Point-of-Care Diagnostics

January 28, 2020
POC diagnostics

Innovations in diagnostic technologies are reducing time to results, improving outcomes, and saving time and money for patients and healthcare providers

Authors: Madison Graham and Nicholas Talamantes

In the point-of-care (POC) diagnostics market, companies large and small are striving to develop new technologies that allow healthcare providers to rapidly diagnose patients, independent of location. POC diagnostics have accelerated the healthcare delivery process and reduced the turnaround time associated with the expensive and time-consuming practice of sending samples to a laboratory for results. As health care has become increasingly focused on containing costs, POC diagnostics represent an effective means of lowering healthcare costs and reducing response times, without compromising clinical outcomes.  

The global POC diagnostics market was valued at $22.3 billion in 2018. Global POC diagnostic sales are projected to continue to grow at a health compound annual growth rate (CAGR) of 5.9% from 2019 to 2024.The US is the largest market in terms of total POC diagnostic sales, with an estimated market share of approximately 34% and corresponding product sales $7.5 billion. The country’s large market share can be attributed to an eagerness to adopt POC solutions that accelerate diagnoses and allow for more timely therapeutic interventions. Diagnostics are an essential component of the clinical decision-making process, therefore the ability to receive test results sooner can save time, money, and lives (in acute/critical cases).

Drivers of growth for the POC diagnostics market include:

  • technological advancements – which make POC diagnostics more accurate and reduce turnaround time
  • expanding indications for use – broadens appeal to a greater number of potential customers
  • increasing burden of chronic and infectious diseases
  • patient accessibility – patient-friendly diagnostic devices, similar to glucose monitoring devices, are allowing patients to monitor their chronic conditions

Factors restraining market growth mirror those impacting much of the medical device industry, such as difficulties in establishing adequate reimbursement and regulatory hurdles which delay new product market entry. 

Several product segments compose the overall POC diagnostics market. Product types classified under the umbrella of POC diagnostics include:

Glucose Monitoring graph

Sales attributable to glucose monitoring devices account for the largest share of total POC diagnostic product sales. The accessibility of glucose monitoring devices, which extends into the realm of consumer products, and the 450+ million adults that are living with diabetes have contributed to the growth and large market share of this multi-billion dollar product market.

The competitive landscape of the POC diagnostics market is highly fragmented and saturated with numerous solutions across a multitude of diagnostic indications. However, despite the large number of competitors in this market, shares of total product sales have consolidated among the largest companies. Major players include Abbott, Danaher, Johnson & Johnson, Roche, and Siemens. While larger medtech companies have established themselves across several major indications for POC diagnostics (e.g. diabetes, cardiovascular disease, hematology), smaller players have found success in raising capital for more specialized testing solutions.

Smaller, disruptive players in this market include:

Multimillion dollar fundraising rounds continued to trickle in throughout 2019, which indicates that there is still opportunity for new and existing players. New tests that are faster, more accurate, and cover new indications when compared to existing products will continue to remain in demand among healthcare providers.

The POC diagnostics market is expected to continue its upwards growth trajectory, despite the typical hurdles that impact many of the markets within the medtech industry. The value of POC diagnostics are well-recognized at this point, which accounts for the healthy growth that this market has seen when compared to other segments of the in-vitro diagnostics market. Diagnostics remain a critical component to the clinical decision-making process, from the local clinic to the largest of hospitals. For further information on the point-of-care diagnostics market, please contact Jaunt at intelligence@jauntup.com

Jaunt LLC is a management consulting firm for technologies that impact life. They help executives and investors build up great companies by aligning the right products to the right markets. Jaunt accomplishes this using market intelligence and commercialization expertise to develop confident investment strategies for new and emerging medical technologies. Located in Mesa, AZ, Jaunt services clients across the country. For additional information visit JauntUp.com.