Precision Medicine Software Market

Global Precision Medicine Software Market Size (2023 to 2028)

The global precision medicine software market size is forecasted to grow to USD 4.49 billion in 2028 from USD 2.50 billion in 2023, growing at a CAGR of 12.40% during the forecast period.

MARKET DRIVERS:

The growth of the precision medicine software market is majorly driven by the rising adoption of technological advancements.

The precision medicine software market has experienced several technological developments in the recent past in the form of big data analytics, artificial intelligence, machine learning, and genomics. Owing to the increasing number of advancements in DNA sequencing technologies, the genomic database has grown significantly and resulted in the increasing usage of precision medicine software to analyze this data and develop personalized treatment plans for people in need.

The growing adoption of telemedicine, wearable medical devices and healthcare cloud computing have boosted the adoption of precision medicine software. The growing awareness among the people regarding the benefits of personalized medicine is further accelerating the adoption of precision medicine software and driving market growth. In recent years, the understanding of patients towards personalized medicine has grown considerably. Healthcare providers and patients have been showing an increased willingness to adopt the precision medicine approach. The treatments with this approach have improved healthcare outcomes at a reduced cost and treatment plans are being developed based on unique genetic, environmental, and lifestyle factors. This trend is likely to accelerate in the coming years and contribute significantly to the growth rate of the market.

The growing patient population suffering from chronic diseases is another notable factor fuelling the growth rate of the precision medicine software market.

The prevalence of chronic diseases has been growing rapidly over the last couple of decades. Patients suffering from chronic diseases require ongoing treatment and disease management, which is complicated and costly. At the same time, healthcare providers are on a continuous hunt to find ways that can provide an improved healthcare outcome to patients at a reduced cost. Precision medicine software can help healthcare providers in the development of personalized treatment plans for patients with chronic diseases by identifying genetic mutations and other biomarkers and such personalized treatments offer improved healthcare outcomes and reduce the risk of complications. Precision medicine software further helps healthcare providers and chronic disease patients in saving healthcare costs by optimizing treatment plans and eliminating the need for unnecessary treatment. Considering these factors, healthcare providers have been increasingly adopting precision medicine software to manage chronic diseases effectively and this trend is likely to continue in the coming years and boost the growth rate of the market.

The growing number of initiatives by the governments and increasing investments by market participants in favor of precision medicine boosts the market's growth rate. Owing to the growing patient population of chronic diseases and increasing healthcare costs, the support and investments for precision medicine have grown rapidly. The governments of several countries have been supporting the precision medicine market by funding R&D activities and providing a favorable regulatory environment, which are favouring the precision medicine software market growth. The Precision Medicine Initiative by the U.S. in 2015 has boosted the developmental activities of personalized therapies in the United States. On the other hand, the market participants such as pharmaceutical companies, biotech firms, and diagnostic laboratories have been investing significant amounts in the R&D of precision medicine and the development of innovative technologies such as NGS, biomarker-based tests, and targeted therapies, which can facilitate the delivery of precision medicine and this trend is likely to continue during the forecast period and contribute to the market growth.

In addition, the rising adoption of electronic health records (EHR), increasing demand for cost-effective healthcare solutions, rising adoption of healthcare IT solutions, and growing awareness among the people and healthcare providers regarding the benefits of precision medicine favor the market’s growth rate. Furthermore, the growing use of telemedicine, rising emphasis on preventive medicine and increasing adoption of pharmacogenomics fuels the growth rate of the precision medicine software market.

MARKET RESTRAINTS:

Concerns associated with the privacy, data security, and interoperability of precision medicine software are one of the key factors hampering the market growth. High costs associated with the development and implementation of precision medicine software are another notable attribute inhibiting market growth. In addition, the stringent regulatory environment for precision medicine software, lack of standardization and data quality issues further hinder the market growth. Furthermore, limited access to genetic testing in some countries and poor awareness among patients and healthcare providers regarding the potential benefits of precision medicine software impede market growth.

Impact of COVID-19 on the global precision medicine software market:

The COVID-19 pandemic has had a favorable impact on the precision medicine software market. The demand for personalized treatment plans has increased during the COVID-19 pandemic and contributed to the growth of the precision medicine software market. In addition, the COVID-19 pandemic has resulted in the increased acceleration of the digital transformation in the healthcare industry and the adoption of remote patient monitoring and telemedicine has increased significantly. Due to this, healthcare providers have adopted precision medicine solutions to provide virtual consultations and remote monitoring of patients. During the COVID-19 pandemic, several healthcare providers and precision medicine software companies partnered and collaborated for the development of new-age solutions to address the challenges posed by the COVID-19 pandemic such as developing predictive models for COVID-19 outcomes. Likewise, the COVID-19 pandemic has shared a favorable impact on the growth of the precision medicine software market and boosted the market’s growth rate.

REPORT COVERAGE:

This research report on the global precision medicine software market has been segmented and sub-segmented based on delivery mode, application, end-user & region.

Precision Medicine Software Market – By Delivery Mode:

• Web & Cloud-Based
• On-Premises

During the forecast period, the on-premises segment is expected to be represented the highest share of the market in terms of delivery mode. The growing need for a high level of control and security for sensitive patient data is majorly driving segmental growth. In addition, the benefits associated with the on-premises delivery such as easy integration with the existing healthcare IT systems, complete ownership and control over their data to the healthcare organizations and cost-effective options for large-sized healthcare facilities further fuel the growth rate of the segment. The high availability and reliability of on-premises software is another notable factor contributing to the growth of the segment.

The web and cloud-based segment is anticipated to register a notable CAGR during the forecast period and the segmental growth is majorly driven by its scalability, flexibility, lower upfront costs, reduced burden on IT departments, and collaboration advantages.

Precision Medicine Software Market – By Application:

• Oncology
• Pharmacogenomics
• Rare Diseases
• Other Applications

Based on application, the oncology segment accounted for the major share of the worldwide precision medicine software market in 2022 and is expected to showcase the highest CAGR during the forecast period. The growing prevalence of cancer worldwide, increasing usage of personalized medicine in cancer treatments, the rising number of advancements in genomics and increasing awareness and adoption of precision medicine in developing countries majorly boost the segmental growth.

The pharmacogenomics segment is predicted to occupy a substantial share of the global market during the forecast period owing to factors such as the growing usage of pharmacogenomics in drug development and the rising adoption of personalized medicine.

Precision Medicine Software Market - By End User:

• Healthcare Providers
• Research Centers and Academic Institutes
• Pharmaceutical and Biotechnology Companies
• Other End Users

Based on the end-user, the healthcare providers segment held the highest share of the global precision medicine software market in 2022 and is expected to grow at a healthy CAGR during the forecast period owing to the rising adoption of precision medicine software by the healthcare facilities such as hospitals, clinics, and other healthcare facilities. In addition, the growing patient population of chronic diseases and an increasing number of initiatives to promote precision medicine accelerates the segment’s growth rate.

Precision Medicine Software Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

Geographically, the North American precision medicine software market had the largest share of the global precision medicine software market in 2022 and is expected to grow at a promising CAGR during the forecast period. The growth of the North American market is primarily driven by the presence of sophisticated healthcare infrastructure in North American countries and the high adoption of advanced technologies. In addition, factors such as the increasing patient population suffering from chronic diseases and the growing number of favorable initiatives by North American countries in favor of precision medicine contribute to the growth rate of the North American market. The U.S. market accounted for the largest share of the North American market in 2022 and is expected to hold a dominating share of the North American market throughout the forecast period.

The European precision medicine software market is a notable market for precision medicine software and is anticipated to hold a substantial share of the worldwide market during the forecast period. Factors such as the presence of a large patient population, rising demand for personalized medicine, and an increasing number of investments in R&D activities drives the growth of the European precision medicine software market. In addition, the growing number of initiatives and funding by the European countries for precision medicine research boosts regional market growth. Germany, France and the UK occupied the major share of the European market in 2022 and the same trend is estimated to repeat throughout the forecast period.

The APAC precision medicine software market is predicted to grow at the fastest CAGR during the forecast period and is the most lucrative regional market for precision medicine software worldwide. The growing prevalence of chronic diseases, rising adoption of advanced technologies, the presence of emerging economies and increasing investments to develop the healthcare infrastructure favors the precision medicine software market in the Asia-Pacific. India, China and Japan are predicted to hold the largest share of the APAC market during the forecast period.

The Latin American precision medicine software market is projected to hold a considerable share of the worldwide market during the forecast period and grow at a healthy CAGR. The growth of the Latin American market is majorly driven by the increasing investments in healthcare infrastructure, rising adoption of electronic health records and increasing demand for personalized medicine majorly drive the growth of the Latin American market. Brazil, Mexico and Argentina are expected to control most of the Latin American market share during the forecast period.

The MEA precision medicine software market is anticipated to showcase a sluggish CAGR during the forecast period owing to the lack of healthcare infrastructure and limited access to advanced technologies. However, the growth of the MEA market is anticipated to be favored by the increasing investments in healthcare infrastructure and government initiatives to promote precision medicine.

KEY MARKET PARTICIPANTS:

A few of the promising companies operating in the global precision medicine software market profiled in this report are SOPHiA GENETICS SA, Syapse, Inc., Foundation Medicine, Inc., 2bPrecise LLC, Fabric Genomics, Human Longevity, Inc., Translational Software, Inc., Gene42, Inc., IBM Watson Group, LifeOmic Health, LLC, Sunquest Information Systems Inc., Koninklijke Philips N.V., and Flatiron Health, Inc.

RECENT HAPPENINGS IN THE MARKET:

• In March 2023, InsightRX, a company that offers cloud-based precision medicine software to optimize treatment decisions announced that more than 10% of U.S. hospitals have been using their precision medicine software.
• In August 2022, Parkview Physicians Group announced that they integrated the precision medicine software tool of Genomind within their EPIC EHR system.