The global laboratory information management systems market size was valued at USD 1.7 billion in 2022. It is estimated to reach USD 3.07 billion by 2031, growing at a CAGR of 6.8% during the forecast period (2023–2031).
Laboratory Information Management Systems (LIMS) are software tools designed to facilitate the management of laboratory data, workflows, and processes. It has been developed to streamline laboratory processes, minimize inaccuracies, optimize productivity, and guarantee data reliability. It has various applications such as sample tracking, workflow management, electronic lab notebooks, data analysis and reporting, and quality control. The primary characteristics of LIMS comprise the management of workflows, integration of data, maintenance of audit trails, ensuring security, and the ability to scale up or down as per the requirements. It also can be tailored to the unique requirements of various laboratory settings, including clinical, research, and environmental testing laboratories.
The lab seeks to deliver accurate testing information in accordance with industry standards. The amount of data from quality control, research and development, and output has grown because of new technologies, new rules, and business needs. LIMS tools make handling samples, running instruments, and making reports easier. Likewise, the latest ISO 22000 guideline, which came out in June 2018, states that the food business has to keep an eye on key control points (HACCP) and do hazard analysis throughout the complete process of making a product, from getting the raw materials to putting it in a box. Seven FDA rules control how FSMA is put into place. This shows that people all along the world's supply chain for food for people and animals work together to ensure food is safe. LIMS systems make it easier to keep track of and examine samples to cut down on contamination. Therefore, the identified key driver is expected to facilitate the growth of the laboratory information management system industry over the forecast period.
Due to rising R&D utilization in the pharmaceutical industry, the market is likely to rise soon. This encompasses genomic, cancer, and generic drug research. An improved laboratory setup that eliminates manual data transcription mistakes and maintains GDP, GCP, and GMP compliance will boost the market. The market study predicted that in 2025 the global pharmaceutical market will reach USD 1.6 trillion. In addition, companies will invest heavily in lab automation research and development due to increasing demand and promoting sales. Such factors are expected to help the laboratory information management system business grow.
Insufficiently skilled professionals are restraining the growth of the LIMS market. The American Society for Clinical Pathology, in 2022, reported a 10.3% vacancy rate for the Department of LIS/QA/PI in medical laboratories. Based on SR analysis, the projected retirement rate for the upcoming five years will likely be 13.0%, indicating a significant increase. In addition, market growth is expected to be limited in the coming years because of the increasing reliance of U.S. companies on outsourcing.
Pharmaceutical and biotechnology companies are driving outsourcing industry growth. Many variables influence outsourcing, such as skilled specialists being scarce in industrialized nations, consumers' demand for fast and reliable delivery, and strict regulatory criteria. Market research shows that outsourcing increases internal resource flexibility, accelerates timeframes, and improves short- and long-term results. In addition, CROs increasingly outsource LIMS solutions. In search of skilled workers at a low cost, outsourcing companies turned to Asia. In 2016, India topped the Global Services Location Index (GSLI) for 55 countries regarding outsourcing. This is expected to provide lucrative opportunities for market growth over the forecast period.
The global market is bifurcated into the types of products, components, and end-user.
Based on product type, the global market is bifurcated into on-premise, web-hosted, and cloud-based.
The cloud-based segment dominates the global market and is expected to exhibit a CAGR of 7.6% over the forecast period. The cloud-based product segment has experienced a considerable expansion in recent years, attributed to its benefits, such as efficient real-time data management and the ability to access multiple locations. The on-premise product segment is anticipated to demonstrate rapid development over the forecast period due to its user-friendly nature, increased customization, and heightened security measures. Cloud-based solutions offer cost savings, zero maintenance expenses, reduced IT personnel requirements, and lower investment than on-premise solutions. In addition, the web-hosted laboratory information management system (LIMS) segment has secured the second-largest market share and is anticipated to demonstrate consistent growth in the foreseeable future.
Based on components, the global market is bifurcated into service and software.
The service segment owns the highest market share and is expected to grow at a CAGR of 6.6% over the forecast period. The largest revenue share in the market was attributed to the services component segment. This can be attributed to the increasing need for laboratory automation, which necessitates the provision of implementation, maintenance, and support services.
The software industry is projected to experience a consistent growth rate over the forecast period, primarily attributed to the continuous advancements in software systems. These advancements include transitioning from Software as a Service (SaaS) to a more sophisticated Platform as a Service (PaaS), CaaS, and community networks.
Based on end-user, the global market is segmented into life sciences, Contract Research Organizations (CROs), chemical industry, food and beverage, agriculture industries, environmental testing laboratories, and petrochemical refineries and oil and gas industry.
The life science segment dominates the global market and is estimated to exhibit a CAGR of 6.9% during the forecast period. The life sciences industry has been identified as the leading end-user segment, with a market share of more than 40.57% in the current year. The increasing demand for LIMS is expected to be driven by the rapid developments in healthcare resulting from the growth of research and development activities. In addition, the market for LIMS is anticipated to experience growth as a result of its expanding use in hospitals and research laboratories. This is due to the increasing demand for patient health information tracking, patient engagement, workflow management, and quality assurance in hospitals, laboratories, and other life sciences companies.
Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
North America is the most significant global market shareholder and is expected to grow at a significant CAGR over the forecast period. In 2022, more than 44% of all revenue was generated in North America. The demand for LIMS in the region is expected to grow with well-established pharmaceutical companies and research laboratories and a higher awareness of LIMS among end-users. The North American market will experience growth over the forecast period because of the rising R&D activities in the biotechnology and pharmaceutical sectors and the implementation of strict regulatory policies. In addition, the economic development in the United States and Canada, which has led to increasing investments in cutting-edge technologies, may be responsible for the increased growth. The rise in biobanks and biorepositories has driven the demand for LIMS, increasing adoption over time. The market for LIMS in genomic and cancer research studies is also anticipated to experience growth in this region due to rising demand.
Europe is predicted to grow substantially during the forecast period. Regarding the LIMS market's revenue share, Europe ranked second to North America. The market for LIMS is experiencing growth due to the rising adoption of LIMS for regulatory compliance, growing demand for LIMS automation, and technological advancements. Germany primarily dominated the European Laboratory Information Management System market. The significant driver with the highest impact in Germany is the large geriatric population base. The regional market is also increasing due to the increasing use of LIMS to meet requirements in the life sciences sector without sacrificing process flexibility.
The Asia-Pacific LIMS market will likely experience major development in the coming years due to the rising demand for Contract Research Organizations (CROs) that offer LIMS services. The outsourcing industry in emerging economies like India and Japan is thriving due to the abundance of skilled labor at a more affordable rate. The market is experiencing growth opportunities due to increasing investments in R&D, particularly in the pharmaceutical and biotechnology sectors, and a shortage of skilled professionals. This has outcome in a greater demand for outsourcing services. The major dominant players in the market are McKesson Corporation, Abbott Informatics, Roper Technologies, Inc., and Siemens AG. These players are expected to provide lucrative opportunities for market growth over the forecast period.
The Latin America LIMS market is experiencing growth, with Brazil and Mexico being the major contributing countries. Further, the market is anticipated to experience growth due to the increased need for laboratory automation to adhere to strict regulatory standards. LabWare, Thermo Fisher Scientific, Inc., and Shimadzu Corporation are among the leading companies in the regional market.
The Middle East and Africa region encompasses South Africa and the remaining nations within the Middle Eastern and African regions. The increasing demand for laboratory automation is a key driver of the LIMS market's expansion in this area. The market growth may face hindrances due to a restricted pool of proficient experts and elevated product expenses. Several key players serve the regional market, including Thermo Fisher Scientific, Siemens AG, McKesson Corporation, and Illumina, Inc.
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