PRECISION DIAGNOSTICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Precision Diagnostics Market Size and Trends

The precision diagnostics market is estimated to be valued at USD 84.54 Bn in 2024 and is expected to reach USD 196.45 Bn by 2031, growing at a compound annual growth rate (CAGR) of 12.8% from 2024 to 2031.

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The precision diagnostics market is expected to witness significant growth over the forecast period. Key factors, such as rising focus on personalized medicine, growing applications of companion diagnostics, and technological advancements in molecular diagnostics, are expected to drive the demand for precision diagnostics tools. With the adoption of advanced technologies like next-generation sequencing (NGS), the pipeline for companion diagnostics is expected to strengthen over the coming years. Several market players are making investments to develop innovative diagnostic tests, which is further expected to support the market expansion. The development of rapid diagnostic tests for infectious diseases and the increasing adoption of point-of-care testing are likely to create new opportunities for precision diagnostics manufacturers during the forecast period.

Technological advancement

The precision diagnostics market is being driven significantly by the rapid advancements happening in technologies being used for diagnostics. New and innovative diagnostic tools that leverage cutting edge technologies are allowing for much more accurate diagnosis of diseases. Technologies, such as next generation sequencing, laboratory automation, machine learning, and artificial intelligence, are enabling precision diagnostics to reach new levels. Next generation sequencing has revolutionized genetic testing and enabled the diagnosis of various inherited disorders, cancers, and infections that were not possible to detect earlier with traditional methods. For instance, in May 2020, Paragon Genomics, a precision medicine company based in the U.S., announced a partnership with Saphetor, a Switzerland-based precision medicine company. Paragon Genomics' ready-to-use and custom NGS panel solutions have enabled several lab-developed tests (LDTs) in infectious illnesses, oncology, reproductive health, cardiology, and genetic diseases across the globe.

Another major factor bolstering growth in the precision diagnostics market is the increasing integration of companion diagnostics with targeted therapies. Companion diagnostics are in vitro diagnostic tests or imaging tools that provide critical information for the safe and effective use of corresponding therapies or drugs. They help identify patients that are most likely (or not likely) to benefit from specific treatments. This allows for more precise selection of treatment options for patients and prevents potential adverse reactions. Regulatory agencies now mandate the development and approval of companion diagnostics along with several new targeted therapies. This is driving significant R&D investments from pharmaceutical companies into precision diagnostics. For instance, most new oncology drugs are now launched along with a corresponding DNA or protein-based companion diagnostic test to identify patients with specific genomic alterations or biomarkers.