Life Science Analytics Market Size, Share & Trends Report

Life Science Analytics Market Size, Share & Trends Analysis Report By Component, By Type (Reporting, Descriptive, Predictive, Prescriptive), By Application, By Delivery, By End-user, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Nov, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-2-68038-172-6
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2018
  • Number of Pages: 150

Report Overview

The global life science analytics market size was valued at USD 7.2 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 7.9% from 2020 to 2027. The emergence of advanced technologies in the life sciences industry, the rise in demand for personalized medicines, and the increasing impact of the internet and social media on life sciences companies are some of the key factors driving the market during the forecast period.

U.S. life science analytics market size, by type, 2014 - 2027 (USD Billion)

The increase in adoption of life science analytics in various applications, such as reporting of adverse events, management of Pharmacovigilance master data, brand reputation analysis, customer satisfaction analysis, tracking spending activity, is one of the key factors that is expected to propel market growth over the forecast period. In addition, factors, such as first call resolution analysis, reimbursement calculations, tracking of patient health outcome, reporting drug effectiveness, and budget estimation for new drug development, are among some other factors expected to drive the market potential. Growing awareness amongst the end-users regarding the benefits of big data analytics, such as focused sales and marketing analysis, pharmaceutical innovation and drug safety trials, and safety analysis are among few factors that are driving the market.

Growing demand for improved patient outcomes is also anticipated to drive the market for life science analytics over the forecast period. Proper analysis and streamlined processes are improving operational efficiencies and patient outcomes. Some of the key examples are population health management with self-service analytics. Real-time analytics boosts the overall productivity and revenue cycle management by automating ad hoc visual analysis.

The rapid adoption of analytics in clinical trials is also contributing to market growth. Life science companies use analytics to enhance the efficiency of clinical trials and improve clinical trial data management. According to a survey conducted by ERT in May 2020, a provider of clinical services and medical devices, 82% of organizations are incorporating virtual clinical trial technology. Such adoption of advanced technologies is expected to drive the market.

Globally, healthcare expenditure is growing rapidly. According to a report published by the World Health Organization (WHO), global health spending increased from USD 7.6 trillion to USD 7.8 trillion. Furthermore, it stated that the cost of healthcare also increased drastically. Life science analytics can help in reducing healthcare costs in many ways. It can aid in reduction in clinical decision time or faster time to treatment, improved performance of healthcare professionals, risk mitigation, reduced hospitalization and readmissions, customized medication, and elimination of unnecessary testing. This in turn is estimated to drive the market.

Component Insights

In 2019, the services segment accounted for the largest revenue share of 56.3% in the market. Owing to the increasing penetration of analytics services, such as social media analytics, preventive maintenance, manufacturing process, predictive life science analytics for medical devices, and benchmarking services, the services segment held the majority market share. The services market is anticipated to grow at a lucrative rate, as there is a prevailing trend of outsourcing these services. As healthcare companies lack in resources and skill set required for the deployment of analytics, these services are outsourced. The outsourcing can be a short-term project-based, or it can be a long-term contract.

The software in the life science analytic system can perform critical functions including data capture, interpretation, storage, and analysis. Periodic up-gradation of this software is necessary to be in sync with the latest analytics methods. IBM, Oracle, and SAS are the key software vendors in the industry. This software is generally made specific to a particular industry and thus, they require a large amount of capital investment initially in order to implement the usage of the software across the entire network system.

Application Insights

In 2019, the sales and marketing support segment accounted for the largest revenue share of 34.4% in the market. This is due to the high penetration of life science analytics in various marketing and sales applications such as tracking market spending, measuring marketing ROI, and forecasting sales based on historical sales data. By adopting life science analytics, pharmaceutical companies can understand new markets for their products, identify effective distribution channels, understand the performance of sales representatives, identity patient trends, and identify emerging markets to develop effective marketing strategies.

Through analytics, life science companies are effectively planning promotional activities, understanding niche customer segments, and understanding the return on investment of their marketing activities. Analytics helps in producing the right communication messages to target patients and supports sales efficiency. According to the Content Marketing Institute survey released in 2012, 23.0% of the marketing budget is spent on content marketing activities. Multiple applications of life science analytics in the sales and marketing sector are one of the key attributes for the growth of this segment.

However, the R&D segment is anticipated to grow at the fastest rate over the forecast period. Increasing R&D cost, decrease in innovations, and the impact of digitalization in research and development are amongst the few factors expected to boost the usage of life science analytics in research and development activities to improve its productivity. Moreover, deterioration of patient health outcomes and the falling number of FDA approvals are some of the factors that are anticipated to grow the investment by the private players in R&D applications.

Delivery Insights

In 2019, the on-premises segment accounted for the highest revenue share of 50.8% in the life science analytics market. This is due to the advantages offered such as reduced costs, power consumption, and maintenance along with the high penetration of on-premises deployment systems. However, the on-demand segment is expected to be the fastest-growing segment owing to the growing need for on-demand deployment to reduce the overall cost incurred in the server and also to get customized services according to the business requirements.

According to a report published by INAP, a cloud solutions provider, 9 out of 10 organizations are expected to move workloads to off-premises by 2022. Furthermore, according to a survey conducted by Healthcare Information and Management Systems Society analytics, 83% of the pharmaceutical companies are using cloud computing technologies. This, in turn, is estimated to drive the growth of the on-demand segment in near future.

End-user Insights

In 2019, the pharmaceutical segment dominated the market and accounted for the largest revenue share of 47.9%. This is attributed to the rising applications of life science analytics in the pharmaceutical sector such as drug discovery, reduction in clinical trials, sales and marketing, and risk management. According to the International Federation of Pharmaceutical Manufacturers and Associations, the cost of development of new pharmaceutical products has increased to USD 2.6 billion from USD 179.0 million in 1970.

The rising cost of research and development and low return on investment in pharmaceutical research and development is negatively impacting pharma R&D. Analytics can aid in decreasing the time and cost of new drug discovery. This in turn will drive the pharmaceutical segment in the market. The growing need for cloud-based mobility services and solutions in pharmaceutical companies owing to rationalized internal cost, regulatory compliance, R&D processes, customer services, and marketing/sales activities is one of the factors anticipated to boost the market during the forecast period.

Type Insights

In 2019, descriptive life science analytics was the most widely used analytical tool and thus, held the largest revenue share of 36.0%. Descriptive life science analytics technology is inclined towards the conversion of raw data into interpretable information. Descriptive life science analytics creates conclusions on what has happened in the market in the past, and this helps in understanding past behavior of consumers and factors that influence market dynamics, which in turn help in building critical queries. This process usually involves data mining and aggregation and has become a fundamental offering of all analytics companies.

The descriptive life science analytics segment is expected to witness rapid growth in the market, owing to the large customer pool that is interested in understanding the current market scenario. Moreover, the cost associated with purchasing descriptive data or reports is comparatively lower than that of predictive or prescriptive life science analytics, owing to which these reports can be purchased by stakeholders across the market spectrum.

Global life science analytics market share, by type, 2019 (%)

However, the predictive life science analytics segment is expected to grow rapidly during the forecast period. This is attributed to the rising applications of predictive analytics in life science, such as forecasting pharmacovigilance workload, budget estimation, forecasting adverse events, EHR, and health outcome analysis. According to a survey conducted by the Society of Actuaries (SOA), 60.0% of payers and providers increased their spending on predictive life science analytics in 2019. Also, 42.0% of the executives who adopted predictive life science analytics have reported improved customer satisfaction, according to the same survey. This, in turn, will drive the predictive life science analytics segment in the life science analytics industry.

Regional Insights

In 2019, North America dominated the market and accounted for the largest revenue share of 51.7%. Some of the major factors contributing to the growth of the market in the region are the presence of supportive government policies for deployment of telehealth, availability of sound IT infrastructure, and high digital literacy. For instance, in Canada, The Centre For The Future Of Health (CFH) promotes “Digital Health” with an aim to integrate information technology, including electronic communication tools, into healthcare networks to facilitate the delivery of high-quality care. This is likely to enhance data aggregation and life science analytics. In addition, the pressure to curb the rising healthcare expenditure in this region has resulted in increased adoption of life science analytics.

In 2019, the U.S. held a market revenue share of 86.5%. Various initiatives being undertaken by government and non-government organizations have led to increasing penetration of life science analytics in the U.S. For instance, the National Health Information Technology (HIT) initiative in the U.S. promotes the adoption of healthcare IT that includes interoperability, privacy & security, and collaborative governance. In addition, the stage-3 of the ‘Meaningful Use’ EHR incentive program commenced in 2015 and is aimed at promoting advanced use of EHR systems and HIT in healthcare to facilitate the delivery of value-based care. Such measures promote data collection, and data sharing & interoperability. This, in turn, is expected to positively impact the market.
In Asia Pacific, the market is estimated to witness the fastest growth rate during the forecast period. Government policies supporting life science analytics and growing healthcare expenditure are few parameters supporting the growth of the market in the region.

Key Companies & Market Share Insights

Growing strategic alliances, majorly collaborations and acquisitions among key market players, along with innovative product launches are some of the key strategies driving the market. For instance, in July 2016, Accenture acquired MOBGEN, which is an end-to-end digital services company to enhance digital mobility services in Europe. Some of the prominent players in the life science analytics market include:

  • Accenture

  • Cognizant

  • IBM

  • Oracle

  • SAS Institute, Inc.

  • Wipro Limited

  • IQVIA

  • TAKE Solutions Limited

Life Science Analytics Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 7.7 billion

Revenue forecast in 2027

USD 13.2 billion

Growth Rate

CAGR of 7.9% from 2020 to 2027

Base year for estimation

2019

Historical data

2014 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Type, component, application, delivery, end-user, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; Spain; Italy; Japan; China; India; South Korea; Brazil; Mexico; South Africa; Saudi Arabia; UAE

Key companies profiled

Accenture; Cognizant; IBM; Oracle; SAS Institute, Inc.; Wipro Limited; IQVIA; TAKE Solutions Limited

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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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 2027. For the purpose of this study, Grand View Research, Inc. has segmented the global life science analytics market report on the basis of type, component, application, delivery, end-user, and region:

  • Type Outlook (Revenue, USD Million, 2014 - 2027)

    • Reporting

    • Descriptive

    • Predictive

    • Prescriptive

  • Component Outlook (Revenue, USD Million, 2014 - 2027)

    • Software

    • Services

  • Application Outlook (Revenue, USD Million, 2014 - 2027)

    • Research and Development

    • Sales and Marketing

    • Regulatory Compliance

    • Supply Chain Analytics

    • Pharmacovigilance

  • Delivery Outlook (Revenue, USD Million, 2014 - 2027)

    • On-demand

    • On-premises

  • End-user Outlook (Revenue, USD Million, 2014 - 2027)

    • Medical Devices

    • Pharmaceutical

    • Biotechnology

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

      • Spain

    • Asia Pacific

      • Japan

      • China

      • India

      • South Korea

    • Latin America

      • Mexico

      • Brazil

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • UAE

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