Laboratory Information Systems Market Analysis by Product (Standalone, and Integrated); by Component (Services, and Software); by Delivery Mode (Cloud Based, and Premises); and by End-User (Hospital Labs, Independent Labs, POLs, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
Buy Now Report ID: 4236 | Published Date: Mar 01, 2023
The global laboratory information systems market is estimated to garner a revenue of ~USD 5 Billion by the end of 2033 by growing at a CAGR of ~8% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 2 Billion in the year 2022. The growth of the market can be attributed to the rising cases and deaths owing to the prevalence of chronic diseases across the world. As per the Centers for Disease Control and Prevention, it was calculated that in the year 2022, one out of ten adults in the United States are suffering from at least one chronic disease, and four out of ten adults were diagnosed with two or more chronic diseases. Further, as per recent data from 2020, chronic diseases are solely responsible for approximately 40 million deaths globally. The increasing changes in the lifestyle and eating habits of people are estimated to rise the incidence of chronic disease cases. Additionally, the longevity of the elder population increases the occurrence and reduces the efficiency of chronic disease management which is projected to drive market growth.
In the past few years, there has been a high demand for lab automation, large-scale implementation of laboratory information systems in hospitals, and technological advancements in laboratory information system offerings, due to the rise in the number of life-threatening diseases. As a result, the need for quality samples and management has bolstered the sales of laboratory information systems in the healthcare industry. The prevalence of non-communicable diseases is anticipated to increase the adoption rate of laboratory information systems for early detection, and diagnosis and to prevent deaths. As per statistics by the World Health Organization (WHO) in 2021, non-communicable diseases kill almost 41 million people each year, which equals 71% of deaths globally.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 2 Billion |
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Forecast Year Market Size (2033) |
~ USD 5 Billion |
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Regional Scope |
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Growth Drivers
Challenges
The global laboratory information systems market is segmented and analyzed for demand and supply by delivery mode into cloud-based, and premises. Out of these, the cloud-based segment held the largest market share in the year 2022. The accessibility of data from multiple locations, multiple systems, and multiple branches, is the most significant contributing factor expected to augment segment growth during the forecast period. Also, increase in demand for cloud based drug discovery platforms where drugs are discovered and formulated. The rising adoption of digital technologies and penetration of the internet across the world is estimated to boost the market growth. As per the estimations in 2033, over 50 billion people use the internet across the world which accounts for more than 60% of the world’s population. The increasing use of cloud based mobile apps and implementation of cloud services for easy backup and storage is also anticipated to drive the market segment in the coming years.
The global laboratory information systems market is also segmented and analyzed for demand and supply by end-user into hospital labs, independent labs POLs, and others. Amongst these segments, the hospital labs segment is expected to garner a significant share by the end of 2035. The increasing prevalence of diseases and the rising number of hospitals across the world is estimated to drive market growth during the forecast period. There are about 10,900 hospitals in Columbia in the year 2020 with the highest number of hospitals as per the records. The growing population suffers from various chronic and nonchronic diseases that need diagnosis and treatment. And additionally, the prevalence of new diseases needs lab tests to find the cause of the disease, symptoms, drug discovery, clinical trials, and treatment methods. All these increase the growth of the market segment. The increasing drug discoveries are also rapidly growing across the world with expired patents on numerous drugs. The market segment growth is also attributed to the increasing funds and investments in the healthcare sector to improve the infrastructure and associate it with IT and digital transformation.
Our in-depth analysis of the global laboratory information systems market includes the following segments:
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By Product |
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By Component |
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By Delivery Mode |
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By End User |
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The North American laboratory information systems market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the well-developed healthcare infrastructure and the increase in demand for digitalized technologies for the early detection of diseases. The surge in non-communicable diseases such as cancer and diabetes is expected to increase the adoption rate of laboratory information systems. The Centers for Disease Control and Prevention revealed that in the United States, 1,752,735 new cancer cases were reported and 599,589 people died of cancer in 2019. Whereas, in 2018, 34.2 million people, equivalent to 10.5% of the United States Population had been diagnosed with diabetes. Also, the rising health expenditure and healthcare industry are other growth drivers for the North American region in the upcoming years. In 2021, revenue generated by the U.S. healthcare industry stood at USD 800 billion.
Moreover, the second largest market growth is estimated to be seen in the Asia Pacific region as per the market analysis. The increasing elderly population and increasing population of people are estimated to rise the market growth. The Asian population in 2019 was about 4.6 billion and was estimated to reach about 5 billion by the end of 2033 with a growth rate of 0.5% according to the reports. The increasing population increases the incidence of diseases more rapidly which rises the need for good healthcare facilities. The growing healthcare sector with the initiation of many pharmaceutical, chemical, and biopharmaceutical industries across the region.
Orchard Software Corporation has joined hands with Corwen, LLC. This partnership is projected to accelerate the company’s molecular capabilities and continue its commitment to providing integrated LIS solutions.
CliniSys Group has acquired Apollo LIMS. This collaboration is a significant step towards enabling a new wave of digital diagnostics and community laboratories.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Radhika Gupta, Shivam Bhutani
Ans: The rising prevalence of chronic diseases and non-communicable diseases, high health expenditure, and growing advancements in the healthcare sector are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2023 – 2033.
Ans: Low adoption rate coupled with additional expenses are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are CliniSys Group, Allscripts Healthcare, LLC, Orchard Software Corporation, CompuGroup Medical SE & Co. KGaA, LabVantage Solutions, Thermo Fisher Scientific Holdings, Inc., STARLIMS CORPORATION, PROLIS, Medical Information Technology, Inc., Epic Systems Corporation and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product, component, delivery mode, end-user, and by region.
Ans: The cloud-based segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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