COVID-19 Detection Kits Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

COVID-19 Detection Kits Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The COVID-19 Detection Kits Market is expected to register a CAGR of 8% over the forecast period.

The novel coronavirus (COVID-19) was first reported in Wuhan, China, and due to its rapid spread, at the beginning of 2020, WHO declared the COVID-19 outbreak a global pandemic. As the number of COVID-19 infections started to grow outside China, this led to the development and launch of COVID-19 detection kits to curb the spread of the infection. According to the WHO COVID-19 Dashboard, as of January 3rd, 2023, the number of confirmed cases of COVID-19 was approximately 655.7 million, which almost tripled from the beginning of the pandemic. This data shows the high-infectivity rate of the SARS-CoV-2 virus that causes COVID-19 created a demand for COVID-19 detection kits, and it saw a tremendous increase since the pandemic started. Hence, the COVID-19 pandemic had a favorable impact on the market initially; currently, as the pandemic has subsided, the market has lost some traction. However, it is expected to have stable growth during the forecast period of the study.

Factors such as a high incidence of covid-19 and emerging new strains, and increasing product approvals and government initiatives are major contributors to the overall market growth.

According to the Indian Council of Medical Research (ICMR), as of August 29th, 2022, about 885.2 million COVID-19 samples were tested in India. Similarly, as of August 24th, 2022, the total number of COVID-19 tests performed in the United Kingdom stood at about 485.4 million. Hence, the high incidence of COVID-19 is expected to drive the demand for COVID-19 detection kits which is expected to boost market growth over the forecast period of the study.

In addition, the emerging new strains of COVID-19 are expected to play a crucial role in the market growth because these new strains are found to be more infectious and fatal than the earlier ones, for example, the Delta strain which was responsible for the second wave of COVID-19 in many countries. These emerging new strains are expected to propel more investment in developing diagnostics kits and their procurement which is expected to boost the market growth. For instance, according to the April 2022 report of John Hopkins Medicine on the COVID-19 variants, the variants such as alpha, beta, gamma, delta, and omicron are classified as variants of concern, and in November 2021, the omicron variant emerged as one of the most infectious strains. Hence, the emerging COVID-19 strains are expected to drive the demand for COVID-19 detection kits which is expected to fuel market growth over the forecast period.

Moreover, the government initiatives regarding regular testing of COVID-19 and new product approvals are further expected to have a positive impact on the COVID-19 detection kits market. For instance, in July 2021, Abbott launched a COVID-19 home test kit in India called Panbio COVID-19 rapid antigen test for the detection of the SARS-CoV-2 virus in adults and children with or without symptoms for INR 325 for a single test kit pack. Therefore, due to the above-mentioned factors, the COVID-19 detection kits market is expected to grow over the forecast period.

However, the lower accuracy of immunoassay tests is expected to restrain the growth of the COVID-19 detection kits market during the forecast period.

Reverse transcription-polymerase chain reaction (RT-PCR) assay kits are expected to hold a significant share of the studied market. Due to their high sensitivity and specificity and a greater number of product launches, the segment witnessed strong growth, and it is expected to continue its growth trend over the forecast period.

The RT-PCR test is designated as a gold standard for COVID-19 testing by many governments across the world, owing to which the RT-PCR tests are being used widely in the accurate detection of COVID-19 samples. As per a press release by the ECDC in January 2022, the RT-PCR test is the "gold standard" for COVID-19 diagnoses and is the most trustworthy approach for COVID-19 testing, and is not the results are not affected by different variants of COVID-19. Thus, the demand for RT-PCR kits demand is growing and is expected to continue to grow over the forecast period.

The test involves the extraction of viral RNA from the test sample and further synthesis of complementary DNA by amplifying the viral genome using the RT-PCR system. This test is a qualitative detection of nucleic acid from SARS-COV-2 in the upper and lower respiratory specimens, and time took around 24-72 hours from sample collection to generate the results. Thus, most of the global and regional market players introduced new kits for PCR tests back-to-back.

For instance, in January 2021, Neuberg Supratech launched a round-the-clock RT-PCR test counter for flyers at Sardar Vallabhbhai Patel International Airport, Gujarat, India. The test is available for all international arrivals and domestic travelers arriving and departing from the airport. In addition, in May 2022, FDA authorized emergency use for the LabCorp Seasonal Respiratory Virus RT-PCR direct-to-consumer (DTC) Test for use without a prescription by individuals two years of age and older with symptoms of respiratory viral infection consistent with COVID-19. The Labcorp Seasonal Respiratory Virus RT-PCR DTC Test can identify and differentiate multiple respiratory viruses at the same time, detecting influenza A and B, respiratory syncytial virus (RSV), and SARS-CoV-2. Hence, due to the above-mentioned factors, the RT-PCR assay kits segment is expected to hold a significant share of the COVID-19 detection kits market over the forecast period.

North America region is expected to hold a significant market share in COVID-19 detection kits over the forecast period. Due to the high burden of COVID-19 infections in the region, the availability of advanced and authorized rapid tests, and continuous approval for new products in the region, the market is witnessing growth.

The United States is expected to be a major market in the region during the forecast period owing to the high availability of testing kits, new product approvals, and government initiatives regarding vigorous testing for COVID-19. For instance, according to the September 2021 report by FDA, nearly 400 tests and collection kits were authorized by FDA since the start of the COVID-19 pandemic, of which 235 are molecular, 88 are antibody, and 34 are antigen tests.

In addition. The United States is one of the most affected countries in the world by COVID-19, and as per WHO COVID-19 Dashboard, by the end of January 2023, there were about 99.1 million confirmed COVID-19 cases in the country, which is the highest in the world. Further, according to the source mentioned above, by the end of January 2023, about 4.48 million confirmed cases in Canada and approximately 7.2 million confirmed cases were recorded in Mexico. Further, according to the August 2022 update of the Canadian government, the concerned coronavirus variants in Canada were Alpha (B.1.1.7), Beta (B.1.351), Gamma (P.1), Delta (B.1.617.2), and Omicron (B.1.1.529). Hence, the emerging variants of COVID-19 are further expected to drive the demand for COVID-19 detection kits in the region, which is anticipated to have a significant impact on the market. Hence, due to the high burden of COVID-19 across the countries in the region, the market is expected to grow with the rise in demand for COVID-19 detection kits, thereby, driving the market growth.

Further, according to the January 2022 briefing from the White House Official, 1 billion tests were purchased by the Biden administration and given to Americans for free; online ordering for half a billion tests began on January 19, 2022. Hence, initiatives like these are expected to have a significant impact on the market growth in the region. Therefore, North America is expected to occupy a significant share of the COVID-19 detection kits market over the forecast period.

The COVID-19 Detection Kits Market is competitive and consists of several major players. Also, the emergence of new entrants in the market is expected to disrupt the market with their innovative products. Some key players in the COVID-19 detection kits market include Abbott, F. Hoffman-La Roche, Becton, Dickinson, and Company, bioMerieux, and BGI, among many others.

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