statistics, there has been a continuous rise in daily new cases in across the globe. As of June 21st 2020, the U.S recorded a total of 16, 142 cases in 24 hours. Such rapid daily rise in cases has surged the adoption of diagnostic tests so as to provide early treatment to the patients. Moreover, surge in the coronavirus infections has also been recorded in growing economies. For example, Brazil’s total number of cases stands at 14 lakhs as of June 2020. This is likely to increase the sales of reagents & kits used in the detection of the virus. Additionally, rising R&D activities is likely to drive the market growth during the forecast period. Also, higher investments are being made by several companies in support of the development of diagnostic solutions. For instance, Amazon Web Services in March 2020 has committed to provide US$ 20 million to researchers developing accurate diagnostic solutions for testing of COVID-19.
Launch of Innovative Products is Propelling Market Growth
Protecting human lives is the most crucial element of the healthcare system during a pandemic situation. The need of the hour is to have accurate diagnostic procedures so as to receive early treatment. This has led pharmaceutical and medical devices companies to invest in R&D to launch novel testing kits and assays. Large and small companies as well as startups are introducing new products for patients and healthcare personnel. For example, Accurate Diagnostic in April 2020 announced the launch of an antibody test for diagnosis of COVID-19. This serology test is performed by collecting and analyzing saliva samples for detection of the coronavirus antigen. Also, in April 2020, Erba Mannheim received a CE mark for its COVID-19 ELISA kit. The kit is intended for the detection of IgG and IgM antibodies to SARS-CoV-2 by use of ELISA analyzer.
Stringent Regulatory Framework to Develop New Test Kits to Limit Market Growth
Though the COVID-19 diagnostic market has tremendous potential and upcoming opportunities, there are some challenges that are likely to hinder the growth of the global market. Owing to continuous rise in COVID infections worldwide, demand for better, safer, and faster detection kits to provide successful treatment to the patients has created havoc in the diagnostics market. However, despite the dire need for these diagnostic tools, manufacturers have to pass through stringent regulatory restrictions to launch novel kits. For instance, every country has its own regulatory authority implementing different regulations and guidelines for the manufacturers. To ensure safety of products, the US Food and Drug Administration (FDA), the Centers for Disease Control and Prevention (CDC), and other regulatory bodies have updated their guidelines. Moreover, increasing budgetary constraints are also likely to impact the market growth and revenue during the forecast period.
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Increased R&D among the Diagnostic Companies to Surge Sales of Reagents & Kits
On the basis of product, the market includes instruments and reagents & kits. The instruments segment held a dominant market share in 2020 on account of increased adoption of PCR analyzers and ELISA instruments to conduct R&D for diagnostics purposes. Moreover, use of instruments for detection of COVID disease in hospitals, clinics, and laboratories has gained traction, fueling sales of the segment. The reagents & kits segment is projected to register a higher CAGR by 2027 due to the increasing demand for the products with respect to increasing prevalence of the disease. As the kits are one-time use, they need to be bought in bulk quantities and need to be supplied regularly. This is likely to aid the segment to register a higher growth rate during the forecast period.
Higher Rate of Accurate Output Through PCR Technique to Increase Adoption
By technology, the market is classified into PCR, ELISA, POC, and others. PCR technique dominated the market in 2019. The dominance is attributable to the increased quantification of patient samples by the use of PCR. According to the news article published by the Hindu in June 2020, researchers from Center for Cellular and Molecular Biology (CCMB) said that they find PCR method less expensive than others. Hence, patient samples are largely quantified using PCR. PCR adoption has also contributed to the considerable growth of the segment. Moreover, launch of new PCR-based detection techniques is likely to surge the PCR instrument demand in the coming years. ELISA holds the second-leading position in the market owing to USFDA and other regulatory authorities’ approvals for ELISA-based tests. POC is also likely to mark a significant growth trajectory during the forecast period owing to extensive research activities being conducted for the approval of POC testing.
Increased Sample Collection Through Swabs Owing to its Advantages for Easy Diagnosis
The sample type is segmented into oropharyngeal & nasopharyngeal swabs, blood, urine, and others. The swabs segment marked the higher position in the market owing to increased COVID testing by conductance of swab tests. Swab tests are easy, convenient, and can be carried out within a short time. Owing to increased pressure of testing patients for coronavirus infections, swab tests are friendlier and can deliver results within a few hours. For example, in June 2020, as stated in a news article in the Global Times, Beijing sampled 2.29 million people using swab tests for screening COVID cases between June 11 and June 20. Blood sample type holds the second-leading position in the market owing to higher collection of blood samples for diagnostic purposes. Researchers have been collecting blood samples of patients to carry out exhaustive research activities to bring novel therapies such as plasma therapy for the treatment. Urine & others are anticipated to register a smaller market share and CAGR owing to lesser frequency of the sample type collected for detection purposes.
Availability of Necessary COVID-19 Diagnostic Equipment’s in Hospitals & Clinics to Register a Higher Market Value
In terms of end-user, the COVID-19 diagnostics market segments include hospitals & clinics, laboratories & diagnostic centers, research institutes, and others. The hospitals & clinics segment is expected to have a dominant share in the market during the forecast period. The dominance is due to a sudden increase in hospital stays of patients suffering from COVID. For instance, according to the Worldometer statistics, as of June 2020, there were more than 37 million coronavirus active cases in world. The laboratories & diagnostic centers segment is expected to grow at a significant CAGR during the forecast period due to the increase in the diagnostic procedures coupled with sales of diagnostic products in developed and emerging economies. Moreover, research institutes are also likely to register a comparatively higher CAGR owing to the extensive research activities carried out for the development of COVID vaccine.
North America COVID-19 Diagnostics Market Size, 2020-2027 (USD Billion)
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The market size in North America stood at USD 2.20 billion in 2020. The dominance of this region in the COVID-19 diagnostics market share is attributable to the increasing prevalence of coronavirus infections and higher testing rates for the detection of the virus. For instance, according to Worldometer statistics, U.S recorded more than 27 lakhs cases as of June 2020 and conducted over 28 million tests. This, along with the presence of adequate diagnostic equipment and higher sales of reagents & kits for conducting the tests, is responsible for the dominance of North America in the global coronavirus diagnostics market.
The market in Europe is expected to grow at a significant CAGR owing to the rising prevalence of coronavirus infections coupled with adoption of advanced technologies to fight the deadly virus. The market in Asia Pacific is expected to exhibit healthy growth owing to the launch of innovative testing kits (ELISA, POC, etc.). In addition to this, market players and governmental organizations in this region are making heavy investments in establishing diagnostic facilities, which in turn, will fuel demand for COVID-19 diagnostics products. Latin America & the Middle East & Africa accounted for a comparatively lower share of the market owing to the presence of a huge underpenetrated market, but are likely to witness comparatively higher growth during the forecast period. This growth is attributable to adoption of coronavirus detection kits and instruments.
Higher Investments in R&D to Launch Novel Products to Accelerate Competition
The global market for COVID-19 diagnostics has a fragmented structure with the presence of numerous players. Among them, few players such as Roche, Abbott, and Danaher Corporation are likely to have maximum share in market. Having advanced technologies and broad diagnostic portfolio, Roche is likely to have the highest market share. Significant investments in R&D for launch of diagnostic kits and therapies against COVID-19 are helping the players in contributing to maintain their position in the market. For example, Abbott in March 2020 launched a molecular POC test (ID NOW) to detect the deadly virus. This test is the company’s second test to receive Emergency Use Authorization from the USFDA for COVID-19. Likewise, Bio-Rad Laboratories Inc. in April 2020 received USFDA Emergency Use Authorization for Droplet Digital PCR SARS-CoV-2 test kit.
An Infographic Representation of COVID-19 Diagnostics Market
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The COVID-19 diagnostics market research report provides a detailed market analysis and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over the recent years.
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Value (USD billion)
By Sample Type
By End User
Fortune Business Insights says that the global COVID-19 diagnostics market size was USD 6.22 billion in 2020 and is projected to reach USD 8.04 billion by 2027.
In 2019, the North America market value stood at USD 2.20 billion.
Growing at a CAGR of 2.7%, the market will exhibit steady growth in the forecast period (2021-2027).
The PCR segment is expected to be the leading segment in this market during the forecast period.
Increasing prevalence of coronavirus infections and introduction of novel diagnostics test by market players are the major factors driving the growth of the market.
F. Hoffmann-La Roche Ltd, Abbott, and Danaher Corporation are major players in the global market.
North America dominated the market share in 2020.
Launch of advanced technologies by market players such as rapid detection kits and COVID-specific diagnostic reagents are expected to drive the adoption of diagnostics products.
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