Laboratory Information Systems Market is expected to grow at a CAGR of 9.3% during the forecast period 2021-2026

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An increase in the number of medical procedures and tests is driving the demand for laboratory information system.

the Laboratory Information System / LIS Market the size is expected 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 Laboratory Management System, is software that processes, stores and manages data of all stages of medical processes and tests. The collected data is then stored in a secure database for future reference. Rapid innovation in this industry has resulted in advancements in the overall functionality that can be provided by LIS. They have evolved from a simple tracker to an enterprise resource planning tool capable of monitoring various parts of lab computing. Rising adoption of IT systems in healthcare is expected to drive the market over the forecast period. However, the high costs associated with software and services pose a challenge for the growth of the laboratory information system/LIS industry.

Laboratory Information System / LIS Market Segment Analysis – By Product Type

On the basis of product type, the laboratory information system/LIS market is segmented into standalone and integrated. The Embedded segment is expected to hold the largest market share in 2020 and is poised to dominate the market during the forecast period 2021-2026. Moreover, this segment is also expected to witness the fastest growth with a CAGR of 9.7% during the forecast period. The rapid growth can be attributed to their various crucial advantages such as automated laboratory administration, reduced risk of errors, integration of instruments and equipment, and higher overall efficiency. Plus, the built-in LIS eliminates the need for manual order entry, eliminating any risk of human error and saving time. The system uses 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, on-premise and cloud. The on-premises segment accounted for the largest market share in 2020. On-premises software requires labs to license the software. As this licensed copy remains in the lab, it can provide much higher data protection than cloud-based delivery. This is essential as the stored patient data is very sensitive and protected by law. However, the cloud-based delivery methods segment is also expected to witness significant growth at a CAGR of 10.3% during the forecast period owing to their significantly lower costs. The on-premises solution requires internal server hardware, software licenses, integration capabilities, and IT employees to function properly. However, in the cloud, a third-party host will provide the services.

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Laboratory Information System / LIS Market Segment Analysis – By Geography

The geography-based Laboratory Information System/LIS market can be segmented into North America, Europe, Asia-Pacific, South America and Rest of the World. The North America segment is expected to dominate the Laboratory Information System/LIS market during the forecast period 2021-2026 with a market share of 37% due to the presence of highly healthcare infrastructure developed, high health expenditures and growing penetration of IT in the health sector. Additionally, the rapidly increasing 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 expected to register the fastest growth over the forecast period due to increasing disposable income, increasing geriatric population and growth in public funding for healthcare in major emerging economies such as China and India.

Laboratory Information System / LIS Market Drivers

Rising Healthcare Spending is Expected to Drive Market Growth

An increase in healthcare spending in developed and major developing countries is driving the demand for LIS systems, as the increase in spending increases the purchasing power of healthcare institutions and drives the adoption of LIS. For example, annual healthcare spending in the United States is expected to increase at a rate of 5.4% between 2019 and 2028. Healthcare spending was approximately $4 trillion in 2020 and is expected to reach $6.19 trillion by 2028. India spent only about 1.2% of its GDP on healthcare in 2021. However, this figure is expected to rise to 3% by 2022. Furthermore, the Indian government plans to introduce a credit incentive program worth $6.8 billion to strengthen the country’s health infrastructure.

Rise in lifestyle disorders expected to drive demand

Due to the growth in global disposable income and urbanization, more and more people are adopting a sedentary lifestyle. This leads to an increase in lifestyle-related diseases such as obesity, hypertension, cancers and diabetes. About 39% of the world’s adult population is overweight and 9.8% suffers from diabetes. In addition, 26% of the population suffers from hypertension and this figure is expected to rise to 29% by 2025. According to the International Agency for Research on Cancer (IARC), more than 19.3 million people have been diagnosed with cancer in 2020 and the disease was responsible for it. for approximately 10 million deaths worldwide. About 20% of the world’s population will be diagnosed with the disease at some point in their lives, and 1 in 8 men and 1 in 11 women will die of 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

Low Awareness of LIS is Expected to Hamper Market Growth

Low awareness of the benefits of integrating information technology into healthcare in low- and middle-income countries poses a major threat to demand generation. This is attributed to low public and private health expenditures, which lead to a decline in the purchasing power of the majority of small public and private hospitals in these regions. For example, according to the World Health Organization (WHO) database, annual per capita health expenditure in South Africa and Bangladesh was only $525.9 and $41.9 respectively. This is extremely low compared to developed countries like the United States which spent around $10623.8 per capita. This means that laboratories in these countries lack the capital to invest in LIS software and therefore continue to use physical records for their activities.

Data breach risk should limit growth opportunities

Growing concern over leakage of confidential patient information from healthcare institutions due to cyber attacks is a major challenge that may hamper the growth of the market. For example, on average, more than 3.34 million medical records were breached each month in the United States between July 2020 and June 2021 by ransomware and other cyberattacks. Information disclosed includes patient names, addresses, diagnostic information, contact information, and insurance information. US healthcare service provider UHS lost around $67 million in 2020 due to network outages caused by ransomware attacks. These recordings can be sold for up to $1,000 per recording to be used for illegal activities such as passport forgery and insurance fraud.

Industry Outlook of Laboratory Information System / LIS Market:

Product launches, mergers and acquisitions, joint ventures, and geographic expansions are key strategies adopted by players of the Laboratory Information System / LIS market. The top 10 companies in the industry include:

Orchard Software Corporation
Sunquest Information Systems Inc.
Cerner Company
Computer programs and systems
CompuGroup Medical SA
Meditech
Comps Pro Med
Laboratory items
LabSoft
Clinical laboratory

Partnerships/Product launches:

In May 2021, Orchard Software announced the acquisition of Corwen, LLC 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 point-of-care and LIS 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 enduring systems in the practice laboratory and reference laboratory markets. The acquisition allows CompuGroup to increase its presence in the US market.

Key points to remember

Geographically, the North America 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 cyberattacks on LIS databases is a major challenge that can hinder growth.

A detailed analysis of the strengths, weaknesses and opportunities of key players operating in the market will be provided in the Laboratory Information System/LIS Market report.

Relevant link:

Medical Laboratory Market

https://www.industryarc.com/Report/15643/medical-laboratories-market.html

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