Laboratory Information Systems Market
Number of pages: 100 | Report Format: PDF | Published date: April 03, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
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Report Attribute |
Details |
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Market Size Value in 2022 |
US$ 1.93 billion |
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Revenue Forecast in 2031 |
US$ 3.57 billion |
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CAGR |
7.1% |
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Base Year for Estimation |
2022 |
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Forecast Period |
2023-2031 |
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Historical Year |
2021 |
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Segments Covered |
Delivery Mode, Component, End User, and Region |
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Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global laboratory information systems market was valued at US$ 1.93 billion in 2022 and is expected to register a revenue CAGR of 7.1% to reach US$ 3.57 billion by 2031.
Laboratory Information Systems Market Fundamentals
Laboratory Information Systems (LIS) are computer software systems designed to manage and process medical laboratory data. Laboratory information systems software can manage various laboratory functions, such as tracking patient specimens, generating and delivering test results, and managing laboratory workflows. The system can also be used to manage inventory, quality control, and laboratory billing.
LIS software can help improve the accuracy and speed of laboratory testing by automating many of the manual processes involved in testing and result reporting. It can also reduce errors and improve patient safety by ensuring that the right test is performed on the right specimen and that the results are accurately reported to the right healthcare providers. LIS can be standalone systems or integrated with other healthcare systems, such as Electronic Health Records (EHRs), Hospital Information Systems (HIS), and Radiology Information Systems (RIS), to provide a comprehensive view of patient health information across multiple departments and facilities.
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Laboratory Information Systems Market Dynamics
As healthcare facilities strive to improve patient outcomes and reduce costs, there is a growing need for laboratory operations to be more efficient, which is the primary factory for the growth of global laboratory information systems. Laboratory information systems help to streamline processes, reduce errors, and increase productivity, thus improving laboratory efficiency. The laboratory information systems market constantly evolves, adding new and advanced features regularly. Integrating artificial intelligence, machine learning, and big data analytics in LIS has revolutionized laboratory operations, allowing faster and more accurate diagnoses.
Additionally, with the growing trend of integrated healthcare systems, there is a need for LIS to be integrated with Electronic Health Records (EHR) and other clinical systems. This integration allows for better patient care coordination and information sharing among healthcare providers. Furthermore, personalized medicine is gaining popularity as it allows for tailored treatment plans based on individual patient needs. LIS is crucial in advancing personalized medicine by providing the precise and timely laboratory test results required for accurate diagnoses and treatment plans. This increased use of these systems eventually drives the revenue growth of global laboratory information systems.
However, the initial investment in LIS can be significant, particularly for smaller healthcare facilities with limited budgets. The cost of purchasing, implementing, and maintaining LIS can be a significant barrier to adoption, particularly for smaller laboratories. Moreover, the lack of standardization across laboratories can hinder the adoption of LIS. Laboratories often use different testing methodologies, equipment, and software, making standardizing data and integrating information across different systems difficult. Furthermore, smaller healthcare facilities may lack the IT resources to implement and maintain LIS. Adopting and using LIS can be challenging without adequate IT support, limiting its potential benefits. Additionally, difficulty integrating existing systems and data privacy and security concerns are some restraints impeding the overall market revenue growth.
Laboratory Information Systems Market Ecosystem
The global laboratory information systems market is analyzed from four perspectives: delivery mode, component, end user, and region.
Laboratory Information Systems Market by Delivery Mode
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Based on the Delivery Mode, the global laboratory information systems market is segmented into on-premise, web-hosted, and cloud-based.
The cloud-based segment dominated the market with the top revenue share in 2022, attributed to its advantages, such as mobility and data privacy. Cloud-based laboratory information systems are a software-as-a-service (SaaS) model that allows laboratories to access laboratory information systems through the Internet, eliminating the need for on-premise hardware and software. Cloud-based LIS eliminates the need for hardware and software, reducing upfront and ongoing maintenance costs. This makes it an attractive option for smaller laboratories and healthcare facilities with limited budgets. It can be accessed from anywhere with an internet connection, providing greater accessibility and flexibility for laboratory staff. Its providers typically offer robust data security measures, such as encryption and access controls, to protect patient data from breaches and cyber-attacks. Furthermore, cloud-based LIS enables easy collaboration and data sharing among healthcare providers, facilitating better patient care coordination and improving clinical outcomes. These factors contribute to the revenue growth of the cloud-based segment.
The web-based segment dominated the market with the second-largest revenue share in 2022. Web-based is a delivery model where the laboratory information system software is hosted on a server and accessed through a web browser. The web-hosted segment is similar to a cloud-based laboratory information system but with some differences, such as where the software is hosted and the level of control that the laboratory has over the system. Web-hosted LIS eliminates the need for on-premise hardware and software, reducing upfront costs and ongoing maintenance costs for the laboratory. Since the web-hosted laboratory information system is accessed through a web browser, laboratory staff requires minimal training to use the system, reducing training costs. These factors contribute to the revenue growth of the web-based segment.
Laboratory Information Systems Market by Component
Based on the component, the global laboratory information systems market is segmented into software and services.
The services segment dominates the global market, with the largest revenue share in 2022. The services segment includes various support and maintenance services provided to laboratories using laboratory information systems. These services include implementation, training, consulting, support, and maintenance. Large pharmaceutical research laboratories frequently lack the means and skills for analytics implementation. As a result, these functions are on a contract basis. Thus hiring can be done on a short-term, project-based, or long-term basis. These services are bundled, including predictive analytics for medical device failure and benchmarking services. These overall factors contribute to the revenue growth of the services segment.
Laboratory Information Systems Market by End User
Based on the end user, the global laboratory information systems market is segmented into hospitals, clinics, independent laboratories, and others.
The hospital segment is a key player in the laboratory information systems market, with the largest revenue share in 2022. Hospitals are increasingly adopting laboratory automation to improve workflow efficiency and reduce turnaround times. Advanced LIS systems are essential for managing and integrating laboratory automation with other hospital systems. Hospitals are increasingly adopting electronic health records (EHR), and laboratory information systems can be integrated with EHR systems to ensure that patient data is transmitted securely and efficiently between systems. These overall factors contribute to the revenue growth of the hospital segment.
The independent laboratories segment is expected to be the fastest-growing segment during the forecast period. Independent laboratories are not affiliated with a larger healthcare organization or hospital system. These independent laboratories may be privately owned, government-run, or operated by academic institutions. Independent laboratories have unique needs and requirements compared to larger healthcare organizations. They may require more flexible and customizable LIS solutions tailored to their specific workflows and operations. Additionally, independent laboratories may focus more on cost-effectiveness and affordability when selecting a laboratory information system solution. These overall factors contribute to the revenue growth of the independent laboratories segment.
Laboratory information systems Market by Region
Based on region, the global laboratory information systems market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
North America dominated the global laboratory information systems market with the largest revenue share in 2022, attributed to the availability of cutting-edge infrastructure, fast adoption of technology, and rising demand for genomic research. Additionally, companies across the region are continuously involved in mergers, acquisitions, and partnerships with other companies, helping grow the market revenue. For instance, in December 2022, CompuGroup Medical US (CGM), a global leader in healthcare technology and technology-enabled services, expanded its presence in the United States with the acquisition of Medicus Laboratory Information Systems (Medicus) from Diagnostic Systems Consulting, LLC, a well-established developer of laboratory information systems based in Weston, Florida. CompuGroup Medical's acquisition of Medicus allows it to expand its partnerships with big, value-added resellers in the US healthcare industry. CGM will also be able to market its LIS solutions across the healthcare continuum by leveraging the extensive Medicus network of healthcare groups and consultants.
Competitive Landscape of Laboratory information systems Market
The prominent players operating in the global laboratory information systems market are:
Strategic Developments in Laboratory information systems Market
The difficulty in integrating existing systems and data privacy and security concerns are factors restricting the global market growth to its full potential.
Laboratory Information Systems (LIS) are computer software systems designed to manage and process medical laboratory data.
The expected size of the global laboratory information systems market in 2031 is valued to be US$ 3.57 billion.
The key companies operating in the global laboratory information systems market are PerkinElmer Inc., Abbott Laboratories Inc., Labworks, Computing Solutions, Inc., CompuGroup Medical, Biosero, Inc., and Cerner Corporation.
The expected revenue CAGR of the laboratory information systems market during the forecast period will be 7.1% from 2023 to 2031.
*Insights on financial performance are subject to the availability of information in the public domain