Global IVD Market – the right time to take a plunge!

Recent technological advancements in In-vitro diagnostics have been encouraging manufacturers to explore opportunities beyond their home markets. 

Read on to know more about the exciting avenues opening up in this sector.

As India’s leading In-vitro Diagnostic Company, we have set trends in driving the growth of this sector. While a lot has been written about our well established base in the domestic market, an important aspect is also how we understand the growing needs of developing countries and offer dedicated solutions. Over a period, Transasia has acquired 14 companies globally and has been able to reach out to millions in over 130 countries.

From a broader perspective, for any IVD player it is important to know what drives the market globally. As the New Year dawns upon us, it is a good time to understand what is trending in the international market.

Various advancements in the conventional technologies of IVD, have been the key growth drivers. These developments have in turn enabled personalized treatment through the emergence of point-of-care (POC) tests and home-based testing. Today, test results for glycated hemoglobin (HbA1c) or lipid profiles and other key biochemical parameters, are available within a few minutes thus accelerating the further treatment course. This is advantageous for the labs as well, as it aids in reducing the overhead costs.

Another segment that is gaining momentum is molecular diagnostics due to the prevalence of infectious diseases. With nex-gen sequencing revolutionizing clinical diagnosis, several labs will consider it for routine diagnosis. Moreover, rising fatal diseases such as CVD, stroke and cancer are driving the global in-vitro diagnostic market.

Globally, the IVD market is growing at a steady pace. At a CAGR of 6.7% it is expected to reach USD 102.4 bn in 2022 from USD 74.1 bn in 2017. Geographically the market can be divided into North America, Europe, Asia Pacific, Africa & the Middle East and Latin America. While the North America market currently holds a market share of USD 31.1 bn vis-à-vis USD 18.5 bn of Asia Pacific, tables will turn in the coming years, as Asia Pacific is expected to grow at a CAGR of 13.5% for 2017-22 vis-à-vis North America which is expected to grow at a CAGR of 3.4%.

Based on application, the market is classified into reagents, instruments and services. The reagent segment accounted for the highest growth in 2016 owing to the introduction of new novel reagents and the wide availability of effective and cost-efficient reagents. Going forward, the software and services is forecasted as the most lucrative segment. Sophisticated data management systems, intuitive software and artificial intelligence will contribute significantly to the growth.

Key players are focusing more on the emerging economies and improving the healthcare infrastructure especially in Asia-Pacific region. Additionally, factors such as aging demographics of the developed world, an increase in per capita income, the swiftly growing economies of India and China, increase in GDP, the rising disposable income and most importantly the shift from curative to preventive healthcare for both infectious and chronic diseases are expected to be opportunistic for the industry growth.

Another interesting trend is adoption of both organic as well as inorganic growth strategies by companies globally. The key strategies undertaken by the companies are new product development especially for multi-analyte detection & ‘Lab-In-A-Box’ type technologies, M&As, collaborations, partnerships and geographical expansions. This obviously means good news for any Indian IVD company with international operations.
“While there lays a sea of opportunities for the IVD players to engage in cross border expansion, certain roadblocks need to be watched out for. The regional and country-wise differences in regulatory policies, entry bottlenecks, affordability, logistics and healthcare infrastructure will have to be tackled.” 
Being an emerging global diagnostic player, we analyze each country's market landscape and IVD requirements, and then tailor our entries, launches and marketing strategies to gain a strong foothold.

Our global subsidiaries focus on creating an impact in the developing nations of the world by delivering innovative, affordable and sustainable healthcare solutions.

Mr. Dhiren Wagle
Director - International Business