Global laboratory informatics market is estimated to be valued at USD 3.75 Bn in 2024 and is expected to reach USD 6.61 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.4% from 2024 to 2031.
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Increasing integration of laboratory information systems with other clinical and healthcare IT applications, rising need for laboratory automation to ensure efficient operations and minimize human errors, and growing demand for improved data standardization are expected to drive the market growth during the forecast period.
Trends in the market point to a continued focus on leveraging laboratory informatics solutions to improve lab workflow efficiency and provide better data access and analytics capabilities. There has been rising adoption of cloud-based LIMS and other connected solutions as labs look for flexible, scalable options to manage samples and equipment remotely. There has been increase in integration of artificial intelligence and machine learning functionalities within informatics platforms to enable more sophisticated data mining, equipment monitoring, and diagnostic assistance.
Rising utilization of laboratory informatics solutions
Increasing reliance on laboratory informatics solutions for diagnostic purposes can drive the laboratory informatics market growth. With rapid rise in chronic and infectious diseases worldwide over the past decade, clinical laboratories have faced significant workload and operational challenges to provide timely diagnoses for patients. Laboratory informatics systems allow laboratories to streamline workflows, integrate diverse diagnostic instruments, manage large volumes of samples and test results digitally and gain valuable insights into performance. This has helped improve efficiency, minimize errors and turnaround times for reporting test outcomes to physicians and patients. For instance, in March 2021, LabVantage Solutions, Inc., a laboratory informatics company, announced the launch of LabVantage Analytics, an advanced analytics solution that lets users easily explore, analyze, enterprise, and external data to gain business insights. Designed by analytics industry experts, LabVantage Analytics seamlessly integrates with all elements of the LabVantage LIMS platform, thus, providing a single user interface and workflow.
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Leveraging Connectivity for Quality and Efficiency
The need for enhanced connectivity to improve quality processes and lab workflows can drive the market growth. Modern life science labs house a complex ecosystem of intricate equipment, instruments, supply chains and people. Keeping this ecosystem running seamlessly requires strong integration and digital linkage between its different components. Traditional paper trails and disconnected systems have proved inefficient at tracking material movements, results, ensuring compliance and optimizing resource usage. Laboratory informatics addresses this by providing a centralized digital platform that can connect disparate lab devices, software applications, databases and manage associated workflows in a coordinated manner. Through its functionality for inventory management, sample tracking, electronic batch records, LIMS integration and remote monitoring capabilities - informatics helps bring visibility, standardization and automation to otherwise fragmented operations. This results in reduced errors, improved turnaround times, better regulatory management and higher throughput. Organizations are able to derive significant gains in quality, productivity and compliance when implementing laboratory informatics to enhance connectivity within their facilities.
Key Takeaways of Analyst:
Global laboratory informatics market is expected to witness growth in the near future. Life science research and development activities are rising globally due to increasing pharmaceutical research and development expenditure, and this is expected to boost adoption of laboratory informatics solutions. Moreover, stringent regulatory guidelines for lab documentation and data integrity also drives the market growth.
However, high installation and maintenance costs of laboratory informatics systems can limit their adoption, especially among small and medium-sized labs. Data integration challenges between informatics platforms and existing infrastructure can also hamper the market growth.
North America dominates the laboratory informatics market due to extensive R&D investments and stringent regulatory mandates. Asia Pacific region is expected to offer lucrative opportunities owing to rising biopharmaceutical research in China, India, and other emerging countries. Growth in biobanks and biorepositories will also boost regional market opportunities.
Pharmaceutical and biotechnology companies dominate end-use demand and this trend is projected to continue. Rising need for laboratory automation solutions and ELN/LIMS for improved documentation and data integrity can boost demand from these end users. Cloud-based delivery models could gain more acceptance versus on-premise systems due to economic and scalability advantages.
Market Challenge – High cost associated with the maintenance and service
Global laboratory informatics market growth can be hampered due to significant expenses associated with maintenance and service. For example, the cost of a laboratory information system can vary between US$ 4,000 and US$ 100,000, with additional annual operating costs ranging from US$ 1000 to US$ 5000. These operating expenses encompass software licensing, healthcare personnel training, maintenance, and service costs. Thus, these laboratories often choose lower-cost versions of laboratory information systems.
Market Opportunity – Increasing favorability towards cloud-based laboratory informatic
Rising demand for cloud-based laboratory informatics can offer opportunities for participants in laboratory informatics market. Cloud-based technology enables the remote storage of vast data volumes, freeing up device space and facilitating customized data retrieval. In October 2021, PerkinElmer introduced its Signals Research Suite, a cloud-based solution hosted on Amazon Web Services. This secure informatics platform offers pharmaceutical and industrial clients integrated, comprehensive scientific data management and workflow capabilities.
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Insights, By Device Type: Growing adoption of laboratory automation and cloud computing can drive the services segment growth
In terms of device type, services segment is estimated to contribute the highest market share of 60.4% in 2024 owing to growing adoption of laboratory automation technologies and need for integration, validation, implementation and support services. Next-generation laboratories are increasingly automating standard operating processes and implementing software and devices to handle complex workloads efficiently. This boosts demand for consultancy, installation, integration, validation and training services that are required to design, develop and implement such automated laboratories. Furthermore, there has been increase in adoption of cloud-based laboratory informatics as cloud offers benefits like flexible scalability, collaboration and lower upfront costs. However, effective implementation and management of cloud solutions require specialized services, and this drives the segment growth.
Insights, By Product: The need for integrated workflow and data management can drive the laboratory information management system segment growth
In terms of product, laboratory information management system segment is estimated to contribute the highest market share of 45.3% in 2024 IMS plays a pivotal role in managing workflows and data in modern laboratories. It offers functionalities for sample receiving, inventory maintenance, order management, result tracking and reporting. Growing focus on standardizing processes, integrating workflows and ensuring regulatory compliances has increased the demand for LIMS. With explosion of laboratory data due to various omics technologies, there is a need for integrated platforms that can capture, store, process and analyze large and complex datasets efficiently. LIMS addresses these challenges and proves to be a fundamental system for most laboratories.
Insights, Delivery Mode: Efficiency and security advantages can drive the on-premise segment growth
In terms of delivery mode, on-premise segment is estimated to contribute the highest market share of 44.2% in 2024.raditionally, most laboratories have relied on locally installed on-premise informatics solutions due to security and compliance concerns with sensitive data. On-premise deployment offers laboratories high degree of control over their critical data infrastructure. It also ensures better performance since software and database is running on dedicated high-performance hardware within the organization's firewall. This becomes an important consideration for latency-sensitive laboratory applications. Although cloud-based solutions provide flexibility and scalability, their implementation requires alignment with organizational IT policies and regulatory approvals. For regulated environments like pharmaceutical industry, on-premise is the preferred approach due to advantages it provides in terms of security, customizability and compliance.
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North America has established itself as the dominant regional market for laboratory informatics with estimated share of 40.2% in 2024. The region boasts a large concentration of leading life sciences companies and robust biomedical research infrastructure. There is strong government funding for research in the U.S. and Canada, has and this has boosted rapid technology adoption across academic and clinical laboratories. The regulatory mandates such as FDA's 21 CFR Part 11 have accelerated digitization efforts of laboratory processes.
The U.S. accounts for the largest share of the North America laboratory informatics market. Many major healthcare systems and national labs are based in the U.S., processing large volumes of sample analysis annually. This has driven technology vendors to prioritize partnerships and innovation to address the scale and complexity of U.S. laboratories. The presence of leading informatics solution providers has further strengthened the market position. Additionally, the advanced IT capabilities and higher in-house research & development budgets allow organizations to invest in cutting-edge platforms.
Laboratory Informatics Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2023 | Market Size in 2024: | US$ 3.75 Bn |
Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 to 2031 |
Forecast Period 2024 to 2031 CAGR: | 8.4% | 2031 Value Projection: | US$ 6.61 Bn |
Geographies covered: |
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Segments covered: |
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Companies covered: |
Thermo Fisher Scientific, Inc, LabWare, PerkinElmer, Inc., LabVantage Solutions, Inc., LabLynx, Inc., Agilent Technologies, ID Business Solutions Ltd., McKesson Corporation, Waters Corporation, Abbott Informatics, LabWare, Abbott Informatics (Starlims Corporation), Waters Corporation, Agilent Technologies, LabVantage Solutions, Inc., PerkinElmer Inc., IDBS, LIMS at Work GmbH, Siemens AG, Core Informatics LLC |
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Growth Drivers: |
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Restraints & Challenges: |
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*Definition: Laboratory Informatics Market involves solutions, software, and systems designed specifically for managing data created within life science and clinical laboratories. These informatics tools automate workflows, capture data from instruments and lab devices, integrate with laboratory information management systems (LIMS), and provide analytics to help optimize operations. They enable laboratories to increase productivity, enhance regulatory compliance, improve data quality, and gain insights through analytics that advance research and development.
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About Author
Komal Dighe is a Management Consultant with over 8 years of experience in market research and consulting. She excels in managing and delivering high-quality insights and solutions in Health-tech Consulting reports. Her expertise encompasses conducting both primary and secondary research, effectively addressing client requirements, and excelling in market estimation and forecast. Her comprehensive approach ensures that clients receive thorough and accurate analyses, enabling them to make informed decisions and capitalize on market opportunities.
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