The global infectious disease diagnostics market size is expected to grow from USD 23.70 billion in 2020 to USD 36.67 billion by 2026 at a CAGR of 7.5%.
Market growth is driven by the global prevalence of infectious diseases & the onset of COVID-19 and the growing awareness for early disease diagnosis, the shift in focus from centralized laboratories to decentralized POC testing, and rising technological advancements.
COVID-19 is an infectious disease caused by the most recently discovered novel coronavirus. Largely unknown before the outbreak began in Wuhan (China) in December 2019, COVID-19 moved from a regional crisis to a global pandemic in just a matter of a few weeks. The COVID-19 pandemic negatively affected the overall sales of most of the companies but had a positive impact on the infectious disease diagnostics market because of the use of infectious disease diagnostic methods for COVID-19 testing. Lockdowns resulting from the COVID-19 pandemic caused people to delay undergoing health checkups, thus affecting the number of tests being performed and sales of reagents. However, a resurgence in testing numbers is seen as countries gradually ease restrictions on movement. With the COVID-19 pandemic, responding to infectious disease has become a pressing medical issue worldwide. In addition to the development of vaccines and therapeutic drugs, there is a growing call for the development of more precise and simple testing technologies and the expansion of testing structures. COVID-19 has also impacted the regulatory environment and practices, as governments and healthcare providers face unprecedented challenges. Regulatory authorities utilized methods to speed approval of diagnostic products. Companies have taken strategic developments to introduce COVID-19 rapid tests, sustain their revenues, and nullify the impact of COVID-19 on their operational capabilities.
The prevalence of infectious diseases in developed and developing regions will positively influence the growth of the infectious disease diagnostics market. The diagnosis and management of such diseases are responsible for the increasing number of prescriptions for infectious disease diagnostic tests. These factors, alongside the growing trend for preventive medicine, are expected to drive the demand for infectious disease diagnostics during the forecast period. Broad-scale population-based testing is required to improve prevention and control efforts for COVID-19. These tests are performed by infectious disease diagnostics; hence, it is expected to have a positive impact on this market.
Developing economies such as India, South Korea, Brazil, and Mexico are expected to offer potential growth opportunities for major players operating in the infectious disease diagnostics market. This can be attributed to the high disease prevalence, large patient population, improving healthcare infrastructure, increasing disposable income, and growing medical tourism in these countries. In addition to the factors mentioned above, the Asia Pacific has emerged as an adaptive and business-friendly hub due to relatively less stringent regulations and data requirements.
Inadequate reimbursement is a major factor restraining the growth of the infectious disease diagnostics market. A major challenge that most diagnostic companies face in commercializing their tests is getting health insurers to pay for them.
Based on product & service, the infectious disease diagnostics market is segmented into reagents, kits, and consumables; instruments; and software & services. In 2020, the reagents, kits, and consumables segment accounted for the largest share in the market. The frequent purchase of these products due to their recurrent usage drives the market growth of this segment.
The market for infectious disease diagnostics is divided into immunodiagnostics, polymerase chain reaction (PCR), clinical microbiology, isothermal nucleic acid amplification technology (INAAT), DNA sequencing & NGS, DNA microarrays, and other technologies. In 2020, the immunodiagnostics segment had the largest share. This may be due to the increased use of immunoassays in COVID-19 testing, POC infectious disease testing, the development of immunodiagnostic testing, and the growing practice of automation.
The global infectious disease diagnostics market is divided into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. In 2020, North America became the largest market share in the global epidemiology market. The growth of the North American infectious disease diagnostic market could be attributed to the advanced health care system in the US and Canada, the availability of many of the nation's leading laboratories, and the easy availability of advanced technology.
The major players in the global infectious disease diagnostics market are Thermo Fisher Scientific Inc. (US), Abbott Laboratories (US), Roche Diagnostics Ltd. (Switzerland), bioMérieux SA (France), and Danaher Corporation (US).