Government fuels Indonesian infectious disease IVD market

JAKARTA – The infectious disease market accounts for approximately 62% of the total in-vitro diagnostics (IVD) market in Indonesia, says new analysis from Frost & Sullivan. In the report, “Indonesian Infectious Disease IVD Market”, the industry analyst finds that the market earned revenues of $38.6 million in 2013, which is expected to reach $59.9 million in 2017.

Among the segments of immunochemistry testing, microbiology testing, and molecular diagnostics testing, the last – which includes virology, bacteriology, molecular blood donor screening and genetic testing – is expected to grow the fastest. Among these, the molecular diagnostics segment.

Among the growth drivers has been government investment in primary healthcare system and public hospital reforms. Spurred by increased incidence of infectious diseases, such as hepatitis C, HIV, TB, malaria and dengue, the Indonesian government has also promoted IVD-related technology innovation among local participants, and improved reimbursement policy, thus creating a favorable climate for market participants.

Despite the strong government backing, however, Indonesia's infectious disease IVD market is battling a shortage of skilled healthcare workers and laboratory facilities. This issue hampers the accurate identification, diagnosis and reporting of infectious diseases in the country.

The market is further pegged back by the long turnaround times of tests and high level of investments needed. These challenges, however, are opportunities for companies in the opposite ends of the spectrum, notes Frost & Sullivan Healthcare research analyst Sanjeev Kumar.

"The domestic participants in the low-end market will have an edge due to their competitive pricing and faster turnaround time," he explained. "Meanwhile, multinational companies (MNCs) in the high-end market can meet various end-user demands by offering improved localized service."

This scenario is ideal to foster partnerships between multinational companies and local participants. Collaborations between the two will create a symbiotic ecosystem, wherein local companies will gain access to capital, technology and intellectual property, and MNCs will benefit from the market reach of the domestic companies.

"Furthermore, the rise in private funding has paved the way for innovations in the Indonesia's infectious disease IVD market," noted Kumar. "Manufacturers are already developing analyzers to meet end-user budgets, test volumes, desired breadth of test panels, and levels of automation."

The adoption of new technologies will go a long way in enhancing the patient care. For instance, highly automated analyzers with automated sample-handling features and sophisticated informatics will improve throughput and eventually, diagnostic results.

Indonesian Infectious Disease IVD Market is part of the Frost & Sullivan's Life Sciences Growth Partnership Service program. Related studies include: Pulse of Telehealth 2013, the Global Emerging Interventional Cardiac Devices Market, Disinfection and Sterilization Equipment Market Trends in Asia-Pacific, and the Accountable Care Team: A Guide for Care Delivery Transformation.