Tuesday 10 April 2012, Amsterdam
The report provides market landscape, competitive landscape and market trends information on seven IVD market categories: immunochemistry, clinical chemistry, infectious immunology, hematology, microbiology culture, histology and cytology and genetic testing. The report provides comprehensive information on the key trends affecting these categories, and key analytical content on the market dynamics. The report also reviews the competitive landscape, with analysis of the major Mergers and Acquisitions (M&A) in the last four years and a detailed analysis of the pipeline products in each category.
In Vitro Diagnostics Market Forecast to Increase at a CAGR of 6.8% during 2011–2018
See figure: In Vitro Diagnostics Market, Global, Revenue ($bn), 2011–2018
The global In Vitro Diagnostics (IVD) market is forecast to grow at a Compounded Annual Growth Rate (CAGR) of 6.8% during 2011-2018 to reach a value of $72.3 billion by 2018. The IVD market will be driven by the shift to preventive healthcare from curative healthcare, the increase in the incidence of infectious diseases, the increase in the percentage of elderly people and technological advances.
Technological advances such as automation, biosensor technology, miniaturization, integration of workstations, and Information Technology (IT) optimizing laboratory workflow will lead to an increased demand for innovative technologies and drive the growth of the overall IVD market.
Emerging countries have huge potential for IVD and demand will be high in these countries.
Factors such as an increase in income levels, growing awareness among patients, an increase in the patient pool and the increased adoption of Point of Care (POC) testing will drive the marketgrowth in these countries. The advantages of POC testing include reduced Turnaround Time (TAT), minimal infrastructure requirements and accessibility. These advantages will be major factors contributing to the increased demand for POC tests and will drive the growth of the overall IVD market.
The Immunochemistry Category is expected to be the Largest Revenue Generator
The immunochemistry market is expected to grow at a CAGR of 6.8% during 2011-2018. It will be the largest revenue generator in the IVD market with an expected value of $25.5 billion by 2018. Many factors, such as the increasing incidence of infectious diseases, the fast Turn Around Time (TAT) of these tests and the introduction of innovative tests, will drive the market growth.
Companies are focusing on introducing new tests to meet the growing demand for immunochemistry testing across the world. The immunochemistry market has the highest number of pipeline products in the IVD market. There are a total of 1,726 pipeline products, which accounts for 59% of the total pipeline products in the IVD market.
The increasing prevalence of infectious diseases and cardiac disorders and the increasing elderly population is driving the demand for immunochemistry tests. Physicians are opting for immunochemistry products over other traditional tests due to the short TAT and high specificity of the tests. This has resulted in an increased usage of immunoassays for the diagnosis of various diseases such as infectious diseases, oncology and other disorders. In order to leverage this, the companies are focusing on developing advanced immunochemistry products.
Demand for Decentralized Laboratory Testing is Increasing Significantly Worldwide
The healthcare delivery system has undergone a transition from hospital delivery to POC. Decentralized laboratory testing is another term for near-patient testing or POC testing. It involves clinical testing of biological samples at or near the location of patient care. Many factors have contributed to this shift from central laboratory testing to POC testing. In POC testing the TAT is short as results are rapid and treatment starts without any delay, the time of sample transfer to central labs and then report generation and transfer steps are eliminated.
Technological advances have also enabled POC testing to be more effective. The integration of IT with POC testing devices has improved data management and connectivity. The connectivity has enabled real time information exchange between patients and physicians leading to on time treatment. This subsequently leads to improved patient satisfaction, which drives the demand for POC testing.
Accessibility is another major factor that plays a role in patients preferring POC testing. These tests need minimal infrastructural requirements and can be performed in settings such as physicians’ offices, emergency rooms, intensive care units and patients’ homes. The demand for POC testing is growing significantly in emerging countries as there are a limited number of hospitals and central laboratories and the need for healthcare is constantly increasing. These factors are leading to overcrowded hospitals and long waiting times, which cause delays to treatment and patient dissatisfaction. POC testing is the preferred option to meet the growing needs of patients in countries with poor healthcare infrastructure, as POC tests can be conducted in any setting and minimize the need for proper infrastructure.
All of these factors have led to the decentralization of laboratories worldwide.
Genetic Testing will See a High Adoption Rate Worldwide
The genetic testing market is expected to grow at a CAGR of 10.3% to reach a value of $1.9 billion by 2018. Many factors, such as direct to consumer genetic testing, growing interest in personalized medicine and an increase in the application of genetic testing in the diagnosis of infectious diseases will drive the adoption rate of genetic tests in the near future. The direct to customer genetic testing is driving the growth of the genetic testing market. The demand has increased because of improved accessibility and convenience to customers. The involvement of doctors and insurance agencies is also eliminated, which further increases the convenience for patients. The growing interest in personalized medicine is driving the genetic testing market across the world. Personalized medicine involves the practice of using genetic information to decide about medical care for an individual. Various pharmacogenomic tests are used for the prognosis and diagnosis of diseases. The increasing application of genetic testing for the diagnosis of infectious diseases is driving the overall market growth. Most laboratories are now using genetic tests for the diagnosis of infectious disease, especially for Sexually Transmitted Diseases (STDs) such as Acquired Immuno Deficiency Syndrome/ Human immunodeficiency virus (AIDS/HIV). Apart from STDs, companies are now focusing on developing a rapid test for the detection of respiratory diseases.
These factors will drive the adoption rate of genetic testing worldwide.
F. Hoffmann-La Roche Ltd. and Siemens Healthcare were the Leading Companies in the Global in Vitro Diagnostics Market in 2010
F. Hoffmann-La Roche Ltd. and Siemens Healthcare were the leading companies in the global IVD market in 2010, each with a market share of 11%. The IVD market is fragmented and large numbers of smaller companies are operating in this market. The wide product portfolio of F. Hoffmann-La Roche Ltd. helped it gain an 11% market share in the IVD market. The company has acquired mtm Laboratories, which has expanded its tissue diagnostics products portfolio. Siemens’ acquisition of Bayer’s diagnostic portfolio helped it to become a key company in the IVD market with an 11% share.
These two companies are closely followed by Abbott with a 10% market share. Abbott offers a broad range of innovative IVD systems and tests for hospitals, reference labs, blood banks, physicians’ offices and clinics. Abbott is a strong company in the POC testing market and has a wide product portfolio of rapid tests and POC.
Emerging Countries Will be the Key Focus Areas for IVD Companies
Emerging countries such as India, China and Brazil hold good potential for IVD companies. Pricing pressures in developed countries and increased healthcare spending in emerging countries are the factors why IVD companies are expanding their presence in emerging markets. Other favorable factors for IVD companies include the huge untapped market, the demand for rapid tests and POC testing, increased awareness among patients, the increase in government initiatives to provide better healthcare facilities, the increasing elderly population and the increasing incidence of various diseases. All of these factors have resulted in an increase in demand for IVD.
The lack of proper infrastructure will propel the growth of POC testing in these markets. POC tests are portable, easy to use and do not require any expertise or infrastructure. The growing incidence of diseases such as diabetes, obesity, cardiac disorders and other chronic conditions are major factors driving the demand for POC testing.
Government initiatives investing in the healthcare sector are also driving the IVD demand in these countries. Due to the increase in the healthcare budget, there has been an increase in the number of hospitals and primary care centers. This increase has subsequently led to an increased demand for IVD. In China, the demand for IVD is increasing due to increased government healthcare spending, the increased elderly population, the untapped market and the replacement of obsolete IVD devices. Due to the low penetration rate there is a huge untapped market in China. On average, only 50% of the hospitals in China have biochemistry analyzers. This presents a good opportunity for IVD devices in China.
With an increase in demand for IVD devices, reagents will also experience a similar rise in demand as they are complementary products. In India, the increase in disposable income, the increase in the patient pool, the growing elderly population and the increasing rate of obesity are expected to drive the IVD market. Obesity and old age are the major risk factors for chronic diseases. The chronic diseases require frequent testing, which will drive the growth of the IVD market.
The penetration into rural parts of India is also increasing. This includes diagnostic private chains such as SRL Ranbaxy, which have high workflow and also attract business from hospitals in the US and UK that outsource their pathology demands.
The factors presented above demonstrate the favorable market opportunities for IVD companies in emerging countries. Companies such as Abbott, Roche and Siemens and smaller companies, such as BioMerieux, Transasia, Becton Dickenson, Beckman Coulter, Johnson & Johnson (J&J) and Sysmex, are expanding their presence in emerging countries such as India, China, Brazil and Russia.
The US was the Largest Market for the IVD Industry in 2011
The US was the largest market for IVD and accounted for 50% of the global IVD market in 2011. The IVD market was valued at $19.4 billion in 2011 and is forecast to grow at a CAGR of 6.6% to reach $30.3 billion by 2018. In the US, the genetic testing category is the fastest growing category and is expected to increase at a CAGR of 11.3% to reach $1.1 billion by 2018. The market is expected to be driven by the increasing adoption of genetic testing by physicians. The completion of a human genome project has also increased the application areas for genetic testing.
The shift to preventive healthcare will drive the demand for IVD. Technological advances leading to short TAT, improved specificity and accuracy, automation, and the introduction of innovative POC testing will drive the market growth.
