September 27, 2019 -- Nonimaging testing involving a sample taken from a patient is big business, according to a new report on the IVD market from market research firm Kalorama Information. The market reached $69.2 billion in 2019, including all laboratory and hospital-based IVD tests, instruments, and reagents, as well as over-the-counter product sales.
Hundreds of companies are involved in the IVD market, and there are many new entrants, along with pharmaceutical, financial, and technology companies that are playing a role, according to the annual report, which profiles more than 200 companies. Kalorama predicted the market will grow a little more than 4% annually to reach $85.2 billion by 2024, including all sales of instruments, reagents, test kits, and supplies and directly related software and services.
There have been some changes in the market since Kalorama's last report on IVD products in 2018. Key findings this year include the following:
IVD testing costs little to the healthcare system and yet contributes much to clinical practice. For some time, this was stated as educated conjecture, but a study of healthcare expenditures on IVD and the effect on patient management among U.S and German physicians helped make the case. Researchers found that 66% of clinical decisions made were based on a diagnostic test, while the costs of those tests amounted to just 2.3% of healthcare expenditures (Rohr et al, PLOS One, March 4, 2016).
When the cost-effectiveness of IVD testing is considered along with the beneficial effects on treatment outcomes, therapy choices, and hospital management, there should be little surprise about the amount of interest in IVD tests and the amount of activity in the market for them, the report concluded.
Bruce Carlson is the publisher of Kalorama Information, part of Science and Medicine Group.
Disclosure: LabPulse.com is a sister company of Kalorama Information.