Genetic Testing Services Market Report By Insights, Size, and Growth - 2031

The market for genetic testing services is anticipated to grow significantly, reaching an estimated US$ 12,480.80 million by 2031, up from US$ 3,860.14 million in 2023. This growth represents a compound annual growth rate (CAGR) of 15.8% from 2023 to 2031.

Several factors contribute to the expansion of the genetic testing services market, including the rising incidence of genetic disorders, heightened awareness and acceptance of personalized medicine, and an increasing inclination towards direct-to-consumer genetic testing. Nonetheless, challenges such as the social and ethical concerns surrounding genetic testing, along with the cost of genetic services, may impede market progress.

Emerging economies like China, India, Mexico, and Brazil present substantial growth prospects for market participants. The rapid growth in these regions can largely be attributed to increased public healthcare spending, enhancements in healthcare infrastructure, and a large population of potential patients. Additionally, there is a growing recognition of genetic disorders and the importance of early diagnosis in these developing nations, which further drives the demand for genetic testing.

The quality and accessibility of genetic services can vary significantly between high-income and low- to middle-income countries. For example, nations such as the United States, Australia, Canada, the United Kingdom, and various European countries have well-established and advanced genetic services. These services encompass newborn screening, carrier screening, and prenatal diagnostics. However, even in many affluent countries, the genetic services available across different settings often lack comprehensive assessment systems.

The simplicity and practicality of genetic testing procedures have positively influenced research and development activities in the Asia Pacific region and other developing areas globally. Key players in the market are adopting various strategies, including partnerships, collaborations, and expansions, to enhance the availability and distribution of their products in these regions. This approach aims to meet the increasing demand for early diagnosis and treatment. For instance, in 2019, GENOMIKA, a prominent genetic testing laboratory in Brazil, partnered with Veritas to integrate Whole Genome Sequencing and related services into its offerings in preventive medicine and clinical genetics.

The Chinese government recognizes genomics as a vital strategic sector in its 14th Five-Year Plan (2016-2020) aimed at economic and social development. In 2016, the Chinese Academy of Sciences initiated the Precision Medicine Initiative, a 14-year project with a budget of US$ 9.2 billion, aimed at sequencing over 100 million human genomes by 2030. In December 2017, the Ministry of Science and Technology in China collaborated on a human genome research project to document the genetic profiles of 100,000 individuals. Researchers are utilizing genetic data from nine different minority groups to decode hereditary information. Furthermore, the increasing consumer awareness regarding direct-to-consumer genetic tests in developing markets presents additional growth opportunities for the DTC sector.

Consequently, emerging markets in developing nations are expected to provide significant growth opportunities for companies operating in the genetic testing services market, thereby driving market expansion during the forecast period.

As of 2018, approximately 75,000 genetic tests were available in the market, with nearly ten new tests being introduced daily. According to the study "Trends in Availability of Genetic Tests in the United States, 2012-2022," published in 2023, around 129,624 genetic tests in the US and 197,779 globally have been made available and registered as of November 2022. These tests have evolved from single-gene assessments to panels that analyze multiple genes. To address the growing challenge of health data management, the medical field is increasingly focusing on advanced clinical tools, such as artificial intelligence (AI) and machine learning, which are seen as pivotal in enhancing the acceptance of genomic medicine. Many companies are now leveraging machine learning to process the extensive data required for accurate clinical analysis in areas like radiology and cardiology.

Numerous consumer-oriented genetic testing technologies currently on the market utilize machine learning or AI. Genetic testing for diseases is particularly suited for machine learning applications due to the vast amounts of data involved. For instance, analyzing the human genome entails processing billions of data points, a task that was previously quite complex before the advent of machine learning. AI holds significant promise for analyzing genetic data and assisting healthcare professionals in making accurate diagnoses.

Google has developed a program called Deep Variant, which can thoroughly map the human genome and analyze a person's complete genetic information. Additionally, organizations like the National Institutes of Health are exploring how machine learning and AI can enhance the understanding of genetics and genomics. By successfully integrating these technologies, clinicians will be better equipped to diagnose rare genetic disorders more efficiently and effectively.

Insights Based on Service Providers

The genetic testing services market is categorized by service provider into hospital-based laboratories, diagnostic laboratories, and others. In 2023, the hospital-based laboratories segment dominated the market and is projected to experience the highest CAGR from 2023 to 2031. Hospital-based laboratories provide genetic testing services within a hospital environment and can be classified by the type of testing they perform, employing personnel with specialized training. For example, certain sections may focus on microbiology, hematology, chemistry, and blood banking, while others may conduct specialized genetic tests using techniques like electron microscopy and immunohistochemistry, or focus on surgical pathology and cytology, all of which are essential for examining cell and tissue structures. The growth of this segment is likely driven by mandatory newborn screening for genetic disorders and the rising incidence of cancer in various regions.

Seattle Children?s Hospital, serving the WWAMI region (Washington, Wyoming, Alaska, Montana, and Idaho), offers comprehensive genetic testing and consultative services to healthcare providers and families. Their genetics laboratories encompass molecular genetics, cytogenetics, biochemical genetics, and a research and development lab dedicated to translating the latest research tests into clinical practice. Overall, these laboratories play a vital role in diagnosing genetic disorders, informing treatment decisions, and enhancing patient outcomes.

Key organizations such as the Centers for Disease Control and Prevention, the US Food and Drug Administration, and the World Health Organization are among the primary and secondary sources referenced in the preparation of the genetic testing services market report.