July 2008: Volume 34, Number 7
IVD Market Growth Looks Favorable
The global market for in vitro diagnostics (IVD) devices is expected to grow 6% annually in the next 5 years, according to a report from Kalorama Information, a market research company based in New York. In 2007, total IVD sales worldwide were almost $42 billion and are projected to reach more than $56 billion by 2012, the company reported.
This forecast of significant growth for the technology is due in part to the projected rise in the 45- to 75-year-old population of many countries. Emerging markets will experience 10%–20% annual growth in IVD device sales, compared with 3%–6% for the rest of the world.
Other trends will also promote rapid growth in the IVD market, the report noted. Developing countries will shift their diagnostic emphasis from infectious diseases to chronic conditions. However, ongoing surveillance will require IVD devices to diagnose H5N1, SARS, and WNV, as well as HIV and other infectious diseases. Rising incomes and living standards in developing countries will also increase demand. China in particular, with its recent entry into the World Trade Organization, is expected to double its use of IVD devices in the next 5 years. Increased privatization of healthcare will likewise add to demand. Future sources of additional demand include research related to the Human Genome Project, as well as patient home monitoring.
IVD manufacturers, while experiencing rapid growth in demand, will also face pressure to reduce prices, the authors noted. Moreover, an increasing focus on home healthcare raises questions of insurance reimbursement, and laws in some areas prohibit cross-border delivery of such devices.
North America, excluding Mexico, currently leads in sales, with 44% of market share, followed by the European Union, which has nearly a third of the market. A total of 16 companies accounted for 86% of the market share, with the remaining firms constituting the remaining 14%.
The report, titled The Worldwide Market for In Vitro Diagnostic Tests, 6th Edition, was based in part on data provided by AACC, the FDA, and sources in private industry. It is available for purchase at the Kalorama Information web site.