Market Overview:
Genetic testing refers to the analysis of human DNA or RNA to detect alternations associated with health predispositions and diseases. Genetic testing can be used to detect mutations associated with inherited disorders, determine risk of developing certain health conditions later in life, and diagnose existing genetic conditions. It has applications in oncology, reproductive health, cardiology, and other fields.
The Genetic Testing Market is estimated to be valued at US$ 18.24 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the growth of the genetic testing market is the rising popularity of direct to consumer (DTC) genetic testing. DTC genetic testing provides individuals an easy way to access their genetic information without necessarily involving their doctor. With major players launching more accurate and affordable genetic testing kits, DTC genetic testing has gained prominence among consumers who wish to understand more about their ancestry and health risks. According to a study by MIT Technology Review in 2018, Anthropic, 23andMe, MyHeritage and LivingDNA cumulatively sold more than 26 million DNA tests. This shows the immense potential of DTC genetic testing in expanding the consumer base of the overall genetic testing market.
Porter's Analysis
Threat of new entrants: The threat of new entrants is low in the genetic testing market. Establishing the infrastructure and network required to carry out comprehensive genetic testing requires significant capital investments and close industry partnerships.
Bargaining power of buyers: The bargaining power of buyers is moderate. While buyers have some alternatives for individual tests, no individual provider offers a comprehensive menu of tests. However, as new technologies emerge, buyers options may increase over time.
Bargaining power of suppliers: Suppliers of genetic testing equipment, reagents and technologies have moderate bargaining power. There are multiple established suppliers for components like sequencing instruments and microarrays. However, industry consolidation has made some suppliers more influential.
Threat of new substitutes: The threat of substitutes is moderate. While some basic heredity testing is offered directly to consumers, comprehensive clinical genetic testing requires specialized resources and expertise that is not easily substitutable.
Competitive rivalry: The competitive rivalry in the industry is high due to the presence of numerous international and regional players offering a variety of genetic testing products.
SWOT Analysis
Strengths: Availability of a diverse menu of genetic tests, rapid advancements in testing technologies, growing genetic disease diagnosis market.
Weaknesses: Expensive testing procedures, shortage of trained professionals, complex regulations and reimbursement policies.
Opportunities: Untapped emerging markets, increasing direct-to-consumer genetic testing, growing application areas like pharmacogenomics.
Threats: Ethical issues related to genetic privacy and discrimination, new disruptive market entrants, reimbursement cuts.
Key Takeaways
The global genetic testing market is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing chronic disease prevalence and rising awareness about genetic testing. North America currently dominates the market owing to the advanced healthcare systems and widespread genetic testing coverage in the US. The Asia Pacific region is expected to be the fastest growing market for genetic testing due to growing healthcare expenditures, increasing disposable incomes and expansion of key market players in countries like China and India.
Regional analysis: The Asia Pacific region is poised to be the fastest growing market for genetic testing during the forecast period. Major factors driving growth include rising affluence, increased awareness about genetic disorders and technological advancements. Countries like China, India, South Korea and Japan are emerging as lucrative markets.
Key players analysis: Key players operating in the genetic testing market are 23&Me Inc., Qiagen NV, Eurofins Scientific, PerkinElmer Inc., Illumina Inc., Danaher Corporation, Myriad Genetics Inc., Abbott Laboratories, F. Hoffmann-La Roche Ltd., Quest Diagnostics Incorporated, BioRad Laboratories Inc., and DiaSorin S.p.A. (Luminex Corporation), among others. Players are focusing on new product
