The companion diagnostics (CDx) market is predicted to grow at a CAGR of 11.54%, increasing from US$7.120 billion in 2024 to US$12.293 billion in 2029. The main reason behind this growth is the rising prevalence of cancer and other chronic diseases, leading to an increased adoption of companion diagnostics in the market. Additionally, advancements in cancer treatment therapies and available technology, along with the demand for precision medicine, have created significant opportunities for companion diagnostic devices.
Geographically, the companion diagnostics market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The Asia Pacific region is expected to hold a substantial market share due to the rise in medical tourism and advancements in the medical sector. The North American and European regions are also projected to have the largest market share, fueled by increased healthcare spending.
One of the key drivers of the companion diagnostics market is the increasing prevalence of cancer. Companion diagnostics play a crucial role in cancer diagnosis and treatment by helping identify specific therapeutic solutions based on an individual’s cancer profile. With nearly 20 million new cancer cases reported globally in 2022, and an estimated 35 million new cases expected by 2050, the demand for diagnosis and treatment is set to increase, supporting the companion diagnostics market.
Ongoing innovations in companion diagnostics are also contributing to market growth. Companies are investing in new technologies, strategic collaborations, and product launches to improve cancer treatment efficacy. For example, Foundation Medicine Inc. received FDA approval for its “FoundationOneLiquid CDx” in July 2024, while Bayer AG and Thermo Fisher Scientific collaborated on next-generation sequencing-based CDx assays in March 2024.
In terms of market segment analysis, next-generation sequencing companion diagnostics are expected to hold a significant market share due to their technological effectiveness. Additionally, lung cancer indication is projected to dominate the companion diagnostics market, followed by breast and colorectal cancer indications. North America is anticipated to account for a considerable market share, driven by the growing prevalence of cancer and the presence of key market players like Abbott, Illumina Inc., and Thermo Fisher Scientific.
The European and Asia Pacific regions are also expected to experience steady growth, thanks to ongoing investments in cancer detection and treatment. Collaborations between governing authorities and cancer research institutes are providing new growth opportunities for these regional markets.
Overall, the companion diagnostics market is on track to expand significantly over the forecast period, with key players such as Abbott, F. Hoffmann-La Roche Ltd, Illumina, Inc., and Thermo Fisher Scientific Inc. leading the way in technological advancements and market development.