The global life science analytics software market size was valued at USD 6780 million in 2021 and is estimated to reach an expected value of USD 19570 million by 2030, registering a CAGR of 12.5% during the forecast period (2022 – 2030). Statistical and quantitative analyses are carried out by analytical software. It produces and exports decision-making predictive and exploratory models. As a result, the life science sector has adapted data analytics to help decision-making. Biotechnology companies can use this analytics software, pharmaceutical companies, medical device enterprises, and other end users for research and development, clinical trials, preclinical trials, sales, marketing assistance, and other applications. By overcoming obstacles to operational effectiveness and data integration, this analytics solution aids life science organizations in bettering the lives of their clients and maintaining market dominance.
Additionally, these analytics capabilities boost pharmaceutical production performance, allowing for more efficient and confident patient care delivery of safe, effective medications and other therapies. The critical applications of analytics software in the life science industry include research & development, clinical trials, sales, marketing support, and regulatory compliance. The software helps to beat challenges in data integration and enhance operational efficiency. Moreover, integrating artificial intelligence (AI) and machine learning approaches within the life science industry makes drug discovery and development more innovative, time-effective, and cost-effective. Thus, it increases the demand for life science analytics software.
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The Surge in Prevalence of Chronic Diseases
The high prevalence of chronic diseases such as heart, diabetes, cardiovascular, and chronic respiratory diseases causes mortality and morbidity worldwide. According to the WHO, cardiovascular disease is the leading cause of death among various chronic diseases, responsible for approximately 30% of deaths worldwide. However, presently, people tend not to go to hospitals. Instead, their health information is available on mobile applications, which helps them look for expert advice and active care from the healthcare industry. Hence, life sciences companies are trying to keep pace with their customer. They are focusing more on preventive scenarios overtreatment, which leads to increasing adoption of data analytics in the life science industry that helps to influence insights strategically to their advantage. This analytics software helps pharma and biotech companies in the early detection of patterns, drug discovery, and clinical trials to achieve operational excellence. This would allow the life science analytics software market to grow during the forecast period.
Rise in Adoption of Analytics Solutions in Clinical Trials and Sales & Marketing Applications
Major pharma, biotech, and medical device companies are adopting digital transformation. They use advanced analytics in research and development, clinical trials, preclinical trials, sales & marketing, regulatory compliance, supply chain analytics, and pharmacovigilance to achieve operational excellence and better outcomes. In addition, this software provides high-quality analysis of a large amount of pharmaceutical and R&D data. It supports clinical decision-making and helps achieve regulatory compliance, boosting market growth.
Further, life sciences companies are shifting their commercial models. The brands are no longer built through sales reputation and advertisement; they require better treatment outcomes and exceptional care experiences. Hence, analytical software helps pharma & biotech, and device companies to analyze patient feedback and demand from the internet or social media. Therefore, the abovementioned reasons increase the adoption of analytics solutions in clinical trials and sales & marketing applications. For instance, Accenture Plc offers commercial and sales & marketing analytics software. This software provides personalized and agile commercial models that use online and in-person interactions to know the requirement of customers and respond to them accordingly. It also simplifies and modernizes sales operations and marketing using industry-proven solutions, applied intelligence, and recurrent improvement.
Lack of Skilled Professionals in Developing Countries
There is less awareness of the benefits and opportunities of analytics software among life science companies in emerging economies such as Asia-Pacific and LAMEA. In addition, the lack of skilled professional further hampers the adoption of big data analytics in the life science industry in countries such as India, Australia, and South Africa. In most developing countries, pharma and biotech companies are unaware of analytics solutions to treat chronic illnesses. Moreover, patients who suffer from different diseases and belong to different demographics and income groups have different levels of awareness about the software. This low awareness and lack of understanding regarding the use of the software in developing countries are due to limited information availability and lack of promotions, leading to a lower adoption rate and more trust in conventional procedures. Thus, it is anticipated to hamper the growth of the market.
The Emergence of Big Data Analytics to Increase R&D Productivity
Pharma R&D is a long and challenging process and can take more than ten years and approximately $2.6 billion to bring a single drug to the market. According to the McKinsey report, only 0.1% of drugs that begin preclinical testing make it to human testing, out of which only one gets approved for human use. Eventually, few drug developments get commercially approved and successful. Hence, data analytics could be a better solution to enhance and accelerate drug development. In addition, big data can improve different components such as clinical trial design, drug discovery, and adverse drug reaction detection.
Big data analytics involves collecting, manipulating, and analyzing large and diverse data sets. It helps pharma companies in several ways,
Therefore, the demand for big data analytics in the life science industry is anticipated to rise, which gives immense opportunities to the market players.
The global life science analytics software market is segmented by product, application, delivery model, end user, and region.
By product, the global life science analytics software market is divided into descriptive analytics, prescriptive analytics, and predictive analytics. The descriptive analytics segment was the highest contributor to the market and is estimated to grow at a CAGR of 13.7% during the forecast period. Hospitals and other healthcare organizations have implemented descriptive health analytics for medical data summarization. It analyzes healthcare decisions and their implications on service performances, clinical outcomes, and results. The descriptive analytics segment accounted for the largest market share, owing to the rise in the adoption of descriptive analytics by life science stakeholders to analyze historical trends so that real-time data is assessed to develop strategies, boosting the market growth.
Furthermore, growth in the prevalence of chronic diseases is a leading cause of many serious complications, and this prevalence rate is observed globally. According to Chronic Disease Control, in America, 6 in 10 adults in the US have a chronic disease. Hence, the healthcare sector is steadily adopting advanced analytics to identify patients with a high risk of chronic illness and focusing on population health management, which is anticipated to boost the demand for descriptive analytics software in the life science industry.
Based on application, the global life science analytics software market is classified into research & development, sales & marketing support, regulatory compliance, supply chain analytics, and pharmacovigilance. The research & development is further segmented into clinical trials and preclinical trials. The research and development segment is the highest contributor to the market and is estimated to grow at a CAGR of 13.7% during the forecast period. During R&D, when testing is performed, samples are received, logged, and placed into testing racks or plates and are run for many tests on different instruments. The data created from the experiments are used to make critical business decisions.
Moreover, labs and groups that run tests also develop new analytical methods regularly to test for new things or make an existing method (standard operating procedure) more precise or accurate. Therefore, whenever a lab runs a test, it is mandatory to obtain data from instruments and analytical equipment in regulated areas, which leads to a rise in demand for analytics software in research & development. Such advantages of analytics software in research and development are expected to drive the demand for life science analytics software.
Based on the delivery model, the global life science analytics software market is bifurcated into on-premise and cloud. The cloud segment was the highest contributor to the market and is estimated to grow at a CAGR of 16.8% during the forecast period. The cloud-based life science analytics software offers more flexibility. For instance, if there is a need for extra bandwidth, a cloud-based service can meet that demand instantly, rather than undergoing a complex and expensive infrastructure upgradation.
Moreover, a cloud-based platform offers total scalability, as companies can access unlimited storage space on demand. Multiple virtual servers can be deployed in the cloud in minutes, and companies only need to pay for the actual space that they use to meet increased data demands. Hence, the factors mentioned above increase the market for the cloud delivery model of life science analytics software.
By end user, the global life science analytics software market is segmented into pharmaceutical & biotechnology companies, medical device companies, research centers, and third-party administrators (TPAS). The pharmaceutical and biotechnology companies segment was the highest contributor to the market and is estimated to grow at a CAGR of 14.1% during the forecast period. Clinical researchers, scientists, and life science professionals need data analysis and visualization tools to accelerate research, drive innovation and facilitate collaboration. Moreover, analytics software helps pharma and biotech companies accelerate drug discovery, improve manufacturing and trial outcomes and control the data. Such applications drive segment growth.
Region-wise, the global life science analytics software market is analyzed across Europe, North America, Asia-Pacific, and LAMEA.
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North America was the highest revenue contributor and is estimated to grow at a CAGR of 13.9%. In the region, a big-data revolution has started in health care, owing to the ample supply of information. Over the last decade, pharmaceutical and biotech companies have collected years of R&D data in medical databases. Furthermore, the US federal government and other public stakeholders have opened stores of healthcare knowledge, including data from clinical trials and patient information covered under public insurance programs.
Furthermore, some healthcare leaders already use analytics software to capture valuable information. For instance, AstraZeneca established a four-year partnership with WellPoint's data and analytics subsidiary, HealthCore, to conduct real-time studies to determine the most effective and economical treatments for chronic illnesses and common diseases. In addition, AstraZeneca would use HealthCore data and its clinical-trial data to guide R&D investment decisions. Moreover, it collaborates with payors to provide the best coverage for drugs already on the market. Hence, big-data initiatives have the potential to transform the health care system and help to fuel the life science analytics software market in North America during the forecast period.
Europe is the second largest region. It is estimated to reach an expected value of USD 7680 million by 2030, registering a CAGR of 14.7%. The Europe life science analytics software market includes five major countries: the UK, Germany, France, Italy, Spain, and the rest of Europe. The UK accounted for a significant need for the Europe life science analytics software. At the same time, Germany is expected to be the fastest growing segment during the forecast period due to the adoption of analytics software in research & development, clinical trials, and supply chain management. In addition, a significant aging population and expensive treatment methods drive health spending, increasing the demand for analytics software from researchers to discover personalized medicine and novel drugs. Moreover, an increase in mortality rate and the need for low-cost treatment, especially in the European Union, is expected to boost market growth during the forecast period.
Asia-Pacific is the third largest region. Introduction and utilization of life science analytics software products for data management, supply chain management, pharmacovigilance, the discovery of drugs, and personalized medicine for chronic diseases, especially aging-related neurological disorders, in China and India, a key trend observed in the region. Awareness regarding life science analytics software products in treating chronic illnesses among governments and pharmaceutical & biotech companies has increased in these countries. Moreover, the rise in significant R&D investments and the improvement of healthcare infrastructure further drive the market's growth.