Genetic Testing Market Size

Healthcare expenditure worldwide is on a continuous rise, with notable increases in regions like the Americas and Europe over the past few decades. According to the Centers for Medicare & Medicaid Services, in 2015, the United States witnessed a 5.8% surge in healthcare spending, reaching a staggering USD 3.2 trillion. The trend continued in North America in 2016. The US economy, as reported by the International Monetary Fund (IMF), grew by 1.6% in the same year. However, changes in regulatory policies affected research and development (R&D) investment, with 2016's R&D spending at 527.5 billion declining in 2017. Healthcare reforms, including the Affordable Care Act in 2010, led to increased insurance coverage, further contributing to the expansion of healthcare spending in the US. Additionally, in 2016, healthcare organizations were relieved of a special tax on medical devices, according to the Medical Device Excise Tax Act of 2013.

In the UK and Germany, healthcare spending saw a slight increase, with Western Europe emphasizing cost-saving measures due to modest financial growth and persistent economic pressure. The Organization for Economic Co-operation and Development (OECD) reported that Germany spent EUR 321 billion on healthcare in 2014, while France and the UK recorded expenditures of EUR 237 billion and EUR 223 billion, respectively, in the same year. Government support in Europe has led to a rise in investments in research and development, accounting for a 20.8% share of global R&D spending in 2017, according to Eurostat R&D magazine. The surge in healthcare expenditure serves as a catalyst for market growth, particularly in the field of genetic testing, which has witnessed significant advancements in recent decades. Numerous companies are actively engaged in developing diagnostic tests for various genetic diseases. Major players like Abbott Laboratories, Bio-Rad Laboratories, Illumina Inc., Myriad Genetics, PerkinElmer Inc., Qiagen N.V., and Quest Diagnostics are contributing to the market by developing diverse tests, kits, assays, and medical devices for genetic testing. In 2017, Bio-Rad, in collaboration with Illumina Inc., introduced the Single Cell Sequencing Solution, a groundbreaking Next Generation Sequencing (NGS) workflow for single-cell analysis. This innovation enables researchers to explore the coordinated contributions of individual cells in tissue function, disease progression, and therapeutic response. Illumina Inc. also launched TruSight Tumor 15 in 2015, a next-generation sequencing (NGS) panel designed to identify sequence variants in 15 genes commonly associated with marketed therapeutics. These technological advancements in products and tests are driving the growth of the genetic testing market, showcasing the industry's commitment to innovation and improved diagnostics.