South Africa In-Vitro Diagnostics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South Africa In-Vitro Diagnostics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The South Africa In-Vitro Diagnostics (IVD) Market was valued at USD 589 million in 2021 and is expected to reach USD 880.5 million in 2027 with a CAGR of 6.93% during the forecast period, 2022-2027.

The COVID-19 pandemic turned the spotlight on in-vitro diagnostics since there is an increasing demand for IVD kits and reagents for the rapid and accurate diagnosis of SARS-CoV2 virus infection among the global population. The outbreak of COVID-19 is expected to positively impact the market studied, as in-vitro diagnostics involves the testing of various biological samples. This is expected to aid the diagnosis of infectious diseases, such as COVID-19. Testing remains a crucial step in controlling the COVID-19 pandemic. Also, the rapid launch of diagnostic kits for the diagnosis of COVID-19 by key players is driving the studied market during the pandemic. For instance, in December 2020, the South African Medical Research Council (SAMRC), with two other organizations, offered seven awards worth ZAR 18 million to local companies for producing and developing reagents and test kits for COVID-19. In addition, in April 2020, the Minister of Health of South Africa announced that the National Health Laboratory Service (NHLS) has procured 60 mobile sampling and testing units to boost the country’s capacity to test for COVID-19.

The In-vitro Diagnostics market in South Africa is expected to grow at a good rate over the forecast period. This growth is majorly attributed to the rising burden of chronic diseases and infectious diseases in South Africa, increasing the use of point-of-care diagnostics in the country, and technological advancements that are being done in the diagnostics market. According to Joint United Nations Program on HIV/AIDS (UNAIDS) data 2020, around 7.7 million people are living with human immunodeficiency virus (HIV), making it the biggest HIV epidemic country in the world. As HIV affected people are more prone to various chronic and infectious diseases, the demand of in-vitro diagnostics products is expected to be high in the country for the diagnosis and monitoring purpose. In addition, according to the International Diabetes Federation (IDF) 2021 report, the estimated number of South African adults of age 20-79 years with diabetes is expected to increase from 4.2 million in 2021 to 7.5 million by 2045. Therefore, due to the high and increasing burden of diseases, the in-vitro diagnostics market is expected to grow over the forecast period with the increase in demand for the in-vitro tests and diagnostics products in South Africa.

Additionally, the current market is also growing due to the use of advanced technologies in the IVD market. There has been a paradigm shift from traditional diagnostics to a new generation of diagnostics that work at the gene level. This was made possible by the inclusion of advanced technologies, such as genetic testing, molecular diagnostics, polymerase chain reaction (PCR), and next-generation sequencing (NGS) in the IVD platform.

Also, the increasing product launches with advanced features are expected to drive the studied market. In January 2021, local biotech startup BioCODE, headquartered in Cape Town, started developing a cost-effective test to identify early-stage cancer and cardiovascular disease. In addition, the rapid test will determine an individual’s risk for the development of the above-mentioned diseases. This test is expected to be rolled out in the country by the end of 2022. Thus, above mentioned factors are expected to drive the market during study period. However the reimbursement issues and the high cost associated with the advanced IVD devices are are expected to restrain the growth of the in-vitro diagnostics market in South Africa.

Key Market TrendsReagents are Expected to hold Largest Market Share in the Product Segment Over the Forecast Period

Reagents are an integral part of in-vitro diagnostics. They are of a varied range, for different types of disease diagnosis. COVID-19 is expected to significantly aid in the growth of the studied segment, owing to the high requirement of reagents to meet the increasing diagnostics demand globally, for the diagnosis of COVID-19 infection. Few of the Market players are launching reagents for COVID-19 testing. For example, In July 2020 the South African Medical Research Council (SAMRC) and its partners collaborate with local partners from government, academia, and industry to develop local diagnostics and reagents for COVID-19 testing.

The reagent segment of the market studied includes chemical, biological, or immunological components, solutions, or preparations intended by the manufacturer to be used during the in-vitro diagnosis process. Given the high cost of many diagnostic platforms, it is common for manufacturers to lease equipment instead of selling technology outright to end-users. In these arrangements, the lease is tied to contracts to purchase associated reagents or assays for the equipment over the life of the contract. Many diagnostic companies have more than 75% of sales from consumables such as assays and reagents, and such agreements guarantee the generation of cyclic revenues associated with the sale of reagents and other consumables.

South Africa has established local immunoassay reagent programs to manufacture low-cost, high-quality immunoassay reagents. Kits from these projects are now becoming available and are likely to fuel the market. Furthermore, with the rising cancer burden, the demand for in-vitro diagnostics for early diagnosis would rise, which is also expected to propel the segment growth over the forecast period.

Competitive Landscape

The In-vitro Diagnostics market in South Africa is showing intense competition currently. This is majorly due to the rising investment of global companies in South Africa as this country shows several opportunities for growth. With the rising expansion strategies that are being implemented by the companies, it is expected that in the future, several small and mid-sized companies will penetrate the market and hold a substantial share. The major players in the market are Abbott Laboratories, F. Hoffmann-La Roche Ltd., Siemens Healthineers, Thermo Fisher Scientific, and Nihon Kohden Corporation among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.