The global life science analytics market size was valued at USD 8.2 billion in 2016 and is expected to develop at a CAGR of 12.9%. Growing demand for reducing healthcare expenditure, increasing instances of regulatory oversight, and declining R&D productivity are some of the key factors contributing to market growth.
Increase in penetration of analytics in life sciences owing to growing demand for analytics-driven decision making and rise in number of collaborations has also contributed to market growth. Growing awareness about the impact of digitalization in the value chain of various pharmaceutical, medical devices, and research centers is also expected to drive growth over the forecast period.
Increasing adoption of analytical solutions for various applications in pharma companies such as clinical trials, sales and marketing, and risk management is further expected to boost the market. Usage of big data in this sector is expected to increase owing to rising need to reduce healthcare expenditure and maintain standardization in various internal processes, while also accommodating variation in regulatory needs.
Across the globe, healthcare professionals and key players are undertaking efforts to provide high-quality services at low costs with minimum medical errors. Growth in government spending in the healthcare sector is responsible for ongoing developments in the industry.
In 2015, healthcare expenditure in U.S. was USD 3.2 trillion, which is 2.4 times higher than the global average. This number is expected to increase by 68.0% over the next 10 years, which in turn, is expected to boost healthcare infrastructure and life science analytics.
With advanced analytics, healthcare institutes can derive clinically meaningful outcomes through investigational mining of electronic patient records. This will aid in identifying medical inaccuracies in the database to offer cost-effective treatments to patients while reducing wastage of resources. Increase in demand for real-time monitoring among various end users such as medical device and pharmaceutical companies as well as research centers will create new opportunities for analytics to gain insightful clinical outcomes.
As of 2016, reporting was the most widely used analytical tool and thus, held the largest revenue share. This kind of software is mainly used for basic reporting of data. Some of the software under this segment are SoftClinic, PPSA-based reporting, and adverse event reporting system. The analytics is currently in its nascent stage, especially in case of the life sciences industry. Thus, the market is anticipated to grow at a rapid pace over the forecast period.
Most developed economies have started adopting descriptive software in their business processes, making it the second-largest segment in the global market. This segment is expected to grow at a faster rate than the reporting segment, surpassing it in terms of revenue share over the forecast period. These systems are frequently used for process optimization and administrative activities, wherein past data records as well as real-time data are analyzed to yield a summarized pattern with in-depth insights.
The predictive type segment is anticipated to witness lucrative growth over the forecast period. This method is generally used in government organizations primarily to prevent fraud. Growing demand for predictive analytical software among various enterprises to achieve a competitive edge is one of the key factors anticipated to drive this segment.
As of 2016, the services segment held the largest share in the global market and is expected to dominate over the forecast period. Increasing penetration of analytics, on the heels of growing need for cost reduction in healthcare systems and development of effective treatment outcomes in shorter duration, is one of the primary factors contributing to segment growth. Presence of leading providers of analytical services such as Syntel, HCL, and Sapient and increase in investments by key market players are also expected to drive this segment over the forecast period.
Growing demand for cloud-based deployment in life sciences, increase in data volume, and rise in availability of function-specific analytics software are some of the factors anticipated to boost demand for analytics software over the forecast period. Widespread penetration of big data and analytics in larger enterprises is also impacting segment growth. However, budget constraints and lack of skilled professionals are some of the factors that might negatively impact the market.
In 2016, the sales and marketing support segment held the largest share in the global market owing to higher adoption of analytics for sales activities. A key trend observed in this industry is surge in usage of mobile apps in the healthcare sector, which results in growing physician and patient outreach, and strong social media presence and engagement in the medical industry. This is expected to boost the adoption rate of analytics in sales and marketing in pharmaceutical and biotech industries over the forecast period.
Growing demand for cloud-based mobility solutions and services in pharma firms to optimize internal cost, R&D processes, customer services, regulatory compliance, and marketing/sales activities is one of the key factors anticipated to boost the life science analytics market during the forecast period. In recent times, patients are using information available through the Internet, especially on social media platforms, to take decisions regarding healthcare. Thus, an effective digital media strategy has become essential for medical devices and pharma companies.
As of 2016, the on-premises segment held the largest share in the global market owing to high installation of traditional ERP models in life science companies. According to various studies, approximately 15.0% of these organizations are using cloud-based services such as Infrastructure as a Services (IaaS), Software as a Service (SaaS), Business Process as a Service (BPaaS), and Platform as a Service (PaaS) for sales and marketing. Growing demand for cloud-based tools to boost innovation is one of the key factors anticipated to drive adoption of on-demand ERP deployments.
Stringent regulations and concerns regarding cloud security and data privacy are some of the factors anticipated to negatively affect growth of the on-demand segment. Some of the compliance guidelines such as HIPAA & HITECH and security rules such as unique device identification have raised the strain on operations of medical device manufacturers and pharmaceutical companies. However, growing need for on-demand systems among end users owing to lower ownership cost, faster implementation, minimal involvement of IT professionals, and streamlined process validation is anticipated to boost the market over the forecast period.
As of 2016, North America dominated the global market. High burden of non-communicable diseases owing to increase in aging population and unhealthy lifestyle is a key driving factor. High economic development and presence of well-equipped research centers, hospitals, medical device manufacturers, and universities are also boosting development of new products and their commercialization in this region. Rapidly changing reimbursement policies, high burden of chronic diseases, and rising healthcare costs are some of the key factors responsible for the current revenue share of this region.
As of 2016, U.S held over 46.0% of the total revenue. Prevalence of chronic conditions such as arthritis, diabetes, cancer, and cardiovascular diseases is increasing in this region. Presence of global players such as SAS Institutes, Inc.; IBM; Oracle; and Cognizant is also contributing to its current revenue share. The market is expected to witness lucrative growth during the forecast period due to rise in collaborations between various players and life sciences organizations.
Asia Pacific is expected to witness fastest growth over the forecast period. India, China, South Korea, and Japan are at the forefront owing to presence of a large pool of skilled and low-cost workforce and growing need for analytics in various third-party business process services companies. Supportive government policies and increasing prevalence of chronic diseases are boosting the market in this region. Rising demand for life science analytics and related services due to increase in government spending on healthcare is expected to promote growth in the Asia Pacific region.
Some of the key players operating in this space are Accenture; Cognizant; IBM; Oracle; SAS Institute, Inc.; Wipro Limited; IQVIA; and TAKE Solutions Limited. There are many large and small players in the market. Large players include companies such as IBM, Oracle, and Capgemini.
Small players include companies such as Health Catalyst and TAKE Solutions Ltd. These players have adopted a competitive pricing strategy. As investments made by large players in R&D are higher, development of new products is mostly a tactic adopted by larger companies as compared to emerging ones.
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Attribute |
Details |
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Base year for estimation |
2016 |
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Actual estimates/Historical data |
2014 - 2016 |
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Forecast period |
2017 - 2025 |
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Market representation |
Revenue in USD Million and CAGR from 2017 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, MEA |
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Country scope |
U.S., Canada, Germany, U.K., China, Japan, Brazil, Mexico, South Africa |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors and trends |
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15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest 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 life science analytics market report on the basis of type, component, application, delivery, and region:
Type Outlook (Revenue, USD Million, 2014 - 2025)
Reporting
Descriptive
Predictive
Prescriptive
Component Outlook (Revenue, USD Million, 2014 - 2025)
Software
Services
Application Outlook (Revenue, USD Million, 2014 - 2025)
Research and Development
Sales and Marketing
Regulatory Compliance
Supply Chain Analytics
Pharmacovigilance
Delivery Outlook (Revenue, USD Million, 2014 - 2025)
On-demand
On-premises
Regional Outlook (Revenue, USD Million, 2014 - 2025)
North America
U.S.
Canada
Europe
Germany
U.K.
Asia Pacific
Japan
China
Latin America
Brazil
Mexico
MEA
South Africa
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