PRECISION MEDICINE MARKET ANALYSIS

Market Size and Trends

The precision medicine market is estimated to be valued at USD 92.31 Bn in 2024 and is expected to reach USD 195.22 Bn by 2031, growing at a compound annual growth rate (CAGR) of 11.3% from 2024 to 2031.

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The market is expected to witness significant growth over the forecast period. Emerging technologies enabling more personalized diagnostic and treatment options are driving increased demand. Advancements in fields like pharmacogenomics, genomic sequencing, and companion diagnostics have improved the ability to customize care based on individual factors. Rising incidence of cancer and other chronic diseases internationally also contributes to the need for precision approach. However, high initial costs associated with developing and implementing personalized therapies may limit market expansion potential without further cost reductions over time.

Increasing technological advancements

Increasing technological advancements such as the launch of diagnostic tools that will help doctors evaluate or carry out proper diagnosis of a disease and subsequently guide the patients with proper therapy are expected to drive the market growth during the forecast period. For instance, on February 16, 2022, Invitae Corporation, a leading medical genetics company, announced the launch of FusionPlex Dx and LiquidPlex Dx in Europe, as part of its industry-leading Anchored Multiplex PCR chemistry in-vitro diagnostic (IVD) products. Invitae Corporation is a leading provider of high-quality innovation for precision oncology in the fight against cancer. The FusionPlex and LiquidPlex tests will allow more patients to get access to the right cancer therapy at the right time.

Market Concentration and Competitive Landscape

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The rising prevalence of chronic diseases, such as diabetes, cardiovascular diseases, and cancer, has been quite significant in the recent years. These diseases place a huge burden on both patients as well as the healthcare systems. Precision medicine aims to utilize a patient's molecular profile to develop customized treatment and disease management plans best suited to the patient's needs. This approach can help deliver optimal outcomes for chronic disease patients and lower healthcare costs in the long run. By being able to understand the biological makeup of individual patients and how their specific disease will likely progress, precision medicine enables healthcare providers to tailor treatment to each patient's unique genetics, lifestyle and environmental factors. For example, in case of cancer, targeted treatment options based on molecular profiling of a patient's tumor can significantly improve survival rates compared to traditional one-size-fits-all chemotherapy protocols. Since chronic diseases account for a huge majority of healthcare spending globally, the ability of precision medicine to make treatment more effective for these complex long term conditions is expected to drive their increased adoption.

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The precision medicine market currently faces several key challenges. One major challenge is the lack of standardized approaches and guidelines for developing and validating precision medicine tools like biomarkers and diagnostic tests. This makes it difficult to apply precision medicine approaches consistently. Another challenge is the limited understanding of the complexity of human diseases. Most diseases are influenced by multiple genetic and environmental factors, which are not yet fully understood. Precision medicine approaches also require massive amounts of data to be effective, but data sharing remains an issue.

Market Opportunities: Rising research and development activities to discover new therapies

As genomic and other biological data on large populations become available, more disease-causing genes and biomarkers will be discovered. This will enable new targeted therapies. Growing investments and collaborative efforts between industry, academia, and government are helping advance technologies like genome sequencing, bioinformatics, and artificial intelligence. These technologies are crucial to power precision approaches and drive the market growth.

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The application segment includes oncology, central nervous system, hematology, immunology, respiratory, and others. Oncology contributes the highest share of the precision medicine market and is projected to hold 38.1% of the market share in 2024. Precision oncology utilizes a patient's genetic makeup and tumor characteristics to identify therapies that work best for that individual. This minimizes trial-and-error and exposes the patient to only required therapies. Precision diagnostics are improving treatment outcomes and revolutionizing clinical practice. Advancements in genomic profiling technologies, next generation sequencing, and computational analytics are stimulating the development of personalized cancer treatments. Wide acceptance of companion diagnostics is also augmenting the application of precision oncology approaches in clinical settings.

Insights, By Technology: Advancements in sequencing technologies

The product type segment includes bioinformatics, gene sequencing, precision molecular diagnostics, big data analytics, and others. Gene sequencing is anticipated to hold 31.8% of the market share in 2024. Advancements in next-generation sequencing technologies have enabled high-throughput, real-time, and affordable genetic analysis. Gene sequencing helps doctors gain a deeper understanding of an individual's genetic makeup and specific disease conditions, allowing them to tailor medical decisions such as choosing appropriate drugs and their dosages based on the patient's genetic response. It has revolutionized the fields of oncology and rare disease research. Continued R&D into gene sequencing equipment and declining costs of tests are further promoting its widespread use. Meanwhile, steady growth in genome data and computing capabilities is aiding the development of more powerful diagnostics based on gene sequencing.

Insights, By End User: Rise in research and development activities

The end user segment includes biopharmaceutical companies, diagnostic laboratories, academic & research institutions, and others. Biopharmaceutical companies contribute the highest share of the precision medicine market and is projected to hold 38.2% of the market share in 2024. Biopharmaceutical companies are using insights from human genetics and functional genomics to usher in a new wave of targeted drugs. Biopharma players recognize huge commercial potential in precision medicine and are investing heavily in developing and utilizing companion diagnostics to identify the right patient populations for new drug candidates. Given the lower development cost and risk compared to conventional therapeutic development, precision medicine is viewed as an attractive avenue for growth. Competition is also intensifying in this area which is prompting large biopharma investments.

Regional Insights

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North America has established itself as the dominant region in the precision medicine market and is anticipated to hold 47.8% of the market share in 2024. The U.S., in particular, is home to many leading pharmaceutical and biotechnology companies that are investing heavily in precision medicine research and development. These companies are developing novel diagnostics, targeted therapies, and companion diagnostics in partnership with major research universities and hospitals across the country. The robust research ecosystem and willingness of private players to take risks on new technology has enabled North America to make significant progress in translating genomic insights into viable precision therapies over the past decade.

Asia Pacific is poised to be the fastest growing regional market for precision medicine. Countries like China, Japan, South Korea, and India are making large investments in genomics research through public-private initiatives. Their focus is on establishing comprehensive biobanks and genomic databases that will power precision approaches going forward. Additionally, governments in Asia Pacific are providing tax incentives and regulatory clarity to attract global companies expanding into the region. Local pharmaceutical companies are also enhancing their drug discovery capabilities by adopting multidisciplinary precision medicine approaches early in the development process. The large patient pools, improving healthcare infrastructure, and focus on innovation should enable Asia Pacific to close the gap with North America over the next 5-10 years.

Market Report Scope

Key Developments

• On February 7, 2024, Exscientia plc, a pharmaceutical technology company, announced the initiation of EXCYTE-2, an observational clinical study in acute myeloid leukemia (AML) to look into the relationship between ex vivo drug response (EVDR) measured in primary blood or bone marrow samples using the company's deep learning, single cell precision medicine platform and actual patient clinical response.
• In May 2023, Google Cloud, a suite of cloud computing services from Google, launched two new Artificial intelligence (AI)-powered life sciences solutions to expedite drug discovery and precision medicine for biotech companies, pharmaceutical enterprises, and public sector organizations. The Target and Lead Identification Suite, which is available worldwide, assists researchers in better identifying the role of amino acids and predicting the structure of proteins, while the Multiomics Suite speeds up the identification and interpretation of genetic data, allowing corporations to build precision medicines.
• In April 2023, The Barcelona Supercomputing Center - Centro Nacional de Supercomputación (BSC-CNS), a public research center, and Fujitsu Limited, a Japan-based multinational information and communications technology company, signed a dual collaboration agreement to promote personalized medicine by leveraging clinical data and to advance quantum simulation technologies using tensor networks.
• In April 2023, Merck, a multinational pharmaceutical company known as MSD outside of the U.S. and Canada, and Prometheus Biosciences, Inc., announced that the companies have entered into a definitive agreement under which Merck, through a subsidiary, has agreed to acquire Prometheus Biosciences, Inc., a clinical-stage biotechnology company pioneering a precision medicine approach for the discovery, development, and commercialization of novel therapeutic and companion diagnostic products.

*Definition: The precision medicine market refers to an emerging field of healthcare where treatments are tailored to individual patients based on their genetic makeup as well as environmental and lifestyle factors. Precision medicine allows doctors and researchers to predict more accurately which treatment and prevention strategies will work best for each person. By incorporating genetic and other molecular analysis into treatment decisions, precision medicine aims to move healthcare from a one-size-fits-all approach to one that is tailored to each patient's unique characteristics.

Market Segmentation

•  Application Insights (Revenue, USD BN, 2019 - 2031)
  • Oncology 
    • Breast Cancer
    • Lung Cancer
    • Prostate Cancer
    • Colorectal Cancer
    • Others
  • Central Nervous System
  • Hematology
  • Immunology
  • Respiratory
  • Others
•  Technology Insights (Revenue, USD BN, 2019 - 2031)
  • Bioinformatics
  • Gene Sequencing
  • Precision Molecular Diagnostics
  • Big Data Analytics
  • Others
•  End User Insights (Revenue, USD BN, 2019 - 2031)
  • Biopharmaceutical Companies
  • Diagnostic Laboratories
  • Academic & Research Institutions
  • Others
• Regional Insights (Revenue, USD BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa    
• Key Players Insights
  • Intomics
  • GENinCode
  • NanoString
  • Tepnel Pharma Services Limited
  • Pfizer Inc.
  • Novartis AG
  • Teva Pharmaceutical Industries Ltd.
  • Merck & Co. Inc
  • QIAGEN
  • Quest Diagnostics Incorporated
  • Medtronic
  • Thermo Fisher Scientific Inc.
  • Laboratory Corporation of America Holdings
  • bioMérieux SA
  • F. Hoffmann-La Roche Ltd
  • Eli Lilly & Company
  • GlaxoSmithKline plc
  • Cepheid
  • AstraZeneca PLC
  • Myriad Genetics  Inc.
  • Bristol-Myers Squibb Company