The global life science analytics market size was valued at USD 9.481.05 million in 2022. It is expected to reach USD 19,610.13 million by 2031, growing at a CAGR of 8.41% during the forecast period (2023–2031).
Any analytical application used in clinical research organizations, pharmaceutical and medical device companies, and various divisions, such as research, supply chain, marketing, and pharmacovigilance, is called life sciences analytics. The need for improved patient outcomes, the rising adoption of analytics solutions in pharmaceuticals and clinical trials, the increasing pressure to cut healthcare spending, and the emergence of advanced analytics techniques in life science companies are the key drivers of the life sciences analytics market. In addition, the use of analytics in clinical trials is increasing as the process of conducting clinical trials has grown more challenging due to the involvement of several activities and the production of large amounts of data from multiple systems. One of the key drivers fueling market expansion is the emergence of advanced analytics in life science firms.
The market is expanding as analytics solutions are increasingly used in pharmaceuticals and clinical trials. Pharmaceutical analytics solutions help companies speed up clinical trials by identifying and analyzing various data points, including participants' demographic and historical information, data from remote patient monitoring, and information on previous clinical trial events. As a result, many pharmaceutical companies are increasingly implementing analytics solutions. For instance, in December 2021, Amazon Web Services, Inc. (AWS), a division of Amazon.com, Inc., announced that it was collaborating with Pfizer to develop novel cloud-based solutions that could enhance the developing, manufacturing, and distributing of new medications for use in clinical trials. Furthermore, the Pfizer Amazon Collaboration Team (PACT) initiative, which applies AWS capabilities in analytics, machine learning, computing, storage, security, and cloud data warehousing to Pfizer laboratory, clinical manufacturing, and clinical supply chain efforts, allows the companies to investigate these advancements.
Advanced analytics' increasing use in life science firms is another crucial factor fueling the market's expansion. The demand for life science analytic products is driven by life science companies involved in developing advanced analytics solutions. For instance, the 2021 ISG Provider Lens Life Sciences Digital Services Report, updated in February 2022, revealed that European life science companies are interested in using analytics to support marketing and sales efforts and improve supply chain operations.
Furthermore, Roche reported signing a contract with Ibex Medical Analytics, a world authority on AI-based cancer diagnostics, in October 2021. To enable pathologists to easily access Ibex's AI algorithms, insights, and decision support tools using NAVIFY Digital Pathology, the cloud version of Roche's uPath enterprise software, the companies will jointly develop an embedded image analysis workflow. Roche's Digital Pathology Open Environment, which enables pathologists to securely access third-party AI-powered technology along with Roche's expanding menu of AI-based image analysis tools, makes it possible to collaborate with leading AI companies like Ibex.
Clinical trial costs are rising due to ECOA and system implementation fees. Increasing clinical trial costs hurt drug candidates and drug discovery processes. In addition, electronic clinical outcome assessment solutions vary in price depending on the platform and clinical trial. Costs depend on most clinical trial sites. More trial sites mean more devices, training, and support, ultimately increasing cost.
Furthermore, geographic distribution—particularly the number of participating nations and languages—contributes to site quantity. Each language requires translation of assessments and supporting documentation in which multilingual technical support may be needed. Assessment quantity and complexity also increase trial costs. Licensing assessments, device assessments, and data reviews also add to high costs. Therefore, high implementation costs may hinder the market growth.
In the upcoming years, the global life science analytics market is anticipated to experience significant growth, increasing the market's potential for expansion. This can be attributed to the development of novel analytics-based products and solutions for the life sciences industry due to the introduction of novel technologies, the need for early diagnosis, and the growing emphasis on research and development. For instance, Clarivate PLC reported the improvement of Cortellis Deals Intelligence, a top industry source of information on life science deals, in April 2021. Clarivate PLC is a global leader in providing trusted data and insights to accelerate innovation.
Predictive analytics and deal trend visualizations are two new features that enable users to confidently monitor the deal-making environment and quickly comprehend the potential value of an asset. The increasing investments may influence future market growth. For instance, Saama Technologies announced in October 2021 that funds managed by the international investment firm Carlyle have made a strategic growth investment and will buy a majority stake in the business. Saama will be able to accelerate its strategic initiatives thanks to the partnership, including growing its marketability and increasing its investment in AI and R&D.
The global life science analytics market is segmented by product, application, component, and end-user.
Based on the product, the global life science analytics market is bifurcated into descriptive, predictive, and prescriptive analytics.
The descriptive analytics segment is the highest contributor to the market and is expected to grow at a CAGR of 7.23% during the forecast period. The quantitative gathering and transformation of data information, such as summaries of hospitalizations, disease cases, and hospital stay duration, is known as descriptive analytics. These reporting tools emphasize standardized reporting, historical trend analysis, and data visualization. Descriptive analytics, which offers a clear understanding of the past medical history and its visualization through key performance metrics or other data in reports or dashboards, are widely used by most healthcare organizations. By outlining the current circumstance and prior performance, it is carried out. In addition, the information is typically gathered from electronic health records and then used to guide clinical and commercial decisions. It offers real-time data and improves the patient experience.
Companies can take advantage of the actionable insights provided by predictive analytics. It provides estimates of how likely an outcome will be in the future. These statistics are being used by businesses to forecast upcoming trends. Additionally, probabilities form the basis of predictive analytics. Healthcare organizations are using predictive analytics tools to stay ahead of the effects of COVID-19, including poor outcomes, resource shortages, and other effects. It is anticipated that the predictive analytics segment will experience profitable growth during the forecast period.
Based on the application, the global life science analytics market is bifurcated into research and development, supply chain analytics, and sales and marketing.
The sales and marketing segment owns the highest market share and is expected to grow at a CAGR of 7.34% during the forecast period. Due to factors like the growing adoption of analytical solutions in sales and marketing functions of organizations for enhancing sales productivity and creating powerful and effective marketing campaigns, the sales and marketing segment is predicted to expand. Data analytics will aid in increasing the marketability to new patient populations and communities. Further, big data analytics will be more in demand in sales and marketing due to their many benefits.
Supply chain analytics solutions can help businesses grow, improve profitability, and increase market shares by using the derived insights for strategic decision-making. These solutions can also provide a comprehensive view of the supply chain and, over time, aid in improving sustainability, lowering inventory costs, and speeding up product time to market. Big Data Analytics (BDA) has emerged as a crucial business capability to give companies better opportunities to derive value from an increasingly vast amount of data and gain a decisive competitive advantage due to the widespread use of digital technologies. Rising technological advancements in the healthcare supply chain are also driving up demand.
Based on the component, the global life science analytics market is bifurcated into software and service.
The service segment is the highest contributor to the market and is expected to grow at a CAGR of 8.40% during the forecast period. The burden on the healthcare system is increasing as more chronic and infectious diseases and other medical conditions are becoming more prevalent. Much patient-related medical data is generated, including medical histories, patient records, and appointment schedules. Healthcare providers all over the world have serious concerns about the handling and management of these data. As a result, there is a rising need for analytical services. The demand is further increased by public and private initiatives rising digitalization of the healthcare sector.
The software uses current and historical data to gain insights (macro and micro) and support decision-making at both the patient and business levels. The amount of healthcare data that can be analyzed is growing every second, thanks to digital data collection. A sizable amount of data is being collected in real time due to the growth of electronic record keeping, applications, and other electronic means of data collection and storage. As a result, a lot of businesses are creating software that can be used to accomplish the same thing.
Based on the end-user, the global life science analytics market is bifurcated into clinical research institutions, pharmaceutical and biotechnology companies, and medical device companies.
The pharmaceutical and biotechnology companies segment owns the highest market share and is expected to grow at a CAGR of 7.46% during the forecast period. Clinical research benefits significantly from analytics. Analyzing data to compare ongoing studies at various sites and populations, putting together reports for submission to the regulatory authority, and getting them approved, aids pharmaceutical and biotechnology companies. In addition, pharmaceutical companies' responsibilities include investing in the research and development of new compounds, committing to bringing new medications to market to improve patients' health and quality of life, strictly regulating clinical trials and product development activities, and maintaining ethical and legal relationships with patients and healthcare professionals.
The production of medical devices is about to undergo a significant transformation. In order to scale production and meet changing consumer demands, businesses have modernized their product innovation strategies with advanced analytics models. Device maintenance, inventory control, and product development are shaped by predictive analytics. As a result, businesses are collaborating with software and service providers for data analytics. For instance, Philips and Biotelemetry, a provider of cardiac monitoring services in the medical technology industry, reached an agreement for the purchase in December 2020. Wearable heart monitors and data analytics powered by AI are among the products Biotelemetry offers. Therefore, partnerships and launches in the sector are anticipated to rise over the forecast period.
By region, the global life science analytics market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America.
North America is the most significant contributor to the market and is expected to grow at a CAGR of 7.40% during the forecast period. The US life science analytics market is predicted to grow significantly over the forecast period as a result of the introduction of new data and analytics solutions in the country and the strategic initiatives implemented by industry participants. The nation's introduction of data and analytics solutions is expected to improve patient outcomes, bolster data management services, and streamline the research and development cycle. For example, Databricks introduced the Databricks Lakehouse platform for healthcare and life science in March 2022.
Furthermore, data management, analytics, and cutting-edge AI use cases like disease prediction, medical image classification, and biomarker discovery are all supported by a single platform. To aid pharmaceutical companies and partners in maximizing drug discovery and development efforts, Eversana launched the ACTICS predictive analytics solution in September 2020. This solution combines commercial services and predictive analytics. Additionally, it is anticipated that strategic actions taken by market participants, such as partnerships and the introduction of awareness campaigns, will increase the adoption of data and analytical solutions in the future.
Europe is expected to grow at a CAGR of 7.88% during the forecast period. This market is anticipated to grow due to several factors, including rising product launches, expanding distribution agreements between the major market players, company service expansion, and rising R&D spending by life science firms. In addition, increased adoption of life science analytics solutions in Germany will probably result from growing distribution agreements between life science companies and analytic solutions providers, which will fuel market expansion in this country. For instance, JADBio and QIAGEN agreed to sell and distribute each other's services as part of the QIAGEN Digital Insights portfolio in June 2021. This collaboration gave JADBio access to unmatched resources in the industry and a team of experts from around the world.
Asia-Pacific is expected to grow significantly over the forecast period. The introduction of data and analytics solutions, growing strategic initiatives by market participants, and an increase in clinical trials are all expected to contribute to the significant growth of the life science analytics market in China. In March 2019, Ambient Clinical Analytics and Bringspring Meehealth introduced CERTAIN, an advanced clinical decision support system with evidence-based diagnostic checklists, to the Chinese market. This platform enables healthcare professionals who work in acute and critical care to exchange knowledge and expertise, create a collective medical knowledge graph, and advance their professional expertise, ultimately enhancing patient care. Thus, introducing such analytics solutions is anticipated to have a favorable effect on the market expansion.
Kingdom of Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates, and Oman are the six Arab nations that comprise the GCC. Two of the most developed economies in the Middle East and Africa are the Kingdom of Saudi Arabia and the United Arab Emirates, both of which have well-developed healthcare systems. This creates a significant opportunity to integrate life science analytics into the healthcare system, which is anticipated to fuel market expansion in the GCC countries. The market is expanding in GCC nations due to elements like escalating R&D efforts and growing partnerships between the major market players and pharmaceutical firms.
The growth of the life science analytics market in Brazil is anticipated to be fueled by an increase in initiatives taken by the major industry players to offer data analytics solutions and an increase in their expansion of services. By collaborating with Techtrials Pesquisa e Tecnologia Ltda (Techtrials), the top provider of real-world healthcare data (RWD) in Brazil, Clarivate PLC expanded its international real-world data offerings in November 2020. In addition, customers of Clarivate can utilize Brazil's largest and most comprehensive real-world database, which will cover 80% of the country's population, to find answers to the most pressing questions regarding epidemiological, clinical, and pharmacoeconomic results. As a result, Brazilian researchers will start utilizing life science analytics tools, fueling the expansion of the market.
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