The precision medicine market is estimated to be valued at USD 92.31 Bn in 2024, growing at a CAGR of 11.3% over the forecast period (2024 – 2031). Advancements in omics technologies such as genomics, proteomics, and molecular diagnostic techniques have enabled deep understanding of diseases at the molecular level. Furthermore, the integration of Artificial intelligence and big data analytics has amplified the potential of precision therapies.
Market Dynamics:
The growth of the precision medicine market is driven by two key factors. Firstly, the increasing adoption of omics technologies such as genomics, epigenomics and proteomics by pharmaceutical and biotechnology companies has boosted research and development of personalized therapeutics. Omics studies provide in-depth molecular insights which help develop targeted therapies for specific patient population. Secondly, application of big data analytics in healthcare has emerged as an important trend. Integration of patient data collected from electronic health records, clinical trials and research studies helps physicians understand pathologies at an individual level. This facilitates tailoring of treatment regimens based on patient's genetic profile and disease outcomes. While omics is fueling precision therapy development, big data assists in clinical decision support.
Advancements in Genomics and Big Data Analytics is Driving Growth in the Precision Medicine Market
Next-generation sequencing and genomic profiling technologies have advanced significantly in recent years, enabling better detection and understanding of disease at the molecular level. Advanced bioinformatics and big data analytics tools are leveraging huge volumes of genomic and clinical data to discover new biomarkers, develop more targeted therapies, and power personalized treatment recommendations. As genomic and clinical databases grow exponentially, precision medicine approaches will become even more effective at matching the right treatment to the right patient. Continued advancements in genomics and big data are key drivers propelling the growth of the precision medicine market.
Greater Adoption of Companion Diagnostics and Biomarker Tests
As new targeted therapies receive regulatory approvals tied to specific biomarker test results or genetic mutations, companion diagnostics are increasingly being adopted in clinical practice. Pharmaceutical companies are also developing biomarkers to identify likely responders or resistant patient populations for their precision drugs. The complementary development and approvals of targeted cancer drugs along with companion diagnostics is driving increased usage of biomarker testing in oncology. Greater uptake of companion diagnostics and biomarker tests helps optimize patient outcomes and lowers healthcare costs by avoiding treatment of patients unlikely to benefit, thus fueling market expansion.
Limited Healthcare Budgets Restrain the Market Growth
Despite their clinical benefits, precision medicine approaches often come with a higher price tag compared to conventional treatments due to the costs associated with genetic testing, companion diagnostics and targeted drugs. Healthcare systems worldwide continue to face significant budgetary constraints which limit their ability to widely adopt and reimburse expensive new precision therapies. The high costs of precision medicine pose challenges for market growth, especially in developing countries with limited healthcare resources.
Reimbursement Hurdles for New Precision Tests and Treatments
Obtaining insurance coverage and adequate reimbursement for newly developed precision medicine technologies, including genomic profiling, biomarker tests and personalized treatments remains a major barrier to market adoption. Private and public payers often require extensive clinical evidence demonstrating improved health outcomes and cost-effectiveness before agreeing to coverage. Navigating the complex reimbursement landscape threatens the timely clinical uptake of promising new precision diagnostic tests and drugs. Overcoming issues around insurance coverage and establishing predictable payment models is critical for sustained market development.
Growth of Clinical Trial Consortia and Data Sharing Initiatives
Large clinical trial networks and data sharing projects are increasingly leveraging multidisciplinary collaborations to power precision medicine research. For instance, initiatives like the National Cancer Institute's Molecular Analysis for Therapy Choice program brings together researchers, healthcare systems, and industry stakeholders to efficiently generate evidence linking specific alterations to optimal targeted therapies through large umbrella trials. As more such consortia form to effectively translate insights from genomics into standards of care, it will accelerate the pace of precision therapeutic development and the expansion of clinically actionable applications.
Increased Direct-to-Consumer Genetic Testing Drives Sample Collection
Direct-to-consumer genetic testing services that allow consumers to access their personal DNA data online are gaining popularity. While questions remain around the clinical validity of many direct-to-consumer tests (DTC) tests, they are fueling interest in personal genomics and driving the collection of large genetic and phenotypic datasets. As DTC testing companies continue collaborating with researchers and biobanks to anonymize and share their pooled genetic resources, it will contribute to the growth of population-level biobanks critical for advancing precision medicine understanding and discovery. Proliferation of DTC testing indirectly supports the precision medicine market.
Link: https://www.coherentmarketinsights.com/market-insight/precision-medicine-market-145
Key Development
- On February 7, 2024, Exscientia plc, a pharmaceutical technology firm, declared the commencement of EXCYTE-2, an observational clinical investigation focused on acute myeloid leukemia (AML). This study aims to investigate the correlation between ex vivo drug response (EVDR) assessed in primary blood or bone marrow samples utilizing the company's advanced deep learning, single cell precision medicine platform and the real clinical response observed in patients.
- In May 2023, Google Cloud, a suite of cloud computing services offered by Google unveiled two innovative AI-driven life sciences solutions aimed at accelerating drug discovery and precision medicine for biotech firms, pharmaceutical enterprises, and public sector organizations worldwide. The Target and Lead Identification Suite aids researchers in elucidating the role of amino acids and predicting protein structures, while the Multiomics Suite expedites the identification and interpretation of genetic data, empowering corporations to develop precision medicines rapidly.
- In April 2023, The Barcelona Supercomputing Center - Centro Nacional de Supercomputación (BSC-CNS), a public research institution, and Fujitsu Limited, a Japan-based multinational information and communications technology company, entered into a dual collaboration agreement. This partnership aims to drive personalized medicine forward by harnessing clinical data and to propel quantum simulation technologies utilizing tensor networks.
- In April 2023, Merck, a multinational pharmaceutical company recognized as MSD outside of the U.S. and Canada, revealed a definitive agreement with Prometheus Biosciences, Inc. Under this agreement, Merck, via a subsidiary, is set to acquire Prometheus Biosciences, Inc., a clinical-stage biotechnology enterprise at the forefront of pioneering precision medicine approaches for discovering, developing, and commercializing innovative therapeutic and companion diagnostic products.
Key Players: Intomics, GENinCode, NanoString, Tepnel Pharma Services Limited, Pfizer Inc., Novartis AG, Teva Pharmaceutical Industries Ltd., Merck & Co. Inc, QIAGEN, Quest Diagnostics Incorporated, Medtronic, Thermo Fisher Scientific Inc., Laboratory Corporation of America Holdings, bioMérieux SA, F. Hoffmann-La Roche Ltd, Eli Lilly & Company, GlaxoSmithKline plc, Cepheid, AstraZeneca PLC, Myriad Genetics Inc., and Bristol-Myers Squibb Company
