Companion Diagnostics Market Size, Share, Growth, and Industry Analysis, By Types (Polymerase Chain Reaction Test ( PCR), Immunohistochemistry Test (IHC), In Situ Hybridization Test (ISH), Others), By Applications Covered (Lung Cancer, Breast Cancer, Colorectal Cancer, Leukemia, Melanoma, Others), Regional Insights and Forecast to 2033

Companion Diagnostics Market Size

The Companion Diagnostics Market was valued at USD 7.84 billion in 2024 and is expected to reach USD 8.71 billion in 2025, with further growth projected to reach USD 20.32 billion by 2033. This represents a growth rate of 11.17% during the forecast period from 2025 to 2033.

The U.S. Companion Diagnostics Market holds a dominant share, accounting for approximately 40% of the global market. This growth is driven by advancements in personalized medicine, high healthcare expenditure, and regulatory support.

The companion diagnostics market is experiencing rapid growth, driven by advancements in genomic technologies and an increasing focus on personalized medicine. Companion diagnostics are crucial for tailoring treatments based on individual genetic profiles, particularly in oncology, where targeted therapies are widely used. In 2023, the market was valued at approximately 6.34 billion USD and is expected to reach 11.97 billion USD by 2028, showing a growth rate of around 11.17%. These diagnostics play a key role in enhancing treatment efficacy and minimizing side effects, thus contributing to the increasing adoption of precision medicine across various therapeutic areas.

Companion Diagnostics Market Trends

The companion diagnostics market is evolving with several emerging trends. First, the continuous advancements in genomic sequencing and molecular biology are revolutionizing diagnostic accuracy, allowing for more precise and personalized treatments. In 2023, 45% of companion diagnostics were linked to oncology treatments, with this percentage expected to rise as precision medicine becomes more widespread. Regulatory bodies are increasingly approving companion diagnostics alongside therapeutic drugs, which streamlines the approval process. This is evident as 35% of newly approved drugs now come with an accompanying diagnostic test. Geographically, North America remains the dominant region, accounting for 40% of the global market share, while the Asia-Pacific region is expected to grow the fastest, with a projected annual increase of 14%.

Companion Diagnostics Market Dynamics

Several key dynamics are influencing the companion diagnostics market. The rise of personalized medicine is one of the main drivers, as approximately 60% of healthcare providers now use these diagnostics to tailor treatments for individual patients, especially in oncology. Moreover, the increasing prevalence of cancer has pushed demand, with the number of patients benefiting from companion diagnostics expected to rise by 20% annually. However, the market faces challenges such as high development costs, with 25% of total market investments directed towards regulatory approvals and testing. On the opportunities front, the market sees significant potential for expansion into cardiovascular and neurological diseases, where the demand for personalized treatment solutions is increasing by approximately 12% each year.

Drivers of Market Growth

"Rising Demand for Personalized Medicine"

The increasing demand for personalized medicine is a significant driver of growth in the companion diagnostics market. As of 2023, over 60% of new drug approvals are now accompanied by a diagnostic test to match treatments with patient profiles. The use of companion diagnostics in oncology is particularly prominent, with 50% of cancer patients now receiving treatment that is tailored based on genetic testing. This trend is not limited to cancer; it is expanding into cardiovascular and neurological diseases, as more healthcare providers adopt genetic testing to enhance treatment efficacy. The shift toward more precise therapies continues to drive demand for companion diagnostics.

Market Restraints

" High Development and Regulatory Costs"

One of the key restraints in the companion diagnostics market is the high cost of development and regulatory approval. Regulatory bodies such as the FDA and EMA require extensive clinical trials for companion diagnostics to ensure accuracy and reliability, which can take several years and involve millions of dollars in investment. As of 2023, around 30% of pharmaceutical companies' budgets for new product development are allocated to these regulatory processes. This cost burden often limits market entry for smaller companies and slows down the introduction of innovative diagnostic solutions. Additionally, the high cost of these diagnostics may deter widespread adoption in regions with lower healthcare budgets.

Market Opportunities

" Expansion into Non-Oncology Therapeutic Areas"

While oncology remains the dominant area for companion diagnostics, there is a significant opportunity for growth in other therapeutic areas, such as cardiovascular diseases, neurological disorders, and infectious diseases. Personalized treatments in these fields are gaining traction, with an increasing number of healthcare providers adopting genetic tests to tailor therapies. Currently, only 15% of companion diagnostics are used in areas outside oncology, but this figure is expected to rise as advancements in genomics and personalized medicine continue. With a growing number of diseases being linked to genetic markers, the market potential for companion diagnostics in non-oncology areas is substantial.

Market Challenges

"Complex Regulatory Environment"

A major challenge for the companion diagnostics market is the complex and varied regulatory landscape. Each country or region has its own set of requirements for approving companion diagnostics, making it difficult for companies to navigate. In the U.S. alone, the FDA's approval process for companion diagnostics can take years, often involving multiple stages of clinical trials. Regulatory delays are a common issue, and the high cost of compliance can discourage companies from entering the market. These hurdles also contribute to the overall slow pace of innovation in the sector. In addition, as the demand for companion diagnostics grows, regulatory bodies will face increasing pressure to streamline approval processes while maintaining safety standards.

Segmentation Analysis

The companion diagnostics market can be segmented based on type and application, with each segment offering unique insights into market growth and demand. The primary types of companion diagnostics include tests like Polymerase Chain Reaction (PCR), Immunohistochemistry (IHC), and In Situ Hybridization (ISH), each catering to different diagnostic needs. On the application front, companion diagnostics are primarily used in oncology, particularly for lung cancer, breast cancer, and colorectal cancer, among others. These segments are evolving as medical technologies advance, offering precision and personalized treatment options that are transforming the landscape of healthcare diagnostics.

By Type:

• Polymerase Chain Reaction Test (PCR): PCR-based tests are among the most widely used companion diagnostics, particularly for detecting genetic mutations in cancer patients. PCR tests are known for their high sensitivity and ability to amplify small DNA segments, making them ideal for identifying genetic markers in oncology. In 2023, PCR tests accounted for nearly 30% of the companion diagnostics market, especially in detecting mutations like EGFR in lung cancer. This method plays a critical role in helping physicians determine the best course of action for treatment, especially with the growing demand for targeted therapies.

• Immunohistochemistry Test (IHC): Immunohistochemistry (IHC) tests involve the use of antibodies to detect specific antigens in tissue samples, making them essential for diagnosing cancers like breast cancer, melanoma, and lymphoma. IHC tests are often used to evaluate the expression of specific proteins that guide treatment decisions, particularly in targeted therapies. In 2023, IHC tests represented 25% of the companion diagnostics market. The method's ability to provide visual evidence of molecular markers in tumor tissues helps clinicians match patients to the appropriate therapies, making it a key tool in personalized medicine.

• In Situ Hybridization Test (ISH): In Situ Hybridization (ISH) tests are used to detect specific nucleic acid sequences within cells and tissues, offering precision in diagnosing genetic alterations and guiding treatment strategies. ISH tests are particularly important in identifying chromosomal abnormalities and gene amplifications in cancers such as breast cancer and lymphoma. As of 2023, ISH tests accounted for approximately 15% of the companion diagnostics market. This method's role in providing a visual map of genetic alterations aids in determining the best-targeted therapies, especially in complex cancers where precision is crucial for treatment success.

• Others: Other types of companion diagnostic tests include next-generation sequencing (NGS) and liquid biopsy, both of which have gained popularity for their non-invasive and high-throughput capabilities. NGS, for instance, allows for the detection of multiple genetic mutations simultaneously, making it invaluable in cancer treatment. In 2023, tests categorized as "Others" made up about 30% of the companion diagnostics market, with NGS being a significant contributor. These technologies are driving innovation in personalized medicine and are expected to further expand the market share in the coming years.

By Application:

• Lung Cancer: Lung cancer remains one of the most significant applications for companion diagnostics. The market for lung cancer diagnostics is primarily driven by the increasing prevalence of non-small cell lung cancer (NSCLC) and the demand for targeted therapies. In 2023, companion diagnostics used in lung cancer accounted for approximately 40% of the market share. PCR tests are widely used to identify mutations like EGFR, while IHC tests help determine PD-L1 expression to guide immunotherapy treatment options. The rising demand for precision treatments is expected to further enhance the role of companion diagnostics in this application.

• Breast Cancer: Breast cancer is another major application area for companion diagnostics, with a substantial focus on identifying HER2 expression and estrogen receptor (ER) status. Companion diagnostics play a pivotal role in determining the suitability of targeted therapies, particularly trastuzumab for HER2-positive breast cancer. In 2023, breast cancer-related companion diagnostics accounted for 25% of the market share. IHC tests are commonly used to assess HER2 expression, while PCR tests help identify specific genetic mutations. The growing adoption of personalized treatments in breast cancer is driving the demand for companion diagnostics in this sector.

• Colorectal Cancer: Colorectal cancer is increasingly becoming a focus for companion diagnostics, especially in identifying mutations in the KRAS gene that guide treatment decisions. In 2023, colorectal cancer companion diagnostics made up around 15% of the market. IHC and PCR-based tests are crucial for detecting these mutations, allowing clinicians to select the most effective targeted therapies. The rising incidence of colorectal cancer globally is expected to contribute to the continued growth of companion diagnostics in this application.

• Leukemia: Leukemia, particularly chronic myelogenous leukemia (CML), is another key area where companion diagnostics are critical. PCR tests are often used to detect the BCR-ABL fusion gene, which is essential in determining the course of treatment with targeted therapies like imatinib. Leukemia diagnostics accounted for approximately 10% of the companion diagnostics market in 2023. As targeted therapies continue to evolve, companion diagnostics will play an increasingly vital role in the treatment of leukemia.

• Melanoma: Melanoma, a form of skin cancer, has seen growing use of companion diagnostics to identify mutations in the BRAF gene, which plays a key role in determining the effectiveness of targeted therapies like BRAF inhibitors. In 2023, melanoma-related companion diagnostics accounted for about 8% of the market. As the prevalence of melanoma increases, particularly in regions with high sun exposure, the role of companion diagnostics in melanoma treatment is expected to continue expanding.

Companion Diagnostics Regional Outlook

The companion diagnostics market shows significant variation across regions due to differences in healthcare infrastructure, regulatory landscapes, and disease prevalence. North America currently holds the largest market share, driven by high healthcare spending and advanced technologies. Europe follows closely, with a growing focus on personalized medicine and robust regulatory approval processes. The Asia-Pacific region is witnessing rapid growth due to increased healthcare investments and a rising patient population. Meanwhile, the Middle East and Africa are also emerging markets, with increasing healthcare access and investment in diagnostic technologies, though at a slower pace than other regions.

North America

North America leads the global companion diagnostics market, accounting for approximately 40% of the market share in 2023. The United States dominates the region, owing to its advanced healthcare infrastructure, high levels of healthcare expenditure, and a well-established regulatory framework. In addition, the increasing prevalence of cancer, particularly lung and breast cancer, drives the demand for companion diagnostics. Moreover, the approval of new companion diagnostics by the FDA has further fueled market growth. The region's adoption of personalized medicine and genomic technologies continues to create significant opportunities for the expansion of companion diagnostics in both clinical and research settings.

Europe

Europe is the second-largest market for companion diagnostics, contributing around 25% to the global market in 2023. The region benefits from strong regulatory support, with agencies like the European Medicines Agency (EMA) providing streamlined pathways for the approval of companion diagnostics. Germany, the UK, and France are the primary markets within Europe, where there is a rising demand for personalized medicine, particularly in oncology. Europe’s healthcare systems are increasingly focused on precision medicine, and the prevalence of cancer in the region is a major driver for companion diagnostics adoption. The European market is expected to continue growing as more diagnostic tests are integrated into clinical practices.

Asia-Pacific

The Asia-Pacific region is experiencing the fastest growth in the companion diagnostics market, driven by an expanding patient population, increasing healthcare investments, and greater access to advanced diagnostic technologies. As of 2023, the region accounted for approximately 18% of the global market share. Countries like China, India, and Japan are at the forefront of this growth, with rising cancer rates and a focus on improving healthcare access. The growing interest in personalized medicine, particularly in oncology, is expected to continue driving the demand for companion diagnostics in this region. Increasing government and private investments in healthcare infrastructure further support this trend.

Middle East & Africa

The Middle East and Africa (MEA) region represents a smaller segment of the companion diagnostics market, contributing around 7% of the global market share in 2023. However, the region is showing promising growth, particularly in countries like Saudi Arabia, the UAE, and South Africa. The increasing prevalence of chronic diseases, including cancer, and improvements in healthcare infrastructure are driving the demand for companion diagnostics. While market penetration remains lower compared to other regions, ongoing healthcare investments, along with a growing focus on personalized medicine, are expected to accelerate the adoption of companion diagnostics in the MEA region.

List of Key Companion Diagnostics Market Companies Profiled

• Agilent Technologies
• Covance
• Tocagen
• Roche Diagnostics
• Abbott Laboratories
• Myriad Genetics Inc.
• Thermo Fisher Scientific Inc.
• Illumina
• Takeda
• QIAGEN N.V.
• Siemens Healthineers

Top Two Companies with Highest Market Share

1. Roche Diagnostics – Roche Diagnostics is a leading player in the companion diagnostics market, holding the largest share at approximately 30%. The company’s strong portfolio in oncology diagnostics and its strategic partnerships with pharmaceutical companies have solidified its market position.
2. Thermo Fisher Scientific Inc. – Thermo Fisher is another top company, capturing around 25% of the market share. Its innovations in genomic technologies, particularly in next-generation sequencing and PCR tests, have propelled its leadership in the field of companion diagnostics.

Investment Analysis and Opportunities

Investment in the companion diagnostics market is experiencing robust growth, driven by the increasing demand for personalized medicine and advancements in genomics. In 2023, over 40% of the global pharmaceutical R&D investments were directed towards precision medicine, where companion diagnostics play a critical role. Companies are increasingly recognizing the potential of companion diagnostics to improve treatment outcomes, especially in oncology, where the majority of the investments are concentrated. Venture capital funding for companies specializing in genomic testing, biomarkers, and companion diagnostics has been on the rise. For example, in 2024, Myriad Genetics raised over 200 million USD to expand its diagnostic offerings, while Illumina's investments in NGS technologies continue to strengthen its market position. Furthermore, strategic collaborations between diagnostic firms and pharmaceutical companies are fostering innovation and accelerating the development of novel diagnostic tests. With the growing focus on personalized healthcare, the companion diagnostics market is poised for substantial growth, offering investors opportunities to tap into this emerging sector. Additionally, emerging markets in Asia-Pacific and Latin America present untapped growth potential, where governments are investing heavily in healthcare infrastructure and personalized medicine, further driving demand for companion diagnostics.

New Products Development

In recent years, there has been a significant push toward developing new companion diagnostics to meet the growing need for precision medicine. In 2024, Thermo Fisher Scientific launched a next-generation sequencing (NGS) platform designed specifically for oncology, providing comprehensive genetic profiling to guide cancer treatment decisions. The platform has been integrated with a companion diagnostic test to detect specific mutations, allowing for personalized treatment. Similarly, Roche Diagnostics introduced an innovative PCR-based diagnostic tool for detecting gene mutations in patients with lung cancer, offering a faster and more accurate method to match patients with appropriate therapies. In addition to oncology, new product developments are extending into cardiovascular and neurological diseases. In 2025, QIAGEN N.V. is set to release a new liquid biopsy test for detecting early-stage colorectal cancer, expanding its portfolio in non-invasive diagnostic solutions. The continued evolution of companion diagnostics is primarily focused on improving accuracy, minimizing patient discomfort, and enhancing the speed of test results, all of which are key drivers of product development in this sector. As more therapeutic areas adopt personalized medicine, the companion diagnostics market will see a continuous stream of new product introductions aimed at meeting the diverse needs of patients and clinicians.

Recent Developments by Manufacturers in Companion Diagnostics Market 

• Thermo Fisher Scientific Inc. (2024) – In April 2024, Thermo Fisher launched an integrated companion diagnostic test for precision oncology treatments, offering advanced testing for genetic mutations in solid tumors.

• Roche Diagnostics (2024) – In June 2024, Roche received FDA approval for a new IHC-based companion diagnostic test to guide targeted therapies for HER2-positive breast cancer patients.

• Myriad Genetics Inc. (2025) – In January 2025, Myriad Genetics introduced a next-gen NGS platform designed to detect rare genetic mutations associated with melanoma, improving early detection and treatment.

• QIAGEN N.V. (2025) – In February 2025, QIAGEN expanded its product line by launching a PCR-based companion diagnostic for colorectal cancer, offering enhanced detection of KRAS mutations.

• Siemens Healthineers (2024) – In September 2024, Siemens Healthineers launched a new molecular diagnostic tool for detecting genetic biomarkers in lung cancer, significantly improving the accuracy of targeted therapy selection.

Report Coverage of Companion Diagnostics Market

The report on the companion diagnostics market provides a comprehensive analysis of the industry, covering key factors driving growth, market trends, competitive dynamics, and future opportunities. It includes segmentation analysis by type, application, and geography, offering insights into the market's structure and performance in key regions such as North America, Europe, Asia-Pacific, and the Middle East & Africa. The report further delves into market dynamics, highlighting the key drivers, restraints, opportunities, and challenges shaping the market's trajectory. Additionally, it offers a detailed overview of the competitive landscape, profiling the top market players, their product offerings, and recent strategic initiatives. With a focus on technological advancements, regulatory developments, and emerging market trends, the report serves as an essential resource for stakeholders looking to understand the evolving companion diagnostics market. The insights provided in the report enable companies to make informed decisions regarding investments, partnerships, and strategic initiatives, positioning themselves for success in the rapidly expanding personalized medicine sector.