Dengue Testing Market Trends

Growth Drivers

• Increasing need from the untapped regions: The market is primarily fueled by the significant rise in unmet demand in underserved regions. For instance, in Africa, only 12.5% of suspected candidates are confirmed through laboratory assessments due to the absence of adequate diagnostic accommodations, creating a surge for affordable testing solutions as they can improve detection specificity and patient outcomes. Thus, the access gap signifies the presence of a substantial opportunity for manufacturers to introduce low-cost and large-scale rapid diagnostic tests (RDTs) priced below $5.1. Moreover, this cultivates the potential to generate a revenue of $300.3 million in these high-need areas.

• Government-backed financial backing: The expanding coverage of reimbursement across the globe is ensuring a steady cash inflow in the market. As evidence, in 2023, Medicare amplified its allocation for such diagnostics, including rapid tests and PCR assays, in the U.S., which reached $1.3 billion. These insurers are now also covering tests for all symptomatic patients, and hence out-of-pocket costs dropped to just $15.2 for each assessment, making diagnostics more accessible. In addition, cost-optimized production hubs, such as Malaysia and Mexico, where labor and operational expenses are 15.2-20.4% lower than in Western countries, further support expansion in this sector.

Historical Patient Growth and Its Impact on Market Expansion

Historical Annual Dengue Testing Users (2010-2020)

Feasible Expansion Models Shaping the Future Dengue Testing Market

Revenue Feasibility Models (2020-2024)

Challenges

• Government controls over profitability: Government-imposed price caps often hinder the range of profit margin in the dengue testing market, particularly for premium-priced products. This ultimately discourages manufacturers from participating in this sector. For instance, a 15.2% reduction in profitability was observed due to the enforcement of a maximum price of $2.1 for every rapid test in India. However, Roche secured bulk procurement tenders by partnering with state government entities to overcome this hurdle.

• Lack of awareness in non-endemic regions: The dengue testing market often lacks adoption, as healthcare providers often underutilize available diagnostics. The shortage of skilled professionals in these landscapes also contributes to such an access gap in this category. For instance, the tendency to adopt dengue tests among hospitals in Spain was 50.3% less than that of malaria screens instead of the increasing incidences. This underscores the need for more educational initiatives and campaigns to improve clinician engagement in this sector.