Personalized Medicine Market Size, Share & Trends Analysis Report By Product (Personalized Nutrition & Wellness, Personalized Medical Care, Personalized Diagnostic, Personalized Therapeutic), By Application (Disease Treatment, Biomarker Identification, Clinical Research, Others), By End Use (Hospitals & clinics, Diagnostic laboratories and testing facilities, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

the global personalized medicine market size was valued at USD 64.15 billion in 2022 and is projected to reach USD 166.78 billion by 2031, with a CAGR of 11.2 % during the forecast period 2023–2031.

Personalized medicine tailors specific treatment according to the individual's genetic makeup, disease condition, diagnosis, body physics, patient history, and other relevant factors. It is also known as precision medicine, P4 medicine, or stratified medicine. The diagnostic analysis is often done in personalized medicine to determine optimal and appropriate therapies based on the patient's genetic content or other molecular or cellular research. In personalized medicine, diagnostic analysis is frequently used to identify the best treatment for patients based on their individualized genetic content or cellular analysis. With the necessary risk assessments, personalized medicine has the highest safety margin, widespread acceptance, and the optimal response for treating chronic diseases. It enhances health care by reducing overall treatment costs and potential side effects compared to conventional treatments.

Market Dynamics

Global personalized medicine market drivers

Cancer is caused by the transformation of normal cells into tumor cells during a multistage process that typically begins with a precancerous lesion and advances to a malignant tumor. These alterations result from the interaction of a person's genetic factors. By the year 2025, cancer will account for approximately 15 million deaths worldwide. Due to the fact that each type of cancer requires a unique treatment strategy, an accurate cancer diagnosis is essential for effective and appropriate treatment. On a large scale, personalized medicines benefit cancer patients. Consequently, the rising incidence of cancer is driving the growth of the market for personalized medicine over the forecast period.

In addition, the Widespread availability of sequencing techniques, especially Next Generation Sequencing (NGS), is expected to drive the market due to rising sequencing costs and the growth of the Human Genome Project in the field of genomics. The widespread availability of sequencing techniques, especially Next Generation Sequencing (NGS), is expected to drive the market due to rising sequencing costs and the growth of the Human Genome Project in the field of genomics.

NGS technology provides data relating to the patient's genetic profile and the response of drugs to patients, thereby facilitating the production of precision medicine for disease management. Also, a rising number of academic medical centers and healthcare organizations are opting to internalize their NGS testing program as it gives them better control over tissue and turnaround time and offers more opportunity for interaction between physicians and those running the tests. In addition, NGS, in conjunction with Companion Diagnostics (CDx), is projected to play a vital role in advancing customized diagnostics and therapy in the years ahead. The advent of novel CDx and biomarkers for non-oncological clinical uses compelled firms to boost their accuracy. Market players are also patenting a molecule along with its CDx to achieve a competitive edge, more usage, and gain profit margin.

Global personalized medicine market restraints

Government authorities ascribe the rules and laws for the packaging and labeling of personalized medicine. Such a government agency is the Food and Drug Administration (FDA). The market participants must adhere to these guidelines when manufacturing personalized medicines. Government agencies are authorized to pursue legal action if these guidelines are not adhered to. Consequently, stringent government regulations restrain the market's personalized medicine growth over the forecast period.

Global personalized medicine market opportunities

Artificial intelligence, machine learning, digital biomedical biomarkers, and computational biology are predicted to offer the lucrative opportunity to enable precise diagnosis and treatment. The development of bioinformatics solutions and software in the healthcare IT domain will support market growth. Moreover, increasing R&D for determining the most effective treatment based on preclinical studies and tumor molecular analysis will raise the acceptance of gene therapy that will positively influence the growth of the precision medicine industry. Advances in pharmacogenomics are paving the way for drug development in precision medicine. Pharmacogenomics assists in predicting a drug's effectiveness and helps to understand the variations in pharmacodynamics and pharmacokinetics with the help of the genetic data of individuals. Furthermore, biopharmaceutical companies are focusing more on developing specific medicine to cure diseases like cancer would further drive business development.

Regional Analysis

The global market for Personalized Medicine has been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.

North America was the largest contributor to revenue in 2021. Increases in healthcare infrastructure expenditures and funding for research and development (R&D) are anticipated to fuel the growth of the precision medicine industry in the United States. In addition, advances in precision medicine have resulted in significant successes in treating cancers such as colorectal and breast cancer. After heart disease, cancer remains the second leading cause of death in the United States. It is anticipated that there will be 1,9 million new cancer cases and 609,360 cancer-related deaths in the United States in 2022, or roughly 1,670 deaths per day. Precision medicine is anticipated to advance the development of targeted therapies in oncology and the treatment of specific cancer types, such as colon and breast cancer. In addition, the significant efforts of market participants are anticipated to contribute to market expansion. For example, in June 2021, Phigenix, Inc. received a U.S. patent for a novel diagnostic and therapeutic approach for treating breast cancer resistant to existing drugs. These developments range from cancer diagnostics for precision medicine to novel inhibitors of the PAX2 oncogene and PAX2-mediated cancer cell survival and drug resistance. On April 29, 2021, for instance, MCI Onehealth Technologies Inc., a clinician-led healthcare technology company focused on expanding patient access to and improving the quality of healthcare, announced an initial investment in Ariel Precision Medicine, Inc. ('Ariel') in exchange for a convertible promissory note that is convertible into equity securities in Ariel upon the occurrence of certain events. This funding enables Ariel to expand while laying the groundwork for future business partnerships and MCI's entry into the U.S. market.

In 2021, the Asia-Pacific market had the second-largest revenue share. This results from the accessibility of low-cost clinical trials of innovative diagnostic products and precision medicine. In addition, increased disposable income and economic growth in developing nations such as India are anticipated to increase the demand for precision pharmaceuticals in Asia. Due to ongoing research and significant investments in healthcare facilities and technology, this region offers numerous opportunities for expansion in the medical sector.

In 2021, the Europe market represented the third-largest revenue share. As a result of developments in fields such as genome sequencing, diagnostic testing, and others, personalized medicine has progressed over the past decade. The personalized, individualized approach necessitates enhanced technologies and procedures to collect, store, and analyze data and, more importantly, contextualize, integrate, interpret, and provide rapid and accurate decision support in clinical and public health settings.

Segmental Analysis

The global personalized medicine market is segmented into Technology, Application, and End-use.

The global market is segmented on technology into big data analytics, bioinformatics, gene sequencing, drug discovery, and companion diagnostics. In 2021, the BDA segment accounted for the majority of revenue. Big Data Analytics (BDA) implementation in precision medicine will permit the use of new technologies for patient care and health administration. It is anticipated that big data for health will substantially impact precision medicine and stratified healthcare. Moreover, patients with a similar subtype of cancer frequently respond differently to identical chemotherapeutics. In addition, the widespread adoption of sensing technologies is an additional factor driving market expansion. In addition, there is a trend toward implanted and wearable sensing due to technological advancements such as sensors with improved wireless communications, expanded bandwidth, and improved microelectronics. These developments have made possible continuous, multidimensional, context-aware sensing.

The global market is segmented by application into oncology, immunology, central nervous system, respiratory, and others. In 2021, the oncology segment had the largest revenue share. Precision oncology is a rapidly expanding and promising research field that enables individualized treatment based on the molecular and genetic characteristics of the patient. In addition, the ultimate goal of precision oncology is to improve patient outcomes. Traditional cancer treatments, such as chemotherapy, are cytotoxic to most cells and can therefore harm healthy cells while killing cancer cells. In the era of precision oncology, targeted drugs are widely regarded as the foundation for future treatment paradigms. In addition, precision oncology has a bright future due to advances in our understanding of the molecular mechanisms underlying tumor growth and the increasing availability of time- and cost-efficient NGS technology.

In 2021, the Central Nervous System (CNS) segment contributed a moderate proportion of total revenue. In recent years, the number of accessible, targeted medications has increased dramatically, but only a subset of these drugs achieves adequate central nervous system penetration. The Central nervous system Targeted Agent Prediction (CNS TAP) System was designed to facilitate the selection of personalized medicine therapeutics based on genomic data specific to the patient, preclinical data, clinical data, and optimal blood-brain barrier penetration.

The global market is segmented on end-use into pharmaceutical, diagnostic, and healthcare IT companies, among others. In 2021, the pharmaceutical companies segment contributed a notably substantial proportion of total revenue. Precision medicine transforms the entire pharmaceutical value chain, from early development to market entry strategies. In response to the need of government agencies, regulators, and payers for real-world evidence of a drug's efficacy and value, pharmaceutical companies have adopted personalized medicine as a new method for creating and developing pharmaceuticals. Personalized medicine is highly individualized. In addition, as a result of the aging population in many markets, the prevalence of chronic diseases, and the rise in patient expectations, governments and payers are requesting more evidence of value and positive patient outcomes.

Recent Developments

• On 30 June 2022, The Ohio State University (OSU) Wexner Medical Center and Siemens Healthineers formed a partnership to advance personalized medicine and improve access to high-quality, cost-effective healthcare through the use of cutting-edge imaging and treatment technologies at OSU patient care and research centers.
• On 10 March 2021, Syapse, a leading provider of real-world evidence that accelerates the delivery of precision medicine through the Syapse Learning Health Network, announced the renewal of its strategic partnership with Pfizer.
• In March 2020, sports nutrition firm Science in Sport launched a service aimed at providing customized solutions for athletes to enhance sporting performance.
• In October 2018, Qiagen declared the introduction of new RNA-seq library preparation tools for next-generation sequencing, thereby substantially increasing its range and user base.
• In May 2018, Foundation Medicine announced the approval of Foundation OneCDx for the Advanced Diagnostic Laboratory Test (ADLT) used for solid tumors that incorporate multiple companion diagnoses. The new product clearance may help to broaden the current portfolio of products.