Precision Medicine Market Size, Share & Trends Analysis Report By Application (Genetic Tests, Esoteric Tests, Pharmaceuticals, Medical Devices), By End Use, And Segment Forecasts, 2018 - 2025

Industry Insights

The global Precision Medicine (Diagnostics/Therapeutics) Market size was valued at USD 40.0 billion in 2017 and is expected to exhibit a CAGR of 9.9% over the forecast period. Diagnostic and therapeutic precision medicines are among the most complex and helpful achievements of current science as they offer highly effective and efficient treatment options to patients suffering from serious illnesses, with fewer side effects.

The number of gene therapies, medicines, and diagnostics being introduced in this arena has increased significantly in the past few years due to growing prevalence of life threatening medical conditions, especially cancer and rare diseases.

The global prevalence of cancer has increased tremendously. At the same time, developments in its diagnosis, prevention, and treatment have also increased. With advancements in precision diagnostics and therapies, along with breakthrough innovations such as Next Generation Sequencing (NGS) and big genomic data, the market is expected to witness steady growth during the forecast horizon.

There have also been several advancements in the field of gene therapy and development of precision therapies to treat diseases such as cancer, tuberculosis, and Alzheimer’s. These diseases, which are triggered by mutations, are expected to significantly contribute to revenue generation. One of the key advantages of precision diagnostics and medicines is that they can be tailor-made to suit different needs and conditions, instead of fitting every individual in the frame of “one treatment for all”.

At the moment, operational and innovation challenges while developing these medicines is deterring the market from future growth. High cost associated with R & D and clinical trials is also a major obstacle. Nevertheless, opportunities in this market are plenty and immensely fruitful. This is attracting an increasing number of pharmaceutical and biotech companies to venture into this space.

Application Insights

The overall market for precision medicines can be segmented into two major categories: therapeutics and diagnostics. Therapeutics segment can be further broken down into pharmaceuticals and medical devices. Whereas the diagnostics segments includes genetic tests, direct to consumer tests, esoteric tests, and others.

Under pharmaceuticals, oncology held the largest revenue share in 2017. One of the reasons behind this is growing prevalence of cancer and increasing number of drug candidates for the same under clinical trials. Additionally, the NIH is expected to invest approximately USD 70 billion in precision oncology, which will spur market growth. The respiratory and genetic diseases segments are also expected to witness significant growth in future.

Under the diagnostics segment, genetic tests are growing at the fastest pace. Precision diagnostics and therapeutics are expected to escalate the need for development of novel tools and techniques such as biomarkers, companion diagnostics, which can be used to efficiently treat patients.

Factors such as rising incidence of rare diseases, neurological diseases and cancers, increasing demand for precision drug therapies, growing pressure to reduce healthcare expenditure, and rising geriatric population are anticipated to boost market growth. Surge in strategic collaborations, resulting in higher number of clinical trials activities, and increasing government support and initiatives for development of better and efficient treatment options are expected to drive the market in the coming years.

End-use Insights

Based on end use, the precision medicine diagnostics market is segmented into home care, hospitals, and clinical laboratories. Currently, clinical laboratories and hospitals hold the major share in precision diagnostics and medicines. However, the home care segment is expected to witness the highest growth during the forecast period.

Rising levels of acceptance and positive results obtained through precision therapies in treatment of various diseases among patients has benefitted the market. The market is further anticipated to be driven by the growth of personal healthcare equipment and devices, along with integration of smart technologies with various healthcare systems.

On the down side, high cost associated with precision diagnostic tests and medicine is a major drawback. In addition, the potential risk of device or software failure and security concerns over the privacy of patient data serve as key constraints to market growth. Stringent government regulations and standards are being devised and implemented in order to keep a check on these issues.

Regional Insights

North America and Europe account for the largest share in the global market due to presence of a large number of leading pharmaceutical and biotech companies, along with well-established healthcare infrastructure. Furthermore, support from government entities, coupled with higher R & D investment, is driving these regional markets. For instance, in 2015, the then U.S. government announced the launch of the Precision Medicine Initiative to improve research and development in this field.

Precision medicine therapeutics market for emerging countries in Asia Pacific and Latin America are expected to present strong growth opportunities due to increasing awareness among the population about the significance of precision medicine for treatment of various diseases and rising income and expenditure on healthcare. Initiatives by governments to improve infrastructure and patient care is also poised to support market growth. For instance, inspired by the U.S. initiative, in 2016, the government of China launched the Precision Medicine Initiative, which is a 15-year project directed at the development of new treatment concepts.

Precision Medicine (Diagnostics/Therapeutics) Market Share Insights

Diagnostics and therapeutic precision medicines have garnered the attention of several large pharmaceutical and biopharmaceutical companies thanks to massive profit margins and growth prospects. The market has also been witnessing rapid growth owing to significant tie-ups between IT and healthcare companies.

Some of the key players in the market are Abbott Laboratories; Biogen Inc.; Foundation Medicine Inc.; Illumina, Inc.; Precision Biologics; IBM Watson; Siemens Healthineers; Janssen Pharmaceuticals; and GE Healthcare.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global Precision Medicine (Diagnostics/Therapeutics) Market report based on application, end use, and region:

• Application Outlook (Revenue, USD Billion, 2014 - 2025)

  • Diagnostics

    • Genetic Tests

    • Direct to Consumer Tests

    • Esoteric Tests

    • Others

  • Therapeutics

    • Pharmaceuticals

      • Oncology

      • Respiratory Diseases

      • Skin Diseases

      • CNS Disorders

      • Immunology

      • Genetic Diseases

      • Others

  • Medical Devices

  • Others

• End Use Outlook (Revenue, USD Billion, 2014 - 2025)

  • Home care

  • Hospitals

  • Clinical Laboratories

  • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa

    • South Africa