The global precision medicine market size was valued at USD 71.29 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 10.7% from 2023 to 2030. Diagnostic and therapeutic precision medicines are among the most complex and helpful achievements of current science. 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 introduced in this area has increased significantly in the past few years due to the 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 gene therapy and the development of precision therapies to treat diseases such as cancer, tuberculosis, and Alzheimer’s. These diseases, 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.”
Currently, operational and innovation challenges while developing these medicines deter the market from future growth. The high cost of R&D and clinical trials is also a major obstacle. Nevertheless, opportunities in this market are plenty and immensely fruitful. This is attracting increasing pharmaceutical and biotech companies to venture into this space.
Based on end use, the precision medicine market is segmented into home care, hospitals, and clinical laboratories. Currently, clinical laboratories and hospitals hold a major share of 44.6% in precision diagnostics and medicines. However, the home care segment is expected to witness the highest growth of 11.8% CAGR during the forecast period.
Rising levels of acceptance and positive results obtained through precision therapies in the treatment of various diseases among patients have benefitted the market. The market is further anticipated to be driven by the growth of personal healthcare equipment and devices and the integration of smart technologies with various healthcare systems.
On the downside, the 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 to keep a check on these issues.
The market for precision medicines can be segmented into two major categories: therapeutics and diagnostics. The therapeutics segment can be further broken down into pharmaceuticals and medical devices. Whereas the diagnostics segments include genetic tests, direct-to-consumer tests, esoteric tests, and others.
Under pharmaceuticals, oncology held the largest revenue share in 2022. One of the reasons behind this is the growing prevalence of cancer and the increasing number of drug candidates under clinical trials. Additionally, the NIH is expected to invest approximately USD 70 billion in precision oncology, which is expected to spur market growth. The respiratory and genetic diseases segments are also expected to witness significant growth in the future. In October 2022, GE Healthcare launched an all-digital PET-CT system, which is stated to have achieved 35 scans of patients in 9.5 hours and reduced the medicine dose by 40%, displaying its ability to help deliver precision medicines effectively.
Under the diagnostics segment, genetic tests are growing at the fastest pace over the forecast period. Precision diagnostics and therapeutics are expected to escalate the need for the development of novel tools and techniques, such as biomarkers, and 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. The surge in strategic collaborations, resulting in a higher number of clinical trial activities, and increasing government support and initiatives for the development of better and more efficient treatment options are expected to drive the market in the coming years.
In 2022, North America accounted for the largest share of 47.9% of the global market due to the presence of a large number of leading pharmaceutical and biotech companies, along with a 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.
The precision medicine therapeutics market in Asia Pacific is expected to present strong growth of 11.8% CAGR due to increasing awareness among the population about the significance of precision medicine for the treatment of various diseases and rising income and expenditure on healthcare. Initiatives by governments to improve infrastructure and patient care are 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, a 15-year project directed at developing new treatment concepts. In September 2022, Siemens Healthineers launched ARTIS icono, angiography system, in India, which will enable higher quality of treatment of patients leading to an increased scope of precision medicine in the advanced therapy field.
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.
Companies are undergoing mergers, partnerships, and acquisitions to gain an advantage in the market. For instance, in February 2023, Roche announced a partnership with Janssen Biotech Inc. in the precision medicine segment to develop numerous companion diagnostics technologies such as digital pathology, immunohistochemistry, polymerase chain reaction, next generation sequencing, and immunoassays.
Report Attribute |
Details |
Market size value in 2023 |
USD 78.71 billion |
Revenue forecast in 2030 |
USD 160.78 billion |
Growth Rate |
CAGR of 10.7% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Report updated |
October 2023 |
Quantitative units |
Revenue in USD million and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Application, end use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; UK; Germany; France; Italy; Spain; Denmark; Sweden; Norway; China; Japan; India; Australia; South Korea; Thailand; Brazil; Mexico; Argentina; Saudi Arabia; South Africa; UAE; Kuwait |
Key companies profiled |
F. Hoffmann-La Roche Ltd.-Foundation Medicine; Siemens Healthineers; Janssen Pharmaceuticals; Illumina; Quest Diagnostics Incorporated.; 23andMe, Inc.; NeoDiagnostix, Inc.; IBM Watson; Myriad Genetics Inc.; Medtronic; GE Healthcare; Abbott Laboratories; Dako A/S; Biogen; Precision Biologics Incorporated; Qiagen Incorporated |
Customization scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global precision medicine market based on application, end use, and region:
Application Outlook (Revenue, USD Million, 2018 - 2030)
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 Million, 2018 - 2030)
Home care
Hospitals
Clinical Laboratories
Others
Regional Outlook (Revenue, USD Million, 2018 - 2030)
North America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Sweden
Norway
Denmark
Asia Pacific
China
Japan
India
Australia
Thailand
South Korea
Latin America
Brazil
Mexico
Argentina
Middle East and Africa
Saudi Arabia
South Africa
UAE
Kuwait
b. The global precision medicine market size was estimated at USD 71.29 billion in 2022 and is expected to reach USD 78.71 billion in 2023.
b. The global precision medicine market is expected to grow at a compound annual growth rate of 10.7% from 2023 to 2030 to reach USD 160.78 billion by 2030.
b. North America dominated the precision medicine market with a share of 47.9% in 2022. This is attributable to the presence of a large number of leading pharmaceutical and biotech companies, along with a well-established healthcare infrastructure. Furthermore, support from government entities, coupled with higher R & D investment, is driving these regional markets.
b. Some key players operating in the precision medicine market include Abbott Laboratories; Biogen Inc.; Foundation Medicine Inc.; Illumina, Inc.; Precision Biologics; IBM Watson; Siemens Healthineers; Janssen Pharmaceuticals; and GE Healthcare
b. Key factors that are driving the market growth include drop in the prices of molecular testing and genetic sequencing, lLiquid biopsies emerging as the next big thing for detecting metastatic cancers, increasing demand for precision medicine and diagnostic precision medicines in non-oncology areas, harnessing big data for improving preventive care, and advancements in NGS, companion diagnostics and biomarkers.
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