Lateral Flow 2.0: The Evolution & Future of Rapid Diagnostics

The Market Foundation: Large and Growing
Breaking Down Barriers: The COVID-19 Effect
The Perfect Storm: Converging Market Forces
Technical Innovation: Beyond Traditional Boundaries
Emerging Growth Areas
Key Takeaways

Read the latest blog from Abingdon Health USA‘s President Chris Yates, summarising the highlights of his presentation at the Next Generation Dx Summit 2025 on The Evolution of Lateral Flow Technology and its expanding role in modern diagnostics.

The COVID-19 pandemic fundamentally transformed how the world views lateral flow testing. What was once a niche diagnostic technology – primarily known for pregnancy tests – suddenly became a household staple, with billions of tests administered globally. This global-scale exposure didn’t just demonstrate lateral flow’s capabilities; it revealed a technology ready for its next evolutionary leap.

Welcome to Lateral Flow 2.0: where the convergence of technological innovation and market maturity is creating vast opportunities across healthcare, veterinary medicine, food safety, and environmental monitoring…

The Market Foundation: Large and Growing

To set the scene, the lateral flow testing market has established itself as a formidable force in the diagnostic landscape. Currently valued at $8.5 billion in 2024, the market is projected to reach $12.5 billion by 2030, with robust growth forecast across multiple sectors. This expansion reflects not just increasing adoption, but the technology’s proven versatility in addressing diverse diagnostic challenges, from clinical testing (self-test and point of care) and veterinary diagnostics to food safety and environmental monitoring.

Breaking Down Barriers: The COVID-19 Effect

Perhaps the most significant driver of Lateral Flow 2.0 is the dramatic reduction in adoption barriers following COVID-19. The pandemic created an unprecedented global education program in lateral flow testing. I asked Claude AI to estimate the number of people who used a lateral flow test during the pandemic, and it suggested that 1.5 to 3 billion people have now taken at least one lateral flow test – a significant proportion of the global population of just over 8 billion people. To put this into context, there are currently around 1.5 billion iPhone users globally.

This transformative user test accomplished what decades of marketing couldn’t: it made lateral flow testing universally understood. Healthcare providers, patients, and regulatory bodies now have first-hand experience with the technology’s benefits and limitations, creating a foundation for expanded applications beyond infectious disease testing.

The Perfect Storm: Converging Market Forces

Lateral Flow 2.0 isn’t just about technological advancement – it’s being driven by a confluence of demographic, economic, cultural, and technological factors that create an ideal environment for growth.

• Demographics are reshaping healthcare demand. By 2050, 22% of the global population will be 60 or older, nearly doubling from today’s 12%. Simultaneously, we’re facing a projected shortfall of 15 million healthcare workers globally by 2030. Most critically, 97% of future population growth will occur in developing countries, with Africa’s share of world population rising from 13% to 22% by 2050. These trends create enormous pressure for accessible, easy-to-use diagnostic solutions that can function effectively outside traditional healthcare infrastructure. Just looking at the ageing population as one challenge, it is estimated that over 85% of US adults aged 65 and over have at least one chronic illness, with 70% suffering two or more. There is a pressing need to increase prevention, improve self-management in the home to reduce pressure on already stretched healthcare systems and lateral flow diagnostics can play a pivotal role here.
• Economic pressures closely related to demographic changes are intensifying the need for cost-effective diagnostics. US healthcare spending is projected to reach $8.6 trillion by 2033, representing 20.3% of GDP, with annual growth rates of 5.8%. This unsustainable trajectory, along with uncertainty over tax receipts will drive the demand for innovative solutions and structural change. Point-of-care and companion diagnostic test solutions that can reduce costs while maintaining or improving clinical outcomes have the power to significantly reduce the burden on the healthcare system. Some examples include Streptococcus tests reducing ER visits, or Sepsis tests allowing early intervention – and these rapid tests are already saving lives.
• Cultural shifts are empowering patient-directed testing. Consumers are increasingly taking control of their health decisions, with younger generations demonstrating significantly higher digital health literacy and comfort with technology-enabled healthcare solutions. This cultural evolution aligns perfectly with lateral flow’s user-friendly nature and potential for digital integration. According to Rock Health, the majority of Gen Z and Millennials track at least one health care metric and some track many more. Even Gen X’s such as myself are increasingly managing our healthcare more proactively. I recently contracted a virus which led me to test periodically for COVID-19 and Flu (negative for both), as well as monitor my Vitamin D and Iron levels. I also regulatory reviewed my heart rate, heart rate variability and sleep patterns. I also engaged with AI in a conversation on these symptoms and the impact on my daily life, including my triathlon training! (But more on that later.)
• Technological innovations are expanding possibilities. The emergence of Healthcare 4.0, with Internet of Things (IoT) connectivity transforming diagnostic devices into connected platforms, is creating new opportunities for real-time data sharing and remote monitoring. AI adoption in diagnostics is forecast to grow by 33.5% annually, reaching $7.3 billion by 2029, opening possibilities for enhanced interpretation and automated result analysis. Lateral flow testing can be at the “pointy end” of this approach, generating new data which can then be integrated and interpreted alongside other real time parameters as well as historical records. Think of my conversation with AI above: if this was more tailored through access to my health records, my historic Garmin data, previous rapid testing, other parameters (age, sex, etc.) then this becomes extremely powerful and very specific. We may not need to wait for healthcare systems to catch up, we may drive this ourselves through increasing use of AI.

Technical Innovation: Beyond Traditional Boundaries

As well as these macro drivers, there are also significant technical innovations within the lateral flow market. Much of this is the result of investment in lateral flow technology during/shortly after the COVID-19 pandemic and we are now really starting to see the results.

• Some examples include particle innovation which is enhancing sensitivity and specificity. UpFront Diagnostics’ LVOne test for large vessel occlusion is an example of a test which has benefited from innovation in labelling which has improved sensitivity.
• We are also seeing design innovations, not only improving user experience but also performance. Salignostics’ saliva platform is an excellent example of an integrated lateral flow testing system which has successfully dealt with the challenges of saliva, which include sample variability and also low biomarker concentration. This saliva as a sample technology is now being expanded into other areas such as oral cancer testing and strep A.
• Improved sample matrix processing capabilities are also driving expanded use of lateral flow technology. 52North’s neutropenic sepsis test, Neutrocheck^® allows the testing of neutrophils and a sepsis marker and utilizes 52North’s patent protected microfluidic system.
• Finally, AI and machine learning is improving the performance of reader technology. Abingdon’s AppDx smartphone reader uses machine learning to optimize test read and recent results indicate precision in line with desk-top readers. AI is also impacting the broader lateral flow market; with the use of AI to improve the efficiency of lateral flow test development and manufacturing processes – and Abingdon is at the forefront of these developments.

In my opinion one of the most exciting areas of innovation and growth is the integration of molecular diagnostics with lateral flow platforms: creating hybrid solutions that combine rapid cost-effective results with laboratory-grade accuracy, plus sample extraction and amplification using molecular techniques and the read-out using lateral flow technology. Abingdon is actively working with a number of customers who are developing innovative solutions in both the clinical and non-clinical markets. We were pleased to support Folium Scientific on the launch of their salmonella test in food samples which leveraged Folium’s CRISPR technology.  Molecular Lateral Flow may well have the potential to drive Lateral Flow Market 3.0 into other markets previously seen as “out of reach” for the technology.

Emerging Growth Areas

All of these factors are driving overall growth in the lateral flow market and there are some sub-sectors that are worthy of note because of their potential for expansion:

Firstly, Companion Diagnostics represent a very promising area – particularly as antibody-based therapies grow – where lateral flow tests can guide therapeutic decisions in real-time, supporting the growing trend toward personalized medicine. We have seen recent interest from both biotech and pharma in using lateral flow in a range of ways: as part of the drug manufacturing process; during clinical trials; and also to stratify patient populations and manage their treatment. Abingdon’s work in this area builds on its development of Seralite, a dual-marker assay for management of patients with multiple myeloma to determine, alongside other factors, remission and relapse.

Veterinary Diagnostics is also experiencing rapid growth as pet ownership increases globally; livestock management becomes more sophisticated; and animal welfare and food chain concerns become higher profile. Veterinary application is also in many cases subject to shorter regulatory timeframes and lower cost, making the Return on Capital Employed calculation attractive.

Food Safety and Environmental Testing are benefiting from increased regulatory scrutiny and consumer awareness, with Make America Healthy Again being a case in point, with a focus on areas becoming mainstream concerns such as antibiotics in milk. Rapid pathogen detection and contamination monitoring are becoming essential tools for food producers and environmental agencies.

Finally, Emerging Pathogen Detection has gained new urgency following COVID-19, with organizations seeking rapid response capabilities for future pandemic preparedness. Abingdon recently announced a strategic partnership with Dutch company Okos Diagnostics to develop an avian flu test for both human and animal, e.g. bovine, applications. We believe this is certainly an area to watch closely in the short-term, given the rapid spread of avian flu across many mammal populations. (We’re now up to 48 mammal species that have been infected according to Gavi.)

The Key Takeaway

The transformation from Lateral Flow 1.0 to 2.0 represents more than incremental improvement – it’s a fundamental shift in how we think about rapid diagnostics. The technology that once occupied a small niche in laboratory testing has evolved into a versatile platform capable of addressing some of healthcare’s most pressing challenges.

The convergence of reduced adoption barriers, favorable demographic trends, economic pressures, cultural shifts, and technological innovations creates an unprecedented opportunity for lateral flow diagnostics. Companies that can harness these trends while delivering innovative, high-quality solutions will find themselves well-positioned to capture significant value in this expanding market.

At Abingdon Health, we’re committed to helping our partners seize these opportunities. By combining deep technical expertise with flexible manufacturing capabilities and comprehensive regulatory support, we’re accelerating the development and commercialization of next-generation lateral flow solutions that will define the future of rapid diagnostics.

Abingdon Health’s team has over 20 years’ experience in the lateral flow market and provides full service CDMO and CRO services all under one roof, including Development, Scale-Up & Manufacturing, Regulatory and Performance Evaluation, ensuring seamless and parallel workstreams saving you time and money. If you would like to discuss any specific requirements don’t hesitate to contact Abingdon’s highly experienced team.