Laboratory Information Management System Market Size, Share & Trends Analysis Report By Product (Cloud-based), By Component (Software), By End-use (Life Sciences, CROs), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global laboratory information management system market size was valued at USD 2.1 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.74% from 2023 to 2030. Technological advancements pertinent to pharmaceutical laboratories and the rising demand for lab automation are expected to fuel the demand for these systems in the years to come. Advancements in R&D labs, especially in pharmaceutical and biotechnological laboratories, are expected to enable positive industry growth. In addition, low cost of implementation, efficient time management, and compliance with GDP, GCP & GMP are other major factors driving the growth of the laboratory information management system (LIMS) industry.

Collaborations, partnerships, acquisitions, and product approvals & launches have significantly impacted the market in recent years. Furthermore, there has been a significant rise in the demand for LIMS due to its increasing awareness, which, in turn, is fueling market growth. Rising automation in laboratories, increasing demands of regulatory compliance, technological advancements in LIMS, growing awareness through conferences, workshops, and seminars, and increasing R&D expenditure are also among the major factors driving the global market growth.

During the COVID-19 pandemic, the demand for 24/7 laboratory testing services experienced a surge. Moreover, clinical laboratories were operating at full capacity, which resulted in significant stress for the laboratory personnel as well as the laboratory infrastructure. Such stressful environments are very undesirable, especially when laboratories are equipped with a large number of dangerous chemicals capable of causing biohazards every day. This, in turn, is encouraging the implementation of LIMS solutions to streamline workflows by global benchmarks.

Product Insights

Based on product, the global market has been segmented into on-premise, web-hosted, and cloud-based sub-segments. Technical considerations are of utmost importance when purchasing any laboratory informatics solution. Organizations assess the requirements of the solution as well as their IT infrastructure. This enables an organization to choose between on-premise, web-based, and cloud-based solutions.

The cloud-based product segment dominated the market in 2022 and accounted for a share of more than 43.1% of the global revenue. The segment is estimated to retain its leading position growing at the fastest CAGR over the forecast period. The data can be accessed from multiple and virtually infinite numbers of access points. In a growing remote work culture, the flexibility offered by features such as virtual access points remains a key factor attributing to the dominance of the cloud-based product segment. In addition, reduced IT manpower, cost-effective data management, and easy deployability are other factors driving the segment’s growth.

The web-hosted segment accounted for the second-largest revenue share owing to the high adoption of web-hosted LIMS among consumers. These LIMS solutions are suitable for various laboratories, including R&D departments, manufacturing companies, public utilities, and environmental, chemical, contract, and QC labs. The on-premise segment is also expected to grow at a significant CAGR from 2023 to 2030 as it is more customizable and reliable as compared to other LIMS services and, thus, expected to gain more popularity over the coming years.

Component Insights

Based on component, the market has been bifurcated into software and services. The services segment dominated the LIMS market and accounted for 58.2% share of the global revenue in 2022. This is due to the increased need for LIMS implementation, integration, maintenance, validation, and support. Moreover, the high demand for LIMS outsourcing solutions is expected to drive segment growth.

Large pharmaceutical research labs often lack the resources and skills required for the deployment of analytics. Thus, these services are outsourced. This outsourcing can be short-term, project-based, or long-term contracts. These services are offered in the form of packages, and these packages include compliance with promotional spending, social media analytics, predictive analytics for medical device failure, benchmarking services, and others.

The software segment is expected to show steady growth over the forecast period due to the advancement of software systems from SaaS to more advanced PaaS, CaaS, and community networks. The market players are constantly adopting different strategies to promote market growth. For instance, in January 2023, LabVantage Solutions launched version 8.8 LIMS Platform, subsequent to the launch of a new innovative analytics solution, a new certified SaaS solution, and an update to its LIMS Platform.

End-use Insights

Based on end-use, the market has been divided into life sciences, Contract Research Organizations (CROs), petrochemical refineries and oil & gas, chemical, food & beverage & agriculture industry, and environmental testing laboratories, among others. The other segment includes industries including forensic, and metal & mining laboratories. The life sciences segment accounted for the largest share of 40.8% of the global revenue in 2022. This is owing to the high adoption of LIMS in pharmaceutical laboratories. Lack of skilled staff, demand for higher productivity, cost efficiency, and increasing demand for biobanks and biorepositories are expected to bolster the growth of this segment.

The Contract Research Organizations (CROs) segment is expected to register the fastest growth rate from 2023 to 2030. This rapid growth can be attributed to the increasing demand for outsourcing by pharmaceutical and biotechnological companies. Various associated advantages such as cost efficiency, the need to maintain focus on core competencies, and mutual benefits to both contractor & client, are anticipated to drive the growth of this segment over the forecast period.

Regional Insights

The North America regional market accounted for the highest revenue share of 45.0% in 2022. The dominance is due to the supportive policies facilitating laboratory automation adoption, such as EHR programs. In addition, the presence of advanced infrastructure, increasing demand for genomic studies, and increased government funding are some other factors responsible for the region's high share.

The LIMS industry in Asia Pacific is anticipated to exhibit lucrative growth during the forecast period owing to an increase in the demand for CROs providing LIMS. Emerging economies such as India and Japan remain prime outsourcing hubs due to the availability of skilled manpower and low costs. Moreover, several biopharma players are shifting their manufacturing plants to Asia Pacific for low-cost production. This is creating significant demand for LIMS in Asian countries.

Nevertheless, the COVID-19 pandemic pressured stakeholders from developed markets, such as the U.S. and Europe, to reduce their heavy dependence on Asian countries and shift back to in-house operations. China, Singapore, India, Brazil, Japan, and Middle Eastern countries are the major upcoming markets for LIMS. These markets are home to lackluster government regulations and international standards, thus, providing immense potential for vendors that can meet the standards implemented in developed countries, such as the U.S.

Key Companies & Market Share Insights

The globalmarket remains highly competitive. Key companies are involved in acquisitions, strategic collaborations, and new product launches to withstand the competition. Companies are focusing on implementing strategies, such as new product launches, regional expansion, partnerships, and distribution agreements, to increase their revenue share. For instance, in October 2022, Thermo Fisher Scientific, Inc launched edition 21.1 of SampleManager LIMS software, with features such as Analytical Quality Control (AQC) HL7 support. The new feature includes various advanced functions such as data packager and kit deployment, voice control, data support for data analytics, monitoring & charts, among others. 

In addition, technological advancements offered by major players in the market are anticipated to boost competition. For instance, in December 2022, LabVantage Solutions, Inc. released Version 8.8 of its flagship LIMS platform, which features a multitude of upgrades across all components. These factors are expected to boost the growth of the market over the forecast period. Some prominent players in the global laboratory information management system market include:

• Thermo Fisher Scientific, Inc.

• Siemens

• LabVantage Solutions, Inc.

• LabWare

• Autoscribe Informatics

• Illumina, Inc.

• Labworks

• LabLynx, Inc.

• Accelerated Technology Laboratories, Inc.

• STARLIMS Corporation

Laboratory Information Management System Market Report Scope

Global Laboratory Information Management System Market Report Segmentation

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 2018 to 2030. For this study, Grand View Research has segmented the global laboratory information management system market report based on product, component, end-use, and region:

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

  • On-premise

  • Web-hosted

  • Cloud-based

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Software

  • Services

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

  • Life Sciences

  • CROs

  • Petrochemical Refineries & Oil and Gas Industry

  • Chemical Industry

  • Food and Beverage & Agriculture Industries

  • Environmental Testing Laboratories

  • Other Industries (Forensics and Metal & Mining Laboratories)

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

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Norway

    • Denmark

    • Sweden

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Qatar