The global in vitro diagnostic test market won't be stalled by economic conditions for a variety of reasons, according to a new report.
Kalorama Information, a life sciences industry research firm, published the sixth edition of its "Worldwide Market for In Vitro Diagnostics" last May before the full effects of economic conditions were clear, but the publisher says it sees no reason to revise its forecast of a $56 billion industry by 2012.
"Economic conditions in the larger economy have not changed our forecasts for the routine market which describes most of in vitro diagnostics," said Shara Rosen, lead diagnostic industry analyst for Kalorama Information and author of the report. "Expansion of the market for IVDs will continue at its traditional rate of 6 percent per year."
Demand for healthcare and diagnostic testing in all the major markets is driven by aging populations and the increased incidence of conditions such as cancer, diabetes, cardiovascular disease, arthritis and obesity. There are emerging specialized tests for these diseases, but routine tests are used as the first line of diagnosis.
Rosen said market growth for chemistries, immunoassays, hematology, coagulation, microbiology and histology/cytology tests are related to an increase in the volume of tests performed rather than higher pricing, and more demand for healthcare is expected to translate into greater test volume.
The aging population, demand for healthcare and emerging markets and planned federal healthcare initiatives still bode well for testing, the report notes.
"Since the late 1980s, healthcare payers have systematically frozen reimbursement rates for the existing group of tests and have imposed strict utilization guidelines for the adoption of new tests," Rosen said. "Seventy percent of hospitals buy IVD equipment through group purchasing organizations at rock bottom prices. The IVD industry did not experience the explosive growth seen in some medical devices, and thus will not see a harsh retraction."
Kalorama Information supplies independent market research in the life sciences, as well as a full range of custom research services.