Emerging Technologies Boost European IVD Markets

The emergence and widening adoption of new technologies are boosting the revenue prospects of European in vitro diagnostics (IVD) markets.

Frost & Sullivan (Palo Alto, CA, USA), a global growth-consulting company, reported that the European IVD markets earned revenues of U.S.$6.60 billion in 2005 and estimates they will reach U.S.$9.95 billion in 2012.

"The adoption of new technologies, such as molecular and point-of-care testing, combined with the increasing trend towards laboratory automation will drive growth in the European IVD markets,” noted Frost & Sullivan research associate A.K. Arun. "An emphasis on providing high quality healthcare and ensuring timely diagnosis is driving the adoption of these clinical tests and automated solutions while promoting market growth.”

Emerging markets such as molecular testing and near testing are supporting established segments such as clinical chemistry and hematology, thereby spurring market expansion. Moreover, labor shortages are pressurizing clinical laboratories to adopt high throughput and modular solutions, reinforcing growth in the market.

However, challenges still exist in the industry. Demographic changes combined with new diseases are compelling IVD manufacturers to increase their R&D investments. At the same time, competition has led to price erosion, squeezing revenue returns for market participants. In addition, the growing popularity of emerging segments could overshadow mature segments in the market.

A focused strategy will be vital for IVD manufacturers to ensure sufficient returns on investment. In the present market scenario, approaches centering on competitive pricing, new and innovative products, a broad product portfolio, and novel technologies will allow companies to gain a competitive edge.



Related Links:
Frost & Sullivan