The global clinical laboratory services market size was estimated at USD 186.1 billion in 2016. The growing incidence of target infectious diseases is one of the most significant growth drivers for this market. Rise in volume of testing samples is a contributing factor driving demand for the more fundamental tests, such as electrolyte testing, HbA1c test, and metabolic panels.
According to an article commissioned by the National Institute on Aging, a part of the National Institutes of Health, 8.5% of the people worldwide (617 million) are aged 65 years and over. Therefore, with the increase in the aging population, acute and long-term healthcare needs are also amplifying, hence driving the growth of the sector at a global level.
China clinical lab services market share, by test type, 2014 - 2025 (USD Billion)
Introduction of innovative solutions on the grounds of maximum efficiency and minimum error is expected to serve this market as a high impact-rendering driver. Integrated workflow management systems, database management tools are becoming increasingly important in the healthcare industry with companies processing as many as 100 to 150 billion samples per year.
Advancements in laboratory testing technology through both incremental and breakthrough developments is expected to serve as a high impact rendering driver. Incremental changes are introduced with an aim to make testing processes simple and enhance efficiency. This unveiling of novel solutions with an objective of maximum efficiency and minimum error is anticipated to have significant impact in augmenting progress.
Introduction of accurate and technologically advanced products such as companion diagnostics, biochips, and microarrays, has bolstered the demand for early disease detection. This is mainly due to rising healthcare expenditure as a consequence of growing prevalence of chronic diseases.
For instance, biochips are used for preparing thousands of DNA, RNA or protein samples which can be processed at the same time on a single chip. Products such as companion diagnostics also help in reducing the overall healthcare cost by helping physicians identify the most suitable treatment option based on the genetic makeup of a patient.
However, usage and safety profile of the of laboratory services is highly regulated and evaluated by the federal government through the Clinical Laboratory Improvement Amendments (CLIA). The control of FDA over laboratory-based tests to offer precise and rapid results to the patients and physicians is expected to slow down the market growth.
Test Type Insights
Clinical chemistry test segment dominated with respect to revenue generation owing to the presence of numerous tests involved in pathology analysis of body fluids. These include analysis of urine, plasma, serum, and other body fluids. These form an integral part of basic level diagnosis and laboratory testing.
Organizations such as American Association for Clinical Chemistry (AACC) are actively engaged in monitoring and encouraging research in this field for the introduction of novel solutions.
Medical microbiology & cytology tests are projected to witness the fastest growth rate in the coming years. This growth is attributive to development of various tests based on microbiology & cytology. These aid in providing diagnosis and disease control caused due to nosocomial infections, epidemiology, viral, fungal, parasitic bacterial infections.
Service Provider Insights
Hospital-based laboratories are estimated to dominate the market with the largest share in revenue generation. This dominance is attributive to presence of large pool of number of patients suffering with complex and severe diseases conditions that are comparatively more cost intensive. It is expected to maintain its dominance owing to increasing number of hospitals integrating laboratories to their unit.
Ability of the standalone laboratories to handle large volumes of diagnostic tests at an expedited rate is anticipated to propel progress. In addition, emerging players providing stand-alone clinical lab services are expected to make significant contribution to segment’s rapid growth.
Applications of the clinical lab facilities include drug discovery and drug development, bioanalytical & lab chemistry, toxicology testing, cell & gene therapy, and preclinical & clinical trial related services.
Rising adoption of these amenities in different arenas of healthcare is anticipated to boost revenue generation over the forecast period. Drug discovery and development involves significant usage of the clinical lab-based services.
North America is the most developed region in this sector. Increasing base of geriatric population, rising prevalence of cancer, and high penetration of technologically advanced diagnostic techniques are attributive for the estimated share.
Clinical laboratory services market, by region, 2016 (%)
Recent reforms like the integration of reimbursement limits of government-aided funds to the private insurer bring out more investment by private organizations in the healthcare sector in the U.S. The aforementioned fact is supportive for the estimated share.
Presence of huge untapped opportunities in the form of unmet medical needs, potential avenues of scientific research, and positive economic growth are some primary growth drivers for Asia Pacific region. Moreover, improving healthcare regulatory scenario in the high growth countries is expected to attract international players to invest and capitalize on the available opportunities.
Major players in this market include Siemens Healthineers, Laboratory Corporation of America Holdings (LabCorp), Quest Diagnostics Abbott; OPKO Health Inc; Sonic Healthcare; Charles River Laboratories, Neogenomics Laboratories, Inc., and ARUP Laboratories.
These companies are engaged in mergers and acquisitions for enhancement of market presence. In February 2017, the company entered into an agreement with Providence Health & Services and Catholic Health Initiatives for acquisition of Pathology Associates Medical Laboratories, LLC (PAML).
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Revenue in USD Billion & CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, UK, Germany, Japan, China, Brazil, South Africa.
Revenue forecast, company share, competitive landscape, growth factors and trends
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Segments Covered in the Report
This report forecasts revenue growth at regional & country level and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the clinical laboratory services market on the basis of test type, service provider type, application, and regions:
Test Type Outlook (Revenue, USD Billion; 2014 - 2025)
Human & Tumor Genetics
Medical Microbiology & Cytology
Other Esoteric Tests
Service Provider Outlook (Revenue, USD Billion; 2014 - 2025)
Application Outlook (Revenue, USD Billion; 2014 - 2025)
Drug discovery related Services
Drug development related services
Bioanalytical & Lab chemistry services
Toxicology testing services
Cell & gene therapy related services
Preclinical & clinical trial related services
Other clinical laboratory services
Regional Outlook (Revenue, USD Billion; 2014 - 2025)
Middle East and Africa (MEA)
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