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Healthcare industry has witnessed a significant growth over the past decade with the development of the IVD market. IVD continues to remain the dominant market in the global medical devices market accounting for 13% of the total medical devices market in 2020. Although there are various opportunities for the growth of the market, regulatory challenges, reimbursement pressure, challenges in health care budgets, and advancement of low cost providers are some of the limitations for the market growth.
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In 2019, IVD segment has witnessed the highest number of M&A deals in the medical devices market. More than half of the deals in the IVD segment are in the Molecular Diagnostics market. Companies are focusing on increasing their existing product portfolio and in strengthening their product pipelines.
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IVD manufactures are highly focused on acquiring early stage Molecular Diagnostics companies focusing on novel technologies. With limited differentiation in the product offerings, companies with greater economies of scale will have higher competitive advantage over pricing.
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