Life Science Analytics Market Size, Share And Trends Analysis Report By Component, By Type (Reporting, Descriptive, Predictive, Prescriptive), By Application, By Delivery (On-demand, On-premise), And Segment Forecasts, 2018 - 2025

Report Overview

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.

An increase in the penetration of analytics in life sciences owing to the growing demand for analytics-driven decision making and the rise in the number of collaborations have also contributed to market growth. Growing awareness about the impact of digitalization in the value chain of various pharmaceutical, medical devices, and research centers are 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. The usage of big data in this sector is expected to increase owing to the 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 the 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 the 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. An 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.

Type Insights

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 the basic reporting of data. Some of the software under this segment are SoftClinic, PPSA-based reporting, and adverse event reporting systems. The analytics is currently in its nascent stage, especially in the 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.

Component Insights

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 the growing need for cost reduction in healthcare systems, and the development of effective treatment outcomes in shorter duration, is one of the primary factors contributing to segment growth. The presence of leading providers of analytical services such as Syntel, HCL, and Sapient and an 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, an increase in data volume, and a 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.

Application Insights

In 2016, the sales and marketing support segment held the largest share in the global market owing to the higher adoption of analytics for sales activities. A key trend observed in this industry is the 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 make decisions regarding healthcare. Thus, an effective digital media strategy has become essential for medical devices and pharma companies.

Delivery Insights

As of 2016, the on-premises segment held the largest share in the global market owing to the 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 the 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 the 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.

Regional Insights

As of 2016, North America dominated the global market. The high burden of non-communicable diseases owing to an increase in the aging population and unhealthy lifestyle is a key driving factor. High economic development and the presence of well-equipped research centers, hospitals, medical device manufacturers, and universities are also boosting the 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, the U.S held over 46.0% of the total revenue. The prevalence of chronic conditions such as arthritis, diabetes, cancer, and cardiovascular diseases is increasing in this region. The 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 a rise in collaborations between various players and life sciences organizations.

The Asia Pacific is expected to witness the fastest growth over the forecast period. India, China, South Korea, and Japan are at the forefront owing to the 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 an increase in government spending on healthcare is expected to promote growth in the Asia Pacific region.

Life Science Analytics Market Share Insights

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, the development of new products is mostly a tactic adopted by larger companies as compared to emerging ones.

Life Science Analytics 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 2014 to 2025. For this study, Grand View Research has segmented the global life science analytics market report based on 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

    • The U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • Japan

    • China

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • South Africa