Laboratory Information System Market Estimated to Grow at a CAGR of 9.3% During the Forecast Period 2021-2026
The Laboratory Information System /LIS Market size is estimated to reach $2.24 billion by 2026, growing at a CAGR of 9.3% during the forecast period 2021-2026. Laboratory Information System, also known as a laboratory management system is software that processes, stores and manages data from all stages of medical processes and tests. The data collected are then stored in a secure database for future reference. Rapid innovation in this sector has resulted in advancements in overall features that can be provided by LIS. They have progressed from simple tracking to an enterprise resource planning tool that has the ability to monitor various parts of laboratory informatics. The increase in the adoption of IT systems in healthcare is anticipated to drive the market during the forecast period. However, the high costs associated with the software and services act as a challenge for the growth of the Laboratory Information System /LIS industry.
Laboratory Information System /LIS Market Segment Analysis – By Product Type
Based on Product Type, the Laboratory Information System /LIS Market is segmented into Standalone and Integrated. The Integrated segment is anticipated to have the largest share of the market in 2020 and is poised to dominate the market during the forecast period 2021-2026. Moreover, this segment is also projected to grow the fastest at a CAGR of 9.7% during the forecast period. The rapid growth can be attributed to their various crucial benefits such as automated laboratory administration, reduced risk of errors, integration of instruments and equipment, and higher overall efficiency. Moreover, integrated LIS removes the need for manual order entry, which eliminates any risk of human errors and saves time. The system makes use of barcode technology with an interface to LIS for order entry and tracking.
Laboratory Information System /LIS Market Segment Analysis – By Delivery Mode
The Laboratory Information System /LIS Market based on Delivery Mode can be further segmented into Web-based, On-premise, and Cloud-based. The On-premise segment accounted for the largest share of the market in 2020. On-Premise software requires the laboratories to have a license of the software. As this licensed copy stays within the laboratory, it can provide much higher data protection than Cloud-based delivery. This is essential as the patient data being stored is highly sensitive and protected by law. However, the Cloud-based delivery mode segment is also anticipated to witness significant growth at a CAGR of 10.3% during the forecast period owing to their significantly lower costs. On-Premise solution requires in-house server hardware, software licenses, integration capabilities, and IT employees in order to function properly. However, in Cloud-based, a third-party host will provide the services.
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Laboratory Information System /LIS Market Segment Analysis – By Geography
The Laboratory Information System /LIS Market based on Geography can be segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. The North American segment is projected to dominate the Laboratory Information System /LIS market during the forecast period 2021-2026 with a market share of 37% owing to the presence of highly developed healthcare infrastructure, high healthcare expenditure, and increasing penetration of IT in the healthcare sector. Moreover, the rapid rise in the prevalence of chronic diseases such as cancer, diabetes, and heart disease in the region is increasing the demand for laboratory services. However, the Asia Pacific region is predicted to register the fastest growth during the forecast period owing to the increase in disposable income, rising geriatric population, and growth in public healthcare funding in major emerging economies like China and India.
Laboratory Information System /LIS Market Drivers
Increase in Healthcare Expenditure is Projected to Drive Market Growth
An increase in the healthcare expenditure of developed and major developing countries is driving the demand for LIS systems as rising expenditure increases the purchasing power of healthcare facilities promotes the adoption of LIS. For instance, the annual healthcare expenditure in the US is projected to grow at a rate of 5.4% between 2019 and 2028. The healthcare expenditure was around $4 trillion in 2020 and is poised to reach $6.19 trillion by 2028. India only spent around 1.2% of its GDP on healthcare in 2021. However, this is projected to reach 3% by 2022. Furthermore, the Indian government is planning to introduce a credit incentive program worth $6.8 billion to boost the country’s healthcare infrastructure.
The rise in Lifestyle disorders is Anticipated to Boost Demand
Owing to the growth in global disposable income and urbanization, more people are following a sedentary lifestyle. This is causing an increase in lifestyle diseases such as obesity, hypertension, cancers, and diabetes. Around 39% of the global adult population is overweight and 9.8% suffer from diabetes. Furthermore, 26% of the population suffers from hypertension and this is projected to reach 29% by 2025. According to the International Agency for Research on Cancer (IARC), more than 19.3 million people were diagnosed with cancer in 2020 and the disease was responsible for around 10 million deaths worldwide. Around 20% of the global population will be diagnosed with the disease at some point during their lifetime, and 1 in 8 men and 1 in 11 women die from cancer. This will increase the demand for advanced diagnostic and laboratory services for early detection.
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Laboratory Information System /LIS Market Challenges
The Low Awareness of LIS is Anticipated to Hamper Market Growth
The low awareness regarding the benefits of integrating IT in healthcare in low and middle-income countries act as a major threat for demand generation. This is attributed to the low public and private healthcare expenditure, which is leading to the lower purchasing capacity of the majority of small-scale public and private hospitals in these regions. For Instance, according to the World Health Organization (WHO) database, the annual per capita healthcare expenditure in South Africa and Bangladesh were only $525.9 and $41.9 respectively. This is extremely low compared to developed countries such as the US who spent around $10623.8 per capita. This means that the laboratories in these countries lack the capital to invest in LIS software and therefore, continue using physical records for their activities.
Risk of Data Breach is Projected to Limit Growth Opportunities
The growing concern regarding the leak of confidential patient information from healthcare facilities owing to cyber-attacks is a major challenge that can hamper the market growth. For instance, on average, more than 3.34 million healthcare records were breached every month in the US between July 2020 and June 2021 by ransomware and other cyberattacks. The leaked information includes patient names, addresses, diagnosis information, contact details, and insurance information. The American health service provider UHS lost around $67 million in 2020 owing to network shutdowns caused by ransomware attacks. These records can be sold for up to $1,000 per record in order to be used for illegal activities such as forging passports and insurance fraud.
Laboratory Information System /LIS Market Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Laboratory Information System /LIS Market. The top 10 companies of the industry include:
Orchard Software Corporation
Sunquest Information Systems Inc
Cerner Corporation
Computer Programs and Systems
CompuGroup Medical AG
Meditech
Comps Pro Med
LabWare
LabSoft
Clin lab
Partnerships/Product Launches:
In May 2021, Orchard Software has announced the acquisition of Corwen, LLC in order to enhance the company’s molecular capabilities and continue its commitment to providing the most comprehensive, integrated LIS solution on the market. Corwen’s molecular solution will work alongside Orchard’s broader LIS and point-of-care testing solutions.
In December 2020, CompuGroup Medical acquired Schuyler House and its successful laboratory information system called SchuyLab. The LIS has been one of the most sustainably successful systems in the physician office lab and reference lab markets. The acquisition enables CompuGroup to increase its presence in the US market.
Key Takeaways
Geographically, the North American Laboratory Information System /LIS market accounted for the largest share in 2020 owing to the presence of well-developed healthcare infrastructure in the region.
An increase in the number of medical procedures and tests is driving the demand for LIS. However, the risk of data breaches and cyber-attacks on the LIS databases is a major challenge that can hamper growth.
Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Laboratory Information System /LIS Market Report.
Relevant Link:
Medical Laboratories Market
https://www.industryarc.com/Report/15643/medical-laboratories-market.html
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