The global in vitro diagnostics (IVD) market has weathered the effects of COVID-19 to register impressive growth in 2020 and 2021. A recent report reveals the world's in-vitro diagnostics market size stood at USD 83.4 billion in 2020. The market will expand by an annual rate (CAGR) of 4.5 percent from 2021 to 2027.
This growth can be attributed to a rise in the adoption of IVD in COVID-19 related testing. Besides, recent technologies that automate in vitro diagnostic systems for healthcare providers have enabled efficient, more accurate, and error-free diagnoses, expected to further fuel market growth.
The market is expected to remain buoyant thanks to the success of personalized medicine that is now driving uptake of various IVD tests. IVDs, mainly companion diagnostics, play an integral role in personalized medicine. Increasing governments' and other stakeholders' investments in programs that improve healthcare is vital to the IVD industry business growth. The US government has spearheaded numerous initiatives to provide information and education about personalized medication and IVD resources for efficient patient management. Ultimately, this action has sparked a demand for various IVD tests and devices. Specific examples where IVD devices provide personalized medicine include pregnancy tests, blood glucose tests, in-home HIV tests, and screening of some types of cancer, including colon cancer.
An increasing prevalence of chronic and infectious diseases has led to the launch of rapid diagnostic and testing tools by leading market players. For example, technologies such as Phadia 200 from Thermo Fisher Scientific are revolutionizing the diagnosis of allergy and autoimmune conditions. Besides, the rising adoption of self-test and point-of-care devices will position the reagents and consumables segment as the most significant portion of the global in vitro diagnostics market in the coming days.
The emergence of the COVID-19 pandemic has led to a spike in demand for reagents and a quicker approval time of in vitro reagents by the FDA. As part of an ongoing and aggressive commitment to address this, in March 2020, the FDA updated a policy issued on diagnostic testing. The update sought to enable more rapid testing capacity in the US by expanding the number and variety of testing. More regulatory relief by the FDA eventually boosts the global uptake for IVD devices.
Point of care (POC) diagnostic devices help obtain diagnostic results with the patient or close to the patient. POC enables quick results and faster implementation of therapy. They also offer convenience, connectivity, and quality assurance, and the portability advantage of these IVD devices is one of the critical contributory factors to surging demand.
Ideally, most geriatrics and general practitioners prefer the in-vitro diagnostics method over other options due to its portability. Modern in vitro diagnostics enhance patients' treatment with limited physical movement due to severe chronic ailments such as bowel disorders or muscle and joint injuries.
Some popularly utilized portable IVD devices include diabetic glucose meters, home pregnancy tests, and urine test strips for determining the presence of certain chemicals, PH levels, and specific gravity. Other easy-to-use point-of-care diagnostic systems enable real-time molecular testing in health care facilities and field applications.
Typically, laboratory testing is a complex and labor-intensive process requiring multiple steps from sample extraction to result analysis and interpretation. With an increasing number of samples due to COVID-19, there is an urgent need to improve productivity to avoid errors in laboratory testing. Many processes in molecular diagnostic workflows can now be undertaken with the help of automated equipment like the robotic liquid handling platform. Such automation reduces hands-on time, improves accuracy, and enhances the in-vitro diagnostic revenue. Ideally, automated systems are designed to process a higher number of samples in a short period. Automated workflows play a critical role in quick turn-around testing during outbreaks and pandemics.
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The oncology IVD diagnostics segment is also expected to grow substantially by 2027, thanks to the increasing availability and adoption of advanced care kits, primarily the fecal occult blood tests (FOBT). The FOBT is designed for effective colon cancer diagnostics in homecare settings. The FOBT technology is expected to uplift the oncology segment's demand and boost the global in-vitro diagnostics market revenue.
The COVID-19 pandemic has led to a sharp rise in the demand for in vitro diagnostic products. This trend can largely be attributed to an unprecedented surge in market demand for PCR, NGS, and serology-based rapid-test products. Notably, a very supportive regulatory environment for product development and commercialization and a substantial rise in the target patient population are other contributory factors. These factors have nudged the IVD diagnostics players to improve and strengthen their current manufacturing and distribution capabilities to meet the rising market demands.