Clinical Laboratory Service Market Size, Share & Trends Analysis Report By Test Type (Human & Tumor Genetics, Clinical Chemistry, Medical Microbiology & Cytology), By Service Provider, By Application, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global clinical laboratory service market size was valued at USD 200.3 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.7% from 2021 to 2028. The increasing burden of chronic diseases and growing demand for early diagnostic tests are expected to be high impact-rendering drivers for market growth. The 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 increasing healthcare expenditure as a consequence of the growing prevalence of chronic diseases.

Moreover, rapid technological advancements to enhance productivity and reduce costs are anticipated to boost the market for clinical laboratory services during the forecast period. In 2019, Australian Clinical Labs launched a new pre-pregnancy comprehensive carrier screening test, which covers more inherited genetic conditions than its predecessor in lesser time. Clinical laboratories are observed to adopt international standards, which can provide opportunities for interoperability and automation. For instance, in November 2020, Co-Diagnostics, Inc. in a joint venture with CoSara Diagnostics Pvt. Ltd. received Central Drugs Standard Control Organization (CDSCO) clearance for manufacturing and distributing Saragene COVID-19 2-gene multiplex RT-PCR test in India.

Market firms are engaged in introducing new services to serve the unmet demand of patients. For instance, in July 2020, Thermo Fisher Scientific, Inc. launched cGMP-compatible CTS Series Laboratory Equipment. The equipment comprises a comprehensive range of laboratory equipment regularly used in gene and cell therapy manufacturing, including centrifuges, CO2 incubators, and biological safety cabinets.

In addition, increasing the use of at-home testing tests to diagnose diseases and monitor the health condition on a regular basis is expected to drive the market for clinical laboratory services. For instance, in April 2020, Quest Diagnostics offered a COVID-19 antibody test to consumers directly for USD 119. This test requires a blood draw at one of the company’s patient service centers, while the utility of antibody tests remains unclear. The company performed 975,000 antibody tests as of May 18, 2020, reflecting the demand for other ways to take blood samples without risking COVID-19 exposure and for the testing process to favor consumer convenience.

Test Type Insights

The clinical chemistry segment dominated the market for clinical laboratory services and accounted for the largest revenue share of 51.5% in 2020, owing to the presence of numerous clinical chemistry tests, the introduction of new technologies, alternative sampling methods, and the emergence of point-of-care testing methods. For instance, in February 2020, Ortho Clinical Diagnostics launched a clinical chemistry system that completed its integrated Vitros XT line which is designed to cover most typical lab tests. The company estimated its maximum throughput at 755 tests per hour with single-test slides and 1,130 tests per hour with dual-test slides. Moreover, The company’s XT 3400 system received CE marking and is available in the U.S., Canada, Europe, India, Japan, and a few countries in the Middle East and Africa.

Human and tumor genetics tests are projected to witness the fastest growth rate in the market for clinical laboratory services over the forecast period. Increasing demand for early cancer screening as a consequence of the increasing prevalence of cancer is expected to act as a high impact rendering driver for the growth of human and tumor genetics. In 2017, the U.S. FDA approved FoundationOne CDx (F1CDx), a genomic test that can identify cancer-associated alterations in 324 genes in any type of solid tumor. Moreover, the Growing need for efficient tests in the early diagnosis of cancer and major infections is expected to drive the segment, primarily due to the precision and accuracy offered by genetic tests.

Service Provider Insights

The hospital-based laboratories segment dominated the market for clinical laboratory services and accounted for the largest revenue share of 55.0% in 2020. This is due to the high turnaround number of patients’ tests majorly for complex and severe disease conditions that are comparatively more cost-intensive. Stand-alone laboratories are anticipated to be the fastest-growing segment over the forecast period owing to efforts to improve patient outcomes by providing diagnostic facilities at the retail level.

Furthermore, many hospitals are expanding their capacity for testing SARS-CoV-2. As per the National Pulse Survey conducted in March 2020, hospitals implemented various strategies to secure necessary equipment, ensure an adequate workforce, and enhance hospital facilities. This is expected to increase the demand for COVID-19 testing kits in hospitals.

Application Insights

The bioanalytical and lab chemistry services segment dominated the market for clinical laboratory services and accounted for the largest revenue share of 51.5% in 2020. This is due to many investigational drugs undergoing clinical trials and increasing the number of novel drug candidates for clinical trials. Chromatography, mass spectroscopy, immunochemistry, molecular biology, ELISA are the most commonly used technologies in bioanalytical and lab chemistry applications.

Furthermore, the toxicology testing services segment is expected to grow at the fastest rate during the forecast period. Toxicology testing is in high demand as most of the smaller and/or startup laboratories find toxicology screening clinically and financially feasible. In addition, an increase in the launch of new consumables that provide improved solutions to make drug testing easy, accurate, and fast is expected to boost the market for clinical laboratory services.

Regional Insights

North America dominated the market for clinical laboratory services and accounted for the largest revenue share of 40.7% in 2020. Within the region, the U.S. is estimated to witness substantial growth due to the high burden of chronic diseases in the country that needs support from clinical laboratory services for efficient treatment and patient care. For instance, according to NCBI, in 2018, 45.0% of the U.S. population, that is, 133 million people, was suffering from at least one chronic disease.

In the Asia Pacific, the market for clinical laboratory services is anticipated to grow at the fastest rate from 2021 to 2028. This high growth is owing to growing unmet medical needs increasing scientific research, and positive economic growth. Furthermore, China and India are considered prospective business hubs for clinical testing and service providers. Moreover, with an increase in disposable income, urbanization, education, and awareness about the prevention of severe diseases, the market for clinical laboratory services is expected to grow in this region.

Key Companies & Market Share Insights

Market entities are undertaking strategic initiatives to address the growing demand for clinical laboratory services. Major players are involved in the acquisition of small players to enhance their services portfolio and improve their geographical presence. Thus, there is significant competition among market players. Some of the prominent players in the clinical laboratory service market include:

• Qiagen

• Quest Diagnostics, Inc.

• OPKO Health, Inc.

• Abbott

• Charles River Laboratories International, Inc.

• Cinven

• Arup Laboratories

• Sonic Healthcare

• Laboratory Corporation of America Holdings (LabCorp)

• NeoGenomics Laboratories, Inc.

• Fresenius Medical Care

• DaVita, Inc.

• Siemens Healthcare GmbH

• Viapath Group LLP

• SGS SA

• Almac Group

Clinical Laboratory Service Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global clinical laboratory service market report on the basis of test type, service provider, application, and region:

• Test Type Outlook (Revenue, USD Billion, 2017 - 2028)

  • Human & Tumor Genetics

  • Clinical Chemistry

  • Medical Microbiology & Cytology

  • Other Esoteric Tests

• Service Provider Outlook (Revenue, USD Billion, 2017 - 2028)

  • Hospital-Based Laboratories

  • Stand-Alone Laboratories

  • Clinic-Based Laboratories

• Application Outlook (Revenue, USD Billion, 2017 - 2028)

  • Bioanalytical & Lab Chemistry Services

  • Toxicology Testing Services

  • Cell & Gene Therapy Related Services

  • Preclinical & Clinical Trial Related Services

  • Drug Discovery & Development Related Services

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Latin America

    • Brazil

    • Mexico

    • Colombia

    • Peru

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE