Over the past decade, precision medicine has gained a lot of popularity and appreciation as this method enables doctors to move from trial and error treatment approach to specific and target-based approach. With the technological advancements in the components that form the basic science of the precision medicine, it also paved the way for the development of advanced techniques of diagnoses and treatment such as liquid biopsy, companion diagnostics and next-generation sequencing. Of the three, companion diagnostics refers to development of the biomarker-based testing along with the process of development of the targeted drug. Further, companion diagnostics also supports in identifying information about the patient and facilitates the use of targeted therapeutics. It even, helps the healthcare provider to assess the benefits and risks associated with that drug. As per a report published by the BIS research titled, Global Companion Diagnostics (CDx) Market - Focus on Technology & Indication, the market for companion diagnostics has witnessed massive growth of 49.67% from 2015 to 2017. It is further expected to grow by 2025 at a CAGR of 21.38% and is expected to reach $4.1 billion.

Factors that attribute to the growth of the CDx market include cancer that is affecting more and more people, demand for personalized medicine, and increasing regulatory mandates among others. There are various other opportunities in the healthcare industry that help in boosting the market for CDx such as multiple biomarker-based development, new advancements in NGS techniques, and commercialization, etc. CDx has also been commercialized successfully for various types of cancers including leukemia, breast cancer, lung cancer, ovarian, colon and gastric cancer as well. All this has led to new ventures being launched in the market and efforts undertaken by different organizations to develop successful applications for problems including common infections, cardiovascular health concerns, metabolic issues and neurodegenerative health issues.

At the same time, there are multiple factors such as cumbersome reimbursement scenario, disrupted synchronization between diagnostics and therapeutics, which can disrupt and impede the growth of the market. The reports further details about the classification of CDx by application, by type, by technology and by type. Categorization of CDx by technology is based on next-generation sequencing, in situ hybridization, immunohistochemistry, and polymerase chain reaction, wherein, the polymerase chain reaction-based CDx dominated the market in 2017. Also, as per the report published by BIS Research, based on region the CDx market is apportioned by North America, Europe, Asia - Pacific, and Rest of the World. Currently, North America is the leading contributor of the CDx market with a total share of 52.53% of the total market.