Global laboratory information systems market is estimated to witness high growth, owing to advancement in healthcare IT infrastructure & growing demand for better patient care
Global Laboratory Information Systems Market is estimated to be valued at USD 2.52 Bn in 2024, exhibiting a CAGR of 10% over the forecast period 2024-2031. Advancement in healthcare IT infrastructure and integration of laboratory information systems with other healthcare IT solutions are expected to drive the market growth. Furthermore, growing demand for improved patient care and medical outcomes can boost demand for laboratory information systems.
Market Dynamics:
Global laboratory information systems market growth is primarily driven by increasing adoption of laboratory information systems by healthcare providers to enhance operational efficiencies. Laboratory information systems allow seamless data integration across complex healthcare networks, thus, improving clinical outcomes. These help in streamlining workflows, reducing lab turnaround times, and minimizing human errors. This has resulted in better patient management and care. Growing need to curtail healthcare costs prompts healthcare providers to invest in laboratory information systems to enhance productivity and optimize resource utilization. Availability of government funding and incentives for healthcare IT adoption can drive the laboratory information systems market growth during the forecast period.
Government Mandates and Regulations Drives Adoption of LIS
Government bodies around the world are introducing new regulations and mandates to improve the quality of healthcare services. These require laboratories to implement advanced technologies like LIS to improve efficiency, reduce medical errors, and enhance patient safety. LIS allow laboratories to comply with regulatory standards for data management, reporting, and integration with other health IT systems. Increasing focus on improving lab processes through digitization can drive the market growth.
Need for Improved Lab Efficiency and Productivity
Laboratories are under growing pressure to handle rising test volumes and deliver faster turnaround times with limited staff and resources. Manual, paper-based processes can no longer keep up with current demands. LIS offer significant benefits in streamlining workflows, eliminating redundant efforts, and optimizing resource utilization. These facilitate automation of repetitive tasks, remote access to test results, and integration of instruments. This boosts overall lab efficiency and productivity multifold. The need for digital solutions that enhance capacity and throughput boosts demand for these systems.
High Initial Implementation and Maintenance Costs
LIS solutions require substantial upfront investments for purchasing hardware, software licenses, customization, integration, data migration, training staff, and other implementation services. Organizations need to allocate ongoing budgets for regular upgrades, technical support, IT infrastructure costs, and personnel training. The total costs of ownership of an LIS can increase laboratory budgets significantly. This high price tag discourages many small and medium labs from automating processes with LIS, especially in cost-sensitive developing regions.
Resistance to Change from Current Users
Many laboratory professionals have worked with legacy systems for several years, and are hesitant to transition to new computerized solutions. These people find existing processes familiar, and are reluctant to invest time in learning new interfaces or adjusting workflows. Some people may also fear potential job losses due to certain tasks getting automated. This inertia or resistance to change among current laboratory users poses a challenge and causes delays in LIS rollouts. Vendors need to address user training needs meticulously and reassure staff to overcome this restraint.
Growing Telepathology and Remote Diagnostics
The coronavirus pandemic has accelerated the need for telemedicine and remote healthcare delivery models. Laboratories are now exploring telepathology solutions that allow pathologists to examine digital slides and collaborate remotely. Vendors can integrate these virtual microscopy and diagnostic capabilities within LIS to enable tests to be conducted and results interpreted from any location. This offers significant opportunities to scale operations, improve turnaround times, and expand access to specialty diagnostic services for underserved regions.
Rising Demand in Developing Markets
While developing nations currently account for a small share of the global market, their demand is growing rapidly. Factors like increasing healthcare investments, rising disease burdens, expansions in insurance coverage, and focus on digitizing public health labs offer huge scope. Vendors should localize their offerings, provide flexible financing options, tap government initiatives, and strengthen partner networks in emerging territories to benefit from these opportunities.
Key Developments
- In August 2023, Thermo Fisher Scientific, Inc., a bio pharmaceutical company, introduced EXENT solution, a comprehensive and automated mass spectrometry platform that is designed to address unmet clinical requirements in managing monoclonal gammopathies
- In December 2022, LabVantage Solutions, Inc., a laboratory information management system provider, launched Version 8.8 of its primary LIMS platform, incorporating numerous enhancements across its entire suite
- In February 2022, Roche Diagnostics China, a healthcare company, partnered with Sanomede Medical Technology Co., Ltd., a technology company, to introduce the RS600 Lab Automation Software (LAS) specifically tailored for the Chinese market
- In February 2022, Biosero, Inc., a subsidiary of BICO and a pioneer in laboratory automation solutions, launched multiple new products and enhancements within its Green Button Go software suite. These innovations collectively offer enhanced functionalities aimed at optimizing control, efficiency, and outcomes for automated laboratory systems.
Key Players: Cerner Corporation, Sunquest Information Systems, Inc., CompuGroup Medical AG, McKesson Corporation, SSC Soft Computer, Orchard Software Corporation, Epic Systems Corporation, Meditech (Medical Information Technology, Inc.), Computer Programs and Systems, Inc. (CPSI), CliniSys Group Ltd., Merge Healthcare Incorporated (an IBM company), STARLIMS Corporation (a subsidiary of Abbott), Thermo Fisher Scientific Inc., Comp Pro Med, Inc., Schuyler House, LabWare, TechniData America, Siemens Healthineers
