Asia Pacific In Vitro Diagnostics (IVD) Market size surpassed USD 14 billion in 2020 and is set to observe around 5.4% growth rate between 2021 and 2027.
Increasing R&D activities in Asia Pacific region will boost the market growth. As there is rising prevalence of infectious diseases such as COVID-19, the demand for accurate in vitro diagnostics product is high. Such scenario forces market players to rise their R&D activities. Furthermore, government undertaken various initiative to boost the in vitro diagnostics market in Asia Pacific. For instance, in June 2021, the Indian government launched Production Linked Incentive Scheme (PLI 2.0) aims to improve India's manufacturing capabilities by increasing investment and production in the IVD sector.
The instrument segment exceeded USD 4.4 billion revenue in 2020, attributed to rising focus of towards development of advanced in vitro diagnostics instrument and increasing popularity of these instrument in diagnostics centres and hospitals.
Furthermore, new product launches will accelerate overall market demand. For instance, in March 2021, OpGen received regulatory approval from the Chinese National Medical Products Administration for its advanced in vitro diagnostics instrument system. Moreover, outsourcing in instrumentation is increasing gradually instead of in-house instrumentation, owing to low operating costs and increased efficiency and speed.
The molecular diagnostics segment in the Asia Pacific IVD market will witness 6% CAGR during the forecast timeline. Molecular diagnostic tests are used to detect certain sequences in RNA or DNA that may or may not relate to any disease. Molecular diagnostics are mostly employed to diagnose infectious diseases, and the segment is expected to grow significantly due to the increased burden and spread of the COVID-19 pandemic. Additionally, to reduce the burden of COVID-19 pandemic major companies in this region focusing on introduction of advance diagnostics product. For instance, in August 2021, Seimens Healthineers, a German technology company announced that it will manufacture molecular testing kits in India. The company will begin producing molecular testing kits, including COVID-19 testing -IMDX SARS-CoV2 Multiplex RTPCR - and other molecular testing kits.
The drug testing/pharmacogenomics segment accounted more than USD 1 billion revenue in 2020. This is due to increasing cases of drug abuse in the region. There is a growing need for comprehensive drug testing legislation in order to limit cases and provide proper treatment. Indians are heavily reliant on alcohol, opioids, cannabis, and drug abuse is more prevalent the country.
Moreover, Because of the COVID-19 pandemic, fingerprint-based drug testing, a relatively new concept, has gained more popularity in recent years. Due to the possibility of infection transmission, the COVID-19 pandemic has made drug testing in labs, hospitals, and other facilities difficult. Fingerprint-based drug testing can help to reduce the spread of COVID-19 because it is non-invasive, less time-consuming, hygienic, allows for social distancing.
The hospitals segment held over 40% Asia Pacific in vitro diagnostics market share in 2020, owing to increasing number of hospitals and independent testing laboratories in Asia Pacific.
Moreover, high demand of diagnostics amid COVID-19 pandemic coupled with increasing investment in healthcare industry will boost the industry growth. In addition, rising number of hospital admission due to increasing prevalence of chronic illness is a positive impact rendering factor.
The Japan IVD market revenue was around USD 2.7 billion in 2020and is poised to record a CAGR of 5.4% till 2027. Market growth is supported by presence of independent diagnostic centres, hospitals, and academic institutes.
Several countries including India, Japan, and China are witnessing increasing demand for in vitro diagnostic tests due to surging geriatric population and escalating prevalence rates of infectious and chronic diseases. Furthermore, government funding on healthcare infrastructure and launch of new diagnostic kits in the country will fuel the market expansion.
Some of the key industry leaders operating in the Asia Pacific in vitro diagnostics (IVD) market include F. Hoffmann-La Roche AG, Abbott, Danaher, Siemens Healthineers, BioMerieux, DiaSorin, Bio-Rad Laboratories, Sysmex Corporation, Thermo Fisher Scientific, Qiagen, Ortho Clinical Diagnostics Becton, Dickinson and Company.