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Precision/Personalized medicine market to transform the healthcare space: Global revenue to hit USD 87.7 billion by 2023
Published Date: November 28, 2016 Author: Global Market Insights, Inc.
Information management in the healthcare industry has evolved with a strong need to manage huge data piles and convert them into meaningful and actionable insights. Big data has encompassed the medical industry under its umbrella to meet the growing demands of the healthcare business space. This growing trend is clearly reflected by the rising investment in digital healthcare companies with major hoards in the field of patient experience, wellness, personalized or precision medicine, big data analytics, and workflow. The technologically advanced era which has revolutionized the healthcare space with hi-tech devices and online information has made the patients administrators of their own health. Driven by this consumer-centric medical approach, the healthcare industry is on the verge of transformation with the advent of the newest idea of ‘precision or personalized medicine.’
Precision medicine is an emerging approach for treatment and prevention of diseases based on the variability of genes, lifestyle, and environment for every individual. As per a report by Global Market Insights, Inc., “Global precision medicine market size was worth USD 39 billion in 2015, estimated to surpass USD 87 billion by 2023.” This novel treatment method has gained lot of public and government backing owing to its huge potential of predicting optimal therapies for severe diseases such as cancer, tumors, etc. Former U.S. President Barack Obama, in January 2015, launched the PMI or Precision medicine initiative to extend the precision medicine for all diseases by building a research unit of nearly one million people. The initiative called for a sum of USD 215 million, out of which USD 130 million was allocated to the NIH (National Institute of Health) for building national research cohort. In addition to this, USD 70 million was assigned to NCI (National Cancer Institute) to support the studies pertaining to the Cancer genomics.
USFDA (Food & Drug administration) also became a vital participant of this initiative which is responsible for ensuring the accuracy and precision of these genetic tests derived from the latest technology of NGS or next-generation sequencing. The database by FDA on individual’s entire genome helps the researchers to discover genetic variants and thus, suggest optimal therapies. The Gene sequencing market size was worth USD 8 billion in 2015, and is likely to witness significant growth over the coming years.
According to the Personalized Medicine Coalition (PMC), 2015 was a record year for precision or personalized medicine approvals. The analysis depicts that 28% of 45 novel drugs approved by the FDA in 2015 belongs to the category of precision or personalized medicine, a significant increase from 2014. This depicts the extent to which the precision medicine industry has grown to fight against a vast range of diseases worldwide. Precision medicine holds a vital importance in the oncological treatments and has seen a significant surge due to the prevailing cancer rates. The coming years carries a great potential for the precision medicine application in oncology, where nearly 73% of the cancer medicines will fall in the category of personalized or precision medicines. Precision medicine market application in oncology treatment looks poised to see over 11% growth by 2023.
The adoption of this approach by the pharmaceutical industry was a debatable topic. However, biopharmaceutical researchers predict a 69% increase in personalized medicine developments over the next five years. In addition to this, the biopharmaceutical industry has also doubled their investments in R&D for personalized medicine over the past few years.
The precision medicine market definitely holds a bright growth prospects over the coming years, owing to its ability to address a wide range of diseases. For instance, the latest adoption of this approach by ‘American Heart Association’, to collaborate treatment and research for cardiovascular disorders via a cloud-based data marketplace, depicts the growing popularity of precision or personalized medicine. The AHA will collaborate with Amazon web services, Astra Zeneca, and various research institutes to build a AHA precision medicine platform. This will utilize big data analytics to perform data research thereby, implementing cardiovascular precision medicine.
Precision medicine is evolving as one of the most promising approaches in the healthcare. The trend, which was earlier explored by just a few researchers and clinicians is now coming into limelight across various geographies. U.S. accounted for 65% of the North America precision medicine industry and is estimated to witness a significant surge over the coming years, driven by the favorable regulatory landscape and encouragement of new technologies across this region.
Europe market will also see interesting developments over the coming years owing to the growing initiatives in countries such as Germany and France. For instance, France announced an investment of 650 million euros in its precision medicine and genomic sector, through its initiative called ‘France Genomic Mission 2025’. In the earlier stages, i.e. till 2020, the mission will revolve around cancer, diabetes, and rare diseases and will later be opened to the common diseases as well.
The Asia Pacific will also provide lucrative opportunities for the precision medicine market over the coming period. China, which accounted for almost 25% of the overall APAC share in 2015, will continue to lead the regional growth. Favorable regulatory norms and research contributions from the academic labs will drive the China market growth.
The precision medicine is all set to be the next big thing in the healthcare domain. In the coming years, the industry will witness collaborations of professional institutes and large medical academic centers with the IT companies focusing on precision medicine. The upcoming platform will bring new innovations to the industry and will lead to a fairly competitive and a promising market.