Global Statistics Representing Laboratory Informatics Market Scenario
Rapid technological advancement has made laboratory equipment less static and more interactive, enabling vast networks of interconnected laboratory instruments, computers, and telecommunication equipment to record, analyze, and distribute data. It also enables researchers to spend less time gathering data and waiting for information to arrive from one place to another. Laboratory informatics allows laboratories to remain competitive by providing reliable, robust, and scalable data management systems.
Shifting preference towards personalized medicine, rising research in cancer genomics, and growing requirements for patient involvement drive the market growth. Rising incidences of diagnostic errors are subsequently driving the demand for laboratory informatics. The World Health Organization (WHO)estimates that around 5% of patients in developing countries face diagnostic errors every year.
The laboratory informatics market was valued at USD 2,650 million in 2019 and is expected to grow with a CAGR of 7.6% during the forecast period.
Increasing Errors in Laboratory Procedures to Drive the Market Growth
Laboratory automation is emerging as an essential approach, minimizing manual interference in laboratory processes. The automation of routine laboratory procedures, with the aid of dedicated workstations and system instruments software, increases laboratory efficiency and enables researchers to concentrate on important tasks and avoid human errors. Stringent regulations imposed on automation of laboratory procedures ensure optimum efficiency with error-free results, further driving the market growth.
As per the report in the Journal of Lab Automation, the error incidences in fully automated, semi-automated, and manual operations vary between 1–5%, 1–10 %, and 10–30%, respectively. Rising adoption of digital workstations, automated analyzers, and complete laboratory automation (TLA) enables the laboratory staff to be reassigned tasks and add higher value to the operations. Additionally, the surge in the data generated by laboratory systems is subsequently increasing the demand for effective methods to process, analyze, and share data, further driving the market growth.
Laboratory Informatics Market: Segmentation
Rising Demand for Fully Integrated Services to Drive the Laboratory Information Management Systems Segment
The laboratory information management systems (LIMS) segment is projected to dominate the market during the forecast period. The system offers master data management, sample lifecycle analysis, reliability research, system and security administration, schedules, inventory, equipment, logistics and storage space, and analytical workflow. Rising demand for fully integrated services in life sciences and research industries to reduce data processing errors drive the segment growth.
Cloud-Based Segment to Grow at a Fastest Rate
The cloud-based segment is projected to grow at the fastest rate on account of advancement in virtualization and the availability of high-speed internet. Cloud-based laboratory informatics eliminates the need for heavy capital investments in infrastructure and enables fast and safe data transfer within the organizations, further driving the segment growth.
Pharmaceuticals are developing a virtual network with contract research, production, and manufacturing organizations (CRDMOs) and academic institutions using centralized corporate-based facilities. The adoption of cloud-based technologies will enable these organizations to manage the massive amounts of produced data at economical costs. The integration of cloud-based models with laboratory informatics is projected to enhance data accessibility and provide real-time analysis at competitive prices, further driving the segment growth.
Lack of Resources and Expertise to Drive the Services Segment Growth
The services segment holds the largest market share due to the rising outsourcing of LIMS solutions. Currently, several pharmaceutical research laboratories lack the resources and expertise for analytics implementation, subsequently rising the outsourcing activities. TheCROs offers social media analytics, production procedure, preventive maintenance, predictive analytics for the failure of medical devices, and benchmarking solutions, further driving the segment growth
Life Sciences Industry Segment to Witness the Fastest Growth
The life sciences industry segment is projected to witness the fastest growth on account of rising demand for laboratory informatics to develop new products, boost product quality, and operational performance. Rising technical developments in the healthcare sector are subsequently increasing the adoption of laboratory informatics for patient interaction, management, billing, patient safety information monitoring, and quality assurance.
Rising Government Spending and Rapid Drug Development to Drive North America’s Laboratory Informatics Market
North America leads the laboratory informatics market on account of increasing demand for laboratory systems integration, rising government funding, growing biobanks, rapid drug development, and stringent regulations. Similarly, rising healthcare costs, coupled with increasing acceptance of laboratory information management systems (LIMS) drive the regional market growth. The pharmaceutical companies are actively working to reduce operational costs in management and analysis, which is subsequently driving the demand for laboratory informatics across the region.
Government Initiatives to Drive Asia-Pacific’s Laboratory Informatics Market
Asia-Pacific’s laboratory informatics market is largely driven by the rising number of CROs. The leading players are outsourcing LIMS to the CROs to reduce operational costs and increase efficiency. India and China are considered as outsourcing hubs on account of active government participation. For instance, the Chinese Ministry of Health has established an action plan to deploy e-health-related solutions to geographically scattered parts of the world, covering wide areas of medical services and insurance plans, adhering strong emphasis on the adoption of electronic recording systems to allow data sharing across the national healthcare system.
Laboratory Informatics Market Segmentation
By Delivery Mode
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