This is Why Point-of-Care Diagnostics is Booming
Innovations in point-of-care diagnostics are accelerating diagnosis, improving outcomes, and saving time and money for patients and healthcare providers.
The point-of-care (POC) diagnostics market is growing, as companies large and small are developing new technologies that allow healthcare providers to rapidly diagnose patients, independent of location. 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 critical cases.
POC diagnostics are also reducing costs associated with the expensive and time-consuming practice of sending samples to a laboratory. And as the need to contain healthcare costs has intensified, they are an effective way to achieve financial goals without compromising clinical outcomes.
POC Diagnostics: Industry Snapshot
The global POC diagnostics market has grown year-over-year as the healthcare industry continues to enjoy its immense value.
In 2018, the global market was valued at $22.3 billion, with POC diagnostic sales projected to grow at a compound annual growth rate of 5.9% from 2019 to 2024.
The US represents the largest market for POC diagnostic sales. With an estimated market share of approximately 34% and product sales of $7.5 billion, the country is demonstrating an eagerness to adopt POC solutions.
The chart below demonstrates the product segments and types that are classified under the umbrella of point-of-care diagnostics.
Glucose monitoring devices account for the largest share of POC diagnostic product sales. The accessibility of these devices, which extend into the realm of consumer products, coupled with 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.
Why Point-of-Care Diagnostics is Booming – and What’s Holding it Back
Several factors contribute to the rapid growth of point-of-care diagnostics. The most significant include:
- Technological advancements. As the technology behind diagnostics has improved, they have become increasingly accurate. This allows providers and patients to get results faster than with traditional diagnostics.
- Expanding indications for use. When an increasing number of patients can benefit, it broadens the appeal of the technology to a greater number of potential customers.
- The increasing burden of chronic and infectious diseases. With chronic disease rising and claiming a high percentage of healthcare spend in the US, the demand for point-of-care diagnostics is rapidly increasing.
- Patient accessibility. Patient-friendly POC diagnostic devices, such as glucose monitoring devices, are empowering patients to better monitor their chronic conditions.
While the point-of-care diagnostics industry has a massive amount of momentum, there are some challenges. However, the factors restraining market growth mirror those impacting much of the medical device industry, such as difficulties in establishing adequate reimbursement and navigating regulatory hurdles.
The POC Diagnostics Competitive Landscape
The competition in the POC diagnostics market is both fragmented and saturated with numerous solutions across many indications. However, despite a large amount of competition, shares of total product sales have consolidated among the largest companies. Major players include Abbott, Danaher, Johnson & Johnson, Roche, and Siemens.
But 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. These include:
- Immunexpress – raised $61 million
- Sight Diagnostics – raised $52.8 million
- Exactus – raised $4.7 million
- 1Drop Diagnostics – raised $8.1 million
Diagnostics remain a critical component of the clinical decision-making process, from the local clinic to the largest of hospitals. The value of POC diagnostics are well-recognized and expected to continue in a healthy growth trajectory, especially when compared to other segments of the in-vitro diagnostics market.
For emerging companies in the POC diagnostics space, there is room to claim market share. Multimillion-dollar fundraising rounds have continued to trickle in, which indicates that there is an opportunity for new and existing players. Companies that can deliver tests that are faster, more accurate, and cover new indications will grow in demand.
Do you want to learn more about how your company can succeed in the point-of-care diagnostics market? Contact us.