The global COVID-19 diagnostics market was valued at USD 19.41 billion in 2020 and is expected to grow at a CAGR of 13.6% during the forecast period. The major factors driving the market includes increasing cases of COVID-19 infections, contagious nature of infection, and increasing government and private sector spending on containing infections.
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As most of the countries have started to unlock and relax lockdown restrictions, the demand for rapid diagnostic test have increased, which in-turn is expected result in shortage of supply of these products and diagnostic equipment’s thus most of the manufacturers are now focusing on expanding their manufacturing capabilities at a rapid pace.
Rapidly growing COVID-19 infections, lack of contact tracing, and unavailability of definite treatment methods are the key factors driving the COVID-19 diagnostics market. The relaxation of restrictions at public places, opening of crowded cities, increased lockdown fatigue, and higher rate of virus reproduction is positively impacting demand for COVID-19 tests globally. Furthermore, World Health Organization (WHO) has requested all the market participants to scale up their manufacturing facility to increase the production of testing kits. According to recent WHO estimates there are currently 177,108,695 confirmed cases of COVID-19, and is expected to increase owing to emergence of the third wave.
As the population who are at a higher risk such as healthcare workers, geriatric patients, pregnant women, and patients with co-morbid conditions such as renal disease and diabetes are required to be tested to reduce the chances of death. Additionally, as most of the countries are looking forward to containing this virus with rapid diagnosis of their population, these tests and diagnostic kits are vital for successfully containing the virus, thus contributing towards the market growth.
The market is primarily segmented on the basis of product & service, sample type, test type, test mode, end-use, and region.
By Product & Service
By Sample Type
By Test Type
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Based upon product & service, the COVID-19 diagnostics market is categorized into instruments, reagents & kits, and services. Reagents & kits accounted for the largest market share in 2020 owing to rising cases of COVID-19, increasing awareness pertaining to infection, and relaxation of restrictions in most of the industrialized countries are paving the way for increased demand amidst the pandemic.
Diagnostic kits such as RT-PCR and molecular diagnostic kits are highly in demand from public sector, healthcare facilities, and non-profit healthcare organization. Furthermore, advancements in testing kits have increased the efficiency of supply chain for diagnostic kits, which is likely to drive demand. This segment is significantly contributing to growth of COVID-19 diagnostic market in the coming years.
On the basis of test type, the global market is segmented into molecular (PCR) testing, antigen-based testing, antibody (serology) testing, and other tests. The molecular (PCR) testing is expected to dominate the market and is expected to grow at a CAGR of 13.6% during the forecast period. As most of these tests are dependent on biological markers, they have ability to perform rapid analysis, sensitive analysis and provide additional information useful in diagnosis of diseases and determining personalized treatment for individual patients.
Additionally, increase in approval of RT-PCR tests such as Lyra SARS-CoV-2 and 3D BioMed test by U.S. FDA is expected to contribute to market demand. Moreover, antigen-based testing product segment is expected to witness fastest growth by 2027 as most of the healthcare facilities, laboratories, and not-for profit healthcare institutions are demanding for rapid test amidst this COVID-19 pandemic.
Asia Pacific is the largest revenue contributor in the global market due to exorbitant rise in infection rate in the region. The demand for diagnostics has been increasing in the countries to combat with the pandemic. The demand of COVID-19 test is 10x as compared to the current availability. The market in this region is expected to grow at a CAGR of more than 14% during the forecast period. According to recent WHO findings there are about 33,861,437 COVID-19 positive cases in the South-East Asia region registered till 18th June 2021.
Moreover, Asia-Pacific is estimated to witness substantial growth in demand for diagnostic kits and reagents, as the supply from Chinese vendors have been restricted which contributed to 80% of the raw materials and sourcing market has decreased. Thus, due to higher dependency on Chinese vendors the diagnostic kit manufacturing market is expected to shift to other ASEAN countries, which in-turn is expected to provide more opportunities in near future.
European countries such as United Kingdom (UK), Germany, France, Spain, and Italy are expected to register increase in number of COVID-19 cases. Moreover, healthcare stakeholders such as physicians, nurse, and laboratory technician are threatening to quit their jobs due to unavailability of necessary healthcare PPE. In response to this initiative, government has promised to allocate USD 265 Million on equipment and is expected to contribute to market growth of COVID-19 diagnostics market in Europe.
Furthermore, the number of key manufacturers of COVID-19 diagnostic kits has increased significantly in the U.S. to increase COVID-19 testing across the states. As the number of COVID-19 positive cases are continuously increasing in the U.S. with current estimates to be around 33,175,399 positive cases registered till 18 June 2021. Furthermore, massive investment in vaccine development, PPE, and supply chain facilities is expected to accelerate the market growth.
Key market participants are currently focusing on manufacturing and distribution of diagnostic test products and service to cater to ever increasing demand in pandemic across the globe. Quest Diagnostics and other companies with manufacturing capabilities are focusing on increasing their manufacturing capabilities in-order to satisfy the market need amidst this pandemic. Market participants are also focusing on increasing their manufacturing capacity, increasing their geographic presence, and providing diagnostic tests with high specificity and sensitivity, thus ensuring accurate diagnostic test results.
Some of the major players operating the market include Cepheid, 1drop Inc., ALDATU BIOSCIENCES, Altona Diagnostics GmbH, Perkin Elmer, Inc., bioMérieux SA, Danaher, Hologic Inc., Abbott, Luminex Corporation, ADT Biotech, Mylab Discovery Solutions Pvt Ltd., Laboratory Corporation of America Holdings, Quest Diagnostics, Quidel, Neuberg Diagnostics, Thermo Fisher Scientific, Inc., F. Hoffman-La Roche Ltd., and Veredus Laboratories.