PHARMACOGENETIC TESTING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The global pharmacogenetic testing market is estimated to be valued at USD 13.11 Bn in 2024 and is expected to reach USD 24.10 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 9.3% from 2024 to 2031.

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The market is expected to witness significant growth over the forecast period. This can be attributed to the rising application of pharmacogenetic testing across therapeutic areas such as oncology, neurology, and pain management. Growing need for precision medicine and rising focus on reducing trial and error in drug development will further stimulate market revenue through 2031.

Rising prevalence of chronic diseases

The global burden of chronic diseases has been increasing significantly over the past few decades. Chronic diseases such as cancer, cardiovascular disease, diabetes, and neurological disorders are amongst the leading causes of mortality worldwide. It is estimated that over 50% of cancers are caused due to genetic and lifestyle factors. With advancements in genomics and pharmacogenomics, the role of DNA variations and mutations in disease etiology is being increasingly understood. Pharmacogenetic testing helps identify individual genetic variations that impact drug metabolism and response. This enables healthcare providers to prescribe safer and more effective medications tailored to the patient's genetic profile. With a rapidly growing chronic disease population worldwide, demand for more personalized treatment approaches is on the rise. Pharmacogenetic testing can help optimize drug therapy for chronic diseases and reduce trial-and-error based prescribing practices. This is expected to drive greater adoption of pharmacogenetic testing services globally in the coming years.

The increasing funding and investments

The increasing funding and investments directed towards DNA sequencing programs globally is significantly driving the growth of the pharmacogenetic testing market. Various governments and non-profit organizations are investing heavily to support DNA sequencing initiatives that study genetic variations and understand how genes impact an individual's response to medications. For instance, the National Human Genome Research Institute, a part of the United States National Institutes of Health, invested over US$806 million in 2020 towards Genome projects alone. Such large investments are helping accelerate DNA sequencing research. Several clinical research studies utilizing DNA sequencing are helping pharmacogenetic testing gain more prominence. DNA sequencing studies are helping identify genetic markers that influence drug metabolism and effectiveness. They are correlating genetic variants to adverse drug reactions. For instance, according to a May 2022 report from the NIH of the U.S., spending on cancer genomics research has increased notably, rising from USD 1,160 million in 2021 to USD 1,220 million. This significant investment in genomics and personalized medicine is expected to positively influence the growth of the pharmacogenomics market. Pharmacogenomics plays a crucial role in cancer treatment, enhancing patient survival rates while also reducing unnecessary costs associated with ineffective treatments.