The IVD market’s growth in key segments in the U.S. has been accelerated due to the COVID-19 pandemic and the need for testing for the coronavirus.
The United States is the largest healthcare market in the world with high privatization of payments relative to other major developed countries. The U.S. healthcare market serves as an incubator for medical technologies and treatments that are often subsequently marketed in the rest of the world. Unsurprisingly, the United States is also the world’s largest in vitro diagnostics (IVD) market at $41.3 billion—approximately 40%-45% of the global IVD market.
The findings are according to data published in the recently released report United States Market for In Vitro Diagnostic (IVD) Tests by leading medical market research publisher Kalorama Information. A companion report, The Market for In Vitro Diagnostic Tests in Latin America (Argentina, Brazil, Chile, Colombia, Mexico, Peru, Venezuela and other nations) is also available for sale from Kalorama Information.
The U.S. IVD market is projected by Kalorama Information to grow to an estimated $53.2 billion in 2025. Projected growth for the U.S. IVD market – 5.2% on average annually through 2025 – does not match the growth of developing and emerging markets abroad in Asia and Latin America but is projected to outpace other IVD markets in the developed world such as Western Europe and Japan.
Kalorama Information’s research reveals that the IVD market to some extent is in a state of flux, yet the market’s growth in various key segments in the United States has been accelerated due to the COVID-19 pandemic and the need for testing for the coronavirus. COVID-19 had a profound effect on the IVD diagnostic industry – some segments exploded and others languished. Looking ahead, COVID-19’s impact on future growth will result from the coronavirus remaining a component of the IVD market due to the likely continued prevalence of the virus and the evolving variants that are expected to persist.
COVID-19 related growth aside, the U.S. IVD market can expect moderate growth through the following market factors and trends:
- demographic aging that increases demand for clinical testing paid for through the country’s leading vehicle for lab payments (Medicare);
- relatively optimistic macroeconomic indicators vis-à-vis the domestic outlook five years ago or other developed markets in the world;
- and continued product innovation and industry responsiveness to clients’ needs in the world’s largest IVD market.