Companion Diagnostic Market to Grow with a CAGR of 11.94% through 2030
Development of new biomarkers for various diseases and a surge in
research & development of targeted therapies is expected to drive the
Global Companion Diagnostic Market growth in the forecast period, 2026-2030.
According to TechSci Research report, “Companion Diagnostic Market – Global
Industry Size, Share, Trends, Competition Forecast & Opportunities,
2030F”, the Global Companion Diagnostic Market stood at USD 6.17 billion in 2024 and is anticipated to grow
with a CAGR of 11.94% in the forecast period through 2030. The global companion
diagnostics industry is experiencing growth driven by various factors. These
include the advantages of companion diagnostics, the increasing demand for
targeted therapy, the rising significance of personalized medicine, the growing
global incidence of cancer, and the expanding application areas of companion
diagnostics.
Additionally, the market's expansion is further propelled by the
expanding need for next-generation sequencing, the growing importance of
companion diagnostics in drug discovery, and the rising number of clinical
trials. The companion diagnostics market is poised for significant growth during the forecast period due to the surge in research and development of targeted therapies, increasing demand for personalized medicine in emerging economies, discovery of new biomarkers for various conditions, and unmet needs in cancer treatment. These factors are major drivers of the global companion diagnostics market.
Advancements in genetic sequencing and genomics have led to the realization that drugs can have varying effects in different individuals. Understanding an individual's genetic traits or biomarkers is crucial in administering the right drug, at the right time, and in the right amount. Pharmaceutical and biopharmaceutical companies are actively integrating patient-selection diagnostic frameworks in early drug development stages to offer targeted therapies to suitable candidates. This trend contributes to the expansion of the companion diagnostics market.
Although companion diagnostics offer guaranteed returns on investment, the high initial cost often makes them inaccessible to a large portion of end-users, especially those in developing countries. Consequently, end-users such as pharmaceutical companies, reference laboratories, hospitals, and contract research organizations (CROs) turn to third-party companion diagnostic services to alleviate the financial burden associated with these tests.
Next-generation sequencing (NGS)-based companion diagnostic tests leverage molecular information from a patient's tumor genome to guide cancer therapy decisions. NGS detects numerous biomarkers for multiple medication regimens in a shorter time frame compared to other sequencing techniques. The use of NGS panels for biomarker evaluation in a single test has the potential to aid in the treatment of various malignancies.
The rising prevalence of cancer globally is driving market growth. According to statistics published by the World Health Organization (WHO) in February 2022, approximately 400,000 children worldwide develop cancer each year. Additionally, in 2020, there were 18,094,716 million cases of cancer diagnosed globally, as reported by the World Cancer Research Fund International. The International Agency for Research on Cancer estimates that the worldwide burden of cancer will increase to 27.5 million new cases by 2040. The increased incidence of cancer globally is leading to a higher utilization of companion diagnostic tests, thereby fueling market expansion. Furthermore, regulatory approvals of these tests for various indications are expected to contribute to market growth. For instance, in August 2022, the U.S. FDA approved Thermo Fisher Scientific Inc.'s Oncomine Dx Target Test as a companion diagnostic (CDx) for identifying non-small cell lung cancer tumors with HER2 (ERBB2) activating mutations (SNVs & Exon 20 Insertion). Additionally, the co-development of drug and diagnostic technology, along with favorable government support, is creating lucrative opportunities in the market. However, the high cost of drug development and associated clinical trials may hinder market growth.
The increasing popularity of personalized medicines, rising cases of adverse drug reactions (ADRs), and unmet needs in cancer treatment are the driving factors accelerating the growth of the companion diagnostics market. Moreover, the growth is further propelled by increased healthcare expenditure globally and technological advancements in diagnostic techniques. The industry is witnessing additional growth with rising awareness, particularly in developing economies, and the discovery of new biomarkers for diverse conditions. The growth of the companion animal diagnostics market also contributes to the overall growth of the companion diagnostics industry. The oncology segment is expected to drive market growth due to the rising cases of cancer. Furthermore, the approval of companion diagnostics by government agencies like the FDA is anticipated to drive industry growth. Unfavorable reimbursement policies in some countries may impact the companion diagnostics market during the forecast period.
Browse over XX market data Figures spread through XX Pages and an
in-depth TOC on
"Global Companion Diagnostic Market.”
Global Companion Diagnostic Market is segmented into product &
services, technology, disease indication, application, end user, regional
distribution, and company.
Based on disease indication, the oncology segment is witnessing the fastest growth in the global companion diagnostics market. This growth is primarily driven by the increasing global burden of cancer and the rising demand for precision medicine. Companion diagnostics are essential tools in oncology, helping clinicians identify specific genetic mutations or protein expressions such as HER2, EGFR, BRAF, and ALK, which guide the selection of targeted therapies. These tests not only improve treatment outcomes but also minimize adverse effects by ensuring that patients receive therapies tailored to their molecular profile. According to the World Health Organization (WHO), cancer accounted for nearly 10 million deaths globally in 2022, and the incidence is projected to rise significantly, thereby increasing the need for personalized treatments and their companion diagnostic tools.
Based on region, the Asia Pacific market is exhibiting the fastest growth in the global companion diagnostics landscape. This robust growth trajectory is primarily fueled by a combination of rising healthcare expenditure, increasing prevalence of chronic diseases like cancer, and expanding access to advanced molecular diagnostic technologies across emerging economies such as China, India, South Korea, and Japan. The region’s large and aging population base is contributing significantly to the rising demand for personalized medicine, thereby propelling the adoption of companion diagnostics. Government initiatives across Asia Pacific countries are also playing a pivotal role in accelerating market growth. For example, China’s "Healthy China 2030" initiative emphasizes precision healthcare and has led to substantial investments in genomics and diagnostic infrastructure. Similarly, India’s National Biotechnology Development Strategy promotes innovation in molecular diagnostics and companion testing, particularly in oncology. According to the World Bank, healthcare expenditure in the Asia Pacific region has increased steadily, with countries like South Korea spending nearly 8.4% of their GDP on healthcare as of 2023.
Major companies operating in Global Companion Diagnostic Market
are:
- Abbott
Laboratories Inc.
- Agilent
Technologies Inc.
- F.Hoffmann-La
Roche Ltd
- Biomerieux
SA
- Qiagen NV
- Siemens
Healthcare
- Thermo
Fisher Scientific Inc.
- Danaher
Corporation (Beckman Coulter Inc.)
- Myriad
Genetics Inc.
- Illumina
Inc.
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“The increasing prevalence of various types of cancer worldwide is
driving the demand for more effective and targeted cancer treatments, thereby
fueling market growth. Companion diagnostics play a crucial role in identifying
patients who are most likely to benefit from specific cancer therapies, leading
to improved patient outcomes. Furthermore, the growing demand for personalized
medicines tailored to individual patient characteristics is creating a
favorable market outlook. Additionally, the widespread adoption of targeted
drugs and therapies for the treatment of infectious, cardiovascular,
neurological, and inflammatory conditions is another significant factor
contributing to market growth. Moreover, the development of innovative genomic
technologies that enable the identification of genetic mutations and biomarkers
for guiding treatment decisions is propelling market expansion. Factors such as
the increasing use of biomarkers in drug development, substantial investments
in precision medicine, and rising consumer awareness regarding the advantages
of companion diagnostics are presenting lucrative growth opportunities for the
market.,” said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based management consulting firm.
“Companion Diagnostic Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product and Services (Kits and Reagents, Assays, Software, and Services), By Technology (PCR, NGS, In-Situ Hybridization, Immunohistochemistry, and Others), By Disease Indication (Oncology, Neurology, Cardiology, Infectious Diseases, and Others), By Application (In-Vitro Diagnostics, Drug Discovery, and Others), By End User (Pharmaceutical & Biotechnology Companies, Research Laboratories, Contract Research Organization, and Others), By Region and Competition, 2020-2030F”, has evaluated the future growth potential
of Global Companion Diagnostic Market and provides statistics & information
on market size, structure and future market growth. The report intends to
provide cutting-edge market intelligence and help decision makers take sound
investment decisions. Besides, the report also identifies and analyzes the
emerging trends along with essential drivers, challenges, and opportunities in
Global Companion Diagnostic Market.
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