Digital Pathology Market Size, Share & Trends Analysis Report By Application (Academic Research, Disease Diagnosis), By Product (Software, Device), By End-use (Diagnostic Labs, Hospitals), By Region, And Segment Forecasts, 2024 - 2030

Digital Pathology Market Size & Trends

The global digital pathology market size was estimated at USD 1.03 billion in 2023 and is projected to expand at a CAGR of 8.0% from 2024 to 2030. This growth is attributed to the rising prevalence of cancer, increasing focus on improving workflow efficiency, and growing demand for faster diagnostic tools. Moreover, rising investments in healthcare by major market players through an increasing focus on new launches, increasing adoption of telepathology, and more focus on drug discovery & precision medicine are propelling market growth.

During the COVID-19 pandemic, government organizations in various countries, research institutes, and many pharmaceutical & biotech firms focused on effective & rapid technologies for accurate COVID-19 diagnosis and the development of vaccines/new therapeutics to combat the pandemic. COVID-19 tested diagnostic services at a time when many histopathology departments were already understaffed and overburdened. Furthermore, it had a significant impact on routine pathology services. During the pandemic, digital pathology was critical in protecting clinical services and pathology-based research.

Market Dynamics

The increasing adoption of AI in healthcare emphasizes enhancing patient care quality, incorporating AI across various healthcare phases, including pathological diagnosis. The introduction of AI-based tools aligns with the growing digitalization of pathology reads, emphasizing the value of AI and machine learning in standardizing diagnoses, quantifying biomarkers, and ensuring quality control.

For instance, in August 2023, PathAI announced the AISight Digital Pathology Image Management System for the next generation of pathology labs. AISight, a cloud-based platform, streamlines digital pathology workflows, providing advanced image and case management, viewing, ingestion, and seamless integration of AI applications. AISight, a cloud-based platform, streamlines digital pathology workflows, providing advanced image and case management, viewing, ingestion, and seamless integration of AI applications.

Moreover, the increasing penetration of healthcare IT solutions is driving up solution demand. A growing number of organizations are implementing these solutions to reduce costs, automate processes, reduce resource bottlenecks, and effectively share content. A growing need for collaborations and the growth of digital documentation across all scientific disciplines is driving its adoption. Furthermore, factors, such as increased adoption of the technology to improve lab efficiency, increase in the number of teleconsultations, and increased application in companion diagnostics and drug discovery are further anticipated to boost market growth.

During the pandemic, teleconsultation played a major role as there was increasing concern among people about contracting COVID-19 infection by visiting hospitals and healthcare centers. The benefits associated with the incorporation of these technologies are propelling the need for the development of novel technologies further fueling market growth. However, stringent regulations concerning primary diagnosis and a lack of standard guidelines pertaining to digital pathology are expected to restrain market growth. Moreover, the high costs of digital pathology, reaching up to USD 5,000-6,700, hinder market growth to some extent. This requires substantial capital investment, particularly considering the generally expensive software and hardware used in the pathology field.

Product Insights

Based on product, the market is segmented into software, device, and storage systems. The device segment held the largest market share of 51.72% in 2023 and is anticipated to grow at a lucrative rate during the projected period. The device segment includes slide management system and scanner. The segment growth is attributed to the increasing adoption of digital pathology in academic research activities with enhanced resolution. For instance, in June 2022, F. Hoffmann-La Roche Ltd. received a CE marking for its VENTANA DP 600 slide scanner, a next-generation, high-capacity slide scanner that generates high-resolution digital images of stained tissue samples to aid in cancer diagnosis and treatment planning.

The software segment is expected to register the fastest CAGR from 2024 to 2030. This growth is attributed to the rising number of cancer cases globally, with key players focusing on the development of novel digital pathology systems in the industry. For instance, in August 2021, Xybion Corp. launched Pristima XD Digital Pathology, which provides improved lab throughput that aids in streamlining workflows. In January 2019, F. Hoffmann-La Roche Ltd. launched uPath enterprise software, for improving performance, speed, and use for digital pathology. Such innovative incorporation of integrated software helps in improving workflows.

Application Insights

The academic research segment dominated the market in 2023 with a revenue share of 45.7% and is anticipated to maintain its dominance from 2024 to 2030 owing to the continual research in the development of cancer therapies and the high adoption of digital pathology in various research studies. Numerous academic research institutes are collaborating with digital pathology providers to incorporate the technology into research activities. In November 2022, the University Medical Center Utrecht entered into a partnership with Paige for the deployment of the company’s application in clinical use and to conduct a clinical health economics study to support reimbursement and adoption of AI applications in pathology.

Disease diagnosis is anticipated to witness the fastest growth rate from 2024 to 2030 owing to an increasing prevalence of chronic diseases and a rising focus of manufacturers on the development of rapid and novel diagnostics techniques for ease in the circulation of inter and intra-departmental information. Digital adoption of technologies helps in improving and enhancing the efficiency of disease diagnosis and, hence, improving therapeutics. For instance, in April 2022, PreciseDx collaborated with The Michael J. Fox Foundation for the launch of AI-enabled digital pathology technology for the diagnosis of Parkinson's disease before severe symptoms are seen in patients.

End-use Insights

The hospital segment dominated the market with a revenue share of 36.7% in 2023. Hospitals are the most preferred healthcare setting for disease diagnosis and care. Developments in hospital laboratories are crucial to address the evolving needs of patients with more hospitals aiming to provide a wide range of services within their settings. Several hospitals are implementing digital scanning techniques to improve patient compliance and speed diagnosis. For instance, in March 2023, Ibex (Ibex Medical Analytics) received a PathLAKE contract to provide AI-enabled solutions at 25 NHS trusts to support cancer diagnosis.

The diagnostic labs segment is anticipated to grow at the fastest CAGR from 2024 to 2030 owing to increasing focus on drug development, preclinical GLP pathology, and oncology clinical trials. Moreover, the increasing prevalence of cancer and the adoption of digital pathology in diagnostics labs is fueling the market growth. For instance, in January 2022, Inform Diagnostics launched FullFocus, a digital pathology viewer developed by Paige in its laboratory to use AI tools that would help streamline logistics and achieve faster results.

Regional Insights

North America dominated global market in 2023 with a revenue share of 40.7% in 2023, which can be attributed to increasing government initiatives leading to the development of technologically advanced pathologies, continual deployment of R&D investments, rising adoption of digital imaging, and presence of key market players in the region focusing on providing better solutions to the population. For instance, in March 2023, PathAI launched AISight, a digital pathology platform across the U.S. in 13 leading health systems, reference laboratories, medical centers, and independent pathology organizations to participate in the Early Access Program. Moreover, an increasing usage of digital pathology in academic research and disease diagnosis is propelling market growth.

Asia Pacific is anticipated to grow at the fastest CAGR from 2024 to 2030. This growth is attributed to rapid digitalization, a rising focus on investments in the medical field, and rising digital imaging penetration in developing economies. The region shows an increasing prevalence of cancer, which propels the need for novel treatment options, further boosting market growth. In March 2023, Qritive collaborated with Corista for the integration of AI using the company’s DP3, a DICOM-compliant pathology software in digital pathology. Such initiatives help in providing better patient care, with novel treatment options, and subsequently reducing laboratory cost expenses.

Key Companies & Market Share Insights

Notable players such as Leica Biosystems Nussloch GmbH (Danaher), Olympus Corporation, Hamamatsu Photonics, Inc., and F. Hoffmann-La Roche Ltd are adopting strategies, including the introduction of novel technologies to meet the increasing demand for digital pathology from end-users and maintain their market positions.

Recent Developments

• In October 2023, Pramana and Gestalt announced the availability of an integrated AI-powered platform and digital pathology solutions, combining digital pathology, AI, image analysis, and DICOM into a streamlined, single, comprehensive offering.

• In September 2022, Paige collaborated with OptraSCAN to streamline the adoption of digital pathology technology in the European Union, the U.S., and the UK. This partnership aims to enhance workflows of oncology and pathology by reducing the barriers to digitizing glass pathology slides.

Digital Pathology Market Report Scope

Global Digital Pathology Market Report Segmentation

This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global digital pathology market report based on product, application, end-use, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Software

  • Device

    • Scanners

    • Slide Management System

  • Storage System

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Drug Discovery & Development

  • Academic Research

  • Disease Diagnosis

    • Cancer Cell Detection

    • Others

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hospitals

  • Biotech & Pharma Companies

  • Diagnostic Labs

  • Academic & Research Institutes

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait