By Daniel Granderson
The market for in vitro diagnostics (IVD) in Latin America, estimated at nearly $3.3 billion in 2020, is forecast to experience a 5.3% compound annual growth rate (CAGR) to reach $4.2 billion in 2025. The forecast growth rate for Latin America will therefore slightly outpace what’s expected for the world’s leading IVD market—the United States. This is according to data by medical market research publisher Kalorama Information in the recent report, The Market for In Vitro Diagnostic Tests in Latin America.
“Latin America is expected to give in vitro diagnostics companies the potential for additional business opportunities in the near future, at an average annual growth rate of more than 5%,” reports Kalorama Information. “Because of this growth potential, the region has become an important target for IVD manufacturers seeking expansion opportunities.”
IVD growth drivers in Latin America will include:
- population growth,
- government insurance,
- newly insured patients, and
- updated healthcare facilities
As in other industries, Brazil is the number one IVD market in Latin America. The Brazilian market is growing at a good pace (with some ups and downs), as well as Chile, Colombia and Peru. Although due to their current political and economic situations, Argentina and Venezuela might be lagging behind. This shows that the region as a whole is an attractive market for IVD companies to capitalize on.
Even though market growth is attractive in Latin America, there are big challenges for the IVD industry to overcome. One of the challenges is that each country is a world on its own: different regulations on sales, many different reimbursement policies, diverse geography, various market access strategies and a number of logistic issues, amongst others.
Since all the countries in Latin America also vary in size, healthcare infrastructure and affordability, in vitro diagnostic companies need to tailor strategies for approaching each country´s market.
“Tailored strategies are needed for each different country and will assure success if they are conscientiously planned,” says Carlson.
The Market for In Vitro Diagnostic Tests in Latin America is the companion report to Kalorama Information’s United States Market for In Vitro Diagnostic (IVD) Tests, which published in June 2021. Both reports can be purchased on Kalorama Information’s website: www.kaloramainformation.com.