LIFE SCIENCES ANALYTICS MARKET ANALYSIS

The global life sciences analytics market was valued at US$ 8,740.0 Mn in 2021 and is forecast to reach a value of US$ 14,789.7 Mn by 2028 at a CAGR of 7.9% between 2022 and 2028. The global life sciences analytics market is experiencing strong growth due to the rising adoption of analytics solutions in pharmaceuticals & clinical trials and emergence of advanced analytics method in life science companies. Moreover, growing pressure to reduce healthcare spending and the need for improved patient outcomes is expected to boost the market growth. However, factors such as lack of skilled personnel and high implementation costs are expected to hamper the growth of the global life sciences analytics market.

Global Life Sciences Analytics Market: Regional Insights

Based on geography, the global life sciences analytics market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market over the forecast period due to the rising incidence of non-communicable diseases. The main types of NCD are heart diseases, cancers, diabetes, and chronic respiratory diseases. Analytics helps understand the components needed for new drug discovery or drug development. For instance, according to the U.S. Centers for Disease Control and Prevention (CDC), chronic diseases, such as heart disease, cancer, and diabetes are the leading causes of death and disability in the U.S.

Asia Pacific is also expected to witness significant growth in the global life sciences analytics market due to the increasing prevalence of chronic diseases and growing geriatric population in this region. Life science organizations and market players are using analytical solutions in advanced revenue cycle management and population health management programs. According to the National Center for Biotechnology Information, more than 21% of the elderly in India reportedly have at least one chronic disease.

Figure 1. Global Life Sciences Analytics Market Share (%), by Region, 2021

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Global Life Sciences Analytics Market Drivers:

Increasing prevalence of non-communicable diseases across the globe is expected to augment the growth of the global life sciences analytics market during the forecast period. For instance, according to the World Health Organization (WHO), noncommunicable diseases (NCDs), such as heart disease, diabetes, cancer, stroke, and chronic lung disease, are collectively responsible for almost 70% of all deaths worldwide. Noncommunicable diseases (NCDs) kill around 41 million people each year, equivalent to 71% of all deaths worldwide.

Growing adoption of analytics solutions is expected to boost growth of the global life sciences analytics market during the forecast period. For instance, life science organizations/companies and other healthcare industry players increasing adoption of analytics by life science companies to align their sales & marketing campaigns. In February 2019, Clarivate Analytics launched a Life Science Alliances Program to provide drug and medical device developers with a new way to significantly advance their research and development and commercialization initiatives.

Global Life Sciences Analytics Market Opportunities:

Increasing adoption of analytics for sales and marketing applications in life science companies is expected to offer robust growth opportunities for players in the life sciences analytics market. For instance, life science companies and other healthcare industry players increasing adoption of analytics by life science companies to align their sales and marketing campaigns. According to the 2021 ISG Provider Lens Life Sciences Digital Services Report, life sciences companies in the European region are interested in using analytics to support marketing and sales efforts and optimize supply chain operations.

Increase in focus on the drug development is expected to provide lucrative growth opportunities for players in the global life sciences analytics market. For instance, in June 2020, Malvern Panalytical and Concept Life Sciences launched Amplify Analytics, a range of highly flexible services designed to help pharmaceutical companies rapidly identify those drug candidates that meet bioavailability & processability requirements, speeding & de-risking drug development. Each element is designed to enable fast, reliable decision-making on the suitability of the drug candidate for the further development.

Global Life Sciences Analytics Market Trends:

Rising adoption of web-hosted and cloud-deployed analytical solutions is expected to propel growth of the global life sciences analytics market. For instance, in March 2022, Snowflake announced the launch of the Healthcare & Life Sciences Data Cloud to enable organizations to securely centralize, integrate, and exchange critical/sensitive data at scale. Snowflake ensures high levels of data security and governance, and its built-in capabilities and extended partner network allow companies to meet compliance requirements and satisfy industry regulations.

Need for improved data standardization is expected to drive growth of the global life sciences analytics market. For instance, in June 2020, Oracle Health Sciences introduced Clinical One Data Collection Cloud Service. This software can integrate data from multiple sources into a single platform, which in turn helps improve the speed and efficiency of clinical trial studies. ​

Global Life Sciences Analytics Market Restraints:

High cost of implementation is expected to hamper growth of the global life sciences analytics market. For instance, according to the Clinical Trial Management Software Pricing Guide and Cost Comparison by Capterra, CANTAB costs about US$ 30,000, MEDAS-HIMS costs about US$ 25,000, and TrialPoint Software costs about US$ 15,000. This further indicates the cost of data analytics products to be high.

Lack of skilled personnel or dearth of skilled professionals is expected to hinder growth of the life sciences analytics market. The data scientist shortage leaves some organizations unable to employ data science to aid the decision-making process. Both big & small businesses are using data analytics to make informed decisions, thus increasing the competition for finding quality candidates. This demand for data analysts is probably the biggest reason for the shortage of data analysts in the hiring market.

Figure 2. Global Life Sciences Analytics Market Share (%), by Product Type, 2021

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Global Life Sciences Analytics Market Segmentation:

The global life sciences analytics market report is segmented into Product Type, Application, Component, End-User, and Region.

Based on Product Type, the market is segmented into Descriptive Analytics, Predictive Analytics, and Prescriptive Analytics. Of which, Descriptive Analytics Segment is expected to dominate the life sciences analytics market over the forecast period and this is attributed to the increasing demand for quantifiable, descriptive analysis based on historic datasets to derive data-driven analysis to better understand the current business scenario.

Predictive Analytics Segment is also expected to witness significant growth in the near future and this is due to the growing adoption of advanced analytical solutions and favorable strategies and tactics to enhance market performance.

Based on Application, the market is segmented into Research & Development, Supply Chain Analytics, Sales & Marketing, and Other Applications. Of which, Research and Development Segment is expected to dominate the market over the forecast period and this is attributed to the increasing adoption of analytical solutions in drug discovery and development and clinical trial management systems.

Sales & Marketing Segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of analytical solutions in sales and marketing to boost sales and design effective and impactful marketing campaigns.

Based on Component, the market is segmented into Services and Software. Of which, Both Segments are expected to dominate the market during the forecast period and this is attributed to the increasing adoption of analytical solutions.

Based on End User, the life sciences analytics market is segmented into Clinical Research Institutions, Pharmaceutical and Biotechnology Companies, Medical Device Companies, and Other End Users. Out of which, All Segments are expected to dominate the market during the forecast period and this is attributed to the rise in prevalence of non-communicable diseases.

Global Life Sciences Analytics Market: Key Developments

In February 2022, Clinixir Company Limited selected Oracle’s innovative clinical research and pharmacovigilance solutions as its eClinical platform. Clinixir chose Oracle Health Sciences Clinical One Cloud Service for its comprehensive, end-to-end technology capabilities and breadth of applications.

In August 2021, Accenture Federal Services (AFS), a subsidiary of Accenture PLC, completed acquisition of Novetta, a McLean, Virginia-based advanced analytics company.

In July 2021, Philips  & Cognizant  teamed up  to  develop  end-to-end  digital health  solutions  that  will  enable  healthcare organizations and life sciences companies to improve patient care and accelerate clinical trials.

In March 2021, Cleveland Clinic and IBM teamed up to establish the Discovery Accelerator, a joint Cleveland Clinic - IBM centre to fundamentally advancing the pace of the discovery in healthcare and life sciences through the use of artificial intelligence (AI), quantum computing technologies, and high-performance computing on the hybrid cloud.

Global Life Sciences Analytics Market: Key Companies Insights

The global life sciences analytics market is highly competitive. This is attributed to the rising adoption of analytics solutions in pharmaceuticals and clinical trials, as a result, players in the market are focusing on launching novel analytics solutions in the market.

Some of the key players in the global life sciences analytics market are:

Apollo Intelligence, SERMA Group, M3 (EU) Ltd., Dynata, Wipro Limited, SAS Institute Inc., IQVIA, Oracle Corporation, MaxisIT, IBM Corporation, Cognizant, Accenture, EXL Service (SCIOInspire Corp.), and TAKE Solutions Limited, among others.

*Definition: Life sciences analytics is the process of clinical data analysis which provides predictive tools for better patient care. The application of analytics has emerged as a helpful tool for pharmaceutical, biotechnological, and medical device companies, as it helps overcome challenges in data integration and enhance operational efficiency.