The global precision medicine market size was valued at USD 73.49 billion in 2022 and is expected to reach USD 175.64 billion by 2030 and poised to grow at a compound annual growth rate (CAGR) of 11.5% during the forecast period 2022 to 2030. U.S. precision medicine market was valued at USD 24.4 billion in 2022.
Key Takeaway:
Growth Factors
Precision medicine analyzes the genes and proteins present in the patient’ body to accordingly design the personalized treatment drug to cure the particular disease. With key discoveries such as single nucleotide polymorphism and microarray/ biochips in the field of precision medicine, the market expected to experience a boom in the coming years. Research on human genome is the future of precision medicine and has significant potential to upend the medical treatment on individual patients by understanding their genetics, molecular profiles, and clinical characteristics and evolving proper treatment to cure the disease. The aforementioned factors projected to flourish the demand for precision medicine in the near future. Other than this, rising prevalence of cancer expected to boost the demand for precision medicine for personalized therapeutics and diagnostics that will render a positive influence on the market growth. In 2018, there were nearly 1.7 Million new cases diagnosed with cancer in the United States.
Besides this, high cost of precision medicine along with challenges in reimbursement policies expected to hinder the market growth. The application of high-end calculation methodology and advanced computational techniques add various types of cost to the treatment procedure owing to which the precision medicine is highly expensive in the market. Apart from this, on-going advancement in the computational tools and innovation in the genetic technology helps to examine the functional effects of genetic changes that finally cause cancer development. Thus, genetic diagnosis approach predicted to fuel the growth of precision medicine exponentially especially in the field of cancer treatment.
Report Scope of the Precision Medicine Market
| Report Coverage | Details |
| Market Size | USD 175.64 Billion by 2030 |
| Growth Rate | CAGR of 11.5% from 2022 to 2030 |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Segments Covered | Technology, Application, End User, Sequencing Technology, Product, Route of Administration, Drugs, Region |
| Companies Mentioned | Biocrates Life Sciences, TepnelPharma Services, Novartis, Qiagen, Quest Diagnostics, Menarini Silicon Biosystems, NanoString Technologies, Eagle Genomics, Pfizer, Intomics, Roche, and Teva Pharmaceutical |
Market Opportunities
Targeted Gene Therapy
The gene therapy is currently one of the most lucrative markets for precision medicine companies. Since genome sequencing is an unavoidable phase of gene therapy, the substantial investments that are being made in this field would propel the growth of the precision medicine market. Globally, rising cancer prevalence is likely to increase the demand for gene therapy as an effective personalized treatment choice. According to WHO, cancer incidence is projected to rise by 50% to reach more than 20 million by the end of this decade. This alarming increase in the number of patients necessitates gene therapy as a potential treatment approach addressing the growing global burden of the disease.
Increased adoption of emerging genomic technologies, such as NGS and high-density microarray, coupled with favorable government initiatives, is expected to fuel the global gene therapy market and, in consequence, the precision medicine market. As the number of gene therapy clinical trials reporting
positive results increases, it’s becoming clear that the gene therapy is moving toward commercialization. Being a part of the portfolio mixes for many of the biggest companies in the biopharmaceutical arena, gene therapy is suddenly a hot investment sector. For instance, in 2017, Orchard Therapeutics raised $110.0 million to commercialize its gene therapy product in the market. However, astronomically high price tags and market availability are likely to restrict the gene therapy market in the few developed countries. Spark Therapeutics (ONCE) and GlaxoSmithKline (GSK) priced the world's first approved gene therapies at figures approaching $1.0 million apiece. Spark's Luxturna treats a rare eye disease that causes blindness. Glaxo's drug, Strimvelis, is approved in Europe to treat an immunodeficiency disease, often referred to as "bubble-boy disease" in children. It costs about $714,000.
Expansion into the Emerging Markets
Most of the companies providing precision medicine solutions have limited their operations to the developed markets, leaving the immense potential of the emerging markets untapped. The countries, such as China, India, Australia, and countries of the Middle East and Africa, possess population with a high risk of diseases (whose treatment requires gene sequencing) in high numbers and offer a great opportunity for the expansion of the precision medicine market.
Although the field of genetics and genomics are well-established in developed countries, significant progress has also been made by the developing countries for genetics and precision medicine in the past ten years, in terms of regulations, product approvals, and implementation of novel methods and procedures in healthcare. A critical issue faced by the emerging countries is the reimbursement of genetic testing by the health insurance companies. In the recent years, healthcare insurance companies that are recognized in the developing economies are agreeing to cover the costs of genetic diagnostic testing of their clients, and thus offer this new technology to patients and their at-risk relatives.
Funding programs by the public healthcare systems in the emerging countries are probably based initially on searching for mendelian germline genetic mutations, such as those occurring in cancer genetics. This increases the affordability and accessibility of screening for mendelian diseases among
the population of the developing economies. In addition, investment funds by the private healthcare systems play a major role in supporting small innovative players in the emerging regions that are focused on new and informative genetic tests.
Proper regulation of guidelines and policies for genetic testing is another factor supporting the growth of precision medicine in emerging economies. For instance, proper and easy approval of the Genetic Information Nondiscrimination Act (GINA) law by many developing countries helped to prohibit genetic
discrimination in health insurance and also genetic discrimination in employment. This forms the bases for a modern and humanized genomic medicine environment in the country.
Collaboration and Partnerships Across Value Chain to Accelerate the Market Entry
Only 15 to 20% of biopharmaceutical companies, such as Roche, Abbott, and Novartis, have meaningful capabilities and presence in the commercial market. For most of the other companies, the development of commercial diagnostics is not a core competency, and they need to rely on diagnostic and biotech and Life sciences companies to successfully launch companion diagnostics. For instance, in the last five years, more than 60 deals have been finalized between biopharmaceutical and diagnostic/Life sciences companies to market companion diagnostics. In the future, the precision medicine market offers a lot more opportunities for mutual benefits for all the players in the value chain.
In 2017, Novartis signed a supply agreement with Oxford BioMedica that supplies a key ingredient for its novel Kymriah gene therapy product. It is expected to generate at least $100.0 million for Oxford BioMedica over next three years, in turn, Novartis has agreed to make Kymriah into the $1.00 billion-ayear rug in coming years.
Technology Insights
The drug discovery technology registered considerable growth in the recent past and expect to lead the overall market revenue in 2021. Advancement in pharmacogenomics expected to pave the way for significant growth of the drug discovery in the precision medicine.
The pharmacogenomics helps in predicting the efficacy of the drug as well as helps in understanding the differences in pharmacokinetics and pharmacodynamics using genetic information of individuals. Furthermore, increasing emphasis of biopharmaceutical players for developing precision medicine for the treatment of diseases that include cancer expected to further propel the market growth.
Application Insights
The oncology application led the global precision medicine market with significant revenue share in 2021 and analyzed to grow at a prominent rate during the forecast period. Increasing prevalence of cancer across the globe expected to flourish the demand for precision medicine for effective therapeutic approach.
Precision medicine helps to examine the patient’s genes and the root cause of the cancer disease. It also helps in designing personalized medicine for the patient to cure them in less time as compared to conventional treatment methods. As per the stats published by the World Cancer Research Fund related to cancer in 2018, there were nearly 18 Million cases of cancer across the globe out of which 9.5 Million cases were found in men and 8.5 Million cases in women. This number is predicted to increase in the coming years. Subsequently, the above factor flourishes the growth of oncology segment in precision medicine market.
Regional Insights
In terms of revenue, North America captured more than 43% of the overall market value share in 2021 and projected to maintain its position in the coming years. Increasing prevalence of cancer along with the presence of key market players in the region expected to be the key factors contributing for the market growth in the region. Furthermore, demand for precision medicine is mainly driven by favorable government initiatives and rising investment for developing novel solutions for effective disease management. For instance, in September 2018, National Institutes of Health (NIH) announced to fund USD 28.6 Million to three U.S. based genome centers. The funding helps these companies to generate genomic data from bio-samples that is a critical component of precision medicine discoveries.
On the other hand, the Asia Pacific seeks lucrative growth over the forecast period due to low cost clinical trials of newly developed diagnostic products and precision medicine. Furthermore, rising disposable income and rising economy in the developing nations such as India expected to boost the demand of precision medicines in the region. The region offers several aspect of growth in the medical sector owing to on-going research and significant investment on health care facilities and techniques.
Key Companies & Market Share Insights
The global precision medicine market is highly competitive owing to presence of numerous market players. The players are largely focused towards product enhancement and development to retain and upgrade their position in the market. For instance, in May 2018, Foundation Medicine announced to approve the Advanced Diagnostic Laboratory Test (ADLT) for Foundation One CDx that is mainly used for solid tumors that integrates multiple companion diagnostics.
Some of the prominent players in the precision medicine market include:
Segments Covered in the Report
This research study encompasses comprehensive assessment of the marketplace revenue with the help of prevalent quantitative and qualitative intelligences, and prognoses of the market. This report presents breakdown of market into major and niche segments. Furthermore, this research study gauges market revenue growth and its drift at global, regional, and country from 2016 to 2027. This report comprises market division and its revenue valuation by categorizing it depending on technology, application, end-use, and region:
By Technology
By Application
By End-Use
By Sequencing Technology
By Product
By Route of Administration
By Drugs
By Regional Outlook
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