The world in vitro diagnostic test market won’t be stalled by economic conditions for a variety of reasons, according to Kalorama Information.
Kalorama 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 six percent per year."
Demand for healthcare and thus diagnostic tests 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 is an emerging menu of specialized tests for these diseases, but routine tests are used as the first line of diagnosis.
Therefore Kalorama states that 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.
Kalorama Information says that the aging population, demand for healthcare and emerging markets, as well as planned federal healthcare initiatives still bode well for testing. But the simplest explanation is that diagnostics has already taken its licks in previous recessions.
"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’s best-selling report, "The Worldwide Market for In Vitro Diagnostic (IVD) Tests, 6th Edition," analyzes the current and potential world market for IVD systems. The report covers every aspect of in vitro diagnostics, from traditional fields such as blood banking and immunoassays to novel POC and molecular testing. According to statistics from market research distributor
MarketResearch.com, the report is the best-selling in vitro diagnostic market research report published. Market forecasts through 2012 for each segment, company profiles and a review of trends and issues are covered. For further information visit the Kalorama Web site.