Lateral flow assay, also known as lateral flow immunochromatographic assay, is a simple type of immunoassay for detection of analytes that relies on lateral flow of liquids through a porous membrane or strip. Lateral flow assays are commonly used in diagnostics and are suitable for point-of-care testing (POCT) in places such as doctor’s offices, hospital emergency rooms and patient homes. Lateral flow assays minimize complexity and allow for the detection of target analytes without any sophisticated instrumentation.
The global Lateral Flow Assay Market is estimated to be valued at US$ 5.6 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Point-of-care testing enables faster diagnosis and treatment of diseases and provides convenience of self-testing to patients. The point-of-care testing market is growing owing to the growing prevalence of infectious and chronic diseases globally. According to estimates, point-of-care testing market is expected to reach nearly US$ 50 Bn by 2028, growing at a CAGR of over 8% during the forecast period. Lateral flow assays are ideal for point-of-care testing due to their simplicity, rapid results and affordability. Thus, the growing demand for point-of-care testing from applications such as glucose monitoring and infectious disease testing is estimated to provide high growth opportunities to the lateral flow assay market over the forecast period.
Porter's Analysis
Threat of new entrants: The lateral flow assay market has moderate threat of new entrants due to high capital requirements and regulatory barriers. However, new players can collaborate with large enterprises to enter the market.
Bargaining power of buyers: Individual consumers have low bargaining power due to availability of a wide range of products, however institutional buyers have moderate bargaining power due to bulk purchasing.
Bargaining power of suppliers: The lateral flow assay market has moderate threat from suppliers due to availability of substitute raw materials. However, suppliers have lower bargaining power due to presence of a large number of players.
Threat of new substitutes: Low threat of substitutes as lateral flow assay provides quick, easy-to-use results without specialized equipment or trained healthcare workers.
Competitive rivalry: High due to presence of major players focusing on new product launches and expansions.
SWOT Analysis
Strength: Rapid and easy-to-use nature of lateral flow assays without special equipment or expertise. Growing use in point-of-care testing and diagnostics.
Weakness: Low accuracy and sensitivity compared to centralized laboratory tests. Results can be affected due to improper sample collection or storage.
Opportunity: Rising prevalence of infectious and chronic diseases worldwide. Increasing demand for home-based testing and decentralized healthcare.
Threats: Stringent regulatory policies for approval of new products. Reimbursement issues hindering adoption in developing nations.
Key Takeaways
The global lateral flow assay market is expected to witness high growth over the forecast period owing to rising demand for point-of-care testing and home-based testing kits. The global lateral flow assay market is estimated to be valued at US$ 5.6 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030.
Regionally, North America is expected dominate the market throughout the forecast period due to growing elderly population and technological advancements in lateral flow-based rapid tests. Asia Pacific is anticipated to register the fastest CAGR over the next few years due rising awareness regarding early disease diagnosis and growing healthcare expenditures.
Key players operating in the lateral flow assay market are Bio-Rad Laboratories, Inc., Thermo Fisher Scientific Inc., Siemens Healthineers, Inc., Qiagen N.V., Becton, Dickinson and Company, Diagnostic Consulting Network, Inc., Tetracore, Inc., Humasis Co. Ltd., and F. Hoffmann-La Roche AG. These major players are focusing on new product launches, partnerships, and facility expansions to strengthen their positions in the market. For instance, in February 2022, Siemens Healthineers launched several new rapid antibody and antigen tests to aid pandemic response.
