New technologies, sequencing methods, novel software algorithms, and multi-omic approaches empower patients to take more active control of their health outcomes and offers them personalized medicine. The forces of change and partnerships are building the foundation to better engage with patients and approach new demands, according to Frost & Sullivan's recent analysis, Next-generation Diagnostics Outlook 2022. The market has a promising future outlook, and its revenue is expected to grow from $99.23 billion in 2021 to $138.34 billion by 2026 at a CAGR of 6.9%.

Digital health solutions facilitate a dramatic shift in care delivery from traditional to alternative sites, simplifying the accessibility of diagnostic tests, which results in an automated testing experience for laboratories to ensure rapid scalability. Patients have greater access control and faster turnaround times to results, and providers can triage patients quickly through an efficient and connected workflow.

"Automation, machine learning, and deep learning are pivoting biology toward a data-informed scientific discipline. As a result, service digitization is a hot topic in laboratories and among device manufacturers," noted Amartya Bose, Industry Analyst at Frost & Sullivan. "Accelerated approval pathways will continue to motivate the rapid development of next-generation diagnostics that will focus on connecting tests to enhance the quality of care. Robust companion diagnostics will foster personalized medicine, converging pharma and diagnostics, lowering the costs, and transforming drug development."

Bose added: "Early detection to initiate optimal treatment plans is a paradigm shift in personalized care. The structural shifts driven by alternate care sites provide opportunities to improve accessibility and design innovative care delivery solutions with considerations for personalizing consumer-oriented diagnostic testing."

As the market's business model evolves, industry participants can find tangible growth opportunities by offering:

• Liquid biopsy as a biomarker-driven tool for precision oncology: Liquid biopsy developers are encouraged to design and demonstrate clinical validity in prospective cohort studies. Biomarker performance and clinical validity studies will ensure private payor market access.
• Decentralized and point-of-care molecular testing for infectious disease: Test developers should demonstrate evidence via clinical studies to bring laboratory-quality testing to the retail pharmacy setting. The model will inspire the creation of a new care delivery paradigm that will connect diagnostic tests and create innovative delivery models.
• Smart labs as a service for the digital transformation of diagnostic laboratories: As value additions and subscription-based business models continue to evolve, original equipment manufacturers should connect directly with laboratories. Growth is expected across all technology pillars that support the smart lab ecosystem, with significant opportunities around robotics and automation, the internet of things and artificial intelligence.

Next-generation Diagnostics Outlook, 2022 is the latest addition to Frost & Sullivan's Transformational Health research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.