Healthcare Medical Devices Biotechnology

Companion Diagnostics Apps Market is Expected to Reach USD 18.23 Billion by 2031

May 2024

Healthcare Medical Devices Biotechnology

As per the report published by Kings Research, the Global Companion Diagnostics Market was valued at USD 6.89 billion in 2023 and is projected to reach USD 18.23 billion by 2031, growing at a CAGR of 12.94% from 2024 to 2031.

The global companion diagnostics market is witnessing substantial growth, propelled by increasing demand for precision medicine. This demand is driven by advancements in biomarker discovery and molecular profiling technologies. Companion diagnostics have emerged as indispensable tools in guiding treatment decisions and optimizing therapeutic outcomes. The significant rise in chronic diseases, coupled with the growing demand for targeted therapies, is further fueling the demand for companion diagnostics. The proactive stance of regulatory agencies in streamlining approval processes and implementing favorable reimbursement policies has accelerated product adoption, fostering a favorable environment for innovation and market expansion. Moreover, strategic collaborations and alliances between industry players are bolstering product development and commercialization, thereby propelling market growth. Despite several challenges such as regulatory uncertainties and interoperability issues, the outlook for the companion diagnostics market remains promising, fueled by the imperative to deliver more effective, tailored therapies to patients while maximizing healthcare efficiency and cost-effectiveness.

Key Insights

  • Based on technology, the polymerase chain reaction (PCR) segment held the largest market share of 39.86% in 2023
  • Based on end user, the pharmaceutical & biopharma companies segment generated the highest revenue of USD 3.78 billion in 2023
  • Based on indication, the cancer segment is anticipated to generate a value of USD 3.78 billion by 2031
  • On the basis of region, Asia-Pacific is projected to account for a significant share of 23.90% by 2031

Bayer and Thermo Fisher Sign Partnership for Developing Efficient Companion Diagnostics System

March 2024: Thermo Fisher Scientific announced a collaboration with Bayer to formulate companion diagnostic assays for Bayer’s precision cancer cures. Thermo Fisher aims to utilize its Ion Torrent Genexus Dx System to develop advanced next-generation sequencing-based diagnostics. This technology boasts the capability to examine both liquid and tissue samples within a swift 24-hour timeframe.

Integration of Value-Based Care to Aid Companion Diagnostics Market Expansion

The market is experiencing a pivotal transformation due to increasing demand for value-based care models, which are expanding their applications beyond oncology. Healthcare systems globally are transitioning toward value-based care, emphasizing patient outcomes and cost-effectiveness. Companion diagnostics play a vital role in this shift by optimizing treatment plans, reducing unnecessary costs, and improving patient outcomes through personalized medicine approaches. Moreover, applications of companion diagnostics are expanding beyond cancer treatment and encompassing therapeutic areas such as cardiovascular diseases, neurological disorders, and infectious diseases. This expansion highlights versatility and potential to address diagnostic needs across diverse medical conditions. This dual advancement is aiding the evolving landscape of companion diagnostics, positioning it as an essential tools in advancing precision medicine initiatives and revolutionizing healthcare delivery worldwide.

Growing Adoption of Pharmacogenomics to Offer Promising Growth Opportunities

The rising integration of pharmacogenomics presents a significant opportunity to revolutionize drug therapy customization by utilizing individual genetic variations. By leveraging these technologies, healthcare providers aim to precisely identify patients who are most likely to benefit from specific drugs, thereby optimizing treatment efficacy and minimizing adverse reactions. This personalized approach to pharmacotherapy is projected to revolutionize patient care, ensuring safer and more effective treatments. Additionally, companion diagnostics in pharmacogenomics are aligning with the broader trend toward precision medicine, emphasizing tailored interventions that consider individual patient characteristics. As pharmacogenomics continues to gain prominence in the healthcare industry, the integration of this diagnosis holds promise for enhancing therapeutic outcomes and advancing personalized medicine initiatives on a global scale.

Asia-Pacific to Record Highest Growth at a CAGR of 13.78% over 2024-2031

Based on region, the global companion diagnostics market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Asia Pacific is expected to witness significant growth in the forthcoming years. The region’s expanding healthcare landscape and emerging trends in preventive tests and precision medicine are projected to offer exponential opportunities for market growth. The rising adoption of telemedicine presents significant opportunities for the integration of companion diagnostics, allowing for remote patient monitoring and personalized treatment recommendations. This collaboration between telemedicine and companion diagnostics enhances accessibility to advanced diagnostic solutions, particularly in remote or underserved regions. Additionally, there is a growing focus on developing affordable companion diagnostics tailored to meet the needs of resource-limited settings in Asia-Pacific. Innovations in test design and manufacturing processes are crucial for ensuring widespread adoption and accessibility. Moreover, strategic partnerships between multinational companies and local players are facilitating regional market expansion by leveraging local expertise and navigating regional regulatory frameworks, thereby fostering innovation and addressing unmet healthcare needs across the Asia-Pacific region.

Major Industry Players Ink Lucrative Deals to Strengthen Market Foothold

The global companion diagnostics market is fragmented with key players such as F. Hoffmann-La Roche Ltd., Siemens Healthineers AG, Thermo Fisher Scientific Inc., Abbott, Agilent Technologies, Inc., QIAGEN, BIOMÉRIEUX, Illumina, Inc., ARUP Laboratories, Myriad Genetics, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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