Global Companion Diagnostics Market - Segmented by Treatment Type and Geography - Growth, Trends, and Forecasts (2018 - 2023)
The global companion diagnostics market has been estimated at USD 5.8 billion in 2017. The market is expected to register a CAGR of 22.7% during the forecast period (2018-2023). North America accounted for the largest market share, accounting for approximately 35% of the global market in 2017, while the Asia-Pacific region is estimated to register the fastest CAGR over the forecast period (2018-2023).
Personalized Medicines Accelerating Market Demand
One of the major factors driving the growth of the companion diagnostic market is the increasing demand for personalized medicines and awareness about the same among the population. Rising cases of adverse drug reactions related to drugs, due to the lack of efficacy, drive the need for companion diagnostics. With companies increasing their collaborations for better biomarkers and diagnostics to focus on cost regulations, there have been significant number of opportunities of its applications in indications other than cancer, like cardiovascular, neurological, etc. The high rise in capital is the basis for the prosperous future of this market .
High Cost of Development of Therapeutics– A Major Hurdle
One of the major hurdles restraining the market includes high cost involved in the development of therapeutics and diagnostic tests. With the high risk of failure in clinical trials, many companies prefer collaborations, in order to minimize their failure rate. But co-development is also expected to be highly expensive. So, for many individual manufacturers, the market seems to involve high-risk investment. Apart from this, several diagnostic companies feel uncertain over eventual agreement on the reimbursement status. All these factors restrict the market’s growth globally.
North America Dominates the Market
The global market for companion diagnostics is segmented on the basis of technology type, indication, and geographical regions. By geography, the market has been segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
North America accounted for the largest market share, accounting for approximately 35% of the global market in 2017. The efficacy of several drugs range between 30-75%, and there have been rising cases of side effects related to therapeutics, such as Vioxx and Avandia, which has prompted people to look for alternatives and raised their awareness regarding the benefits of personalized medicine. These factors are driving the North American market. Apart from this, the Asia-Pacific region was estimated to register the fastest CAGR over the forecast period.
Recent Key Developments in the Market
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook