| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 11.5 Billion |
| 2025 Market Size | USD 12.5 Billion |
| 2032 Forecast | USD 26.0 Billion |
| Growth Rate (CAGR) | 11% |
| Largest Region | North America |
| Fastest Growing Region | Asia-Pacific |
| Nature of the Market | Fragmented |
| Largest End User Category | Pharma & Biotech Companies |
|
Explore the market potential with our data-driven report
The global life science analytics market size is USD 11.5 billion in 2024, and it will grow at a CAGR of 11% during 2025–2032, to reach USD 26.0 billion by 2032.
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. With the increasing geriatric population, sedentary lifestyles, rising pollution levels, rampant urbanization, and genetic factors, the disease burden continues to mount.
Therefore, healthcare providers and governments are facing increasing pressure to improve patient outcomes and make affordable care accessible for as many as possible. The increasing volumes of diagnoses, prescriptions, and clinical procedures generates a massive amount of data, which needs to be analyzed effectively to derive actionable insights. This rise in data volumes is credited to the digitization of the global healthcare industry, driven by government efforts and IT & telecommunications advancements. This encourages software vendors to develop data analytics solutions tailored to diverse applications in the healthcare sector, from disease diagnosis to clinical trials.
The demand for life science analytics solutions is also surging because life science approaches are not just limited to healthcare but also extend to agriculture (genetically modified crops), synthetic fuels, food & beverage processing & testing, and environmental sciences (water & air quality testing).
The descriptive category dominates the market with a share of 40%, 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 fastest-growing category 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.
These types have been analyzed:
Software is the larger category in the market as it is the initial and costlier purchase. High-end computer programs are needed to analyze real-time life science data, unravel patterns, detect anomalies, generate easy-to-understand visuals, and interpret the overall findings. Most life science systems, such as blood and urine analyzers and microscopes come with pre-installed software, and for higher precision, users often need separate software installed on their workstations.
Service demand will witness the higher CAGR, of 11%, 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.
The segment is bifurcated as below:
The cloud category has the larger share, of 65%, and it will also witness the greater CAGR in the coming years. This is 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.
The report offers analysis on the following deployment modes:
Pharma & biotech companies hold the largest market share, and they will also showcase the highest CAGR, of 50%. 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.
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.
Moreover, the usage of these solutions among biotechnology companies is rising owing to their 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.
Below is the end user breakdown of the market:
The research and development category dominates the market with 45% revenue, and it 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.
The report covers the below-mentioned applications:
Drive strategic growth with comprehensive market analysis
North America is the largest market for life science analytics solutions, with 40% share in 2024. This is ascribed to the region’s developed healthcare, IT, and telecommunications infrastructure, which enables the wide usage of such software across the life science sector. North America is also the largest global hub for healthcare research, especially genome projects and clinical trials of pharmaceuticals and medical devices. The FDA demands extensive data on the under-investigation products’ effectiveness, biocompatibility, and safety for patients, which compels companies across the healthcare spectrum to leverage data analytics.
In addition, this region has been the first to adopt AI and other advanced technologies in its healthcare & life science sectors, which continue to spend lavishly on these solutions. Further, several government bodies in the U.S., especially the FDA and CDC, analyze life science data to formulate healthcare guidelines and standards, many of which are adopted globally. The U.S. is also the hub for all major IT vendors, which leads to the easy availability of such software for the life science sector.
Asia-Pacific will have the highest life science analytics market growth rate, of 12.5%, 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.
The following regions and countries were part of our study:
Want a report tailored exactly to your business need?
Request CustomizationLeading companies across industries trust us to deliver data-driven insights and innovative solutions for their most critical decisions. From data-driven strategies to actionable insights, we empower the decision-makers who shape industries and define the future. From Fortune 500 companies to innovative startups, we are proud to partner with organisations that drive progress in their industries.
Working with P&S Intelligence and their team was an absolute pleasure – their awareness of timelines and commitment to value greatly contributed to our project's success. Eagerly anticipating future collaborations.
McKinsey & Company
India
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws
Customize the Report to Align with Your Business Objectives
Request the Free Sample Pages