Precision Diagnostics Market Research Report and Outlook by 2028

The global precision diagnostics market is projected to expand significantly, increasing from US$ 79,776.88 million in 2022 to US$ 168,405.71 million by 2028, reflecting a compound annual growth rate (CAGR) of 13.3% during this period.

Several factors contribute to this growth, including the rising demand for precision diagnostics and their expanding applications in oncology and various other medical conditions. However, the substantial investments required for research and development in precision medicine and diagnostic tools pose challenges to market expansion.

Precision diagnostics encompass advanced methods for diagnosing diseases, enabling healthcare professionals to gain a comprehensive understanding of a patient's health status. This approach facilitates more effective treatment procedures for conditions such as diabetes, cancer, and other disorders through specialized tests, including genetic assessments. Additionally, partnerships between governmental bodies and private companies are anticipated to foster market growth throughout the forecast period. For instance, in July 2021, Neuberg Diagnostics Pvt. Ltd. inaugurated a new pathology laboratory in India, enhancing its presence both domestically and internationally while establishing incubation centers in the United States and Europe.

The ongoing digitization in the diagnostic field is leading to an increased adoption of digital solutions. As companies strive to create diagnostics tailored to specific patient demographics, the precision diagnostics sector has witnessed rapid advancements. Notably, players in the digital pathology domain are introducing innovative software solutions. The growing focus on digital technologies is a key driver for the precision diagnostics market. In January 2021, Roche introduced two digital pathology image analysis algorithms?uPath HER2 (4B5) and uPath HER2 Dual ISH?aimed at enhancing precision in breast cancer diagnosis and treatment planning. Furthermore, in October 2021, Philips launched its next-generation digital pathology solution, the Philips Digital Pathology Suite - IntelliSite, which integrates a comprehensive suite of software tools designed to optimize imaging workflows, enhance diagnostic accuracy, incorporate artificial intelligence (AI), and improve the efficiency of pathology laboratories. Such technological innovations in precision diagnostics are expected to create significant growth opportunities for market participants in the coming years.

Advancements in artificial intelligence (AI) are also on the rise, with healthcare anticipated to lead AI investments from 2018 to 2022. The Asia-Pacific region is particularly well-positioned for growth due to its robust digital ecosystem. Diagnosing complex diseases like cancer can be labor-intensive and time-consuming, as it involves considering various factors, including disease type, physical examinations, genomic and molecular data analysis, and the patient's medical history. The ability to intelligently aggregate this information is central to precision diagnostics. According to a study by the International Data Corporation (IDC), healthcare data is expected to grow by approximately 48% annually, which will further strain physicians' time. Additionally, the increasing disease burden among the aging population will contribute to this data surge. AI can help alleviate the workload of healthcare professionals by automating routine tasks and expediting workflows. Its capability to analyze vast amounts of data can enhance the precision, reliability, and efficiency of medical evaluations. For example, Philips researchers have shown that deep learning algorithms can assist radiologists in CT-based lung cancer screenings as a decision support tool. Moreover, machine learning (ML) can play a crucial role in various healthcare applications, including biomedical data management, diagnostic automation, and biomarker discovery, which can lead to improved predictions of patient responses to therapies. Thus, the technological advancements in AI are expected to unlock numerous opportunities for growth in the precision diagnostics market during the forecast period.

The global precision diagnostics market is categorized by type, application, and end user. In terms of application, the market is divided into oncology, cardiology, immunology, respiratory diseases, and others. The oncology segment is projected to hold the largest market share and achieve the highest CAGR throughout the forecast period. Precision oncology involves the molecular profiling of tumors to identify targetable alterations. In cancer treatment, precision medicine analyzes the DNA of a patient's tumor to detect mutations and genetic changes that contribute to the disease. This allows physicians to select treatments that specifically target the mutations present in the tumor DNA. Recent technological advancements have transformed oncology diagnosis and treatment, enabling clinicians to tailor strategies that precisely address the molecular alterations underlying individual patients' conditions. Furthermore, molecular-guided therapies in oncology represent a proactive approach that can minimize the time and costs associated with ineffective treatments, ultimately enhancing patients' quality of life and longevity.

Consequently, the introduction of new and technologically advanced genetic tests in oncology is driving the growth of this segment. For instance, Koninklijke Philips N.V. unveiled its latest innovations in digital pathology in December 2020, leveraging a robust oncology clinical decision-making support portfolio that integrates imaging, pathology, genomics, and longitudinal data with AI insights to provide physicians with reliable outcomes for each patient.

Key sources referenced in the preparation of the report on the global precision diagnostics market include the World Health Organization (WHO), the Centers for Disease Control and Prevention (CDC), and GLOBOCAN: Global Cancer Observatory.