Digital Pathology Market Size, Share & Trends Analysis Report By Application (Academic Research, Disease Diagnosis), By Product (Software, Device), By End-use (Diagnostic Labs, Hospitals), And Segment Forecasts, 2022 - 2030

Report Overview

The global digital pathology market size was valued at USD 926.9 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.5% from 2022 to 2030. Increased focus on improving workflow efficiency and demand for faster diagnostic tools for chronic diseases, such as cancer, have been key factors driving the market. The rising prevalence of chronic conditions is anticipated to surge clinical urgency to adopt digital pathology to improve the existing patient diagnostic imaging measures and to reduce the high cost associated with conventional diagnostics. In addition, the increasing geriatric population that is susceptible to chronic conditions is also expected to boost the demand for technologically advanced diagnostic techniques.

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 (CVDs), it becomes imperative to opt for advanced diagnostic and imaging alternatives. The novel coronavirus is having a significant economic impact on most sectors, including the healthcare industry. Government bodies all over the world are responding to the threat of COVID-19 with essential measures, such as nationwide lockdowns, social distancing, and large-scale quarantine, to reduce the spread of the virus. The pandemic created a major growth opportunity for digital pathology.

On March 26, 2020, CMS waived off the stringent regulation pertinent to remote diagnosis temporarily and allowed remote sign-out of pathology cases using digital pathology equipment. During the pandemic, the U.S. FDA’s Center for Devices and Radiological Health released an enforcement policy for remote digital pathology devices intended for pathologists, industry, clinical laboratories, drug administration staff, and healthcare facilities. The document provides a policy framework to expand the availability of remote digital pathology devices during the pandemic. Supportive regulations are anticipated to impact the market positively in the coming few years.

Rapid technological advancements in digital pathology systems are also expected to contribute to 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. The adoption of AI in healthcare is growing with a rising focus on improving the quality of patient care by utilizing AI in various aspects of healthcare services, such as pathological diagnosis.

The AI-based tools, such as clinical decision support systems, aid in streamlining workflow processes in hospitals and improving medical care, thereby enhancing the patient experience. In October 2021, Roche proclaimed that it has entered a contract with PathAI, a global frontrunner in AI-powered technology for pathology. Under this development and distribution contract, the corporations will jointly develop an embedded image analysis workflow for pathologists. This partnership is expected to bring together all of the components required to deliver and commercialize a distinguished AI-based digital pathology medical device comprising a scanner, assay, image management system, and algorithm.

The rising need for collaborations between researchers and growing digital documentation across all scientific disciplines are leading to increased adoption. Increasing penetration of healthcare IT solutions is further boosting the demand for digital pathology solutions. A rising number of organizations are adopting these solutions to decrease costs, reduce resource bottlenecks, automate processes, and share content effectively. In addition, advancements, such as microarrays and the incorporation of a wide range of predictive models, such as hybrid models and API algorithms, are expected to fuel the demand for digital image analysis.

Rising preference for computer-aided diagnosis that integrates image processing, physics, mathematics, & computing algorithms, facilitates efficient disease detection, and helps evaluate anatomic structures of interest & quantification of disease progression, as well as risk assessment, will boost the market growth. Companies, such as Olympus, are offering a wide range of tools for remote slide sharing and image processing, which is expected to fuel market growth over the coming years. In April 2020, Leica Biosystems received FDA approval for Aperio AT2 DX Scanner and Aperio WebViewer for remote diagnosis during the pandemic. Phillips also received FDA clearance for its IntelliSite Pathology Solution for remote diagnosis during this emergency.

Product Insights

The device segment dominated the market in 2021 and accounted for the largest revenue share of more than 52.0% 2021. The device segment includes scanner and slide management systems. Increasing adoption of academic research activities and enhanced resolution are the key growth drivers of the segment. This technology is expected to witness lucrative growth over the forecast period owing to advancements in magnification and scanning of slides at the Z-axis, which is offered by whole slide imaging. Moreover, intuitive user interfaces and high bandwidth connectivity are expected to boost its usage rates. Major players are constantly introducing technological developments for digital pathology scanners.

For instance, in April 2021, OptraSCAN introduced OS-Ultra 320 high-speed scanners. The device is intended to scan cells/tissues of size 15x15 mm area at 40x magnification within 60 seconds. In addition, the high usage of scanners in pathology labs is further fueling market growth. Increasing R&D pertaining to applications, such as slide managers, is expected to boost the adoption of this technology in near future. The rising demand for an online storage system is further fueling market growth. The advantages, such as cost reduction, improved productivity, and better patient outcome, coupled with data reliability and image life cycle management are expected to drive the market.

Application Insights

The academic research application segment accounted for the largest share of more than 45.5% of the global revenue in 2021 and is projected to expand further at a steady CAGR from 2022 to 2030. The high share was attributed to the increased adoption of digital pathology in various research studies, such as tumor morphological research. A number of cancer therapies are expected to be introduced in the near future, which, in turn, will further drive the academic research segment. Based on application, the market is divided into hospitals, diagnostic labs, biotech & pharma companies, academic & research institutes.

The diagnosis segment is expected to witness the fastest CAGR over the forecast period. This growth can be credited to the rising prevalence of chronic diseases. Key manufacturers are focusing on the development of novel and rapid diagnostic techniques. This is also anticipated to boost the growth of the diagnosis segment. Digital technologies help in improving each step in diagnostics. The cancer cell detection sub-segment is also expected to showcase lucrative growth in disease diagnosis over the forecast period. This is mainly due to the high prevalence of the disease coupled with various ongoing research initiatives.

End-use Insights

The market is segmented into hospitals, diagnostic labs, biotech and pharma companies, and academic and research institutes based on end use. The hospital's segment accounted for the largest revenue share of more than 36% in 2021 owing to the high adoption of digital scanning techniques in hospitals for faster diagnosis and better patient compliance. In August 2020, Mackenzie Health partnered with Philips to become one of Canada’s first hospitals to introduce a modern digital pathology platform designed to assist patient diagnosis for faster & improved treatment. The hospital aims to boost laboratory efficiency, increase access to specialists, and enhance diagnosis time with the introduction of Philips’ IntelliSite pathology platform.

Such collaborations are also expected to fuel the segment growth. On the other hand, the diagnostic lab's segment is estimated to register the fastest CAGR from 2022 to 2030. The biotechnology & pharmaceutical companies segment is expected to have a steady growth over the forecast period. The growth is attributed to a rise in the usage of digital pathology in drug development, oncology clinical trials, and preclinical GLP pathology. A rise in the prevalence of cancer and high demand for better treatment options are further fueling the growth of this segment.

Regional Insights

In 2021, North America held the largest revenue share of more than 41%. 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 are the key factors driving the market in this region. Increased usage of digital pathology for disease diagnosis coupled with favorable reimbursement policies in the U.S. improving the quality of cancer diagnosis is expected to further fuel the regional market growth. However, Asia Pacific is expected to grow at the fastest CAGR during the forecast period.

The growth can be attributed to the rising penetration of digital imaging in emerging economies, investments in the medical field, and the presence of untapped opportunities in the Asia Pacific. The healthcare industry in the Asia Pacific has highly influenced the market due to the increased incidence of cancer, which affects a large population. In addition, rising demand for novel treatment options, better patient care facilities, and a reduction in laboratory expenses are expected to drive the market growth in this region.

Key Companies & Market Share Insights

Major players, such as Danaher and Hamamatsu Photonics, Inc., held a dominant market share in 2021. These companies are increasingly undertaking various strategies, such as new product development, extensive collaborative strategies, and M&A, to gain a higher market share. For example, in April 2021, Leica Biosystems partnered with Paige to integrate its digital pathology platform with the latter’s AI-enabled research oncology software. This would extend access to computational pathology products for translational and clinical in select countries across the North America and Europe regions. In April 2021, Philips partnered with Ibex Medical Analytics to combine its digital pathology solutions with the latter’s AI-powered Galen platform, thus enhancing its offerings. While Oxford University Hospitals Cellular Pathology department completed 100% digitization of histology slides with the help of Philips. Some of the prominent players in the global digital pathology market include:

• Leica Biosystems (Danaher)

• Hamamatsu Photonics, Inc.

• Koninklijke Philips N.V.

• Olympus Corporation

• F. Hoffmann-La Roche Ltd.

• Mikroscan Technologies

• Inspirata, Inc.

• 3DHISTECH Ltd.

• Visiopharm A/S

• Huron Technologies International, Inc.

• ContextVision AB

Digital Pathology 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 2030. For the purpose of this study, Grand View Research has segmented the global digital pathology market report on the basis of product, application, end-use, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Software

  • Device

    • Scanners

    • Slide Management System

  • Storage System

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Drug Discovery & Development

  • Academic Research

  • Disease Diagnosis

    • Cancer Cell Detection

    • Others

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Hospitals

  • Biotech & Pharma Companies

  • Diagnostic Labs

  • Academic & Research Institutes

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Russia

    • Spain

    • The Netherlands

    • Switzerland

    • Sweden

  • Asia Pacific

    • Japan

    • China

    • India

    • Indonesia

    • Thailand

    • Australia

    • South Korea

    • Philippines

    • Malaysia

    • Singapore

  • Latin America

    • Mexico

    • Brazil

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • Turkey

    • Iran

    • UAE

    • Israel