Laboratory Information System /LIS Market - Forecast(2024 - 2030)
Laboratory Information
System /LIS Market Overview
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 Report Coverage
The report: “Laboratory Information System /LIS Market
Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the
following segments of the Laboratory
Information System /LIS Market.
By Component: Software and Services
By Delivery Mode: Web-based, On-premise, and Cloud-based
By End User: Hospital Laboratories, Physician Laboratories, Independent Laboratories, and Others
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America) and Rest of World (the Middle East and Africa).
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.
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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.
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.
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.
Relevant Links:
Medical
Laboratories Market – Forecast (2021 - 2026)
Report Code: HCR
0145
Electronic
Health Records Market – Forecast (2021 – 2026)
Report Code: HCR
73305
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