Life Science Analytics Market Size, Share & Trends Analysis Report By Component, By Type, By Application, By Delivery, By End User (Medical Devices, Pharmaceutical, Biotechnology), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global life science analytics market size was valued at USD 7.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.8% from 2021 to 2028. Increasing penetration of analytics in the life science industry using reporting and descriptive analysis to build databases and predictive and prescriptive analysis to estimate future trends and outcomes are expected to drive the growth. The growing impact of social media and the internet on the healthcare industry is commendable and is being used to drive awareness and source data which further enhances patient engagement and is expected to drive the demand for analytical solutions in the market. In addition, the growing demand for improving patient outcomes and simultaneously reducing healthcare expenditure using analytical solutions is boosting the market growth.

The emergence of advanced analytics in various specialties of life science companies such as regulatory compliance, supply chain, clinical trials, R&D activities, pharmacovigilance, and sales and marketing is bolstering the segment growth. The rising adoption of big data analytics and data mining techniques to analyze high-risk target populations and devise appropriate strategies and measures is supporting market development. In addition, predictive analytical solutions used by healthcare financing institutes and government organizations to successfully prevent frauds in payments are further driving the market.

The ongoing COVID-19 pandemic is further driving the market for life science analytics, as healthcare systems are undergoing a tremendous burden. The pandemic is expected to drive the demand for analytics in the management of resources, such as vaccines, medicines, and other essential medical supplies. For instance, Moderna and IBM are collaborating over the vaccine management program by using hybrid computing and advanced analytical solutions. Furthermore, the growing geriatric population, increasing non-communicable disease incidence, and rising demand for improved patient experience are likely to further drive the revenue over the forecast period. Analytical solutions can be used in population health management programs and revenue cycle management programs.

COVID19 life science analytics market impact: 7.4% increase in sales

Growing demand for personalized medicine to cater to different combinations of the human genome using data-enriched tools such as electronic medical records (EMRs), mHealth, and eHealth to enhance patient care is anticipated to boost the analytical solutions demand over the forecast period. Furthermore, a combination of artificial and human intelligence data analytics to mine health data to customize treatment approaches is expected to boost growth. Furthermore, mergers and acquisitions, partnerships, and collaborative agreements are some of the crucial initiatives being undertaken by key players, which are expected to propel the growth of the market for life science analytics. For instance, in April 2021, Accenture acquired AppsPro, a Saudi-based Oracle Cloud implementation service provider. Through this acquisition, the company will strengthen Accenture’s Oracle Cloud capabilities worldwide.

Component Insights

In 2020, the services segment dominated the market for life science analytics and accounted for the largest revenue share of 54.5%. The increasing trend of outsourcing these services to market-leading companies since healthcare and life science players lack the resources and expertise in analytics is further boosting the segment, reducing mortality rate, and improving treatments. Furthermore, the services segment is anticipated to register the fastest growth during the forecast period owing to multi-package services offered by outsourced companies.

The rising burden on the healthcare industry is driving the need for adopting analytical solutions and services.  Advancements in the healthcare infrastructure and electronic health records using analytics and artificial intelligence are expected to boost segment growth. The incremental growth of this segment over the forthcoming years is attributable to the increasing number of mergers, collaborations, launches, and surges in entrepreneurship ventures.

Type Insights

In 2020, the descriptive segment dominated the market for life science analytics and accounted for the largest revenue share of 36.1% owing to the growing demand for quantifiable and descriptive analysis using historic datasets to gain data-driven insights and understand the current business scenario. Using data mining techniques on these descriptive datasets players are able to predict future outcomes and trends. For instance, in December 2020, Accenture and Trifacta, a global data preparation leader partnered to develop efficient data mining solutions for enhanced drug discovery processes.

The predictive type segment is anticipated to register the fastest growth rate during the forecast period. The growing adoption of advanced analytics to predict possible future outcomes and aids stakeholders in designing strategies and devising tactics to sustain and improve market performance are thereby propelling the market growth. For instance, in March 2021, IBM and Cleveland Clinic announced a 10-year partnership to establish the Discovery Accelerator, a joint IBM and Cleveland Clinic center focusing on accelerating healthcare and life science discovery using artificial intelligence, Cloud computing, and quantum computing.

Application Insights

In 2020, the sales and marketing support segment dominated the market for life science analytics and accounted for the largest revenue share of 34.1%. Increase in adoption of analytics in sales and marketing departments of life science organizations to enhance sales productivity is further boosting the segment. For instance, in February 2021, Oracle provided analytical support to Nemours Children’s Health System in adopting Cloud business applications to be integrated into various functionalities of the organization.

Furthermore, the research and development segment is anticipated to register the fastest growth during the forecast period owing to the increasing pipeline products of pharmaceutical, biotechnology, and medical device companies. For instance, in January 2021, Cognizant and Oracle signed a collaboration agreement to accelerate and streamline clinical study processes using a combined solution of Cognizant’s Shared Investigator Platform and Oracle’s Health Sciences solution.

Delivery Insights

In 2020, the on-premise segment dominated the market for life science analytics and accounted for the largest revenue share of 50.3% owing to increased accessibility from remote locations thereby, reducing costs and maintenance. On the other hand, the on-demand mode of delivery is anticipated to register the fastest growth during the forecast period. Growing adoption of cloud computing and web-based applications along with the widespread accessibility of the internet making these analytical solutions accessible from remote locations, thereby, saving infrastructure space on the organization’s premises is driving the growth of the segment.

End-user Insights

In 2020, the pharmaceutical companies segment dominated the market for life science analytics and accounted for the largest revenue share of 47.5% owing to the rising adoption of analytics for resource management, enhancing clinical trial efficiency, and increasing drug utilization. For instance, In November 2020, SAS Institute, Inc. supported COVID-19 vaccine clinical trial modernization with its SAS Life Science Analytics Framework, which transforms data into real-time information and provides data-driven insights.

On the other hand, the biotechnology companies segment is anticipated to register the fastest growth during the forecast period owing to the increasing adoption of analytics in genome analysis and sequencing to curb expenditure. In addition, the availability of personalized data analytic solutions is increasing the growth and development of the segment. For instance, in May 2021, Wipro Limited partnered with TranscellOncologies to transform vaccine safety assessment by using Wipro Holme’s augmented intelligence platform and Transcell’s advanced stem cell technology.

Regional Insights

North America dominated the life science analytics market and accounted for the largest revenue share of 51.3% in 2020, owing to factors such as developed and evolving healthcare infrastructure, growing geriatric population and rising prevalence of non-communicable diseases, widespread adoption of analytics and technological advancements, presence of key players, and evolving care models. Moreover, the adoption and implementation of advanced analytical solutions are increasing in various life science organizations.

In Asia Pacific, the market for life science analytics is anticipated to register the fastest growth rate during the forecast period. Developing healthcare infrastructure and facilities, increased healthcare expenditures, adoption of advanced technologies, and the presence of renowned players are factors propelling the market growth. In addition, infrastructure investments, regional expansion, economic development, and low-cost and high skilled workforce are few more factors driving the market for life science analytics in the region. Moreover, companies are devising entry strategies and mergers and acquisitions to cater to the European healthcare logistics and delivery services market. For instance, in April 2021, Wipro Limited acquired Ampion, Australian cybersecurity, DevOps, and quality engineering services, provider. The combined capabilities of the two companies will enable Wipro to cater to its clients with market agility solutions.

Key Companies & Market Share Insights

The key companies are increasingly focusing on expanding their geographical reach and introducing newer, innovative solutions through various strategies, including partnerships, product launches, and collaborations, to support the end users in adopting analytical solutions, deliver value-based care, combat COVID-19 pandemic, and maintain a competitive edge in the market. For instance, in April 2021, IQVIA launched Connected Intelligence, enabling life science clients to discover new insights, data-driven decision making, and enhance the patient treatment experience. This set of software solutions is an integration of IQVIA’s healthcare analytics and innovative technologies. 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

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 2016 to 2028. For the purpose of this study, Grand View Research, Inc. has segmented the global life science analytics market report on the basis of component, type, application, delivery, end user, and region:

• Component Outlook (Revenue, USD Million, 2016 - 2028)

  • Software

  • Services

• Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Reporting

  • Descriptive

  • Predictive

  • Prescriptive

• Application Outlook (Revenue, USD Million, 2016 - 2028)

  • Research and Development

  • Sales and Marketing Support

  • Regulatory Compliance

  • Supply Chain Analytics

  • Pharmacovigilance

• Delivery Outlook (Revenue, USD Million, 2016 - 2028)

  • On-demand

  • On-premise

• End-user Outlook (Revenue, USD Million, 2016 - 2028)

  • Medical Device

  • Pharmaceutical

  • Biotechnology

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE