Precision Diagnostics Market Size, Share & Industry Analysis, By Type (Genetic Tests, Esoteric Tests, and Others), By Application (Oncology, Cardiovascular, Neurology, and Others), By End User (Hospitals, Clinical Laboratories, and Homecare), and Regional Forecast, 2024-2032

The global precision diagnostics market size was valued at USD 75.85 billion in 2023. The market is projected to grow from USD 85.34 billion in 2024 to USD 229.27 billion by 2032, exhibiting a CAGR of 13.1% during the forecast period. North America dominated the precision diagnostics market with a market share of 37.36% in 2023.

Precision diagnostics is a method of disease diagnosis with a precise and & timely explanation of a patient's health problem. It is majorly used for diabetes and cancer treatment and includes the use of genetic tests, esoteric tests, and others (direct-to-consumer tests). The increased prevalence of cancer and rise in neurological disorders is anticipated to boost the demand for precision medicine, thereby driving the industry growth. For example, according to National Cancer Institute, it is projected that the number of new cancer cases will rise by 29.5 million and cancer-related deaths to 16.4 million per year by 2040.

The COVID-19 pandemic had created an intense focus on diagnostics, emphasizing the significance of precision and timely diagnosis to increase the quality of care and reduce healthcare and community-related costs. It had become a stimulus for change and started at the beginning of the patient pathway, with precision diagnosis, the compass for effective treatment. According to Worldometer, in May 2021, the U.S. had recorded the highest number of COVID-19 cases globally, accounting for about 96.2% of the cases in the North American region. Therefore, it had increased the demand for precision diagnostics for the effective treatment procedures and there was a rise in the R&D activities for the development of disease diagnostics such as genetic tests and point-of-care tests. Therefore, the pandemic had given impetus for companies to accelerate the adoption of effective diagnostic procedures.

Precision Diagnostics Market Trends

Growing Adoption of Precision Diagnostic to Propel Market Growth

Diagnostic testing is the backbone of the coronavirus disease 2019 response, supporting containment efforts to diminish the outbreak. Numerous pharmaceutical and biotechnology companies have registered their preclinical and clinical studies for testing novel therapies against toxic viruses. Plasma therapy, immunotherapy trials are presently in the pipeline. This trend is likely to accelerate the potentiality of the coronavirus detection market during the forecast period.

Additionally, increased focus on digital diagnostics is propelling the precision diagnostics market growth. For example, in January 2021, Roche announced the launch of its digital pathology algorithms for precision patient diagnosis for breast cancer to help establish the best treatment strategy for each patient.

Furthermore, utilizing advanced technology and tools, precision diagnostic technology enables the early detection, diagnosis, and treatment of patients, thereby enhancing healthcare outcomes. HealthTech advancements, including artificial intelligence, machine learning, targeted therapies, and gene editing, have significantly contributed to the advancements in this field. By harnessing the potential of these innovations, the healthcare industry can drive improved profitability and better patient care, shaping a brighter future for generations to come.

• For instance, as per the data provided by CrelioHealth Inc. in June 2023, precision diagnostics have the greatest importance in the healthcare industry due to its several advantages, such as personalized treatment, accurate diagnosis, early detection of diseases, and monitoring disease progression.

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Precision Diagnostics Market Growth Factors

Increased Demand for Personalized Medicine to Augment Market Growth

Personalized therapy is available to patients with an understanding of the molecular basis of diseases. It has become famous over recent years where genetic testing and genome sequencing are two of the essential tools used to comprehend the molecular basis of disease. European countries are screened for many genetic disorders, as early detection of these diseases can prevent the onset of symptoms or reduce the severity of the disease.

Additionally, a sudden increase in pandemic cases has escalated the demand for COVID-19 diagnostic procedures and products, leading to increased demand for disease diagnostics. According to the World Health Organization (WHO), in May 2021, 163,312,429 people worldwide were affected by COVID-19. Such instant daily rise in cases has surged the adoption of advanced diagnostic solutions to provide early treatment to patients.

Moreover, several industry players and research institutes are collaborating to introduce clinical laboratories to provide precision and personalized medicines.

• For instance, in January 2024, Siemens Healthineers announced a collaboration with the Indian Institute of Science to advance precision medicines through artificial intelligence and machine learning technology.


• Similarly, the newly established European Partnership for personalized medicine was launched in October 2023 at a prestigious conference held in Valencia on the topic of personalized medicine.

Increased Applications in Oncology and Other Rare Disorders to Propel Market Growth

The rising prevalence of cancer and growing incidence of neurological diseases are estimated to increase the demand for precision medicine and drive the growth of the global market. For example, in 2019, as per Neurological Alliance, there were about 14.7 million neurological cases, with at least 1 in 6 people living with one or more neurological conditions. For example, according to WHO, Alzheimer's disease is the most conventional form of dementia, contributing nearly 60–70% of cases as of September 2020.

Many organizations collaborate to develop medicines targeted to treat a particular group of patients according to their specific requirements, consequently increasing the number of clinical trials, thus leading to an increase in disease diagnostics.

• For instance, in June 2021, Personal Genome Diagnostics Inc. Massachusetts General Hospital announced a strategic collaboration to advance the development of effective treatment services.

In addition, several hospitals and research institutes are launching centers for the diagnosis and treatment of different types of cancers.

• In January 2023, Apollo Cancer Centre unveiled India’s first Precision Oncology Centre, incorporating AI technology. This facility offers comprehensive and specialized medical services that guarantee precise diagnosis, real-time insights, cancer risk evaluation, treatment protocols, and ongoing care, thereby delivering pioneering oncology services previously unavailable in India.

RESTRAINING FACTORS

High-Capital Investment Required for Research & Development of Precision Medicine and Diagnostic Kits to Limit Market Growth

Despite immense potential in various areas of modern healthcare, high R&D costs could slow down developments in the field of precision diagnostics, thereby hindering the market growth. Accurate diagnosis remains one of the major priorities for healthcare providers. Still, quick turnaround time for results, rising demand for test kits, and inefficiency of the tests themselves are affecting the market development.

Besides these factors, a strict regulatory scenario in most countries for the development of new test kits acts as a major growth-restraining factor. As COVID-19 cases continue to rise across the world, the need for safer and more improved kits to deliver accurate diagnosis and treatment has caused disorder in the market. Manufacturers need to comply with strict healthcare standards to launch new test kits. In the U.S., for example, the Centers for Disease Control and Prevention (CDC) and the Food and Drug Administration (FDA) are some of the regulatory bodies that have enforced new guidelines and restructured previous ones.

Moreover, the substantial expenses linked to deploying precision diagnostic tools and conducting clinical trials can present a financial burden for healthcare providers. Furthermore, concerns about data privacy and security may deter individuals from sharing medical information for diagnostic purposes. These are some of the factors hindering the adoption of precision diagnostic technologies. 

• For instance, as per the data provided by the National Center for Biotechnology Information in July 2021, several hurdles remain in the progression of precision medicine, including the associated costs, ethical considerations, data security, security of big data, and availability of proficiency personnel to oversee data management and algorithms.

Precision Diagnostics Market Segmentation Analysis

By Type Analysis

Increased Awareness of Early Diagnosis of Genetic Diseases to Propel Genetic Tests Segment

Based on type, the market is segmented into genetic tests, esoteric tests, and others (direct to consumer tests). The genetic tests segment dominated the market in 2023 due to the increased awareness of the early diagnosis of diseases. This test looks for mutations or variants in the DNA and is helpful in many areas of medicine. For example, genetic testing can diagnose a genetic condition, such as Fragile X syndrome or Huntington's disease, and information about the risk of developing cancer.

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By Application Analysis

Adoption of Precision Diagnostics for Cancer Treatment to Boost Oncology Segment Growth

Based on application, the market is categorized into oncology, cardiovascular, immunology, neurology, and others. The oncology segment will dominate the market in 2023, and is expected to emerge as the fastest-growing segment during the projected timeframe. Precision medicine has promptly changed the oncology diagnostic and treatment spectrum in recent times. Many organizations conducting precision medicine are focused on cancer for many reasons. Cancer is a genome disease, and tumors can be worked on to comprehend genetic changes with an individual’s specific cancer. Therefore, these play a vital role in improving patient outcomes by timely and accurately analyzing the disease.

By End User Analysis

Increased Adoption by Clinics Laboratories to Foster Segmental Growth

The clinical laboratories segment emerged as the dominant segment in the market in 2023. In the era of precision diagnostics, disruptive innovations are increasing as they disrupt an existing market and create a new one by providing different set of values, including the increasing cost of healthcare and the need for better accessibility of diagnostic care. Eventually, combining molecular results and other diagnostic parameters (e.g., genomic data) will lead to better diagnostic procedures and segmental growth. In comparison to hospitals and home care, clinical laboratories are provided with highly innovative technology that could offer beneficial growth opportunities for this segment.

REGIONAL INSIGHTS

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North America is slated to capture the global market share during 2024-2032. In 2023, the regional market size amounted to USD 28.34 billion. This dominance is attributable to rising collaborations between government and private organizations. A well-established healthcare infrastructure will also promote the regional expansion. Neuberg Diagnostics Private Limited, a key player in this region, aims to expand its domestic and international presence by establishing new incubation centers across the country and in Europe to access novel technologies and solutions in the field of personalized medicine. In July 2021, the company also established a new pathology lab in Telangana, India. Similar initiatives from other market players in the region will strengthen the regional outlook significantly in the forthcoming years.

Europe is anticipated to be the second largest market for precision diagnostics in the forthcoming years. The regional growth is influenced by the growing number of COVID-19 infections and the subsequent rise in new technology adoption. Highlighting an instance, in July 2021, Xyall BV, a leading MedTech company in the molecular pathology space, introduced the Tissector High Throughput (HT) system for more improved diagnostics. The technology is the world’s first molecular diagnostics lab that leverages its unique, automated tissue dissection technology.

Meanwhile, the market in Asia Pacific will expand at the fastest CAGR over the projected period, led by the rising occurrence of chronic and lifestyle diseases and the increasing development of drugs for rare diseases. The regional growth will also be powered by continuous advances in next-gen sequencing and companion diagnostics in the genomics spaces.

Latin America and the Middle East & Africa regions will witness slower growth due to the lower awareness about modern diagnostic technologies. The lack of supportive reimbursement policies in various low-income countries could also be a major factor slowing down the market development in these regions.

List of Key Companies in Precision Diagnostics Market

Mergers & Acquisitions with Other Participants to Help Companies Grow

The global market is a fragmented market with several players. Companies such as Koninklijke Philips N.V, GE healthcare, and other healthcare companies, are endlessly attempting to reach the maximum customers to expand their products and services and increase the adoption of diagnostic solutions. Moreover, mergers and partnerships among key players are also attributable to the development of the market. For instance, in October 2020, Diaceutics PLC announced the launch of DXRX, the diagnostic network designed to increase the end-to-end development and commercialization of precision medicine diagnostics by decreasing time to peak biomarker test adoption for cancer testing.

LIST OF KEY COMPANIES PROFILED:

• Quest Diagnostics (U.S.)


• QIAGEN (Germany)


• Swiss Precision Diagnostics (Switzerland)


• Koninklijke Philips N.V (The Netherlands)


• Lantheus Medical Imaging, Inc. (U.S.)


• Bluebird Bio, Inc (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2023 - Bayer introduced a business division dedicated to creating novel Precision Health products within its range of everyday health categories.


• October 2021 - Prenosis, Inc. announced an extension of its current partnership with Roche Diagnostics to address hospital sepsis through Precision Diagnostics.


• June 2021 - Trivitron Healthcare, a medical devices company, announced two new innovation-driven products for HbA1c and Hb variant detection. These products will be used for monitoring diabetes, hemoglobin variants, and thalassemia. The new product includes NANO H5 & NANO H110, high-performance liquid chromatography analyzers, and is fully automated. The company will reach the new height of precision within a projected timeframe in the diagnostics market.


• May 2021 - Koninklijke Philips N.V. unveiled its latest offering in precision diagnosis with the global launch of the Spectral Computed Tomography (CT) 7500, powered by spectral detector technology.


• October 2020 - Diaceutics PLC announced the launch of DXRX – The Diagnostic Network designed to increase the end-to-end development of precision medicine diagnostics by decreasing the time to peak biomarker test adoption for cancer testing from years to months.

REPORT COVERAGE

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The global precision diagnostics market report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, type, application, and end users. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition, the report encompasses significant factors contributing to the market growth in recent years.

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