Laboratory Informatics Market Size, Share & Trends Analysis Report By Product (Laboratory Information Management Systems, Electronic Lab Notebooks, Scientific Data Management Systems, Laboratory Execution Systems, Electronic Data Capture and Clinical Data Management Systems, Chromatography Data Systems, Enterprise Content Management), By Delivery Mode (On-Premise, Web-Hosted, Cloud-Based), By Component (Software, Services), By End-User (Life Sciences, CROS, Chemical Industry, F&B and Agriculture, Environmental Testing Labs, Petrochemical Refineries and Oil and Gas Industry, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global laboratory informatics market size was valued at USD 3.3 billion in 2022. It is estimated to reach USD 5.07 billion by 2031, growing at a CAGR of 4.9% during the forecast period (2023–2031).

Utilizing a system of interconnected computers, software applications, and other data management resources constitutes laboratory informatics, and its primary objective is to improve and extend the capabilities of laboratory operations. It simplifies collecting, migrating, processing, interpreting, and applying scientific data for immediate use, increasing laboratory operations' overall productivity. In addition, it enables the storage, management, and sharing of such data, which will help support future research, development, and laboratory testing.

The domain of laboratory technology, known as laboratory informatics, is one of the areas developing at the fastest rate currently. Since the process of information management is still highly significant, laboratory informatics places its primary emphasis on the various instruments that are involved in that process. It is now feasible to keep a competitive edge and, as a result, maintain an advantage over other firms thanks to laboratory informatics, which makes it possible to provide data management solutions that are secure, stable, and scalable.

Market Dynamics

Global laboratory informatics market drivers

Increasing burden from regulatory authorities

Manufacturing requires robust systems that allow cooperation because the procedures and methods are often complicated and iterative. These systems need to be dependable, stable, repeatable, and resilient, and they should have very little downtime. The priority is placed on enhancing the rate at which services or products are delivered and supporting regulatory inspections. It is not difficult to re-engineer manufacturing processes because most of these steps are process-driven. Virtual and electronic laboratories are essential for organizations in the life sciences industry to generate innovative products, improve quality, and increase operational efficiency. They require an enterprise-wide integrated solution that efficiently handles both their data and their processes to be able to make choices.

In addition, a falling number of inpatient visits is driving laboratories to broaden their range, creating a demand for remote access to the electronic health records (EHRs) of physicians, nursing homes, clinics, and pharmacies. There is a growing need for efficient outreach operations that involve the administration of couriers, management of client relationships, tracking of supply and inventory, and marketing of services because of this.

Introduction of technologically advanced software services

Healthcare procedures are now reproducible and repeatable because of the growing adoption of robotics and process automation. The experimental setup, execution, and analysis may be completed more quickly. The increasing use of high-throughput technology has made it possible to evaluate experimental results effectively, improving lab operations' effectiveness. Additionally, improvements in laboratory equipment enable the replacement of time-consuming manual data evaluation techniques such as calibration curve generation and peak area or height measurement.

One example is the autosampler robotic system, which aids in sample preparation, eliminates errors, and reduces cost and process execution time. Lab informatics is also anticipated to develop in the coming years as wireless technologies are increasingly adopted in labs to enable remote access to information. The most typical tracking system for warehouse operations and inventory is wireless technology. For instance, after scanning a barcode, the data is sent wirelessly to access points, saving time and labor costs. Over the forecast period, it is also anticipated that the emergence of wearable mobile devices, such as Google Glass and smartwatches, clinical trial monitoring apps, and personal emergency response services, will alter the dynamics of laboratory informatics.

Global laboratory informatics market restraint

Lack of skilled professionals

Several factors are preventing the expansion of the market for laboratory informatics; one of these is a lack of competent specialists in developed countries. According to the American Society for Clinical Pathology (ASCP), the percentage of available posts in the Department of LIS/QA/PI was 10.3% in medical laboratories. This information was obtained from the organization. The retirement rate is projected to be 13.0% during the next five years, which is an extremely high percentage. The trend toward enterprises in the United States emphasizing outsourcing as a business strategy is anticipated to dampen the market's overall expansion in the coming years.

Global laboratory informatics market opportunities

Significant growth potential in emerging countries

There is significant potential for growth in the LIMS market in countries such as China, Japan, India, Singapore, Brazil, and countries in the Middle East. As these markets lack sufficient standards and government controls, they present a significant opportunity for businesses that are unable to achieve the requirements that are in place in more established countries like the United States. Many biopharmaceutical companies are relocating their manufacturing units to Asia to take advantage of the region's competitive labor costs. There is a huge demand for informatics solutions in Asian countries because of this. However, due to the COVID-19 epidemic, stakeholders from developed markets such as the United States and Europe have been forced to return to in-house operations to lessen their significant dependence on Asian countries.

Regional Analysis

Based on region, the global laboratory informatics market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North america dominates the global market

North America is the most significant global laboratory informatics market shareholder and is estimated to exhibit a CAGR of 3.8% over the forecast period. The market for laboratory informatics was controlled primarily by North America. The two most important aspects of this region contributing to its expansion are the presence of rules that encourage the use of laboratory information systems and the availability of infrastructure with a high level of digital literacy.

In addition, an increase in the use of LIMS in this region can be attributed to the rising healthcare expenses and the rising amount of pressure that exists to bend the cost curve. The United States of America owns a significant portion of the market for laboratory informatics in North America. This geographical market is anticipated to be driven over the projection period by several major contributing factors, the most important of which is the presence of well-established pharma businesses. In addition, there is an increasing desire to restrict operating expenses incurred on information management and analysis.

Europe is anticipated to exhibit a CAGR of 4.0% over the forecast period. The European market includes both the United Kingdom and Germany. European businesses and consumers now have access to a larger variety of online services and goods due to the European Commission's Digital Single Market Strategy. This establishes the prerequisites for developing digital networks and related services, which is expected to maximize Europe's economic growth potential. With an advanced healthcare system made possible by interoperable information technology, Spain is at the top of the list among European nations. Thanks to the assistance of the government and the focused efforts of strategic actors, this region is advancing steadily toward the widespread adoption of e-health systems. On the other hand, the legislative compliance requirements for data privacy and security provide a significant obstacle that most countries in this region must overcome. The abovementioned elements are anticipated to be the main drivers of Europe's growth in the laboratory informatics market.

Asia-Pacific is quickly becoming a center for outsourcing this industry due to pharmaceutical firms' increasing need for laboratory informatics. To increase operational effectiveness and lower the cost of LIMS support systems, manufacturers outsource LIMS services. Several CROs in fast-growing economies like China and India are anticipated to increase demand throughout the projected period. Lack of trained workers and rising R&D expenditures, particularly in the pharmaceutical and biotechnology sectors, are increasing the need for outsourcing and opening up new market prospects. Important market participants include McKesson Corporation, Abbott Informatics, Roper Technologies, Inc., and Siemens AG.

In Latin America, one of the main drivers of the market's growth over the projection period is the rapid economic growth in Mexico and Brazil. In addition, a rising need for laboratory automation to meet strict regulatory requirements is anticipated to fuel market expansion. Shimadzu Corporation, Labware, and Thermos Fisher Scientific, Inc. are a few of the market's prominent participants. Throughout the projection period, the Latin American market for laboratory informatics is anticipated to rise significantly. The two main forces behind developing laboratory informatics systems in the healthcare industry are rising public spending and expanding internet service penetration. Government programs working with the WHO are anticipated to accelerate market expansion in Latin America.

In the Middle and East Africa, advancements in healthcare systems are anticipated to increase the usage of laboratory informatics solutions. On the other hand, certain nations in the African region have a low score for their readiness in terms of healthcare IT since they do not have sufficient infrastructure and economic restrictions. However, governments are implementing steps to encourage the penetration of laboratory informatics services. These activities are being carried out with the WHO and other independent organizations.

Segmental Analysis

The global laboratory informatics market is bifurcated into product, delivery mode, component, and end-user.

Based on the product, the global laboratory informatics market is bifurcated into laboratory information management systems, electronic lab notebooks, scientific data management systems, laboratory execution systems, electronic data capture and clinical data management systems, chromatography data systems, and enterprise content management. 

The laboratory information management systems segment dominates the global market and is projected to exhibit a CAGR of 6.9% over the forecast period. Automated reporting capabilities were present in the first-generation LIMS systems. With the development of technology and modifications to workflow, the demand for application-specific functionality increased. This paved the way for creating second-generation systems that used commercial relational databases from third parties. The first client/server setup was created in the early 1990s using a PC with the security of a minicomputer. In the middle of the 1990s, client/server systems capable of delivering LIMS functions over a network were developed. In 1996, the LIMS incorporated the first web-enabled and wireless computing functionalities.

Moreover, modern LIMS systems give laboratories complete capabilities, enhancing their efficiency. These systems are increasingly used in various industries, including manufacturing, food and beverage production, environmental and water management, product quality evaluation, and cyber forensics. It is projected that LIMS and notebooks will be integrated with instruments over the forecast period and unified into a single platform. The unified platform is anticipated to boost the integration of laboratory informatics into businesses, along with technologies like data migration, business intelligence, and data warehousing.

The global laboratory informatics market is segmented into on-premise, web-hosted, and cloud-based based on delivery mode. 

The cloud-based segment dominates the global market and is predicted to exhibit a CAGR of 5.3% during the forecast period. Cloud computing technology is helpful for remotely storing huge amounts of data volume, which frees up space on devices and makes it easier to access data following the requirements of individual customers. Cloud computing technology was developed by Amazon Web Services (AWS). This technology is comprised of three distinct elements: platform as a service (PaaS), infrastructure as a service (IaaS), and Software as a service (SaaS). "Software as a Service" is a word that refers to analytics software that is hosted in the cloud.

IBM offers its Watson Analytics services through the Software as a Service (SaaS) software delivery model. There are many different sorts of companies that offer cloud-based services for laboratory information management systems. Core Informatics and Lab Vantage Solutions, Inc. are just two examples of companies that fall into this category.

Based on components, the global laboratory informatics market is bifurcated into software services. 

The services segment owns the highest market share and is predicted to exhibit a CAGR of 5.0% over the forecast period. As a result of the widespread practice of outsourcing services like these, it is projected that the services market will expand at a rate that will be profitable. Large pharmaceutical research labs typically outsource these services since they do not possess the necessary resources and skill sets to apply analytics. This outsourcing may be on a project basis for a short or extended period. These services are made available in packages, and the packages contain compliance requirements concerning promotional expenditure, analytics for social media, the manufacturing process, preventative maintenance, predictive analytics for medical device failure, and benchmarking services.

Based on end-users, the global laboratory informatics market is divided into life sciences, CROs, the chemical industry, F&B and agriculture, environmental testing labs, petrochemical refineries, and the oil and gas industry. 

The life sciences companies segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 5.0% over the forecast period. The need for laboratory informatics is growing in the life sciences sector to create novel products, enhance product quality, and boost operational effectiveness. There is a growing demand for more virtual and electronic laboratories to meet these needs. Systems for laboratory informatics enable the efficient administration of massive data volumes and dismantle silos in research and discovery. The largest end-use sector and a sizable market share belonged to the life sciences sector.

In the upcoming years, it is projected that increased R&D will advance healthcare, increasing demand for laboratory information systems. The market is anticipated to grow as a result of an increase in the adoption of Laboratory Information Management Systems (LIMS), particularly in research and hospital labs, due to its expanding range of applications, which include patient engagement, tracking of patient health information, workflow management, billing, and quality assurance at hospitals, labs, and other life science companies.

Recent Developments

• November 2023- Autoscribe Informatics has appointed Elab Informatics as the exclusive distributor of their highly acclaimed Matrix Gemini LIMS in India. Until recently, Elab has primarily focused on its lab informatics consulting services. The new partnership opens new horizons by allowing Elab to offer their customers Matrix Gemini LIMS software, complemented by configuration and informatics consulting services.
• December 2022- LabVantage Solutions, Inc., the leading provider of laboratory informatics solutions and services, including purpose-built LIMS solutions that allow labs to go live faster and at a lower total cost, today announced the launch of version 8.8 of its industry-leading LabVantage LIMS platform.