Life Science Analytics Market Size and Trends Analysis Report by Type (Reporting, Descriptive, Predictive, Prescriptive), Component (Software, Services), Key Delivery (On Demand, On Premise), Application (Research and Development, Sales and Marketing Support, Regulatory Compliance, Supply Chain Analytics, Pharmacovigilance), End user (Medical Devices, Pharmaceuticals, Biotechnology) - Global Industry Forecast to 2030

Market Overview

The global life science analytics market size was $8,078.8 million in 2021, and it will grow at a CAGR of 9.6% during 2021–2030, to reach $18,386.0 million by 2030. The major factors driving the demand for these solutions are the rising importance of the early detection of diseases with the analysis of existing data, which can help in understanding prescription and treatment patterns across the patient’s healthcare journey and achieving operational excellence.

Descriptive Category Accounted for Largest Share in 2021

The descriptive category dominated the market in 2021 with a share of around 36%, owing to the ability of descriptive analytics to identify trends and relationships, by studying current and historical data. It is considered the simplest form of data analysis because it describes trends and relationships.

The increasing patient data volume, expanding availability of function-specific analytics software, and rising demand for cloud-based life sciences solutions are predicted to drive the demand for analytics software over the projection period. One of the key aspects that can be credited for the largest market share of this category is the massive adoption of big data and analytics in larger pharmaceutical, healthcare, and medical device enterprises.

Predictive analytics is the second-largest shareholder in the market, as firms are implementing business intelligence solutions that can enable a more-agile approach to their operations. This is in consideration of the numerous challenges the life sciences sector faces in navigating healthcare reforms, delivering innovation and value, and optimizing supply chains.

Services Category Will Have Highest CAGR

Service demand will witness the highest CAGR, majorly due to the existence of a large number of multinationals catering to life sciences organizations, such as IBM, Accenture, and Oracle. They offer a full range of services in strategy, consulting, operations and technology, which help deliver more-personalized healthcare and better patient outcomes.

For instance, Accenture offers various services for the life sciences sector, including research and development, supply chain, medical technology, patient services, and cloud computing. These solutions help in lowering costs, running efficient businesses, and improving the engagement between healthcare organizations, customers, and payors.

On-Demand Category Will Grow in Coming Years

The on-demand category will witness a 9.7% CAGR in the coming years, due to the availability of on-demand analytics solutions that help users take on challenging tasks, such as modifying approvals, deploying new technologies, reevaluating portfolios, assisting with the creation of regulatory planning and submissions procedures, and implementing a methodical use of RWE/D generation, storage, and analysis.

Companies are becoming more agile and innovative, which facilitates in building capabilities to reduce the development-to-production timescales for vaccines. This could be of immense benefit to biotech companies, who have been working relentlessly since the outbreak of the pandemic to come up with effective vaccines. Moreover, the positive life science analytics market outlook is owed to the agility with which IT companies are delivering the solutions.

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Pharmaceuticals Industry Dominated Market in 2021

The pharmaceuticals industry held the largest market share, of around 47%, in 2021. This is ascribed to the shift from traditional methods to advanced technologies for understanding diseases, designing disruptive products, and addressing the impact of treatments on patient outcomes. Here, life science analytics plays a crucial role by providing precise, real-time customer engagement solutions, along with data-driven business models.

As per sources, the pharmaceutical market is projected to be worth around $1,110 billion in 2022, which reflects a huge demand for life sciences analytics solutions. The sector develops vaccines, anti-diabetes drugs, oncology drugs, dermatological drugs, CVD drugs, and other therapeutic drugs. Hence, with the growth of the pharmaceutical industry during the pandemic, drug makers are aiming to achieve better patient outcomes powered by early disease detection, with the use of analytics.

Biotechnology is the second-largest end user in the market, owing to its strengthening focus on tackling uncommon diseases and having more-efficient industrial manufacturing processes. Life sciences analytics helps businesses in thriving in a market where the product portfolios need expansion, R&D expenses are rising, and profit margins are eroding owing to the cost and complexity of operations. Additionally, effective analytics supports in regulatory compliance with the EFPIA, IPHA, and ABPI Codes of Practice and also with the life sciences GxP regulations, MDR, and other such guidelines.

Research and Development To Have Highest CAGR

Research and development will account for the highest CAGR during the forecast period, because of the rising investment by companies in R&D for the early discovery of patterns and the desire to achieve real-world results through data analytics. The focus of life sciences companies is shifting from patient care to patient outcome management and preventive scenarios.

Moreover, IT companies are delivering a variety of compliance & quality solutions across the product lifecycle and leveraging key learnings to focus resources on future product development and safer delivery to patients in need.

Furthermore, R&D teams can now instantly incorporate all the available clinical data and literature regarding medications and diseases into their workflows. Additionally, real-world data, such as medical, insurance, and even social media data, can offer important insights into patient requirements, treatment compliance, and results.

Asia-Pacific Market To Witness Fastest Growth

Asia-Pacific will have the highest life science analytics market growth rate, of 9.9%, during the forecast period, due to the rising incidence of chronic diseases, expanding life sciences sector, escalating uptake of cutting-edge technologies, and increasing focus of major players on bettering their presence in the emerging Asian economies. Moreover, the increasing market investments in regional countries, economic growth in China and India, and improving health infrastructure are driving the industry in Asia-Pacific.

This region has the heaviest burden of chronic disorders. Due to their vast trained and affordable labor pools and the rising demand for analytics in various third-party BPS organizations, India, China, South Korea, and other emerging economies in this region are at the forefront of using analytics to decipher critical insights from databases.

Japan is the largest shareholder in the APAC region, as real-world evidence has long been used by pharmaceutical companies to guide decision-making, address requests from external stakeholders, enhance therapies, and, more recently, in some jurisdictions, secure regulatory approvals for novel treatments.

Such analyses allow pharmaceutical companies to save costs, quicken up the drug R&D process, and understand patient characteristics and behaviors that affect health outcomes, ensuring that the right patient receives the right treatment at the right time.

Europe is the second-largest shareholder in the market, driven by the creation of new analytics applications for life sciences and the rising demand for them from the pharmaceutical industry. The life sciences sector heavily utilizes analytics to assess risk, evaluate the efficacy of clinical trials, advance research and development channels, make budgets, forecast profits, and control product prices.

To Increase Share, Companies Involved in Various Strategic Developments

Players operating in the market have been involved in collaborations and product launches. For instance:

• In September 2021, Sensyne launched Sensight a real-world patient data analytics platform for the life sciences and healthcare industries. Moreover, it entered into a partnership with the U.S. health system to cover patients across a range of diseases.
• In December 2020, Trifacta collaborated with Accenture to streamline data preparation for life sciences companies. This collaboration facilitates life sciences organizations in efficiently preparing data, accelerating drug discovery, and improving patient outcomes.

Key Players in Life Science Analytics Market:

• Cognizant Technology Solutions Corporation
• Accenture PLC
• IBM Corporation
• Oracle Corporation
• SAS Institute Inc.
• IQVIA HOLDINGS INC.
• Wipro Limited

Market Size Breakdown by Segment

The report provides a comprehensive market segmentation analysis along with revenue estimation for the period 2017-2030.

Based on Type

• Reporting
• Descriptive
• Predictive
• Prescriptive

Based on Component

• Software
• Services

Based on Key Delivery

• On Demand
• On Premise

Based on Application

• Research and Development
• Sales and marketing Support
• Regulatory Compliance
• Supply Chain Analytics
• Pharmacovigilance

Based on End user

• Medical Devices
• Pharmaceuticals
• Biotechnology

Geographical Analysis

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