US Clinical Diagnostics Market Analysis

US Clinical Diagnostics Market Analysis


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US's clinical diagnostic market was valued at $28.95 Bn in 2022 and is estimated to expand at a CAGR of 4% from 2022-30 and will reach $39.61 Bn in 2030. One of the main reasons propelling the growth of this market is an increase in chronic disease and increased investment. The market is segmented by type, drug, and distribution channel. Some key players in this market are Abbott, bioMérieux, Danaher Corporation, Siemens, Qiagen, Quest Diagnostics, F. Hoffmann-La Roche Ltd, Thermo Fisher Scientific, Sysmex, Sonic Healthcare Ltd, Exact Sciences Corporation, NeoGenomics, Laboratory Corporation of America Holdings, and others.

ID: IN10USHS003 CATEGORY: Healthcare Services GEOGRAPHY: US AUTHOR: Nandini Shah

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US Clinical Diagnostic Market Executive Summary

US's clinical diagnostic market was valued at $28.95 Bn in 2022 and is estimated to expand at a CAGR of 4% from 2022-30 and will reach $39.61 Bn in 2030. A disease, sickness, or damage is diagnosed based on a patient's signs and symptoms, as well as the patient's health history and physical exam. Following a clinical diagnosis, additional testing may be undertaken, such as blood tests, imaging investigations, and biopsies.

Sales of clinical diagnostics products have increased significantly in the United States over the years, and this trend is expected to continue even during the projection period, owing to the growing elderly population. Patient awareness of the importance of laboratory tests is growing, as is the prevalence of infectious and chronic disease patients. The rising frequency of COVID-19 infections has resulted in more funding and testing, which has enhanced total market growth. For example, the National Institutes of Health in the United States announced in September 2020 that it would provide USD 129.3 million in funding to nine companies to scale up manufacturing support for a new set of COVID-19 testing technologies as part of its Rapid Acceleration of Diagnostics (RADx) initiative.

us clinical diagnostics market analysis

Market Dynamics

Market Growth Drivers

As the population ages and lifestyles change, the incidence of chronic diseases such as diabetes, cardiovascular disease, and cancer is increasing. This is leading to a growing demand for diagnostic tests that can detect these conditions early and accurately. The CDC estimates that six in ten adults in the United States currently live with a chronic disease such as cancer, heart disease, or diabetes. Chronic diseases are among the top causes of death in the United States, accounting for approximately 38% of all deaths.

Advances in diagnostic technologies such as genomics, proteomics, and digital pathology are leading to the development of new and more accurate diagnostic tests. These tests are able to detect diseases at an earlier stage and with greater precision, which is leading to improved patient outcomes. Personalized medicine involves tailoring treatment to the individual characteristics of each patient, including their genetic makeup, lifestyle, and environment. This approach is driving demand for diagnostic tests that can identify biomarkers and genetic mutations associated with specific diseases, which can help guide treatment decisions. Healthcare spending in the United States continues to rise, driven in part by an aging population and the increasing prevalence of chronic diseases. This is leading to increased investment in diagnostic technologies and greater utilization of diagnostic tests. As healthcare providers shift their focus toward preventive care, there is a growing emphasis on early detection and disease prevention. This is leading to increased demand for diagnostic tests that can detect diseases at an early stage when they are more treatable and have a better prognosis.

Market Restraints

The clinical diagnostics market is subject to strict regulatory requirements and reimbursement policies, which can create barriers to market entry and limit the profitability of new diagnostic tests. Companies need to navigate complex regulatory processes and work closely with payers to ensure that their tests are covered and reimbursed appropriately. The clinical diagnostics market is highly competitive, with a large number of established players and new entrants vying for market share. Companies need to differentiate themselves through the development of innovative diagnostic tests, strategic partnerships, and targeted marketing efforts.

Advances in diagnostic technologies have created a rapidly evolving landscape, with new tests and technologies being introduced on a regular basis. Companies need to invest in research and development to stay ahead of the curve and ensure that their tests are competitive and effective. The high cost of diagnostic tests can be a barrier to adoption, particularly in a healthcare environment where cost containment is a key priority. Companies need to balance the need for high-quality diagnostic tests with the need to keep costs under control. Diagnostic tests generate large amounts of sensitive patient data, which can be vulnerable to privacy breaches and cyber-attacks. Companies need to invest in robust data privacy and security measures to protect patient data and maintain public trust.

Competitive Landscape

Key Players

  • Quest Diagnostics
  • Abbott
  • BioMérieux
  • Danaher Corporation
  • Siemens Healthineers
  • F. Hoffmann-La Roche
  • Thermo Fisher Scientific
  • Sysmex
  • Sonic Healthcare
  • BioReference Laboratories
  • Laboratory Corporation of America Holdings
  • Qiagen

Notable Deals

In August 2021, Thermo Fisher Scientific announced that it had completed its acquisition of PPD, a leading provider of clinical research services, for $17.4 billion. The acquisition expands Thermo Fisher's presence in the clinical research market and strengthens its offerings in drug discovery and development.

Healthcare Policies and Regulatory Landscape

Regulatory policy plays a critical role in the US clinical diagnostics market, as diagnostic tests must be evaluated and approved by the US Food and Drug Administration (FDA) before they can be marketed and sold to healthcare providers and patients.

The FDA regulates diagnostic tests as medical devices and has established a risk-based classification system that determines the level of regulatory scrutiny required for each type of test. For example, high-risk tests, such as those used to diagnose cancer or infectious diseases, are subject to the most rigorous regulatory requirements, including premarket approval and ongoing surveillance.

In addition to premarket review and approval, the FDA also oversees post-market surveillance and monitoring of diagnostic tests to ensure that they continue to be safe and effective over time. The agency may require manufacturers to conduct post-market studies or submit additional data to support the ongoing safety and effectiveness of their tests.

Reimbursement Scenario

Reimbursement is a critical factor in the US clinical diagnostics market, as diagnostic tests must be covered and reimbursed by the government and private payers in order to be widely adopted by healthcare providers and patients.

The reimbursement landscape for diagnostic tests is complex, with different payment models and coverage policies depending on the type of test, the indication, and the payer. Some tests are reimbursed under fee-for-service models, in which providers are paid a set fee for each test performed, while others may be reimbursed under value-based or bundled payment models that link payment to patient outcomes.

The Centers for Medicare and Medicaid Services (CMS) sets reimbursement rates for diagnostic tests under the Clinical Laboratory Fee Schedule (CLFS), which is updated annually. The CLFS sets payment rates based on the actual cost of performing the test, as reported by clinical laboratories.

In addition to CMS, private payers such as health insurance companies also play a critical role in reimbursement for diagnostic tests. Private payers may use a variety of payment models and coverage policies and may require preauthorization or other requirements before covering a test.

1. Executive Summary
1.1 Service Overview
1.2 Global Scenario
1.3 Country Overview
1.4 Healthcare Scenario in Country
1.5 Healthcare Services Market in Country
1.6 Recent Developments in the Country

2. Market Size and Forecasting
2.1 Market Size (With Excel and Methodology)
2.2 Market Segmentation (Check all Segments in Segmentation Section)

3. Market Dynamics
3.1 Market Drivers
3.2 Market Restraints

4. Competitive Landscape
4.1 Major Market Share

4.2 Key Company Profile (Check all Companies in the Summary Section)

4.2.1 Company
4.2.1.1 Overview
4.2.1.2 Product Applications and Services
4.2.1.3 Recent Developments
4.2.1.4 Partnerships Ecosystem
4.2.1.5 Financials (Based on Availability)

5. Reimbursement Scenario
5.1 Reimbursement Regulation
5.2 Reimbursement Process for Services
5.3 Reimbursement Process for Treatment

6. Methodology and Scope

Clinical Diagnostics Market Segmentation

By Test

  • Lab Test
  • Imaging Test
  • Other Tests

By Product

  • Instruments
  • Reagents
  • Other Products

By End User (Revenue, USD Billion)

  • Hospital Laboratory
  • Diagnostic Laboratory
  • Point-of-care Testing
  • Other End Users

Insights10 will provide you with the reports within 10 key parameters which are:

  1. Market Overview
  2. Market Growth Drivers & Restraints
  3. Epidemiology of Disease Type
  4. Market Segmentation
  5. Market Share
  6. Competitive Landscape
  7. Key Company Profiles
  8. Healthcare Policies & Regulatory Framework
  9. Reimbursement Scenario
  10. Factors Driving Future Growth

Based on our many years of experience, we believe that these are the parameters that are critical to decision-making for business stakeholders. Our focused approach to developing reports focused on 10 key parameters, enabled us to arrive at the name “Insights10”.

 

Stage I: Market Data Collection

Primary Interviews: We have developed a network of experts, freelancers, and researchers across countries through which we engage with local experts to gather key data points and assumptions about each market. We also engage regularly with some of the best market research agencies such as Atheneum, GuidePoint, GLG, etc. to conduct surveys and interviews, and build intelligence. We have language translators as a part of our team, who between them can cover 30+ languages allowing us to extract better local insights.

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Data Sources: We have access to multiple highly reliable free and subscription data sources. We have many years of experience to understand which sources are more dependable for what and which to prefer for the reliable and latest information. The key sources of information include the following, but are not limited to:

 

 

Stage II: Market Data Analysis and Statistical Model

Market Trends: We generally look at macro parameters and micro indicators. The macro parameters include changes in government policies, demand and supply of the market, government intervention programs, and major market share. The micro indicators are GDP growth, market size, market volume, etc. We also understand nuances specific to each country like the US, Canada, India, Germany, etc., and have worked across 60+ countries and hence not only understand global trends but how these differ by country, how payment models, market structure, cultural parameters, etc. differ in each country.

Market Sizing and Analysis: Our expert data analytics team has created various market forecast models by employing the top-down approach i.e. starting with the large overall market and segmenting different areas and the bottom-up approach i.e. starting with population and epidemiology and rolling up based on spend, etc., estimating the size of the market, and distributing among the geographic and/or product segments.

The top-down approach is mainly used for new product forecasting and the bottom-up approach is used for demand estimation of any product for different countries summed up to form the total market. We are able to round off insights and build stronger forecasts because we always do both these methods and triangulate the final numbers.

The study on the market covers the analysis of the leading geographies such as Asia-Pacific, Africa, Europe, Middle East, North America, and  Latin America for the period of 2022 to 2030. The qualitative analysis covers the industry landscape and trends, market opportunities, competitive landscape, and policy and regulatory scenario, and the quantitative analysis covers different market estimates and forecasts.

Data Triangulation & Validation:

Data triangulation of various sources and results of the research are carried out by benchmarking with reliable sources such as industry statistics, statistical databases, and company-level averages, etc.

We make sure to finalize the numbers in alignment with the market research. Firstly, our internal experts ensure thorough validation and checking to ensure accurate and precise analysis and then validation is also done using a multiple-data analysis model. Two-level validation is done and entails the finalization of the report scope and the way of representation pattern.

 

 

Stage III: Interpretation and Presentation

Analysis & Interpretation: The information gathered is then analyzed and synthesized. The second series of interviews are done if necessary to check and validate. The future opportunities are analyzed by understanding product commercialization and many other factors. It also comprises the analysis of data discrepancies observed across various data sources. Information procured from secondary and primary results is then, interpreted by considering the following parameters: (a partial list)

  • Establishing market drivers and trends
  • Analyzing the regulatory landscape to understand future growth
  • Market Segment based analysis to obtain revenue/volume
  • ​Analyzing current needs and determining penetration to estimate the market

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Data curated from the analysis and interpretation are drawn to portray all in one consolidated report.

Presentation & Reporting: The market research report is presented in different forms such as charts by using a scientific approach for easy understanding. Historic, current, and future analysis is provided for each market in terms of both value and volume. The size of the market is interpreted in the US Dollar value and the respective unit, based on the product, for volume consumption.

The foreign exchange rates are calculated on the respective dates and for the respective regions covered in the study.

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Last updated on: 20 February 2024
Updated by: Dhruv Joshi

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