NEW YORK, July 7, 2016 /PRNewswire/ -- According to a new Kalorama Information report, The United States is the largest healthcare market in the world and also the world's largest in vitro diagnostics (IVD) market at $25.1 billion or 40-45% of the global IVD market. The healthcare market research firm said that projected growth for the U.S. IVD market – 3.2% on average annually through 2020 – does not match the growth of developing and emerging markets abroad in Asia and Latin America, but is projected to outpace other IVD markets in the developed world such as Western Europe and Japan. The finding was made in Kalorama's report United States IVD Market.
"It's not the fastest-growing market, but you might say it is nimble for its size," said Bruce Carlson, Publisher of Kalorama Information. "Growth in core lab test markets (hematology, clinical chemistry, urinalysis, non-infectious immunoassays) was boosted in recent years by increased routine testing."
Kalorama's report said that the Affordable Care Act (ACA) increased the ranks of the U.S. insured population and reduced out-of-pocket (OOP) costs for preventive health services including routine lab testing. Moving forward, the U.S. IVD market can expect moderate growth through the following market factors and trends: continued expansion of the insured population under the ACA and increased healthcare utilization baselines; demographic aging that increases demand for clinical testing paid for through the country's leading vehicle for lab payments (Medicare); relatively optimistic macroeconomic indicators vis-à-vis the domestic outlook five years ago or other developed markets in the world; and continued product innovation and industry responsiveness to clients' needs in the world's largest IVD market.
The report notes that with health insurance enrollment required and enforced under the ACA beginning in 2014, the number of U.S. insured individuals jumped in 2013 and again in 2014 with significant enrollment in individual plans and Medicaid (accompanied by losses in group plan enrollment). Healthcare utilization among U.S. insured jumped in 2014 as measured by average physician encounters per 1,000 persons in NAIC data (Table 1-1). Growth in overall healthcare utilization also jumped in 2014 according to Altarum analysis (from roughly 1.5% in 2013 to over 3% in 2014); preliminary results from the same dataset indicate that healthcare utilization growth rose to roughly 5% in the first three quarters of 2015. The positive effect of coverage expansion on healthcare utilization is expected to subside in 2016 as additional growth of the U.S. insured population will be increasingly marginal.
"Structural growth factors for the IVD market resultant of the ACA have already in part played out through higher reagent demand and labs' anticipatory investment in routine testing capacity," said Kalorama's IVD analyst Emil Salazar, in the most recent report. "Testing volume growth should also trend slightly higher in the coming years with expanded coverage and access to routine care."
Kalorama Information's United States IVD Market contains market estimates and forecasts for 13 segments of in vitro diagnostics, trend tracking and corporate profiles. The report can be found at: http://www.kaloramainformation.com/United-States-Vitro-10133262/.
About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama's website and are also available on www.marketresearch.com and www.profound.com.
We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog at www.kaloramainformation.com.
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SOURCE Kalorama Information