Laboratory Information System Market Research Report: By Type (Standalone, Integrated), Component (Software, Services), Delivery Mode (Cloud-Based, Web-Based, On-Premises), End User (Hospital Laboratories, Independent Laboratories, Physician Laboratories) – Global Industry Analysis and Growth Forecast to 2030

Laboratory Information System Market Overview

The global laboratory information system (LIS) market generated $1,756.2 million in 2019, and it is expected to witness a CAGR of 6.5% during 2020–2030. The major driving factors for the growth of the market are the rising need for advanced healthcare information systems, rising demand for molecular diagnostics, increasing implementation of cloud computing in LISs, growing need for higher lab productivity, and implementation of cost reduction measures in hospitals.

In the beginning of the year 2020, government of several countries implemented strict regulations, including lockdowns and factory closures, in order to contain the spread of the coronavirus. Moreover, manufacturing plants, research centers, and many more institutions were partially closed, which led to a major reduction in the sales of and demand for LIS solutions. However, the demand for LIS soon increased owing to the rising volume of online doctor consultations among the geriatric population base and those suffering from chronic diseases. Therefore, due to the abovementioned factors, there was a positive impact on the market growth in the second half of 2020.

Rising Demand for Integrated LIS To Push This Category at Higher Growth Rate

The integrated systems category is expected to witness the faster growing category in the LIS market during the forecast period, based on type. This is primarily attributed to the emergence of integrated information-based systems that provide the necessary framework for automated processes, with easier connectivity. Thus, the demand for easier workflows with high accuracy has led to a rapid influx of automated systems and integrated workflow solutions within the different type of laboratories.

Software Component Dominated Market, as It Provides Swift Workflow in Laboratories

The software category dominated the LIS market over the past few years, and it is expected to retain its dominance during the forecast period, based on component. This would mainly be due to the rising demand for integration and automated components of LIS software systems, including result detectors, barcode readers, and labels. Moreover, the interfacing of the LIS software with analytical instrumentation can reduce errors and turnaround time. Hence, the integration of such features is leading to the rising demand for LIS software in healthcare settings and research centers.

Easy Data Storage and Access Flexibility Advantages Propelling Demand for Cloud-Based Systems

The cloud-based category is projected to witness the highest growth rate in the coming years, based on delivery mode. This is mainly attributed to the comparatively lower infrastructure costs and requirement for reduced IT manpower for this model, alongside its scalability and flexibility. Moreover, cloud-based systems help healthcare settings share and integrate information from different locations via an easy process of data gathering.

Rising Patient Footfall Driving Demand for LIS in Hospital Laboratories

The hospital laboratories category held the largest share in the LIS market during the historical period (2014–2019), and it is expected to maintain the same trend in the coming years, based on end user. This would mainly be due to the rising number of hospitals and people suffering from chronic diseases across the world. Moreover, the adoption of LIS in hospital laboratories has made laboratory processes easier for both healthcare professionals and patients.

North America Held Largest Market Share due to Widespread Usage of Advanced Information Systems

Geographically, North America was the largest contributor to the LIS market during the historical period. This is mainly attributed to the large installation base for such solutions and rising demand for online data storage with the help of advanced information systems in laboratories. Moreover, the increasing prevalence of chronic diseases has led to the rising patient footfall for regular check-ups in the region.

The Asia-Pacific (APAC) region is expected to witness the highest growth rate during the forecast period in the market. owing to the rising cases of chronic diseases and increasing number of diagnostic imaging centers.

Mobile-Based Solutions Are Trending in Market

Smartphones and tablets play an important role in providing personalized health solutions and a trove of information and communication services to both patients and clinicians. This further helps in the reduction in the need to visit hospitals for diagnoses. For instance, in June 2019, the Ministry of Ayurveda, Yoga, Unani, Siddha & Homeopathy (AYUSH) created the AYUSH GRID to get all the IT projects under one umbrella, including the integrated IT projects implemented for the improvement and facilitation of the new and emerging AI-enabled technologies in India. Through this, the electronic health record (EHR) or electronic medical record (EMR) facilities would be provided to the recipients of AYUSH health services.

Need for Advanced Healthcare Information Systems Key Market Driver

LIS helps deliver diagnosis, treatment, and rehabilitation services via one integrated platform. It save the diagnosis time by streamlining back-office operations and helps doctors share and discuss treatment plans with patients. For instance, the National Health Service (NHS) and other local healthcare councils have been working together since 2016, to form a sustainability and transformation partnership covering all of the U.K. and set proposals to improve healthcare for patients. In May 2020, the Integrated Healthcare Information System program became successful in four designated areas: Greater Manchester, Surrey, Yorkshire, and South London.

Need for Higher Lab Productivity also Leading to Rising LIS Deployment

LIS solutions are used for various purposes, such as quick diagnosis, management of treatment data, and decision making with respect to the treatment. It allows users to obtain, store, manage, retrieve, and record laboratory data. Moreover, the accuracy of the diagnostic data provided by LIS solutions helps in improving the procedures followed for treatment. Thus, the demand for LIS in laboratories is rising as these solutions can be easily integrated with automated laboratory systems.

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Market Players Involved in Partnerships and Collaborations to Gain Competitive Edge

The major players in the global LIS market are Abbott Laboratories, Orchard Software Corporation, COMPUTER PROGRAMS AND SYSTEMS INC., CompuGroup Medical SE & Co. KGaA, and Comp Pro Med Inc.

In recent years, players in the LIS industry have been involved in partnerships and collaborations in order to stay ahead of their competitors. For instance:

• In July 2020, Allscripts Healthcare Solutions Inc. and Microsoft Corporation extended their long-term strategic alliance to enable the development and delivery of cloud-based health IT solutions. This extension would support Microsoft Corporation with the cloud-based Sunrise EHR and help it create a more-scalable technology.
• In March 2020, IBM Watson Health (a part of IBM) and EBSCO Information Services collaborated for the enhancement of clinical decision support (CDS) and operations for healthcare providers and health systems. With this collaboration, the companies combined their solution suites, namely DynaMed (EBSCO Information Services) and IBM Micromedex, with the IBM Watson in a single solution, called DynaMed and Micromedex with Watson.

Some Key Players in LIS Market Are:

Laboratory Information System Market Size Breakdown by Segments

The laboratory information system market report offers comprehensive market segmentation analysis along with market estimation for the period 2014-2030.

Based on Type

• Standalone
• Integrated

Based on Component

• Software
• Services

Based on Delivery Mode

• Cloud-Based
• Web-Based
• On-Premises

Based on End User

• Hospital Laboratories
• Independent Laboratories
• Physician Laboratories

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • China
  • India
  • Japan
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  •  South Africa
  • Saudi Arabia