European IVD Market to Top $9 Billion in 2010

Having been greatly underestimated in the past, in vitro diagnostics (IVDs) are now ready to move from diagnostics toward treatment, raising the demand for testing over the next five years, as their true value becomes apparent. According to the latest analysis from Frost & Sullivan (Palo Alto, CA, USA), an international growth consultancy, revenues in the European IVD market, estimated at U.S.$5.75 billion in 2003, are expected to reach $9.8 billion in 2010.

"Healthcare providers are beginning to recognize that IVD tests play a central role in improving the overall cost efficiency and patient outcomes due to early and more precise diagnosis and continuous patient monitoring,” explained Alex Wong, program manager at Frost & Sullivan.

However, shaking off the misconception that IVD is a cost center and inconsequential to direct treatment is still a challenge. Long-term health-economic studies could help to illustrate that the benefits of IVD testing more than offset any concerns about the cost. Also, suppliers could integrate multiple tests such as immunoassays and clinical chemistry onto a single platform to cut costs and save space in hospital labs. Furthermore, IVD tests could prove cost-effective for patients by allowing them to take a more active role in managing their own health, ensuring appropriate treatment and avoiding unnecessary and expensive medical procedures.

While the IVD market is gaining in popularity, suppliers cannot afford to be complacent. Since December 2003, participants need CE Mark certification from the European Union (EU), a potentially expensive and time-consuming task. Moreover, the addition of 10 new states to the EU requires new multilingual labeling and instruction documents. IVD suppliers can save time and costs by abandoning older-generation devices or products that contribute little to revenue growth.

High R&D and marketing costs are also a challenge. Suppliers need to supplement their R&D efforts by forming strategic partnerships with universities, clinics, and pharmaceutical firms to increase the field of innovative ideas and potential targets for clinical diagnosis. Molecular biology, coagulation, and hematology rank as the most attractive markets where suppliers are likely to benefit from a host of new opportunities.
Improvements in new markers and assay technology are already increasing use of IVDs. Point-of-care (POC) testing is another area of growth for IVDs.

"The healthcare arena is likely to remain cost-conscious and if IVD suppliers want to really succeed in the future, they need to look beyond cost and what they can do to fully understand the market and clinical requirements,” concluded Mr. Wong.


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