Precision Medicine Market Size By Technology (Big Data Analytics, Gene Sequencing, Drug Discovery, Bioinformatics, Companion Diagnostics), By Application (Oncology, CNS, Immunology, Respiratory), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Scandinavia, Italy, Japan, China, India, Singapore, Mexico, Brazil, South Africa, UAE, Qatar, Saudi Arabia), Application Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2023
Published Date: July 2016 | 94 Pages | Report ID: GMI671 Report Format: PDF
Precision Medicine Market size was over USD 39 billion in 2015, and is anticipated to grow at 10.5% CAGR from 2016 to 2023.
Europe precision medicine market size, by application, 2013 - 2023 (USD Million)
Precision medicine is a novel method for treatment and prevention of chronic diseases based on the variability in individual genes and other lifestyle characteristics. The new approach enables doctors to better assess disease risk, and predict the optimal therapy. President Barack Obama announced the Precision Medicine Initiative (PMI) in 2015 to revolutionize the concept of medicine and generate scientific evidence required for the development of precision medicine. US FDA would receive USD 10 million as a part of the initiative for building the database to support the research and regulation.
Increased global incidence of cancer and rise in cancer susceptible aging population will accelerate global precision medicine market growth. High-throughput omics technologies that have been applied in basic biomedical and biological research will fuel bioinformatics market size. Out of all the omics technologies next generation sequencing would have the major effect on the bioinformatics industry.
Threats associated with sharing of patients’ genetic data may pose a barrier to growth. Insurance companies could use this information and increase the premium for individuals susceptible to genetic diseases. Efforts are made to limit the use of confidential patient information for medical research purpose only. Decline in FDA drug approval rates have reduced the number of innovative drugs that are being manufactured despite large investments. This will impede precision medicine market size, since drugs are customized to patients where they may require a more intensified clinical trial. Pharmaceutical companies will now only invest on drugs that bring guaranteed returns rather than innovative customized drug segments.
Drug discovery technology was valued at over USD 9 billion in 2015, and is estimated to expand at 8.3% CAGR from 2016 to 2023. Biomarker-directed therapies with drugs targeting epidermal growth factor receptor (EGFR), anaplastic lymphoma kinase (ALK), c-ros oncogene 1 receptor tyrosine kinase (ROS1) have accelerated the development of novel anticancer drugs.
Addressing the concern of drug failure rates, the concept of companion diagnostics has gained significance. Companion diagnostics is growing at a fast pace due to the increase in approvals and support from government funds. Gene sequencing market size was over USD 8 billion in 2015. The recent FDA draft guidelines on next generation sequencing-based tests takes into account individual differences in people's genes, environments and lifestyles while developing a new kind of healthcare.
Oncology application accounted for over 30% of precision medicine market share in 2015 and will grow at 10.9% CAGR estimations from 2016 to 2023. Oncology is leading the way in utilizing the molecular profile of an individual's cancer genome to optimize disease management. CNS application was valued at over USD 9 billion in 2015. Neurosciences therapeutics has been using the approach for a long time. For instance, the success of Deep Brain Stimulation (DBS) product provides a classic example for application in brain circuitry.
U.S. and the UK are at the forefront in driving innovation. With the improved understanding of how cancers outwit the immune system, new therapeutic targets have been identified over the last few years. It is now possible to study the immune profile of the patients and select appropriate immunotherapy to help treat specific cancers.
U.S. precision medicine market share was 65% of the North American revenue in 2015, mainly on account of favorable regulatory landscape. The President’s budget has allocated USD 215 million to NIH, NCI, and FDA for development of novel solutions.
Germany precision medicine market size was over USD 2.4 billion in 2015, and will be a key player in shaping growth across Europe. Several institutes in Germany have already acquired a certification for the biomarker analysis in colorectal cancer. Drug manufacturing and diagnostics companies are making promising efforts in improving industry scenario. Favorable reimbursement policies will drive growth in France. In order to get reimbursement for companion diagnostics in outpatient settings, it must be included in joint classification of medical procedures such as CCAM, NABM. Reimbursement for in-patient setting is determined according to DRG system of GHS.
China precision medicine market size accounted for over 25% of the Asia Pacific share in 2015, and is projected to remain a major regional segment in the coming years. Initiatives from the government and contributions from academic laboratories has helped augment growth. The Shanghai Center for Disease Control (SH-CDC) is actively involved in industry development. Furthermore, Beijing Genomics Institute, Capital Bio, Shanghai Biomedical Laboratory are also active these projects.
Competitive Market share
Key industry players contributing to global precision medicine market share include Pfizer, Roche, Covance, Novartis, Qiagen, Biocrates Life Sciences, Teva Pharmaceutical, Nanostring Technologies, Laboratory Corporation of America Holdings, Tepnel Pharma Services, Intomics, Ferrer InCode, Silicon Biosystems, Eagle Genomics, Medtronic, and Quest Diagnostics. Roche is developing an integrated genomics portfolio for next generation sequencing (NGS). Its focus is to advance industry development in cancer care, which will result in more options for patients, based upon a more complete understanding of the biology of their tumors. Novartis aims to strengthen sales and profit growth providing innovative healthcare solutions for the evolving needs of patients and societies.
The precision medicine market is gaining importance due to various public initiative programs across the globe. For instance, the PMI program will seek to extend the approach to all diseases by setting up a national research cohort of over 1 million U.S. based participants. They will be asked to provide consent for characterization of biologic specimens such as cell populations, DNA, RNA, whole-genome sequencing, and behavioral data. Qualified scientists and researchers have the access of cohort data to provide better insights and health care solutions. The information is useful for observational studies of drugs and devices. The main focus of the public initiatives is towards cancer research, but it is expected to expand application to the majority of diseases affected by genetic mutations. Technological advancements such as next generation sequencing, biomarker-based test kits, and government support will propel revenue growth in the coming years.
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