Digital Pathology Market Report

Digital Pathology Market Analysis By Technology (Whole Slide Imaging, Telepathology), By Application (Drug Discovery & Development, Academic Research, Diagnosis), And Segment Forecasts, 2014 - 2025

Published: April 2017  |  79 Pages  |  Format: PDF  |  Report ID: 978-1-68038-386-7

Industry Insights

The global digital pathology market size was valued at USD 350.1 million in 2016 and is expected to witness a CAGR of 12.1% during the forecast period. Increased focus on improving workflow efficiency and faster diagnostic tools for chronic diseases, such as cancer, has been a key factor for surge in demand for digital pathology.

The rising prevalence of chronic conditions is expected to drive the market which is anticipated to surge clinical urgency to adopt digital pathology in order to improve existing poor patient diagnostic imaging measures and reduce high cost associated with these conventional diagnostics.

U.S. digital pathology market revenue by technology, 2014 - 2025 (USD million)

U.S. digital pathology market

In addition, increasing geriatric population that is susceptible to chronic conditions is also expected to boost demand for technologically advanced diagnostic techniques over the forecast period. According to a study published in Medscape, chronic diseases can be attributed to the high mortality rate. Owing to the high prevalence of cardiovascular diseases, it becomes imperative to opt for advanced diagnostic and imaging alternatives.

Rapid technological advancements in digital pathology system are one of the factors contributing to the market growth. Advancements such as digital imaging, computerization, robotic light microscopy, and multiple fiber optic communications are also contributing to the growth. Whole slide imaging is one such technique that has various advantages over conventional light microscopes, which is expected to provide this market with lucrative opportunities.

In addition, advancements such as microarrays and incorporation of a wide range of predictive models such as hybrid models and various API algorithms are expected to fuel demand for digital image analysis further accentuating this market.

Rising preference for computer-aided diagnosis that integrates image processing, physics, mathematics, and computing algorithms facilitates efficient disease detection and helps in evaluating anatomic structures of interest and quantification of disease progression as well as risk assessment. These aforementioned benefits with the use of digital pathology systems are expected to fuel the market growth in the coming years.

Product Insights

Whole slide imaging segment dominated in terms of revenue share in 2016. Increasing adoption of this system for academic research activities and enhanced resolution are the key contributing factors for market growth. This technology is expected to witness lucrative growth over the forecast period owing to advancement in magnification and scanning of slides at Z axis, which is offered by whole slide imaging.

The adoption of telepathology is relatively low and this accounts for a comparatively smaller share in 2016. The high cost of software implementation & maintenance, complex system, security issues, inconvenience in selection of slides, and cost of the set up are the factors hindering the adoption of this technology in the medical field.

However, increasing R&D pertaining to applications of static and dynamic systems is expected to boost the usage rate of this technology in near future. For instance, hybrid telepathology, which is the combination of static & dynamic systems, having advantages of both the systems is anticipated to gain popularity during the forecast period.

The static system held a major share of telepathology owing to various associated advantages, including cost-effectiveness, efficiency, and reliability. On the other hand, dynamic system is expected to grow at a lucrative CAGR over the forecast period, as it is a more appropriate system for frozen section.

Application Insights

Based on application, the market is segmented into drug discovery & development and academic research and diagnosis. The academic research segment dominated the market, owing to its wide applications in various research procedures such as biomarker profiling and tumor morphological study.

The diagnosis segment is expected to witness fastest growth rate over the forecast period due to increasing prevalence of chronic diseases. In addition, the focus of manufacturers on the development of novel and rapid diagnostic techniques is anticipated to boost growth.

Global digital pathology market revenue, by region, 2016 (%)

Global digital pathology market

Digital pathology is helpful in providing accurate & faster detection and diagnosis of chronic diseases. It automatically detects tumor at inflammatory and proliferating stromal cells stage, thereby, curbing cost pertaining to the abnormal cell detection. It also reduces cost by omitting the requirement of FISH tests and impacts the laboratory workflow positively. Through this technology, information about a patient is generated in the form of online slides, which is viewable on a computer monitor anywhere.

Digital pathology also allows sharing the information for publication, research, diagnosis, and education through the internet. Thus, it reduces the sharing costs. Traditionally, to obtain accurate tumor diagnosis results, multiple tests has to be carried out, which are drastically reduced by a single test performed using digital pathology system.

This technology has a zoom in and zoom out facility so that affected areas can be viewed clearly, thus helping save time. Digital pathology has also reduced paperwork and now patients do not have to wait for several days to obtain results. The global access of digital slides also reduces re-examination costs for the patients.

Regional Insights

In 2016, North America held the largest revenue share of the digital pathology market. The continual deployment of R&D investments, supportive government initiatives pertaining to the development of technologically advanced systems, rising adoption of digital imaging, and the presence of major players in this region are the key contributing factors for its dominance.

Increased usage of digital pathology for disease diagnosis and favorable reimbursement policies in the U.S. improving the quality of cancer diagnosis, are expected to contribute toward industry growth in this region.

Asia Pacific is expected to grow at the fastest CAGR of over 13.4% during the forecast period due to the rising penetration of the digital imaging in emerging economies, growing investments in the medical field, and the presence of untapped opportunities.

Asia Pacific healthcare industry has highly influenced the digital pathology market due to increased incidence of cancer, which affects a large population. Also, increasing demand for novel treatment options, better patient care facilities, and reduction in laboratory expenses are further expected to drive demand in the coming years.

Competitive Insights

Key market participants include Omynx LLC; 3DHistech, Inc.; Definiens; Olympus Corporation; GE Healthcare; Leica Biosystems; Philips Healthcare; Ventana Medical Systems, Inc.; Objective Pathology Services; Hamamatsu Photonics, Inc.; LigoLAb LLC; and MicroSkan Technologies.

Major players such as Leica Biosystems; Hamamatsu Photonics, Inc.; and Olympus Corporation held a dominant share as of 2016. These companies are increasingly undertaking new product development activities, extensive collaborative strategies, and mergers & acquisitions to gain more profits. For example, in March 2017, Leica Biosystems entered into a strategic partnership with Leeds Hospital to improve productivity and workflow.

In addition, the other key participants are Royal Philips and Ventana Medical Systems. Recently in June 2016, a Dutch conglomerate, Royal Philips, acquired the Irish PathXL, one of the largest pathology, image-based analysis firms. This acquisition was carried out in order to develop integrated tools targeting applications in computational biology, workflow solutions, education, and image analytics.

In addition, this acquisition is aimed at underpinning the gradual transition of medical institutions present across the globe from the traditional systems to digitized pathology systems. Thus, the aforementioned acquisition will further enable pathologists perform high-throughput analysis of colossal clinical image datasets that are diverse in nature and facilitate improvement in the diagnosis quality, thereby presenting a potential for inclusion of new therapies to enhance patient health outcomes.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                    

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country scope

U.S., Canada, UK, Germany, Japan, China, Brazil, Mexico, South Africa

Report coverage        

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 global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global digital pathology market on the basis of technology, application, and region:

  • Technology Outlook (Revenue, USD Million, 2014 - 2025)

    • Whole slide imaging

    • Telepathology

      • Static

      • Dynamic

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Drug Discovery & Development

    • Academic Research

    • Diagnosis

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

    • Asia Pacific

      • Japan

      • China

    • Latin America

      • Brazil

      • Mexico

    • The Middle East and Africa

      • South Africa

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