Pharmacogenomics Market Size

Pharmacogenomics Market Analysis

The Pharmacogenomics Market size is estimated at USD 8.67 billion in 2024, and is expected to reach USD 11.67 billion by 2029, growing at a CAGR of 6.12% during the forecast period (2024-2029).

The COVID-19 pandemic severely impacted the pharmacogenomics market as clinical trials, drug development, and diagnostic procedures for diseases other than COVID-19 were stopped. According to the research study published by PubMed in December 2021, there was a substantial reduction in procedures used to diagnose cancer and subsequent reductions in new diagnoses across the United States because of the COVID-19 pandemic. New cancer diagnoses decreased by 13% to 23%, which showed a negative impact of COVID-19 on the diagnosis of new cancers. As the pandemic progressed, COVID-19 had a minor positive impact on the market growth, as there was an increasing demand for genomics technology in developing therapeutics and diagnostics against COVID-19. Currently, as the number of COVID-19 cases has declined significantly and the pandemic has subsided around the world, the pharmacogenomics market is expected to regain its full potential over the forecast period of the study.

The pharmacogenomics market is driven by the rising popularity of precision medicine coupled with growing research and development expenditure on pharmacogenomics technologies, which is giving rise to the fast development of novel products. The high incidence rate of adverse drug reactions is also leading to the higher adoption of pharmacogenomics in the global market.

The increasing focus on precision medicine is expected to augment the pharmacogenomics market, as the goal of the precision medicine approach is to integrate genetic and environmental information about diseases and/or their responses to treatments. With the rapid growth in digital technologies and advances in biology, the pharmacogenomics market is projected to grow significantly. The digital technologies can help pharma companies accelerate their time to market and provide better patient experiences, thus leading to the lucrative growth of the market.

Additionally, increasing research and development spending is also contributing to the adoption of pharmacogenomics and drives the growth of the market. For instance, in October 2021, the Israel Precision Medicine Partnership (IPMP) awarded funding of about USD 9.9 million to 11 projects in Israel for the research of personalized medicine that includes cancers, Crohn's disease, and rare diseases. This increase of R&D spending will boost the market growth during the forecast period of the study.

Moreover, there is increasing adoption of Sanger technology and next-generation sequencing in academic and institutional research projects. Adding to that, a rise in funding and investment programs augment the demand for DNA sequencing products in these entities. For instance, according to the May 2022 report of the NIH of the United States, the spending on research in cancer genomics has increased significantly over the years from USD 1,160 million in 2021 to USD 1,220 million in 2022,. This data shows significant investment in the genomics and personalized medicine which is expected to have a positive impact on the growth of the pharmacogenomics market. Pharmacogenomics is also helpful in cancer treatment and has proved to improve the survival of patients. At the same time, it has also been found to reduce the unnecessary cost of unresponsive treatment by patients.

Factors such as increasing focus on precision medicine and growing research and development spending are expected to enhance the growth of pharmacogenomics market over the forecast period. However, issues related to reimbursement and problem associated with the detection of gene variation that affects drug response may restrain the growth of the pharmacogenomics market during the forecast period of the study.