Pathology Laboratories Market Size, Share & Trends Analysis Report By Type (Hospital-based), By Testing Services (General Physiological & Clinical Tests), By End User (Physician Referrals) By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global pathology laboratories market was valued at USD 311.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.86% from 2022 to 2030. The increase in the number of healthcare facilities in developing nations, growing demand for routine medical check-ups, and the improvement in the reimbursement for diagnostic tests are major factors driving the market The rising geriatric population along with the increasing prevalence of chronic diseases is also fueling the market growth.

The requirement for healthcare systems is growing as the incidence of chronic diseases rises. The demand for clinical diagnostics for chronic diseases is rising due to the importance of timely diagnosis in the management of chronic ailments. The senior citizen population is expected to rise from 1 billion in 2020 to 1.5 billion in 2030, accounting for 1 in 6 people above 60 globally as per WHO. Chronic disorders are more prevalent in the elder population. For instance, as per the national council on aging 80% of the adults in the U.S. above the age of 65 have at least one chronic ailment, indicating a high requirement for medical check-ups for the geriatric age group.

The demand for regular general medical check-ups is on the rise. In response to the high prevalence of chronic diseases, regular health check-ups are recommended for the population above 40. The increased incidence of chronic ailments in the younger population has also prompted the need for regular check-ups for younger adults as well. The rising consciousness about health has resulted in more people opting for regular medical check-ups. It is mandatory for companies to have an annual medical check-up for employees in many nations is creating more opportunities for diagnostic labs.

Moreover, the growing healthcare spending to improve the existing healthcare infrastructure in developing countries has resulted in the establishment of numerous new hospitals and diagnostic labs and the upgrade of the existing facilities For instance, in March 2022, the Delhi government announced the upgradation of 15 hospitals and & building of 4 new hospital facilities in the city, resulting in the growth of the hospital-based diagnostic centers.

COVID-19 pathology laboratories market impact: 9.5% growth from 2020 to 2021

Pathology services are reimbursed in major markets such as the United States, Western Europe, Australia, Japan, and China. Diagnostic service reimbursement varies by region. For instance, in U.S., radiology and other diagnostic services are covered under Medicare Part B. In the United States, more than 400 million imaging services are provided to Medicare beneficiaries each year. Similarly, the Chinese government has taken steps to provide insurance to nearly 95% of the country's population

Type Insights

The global pathology laboratories market is categorized into hospital-based, standalone labs, and diagnostic chains. Hospital-based labs accounted for the largest market share in 2021 The hospital-based laboratories perform more tests compared to other types of laboratories, giving them an edge over other labs. In addition, the presence of various government regulations and insurers is one of the major drivers of competition between standalone labs and hospital-based labs.

Standalone labs facilitate serval pathological tests at a lower price compared to hospital-based labs. For instance, according to a pricing analysis by Amino, the cost of an MRI at a hospital-based pathology lab is more than twice as compared to a standalone diagnostic center. The growing demand for general medical check-ups as a result of increased awareness is boosting the scope for standalone labs.

Diagnostic chains offer a patient-centric array of tests in the form of annual packages or bundled tests. The services offered across the region or country are similar at all centers and thus these chain focus on maintaining by obtaining accreditations from organizations such as the International Organization of Standardization (ISO) certification, National Accreditation Board for Testing and Calibration Laboratories (NABL), and College of American Pathologists (CAP) accreditation.

Testing Services Insights

Based on the testing services, the diagnostic labs market is segmented into general physiological & clinical tests, imaging & radiology tests, esoteric tests, and COVID-19 tests. In 2021, general physiological & clinical tests held the largest market share. However, there was significant demand for COVID-19 tests due to the peak of the second wave, as it was mandatory to have COVID-19 testing pre & post-travel. The resumption of offices, factories, etc. also required mandatory COVID-19 testing. With the home COVID-19 test available in the majority of countries, the demand for RT PCR tests is no longer mandatory, thus the market for COVID-19 tests is expected to drastically decline over the forecast period.

The imaging & radiology tests segment is expected to witness lucrative growth during the forecast period. This can be attributed to the increasing demand for early diagnosis of chronic ailments, the growing scope of clinical applications & technological advancement. X-ray imaging is the most common and is the most preferred test among all diagnostic imaging testing. The high incidence of road accidents and aging orthopedic disorders is boosting the demand for x-rays. The application of X-rays in the detection of lung infection, enlarged liver, and other diseases has led to high demand. Other diagnostic imaging tests include ultrasound, Magnetic Resource Imaging (MRI), Computed Tomography (CT) scans, Positron Emission Tomography (PET) scans,  nuclear imaging, and mammography.

The esoteric tests segment is expected to witness the fastest growth during the forecast period. Esoteric testing includes infectious diseases testing, endocrinology testing, oncology testing, genetics testing, toxicology testing, immunology testing, and neurology testing. Infectious diseases testing & oncology are expected to have the highest demand owing to the rise of infectious diseases & cancer among the population. The criticality of early diagnosis of cancer and other life-threatening diseases is expected to increase the demand for these tests.

End Use Insights

Based on end use, the market is segmented into physician referrals, walk-ins, and corporate. Physician referrals accounted for the largest revenue share in 2021. This can be attributed to the fact that around 70% of all medical decisions made by physicians are based on pathological and diagnostic test results. The growth of target diseases among all ages is anticipated to stimulate segment growth.

The corporate segment is expected to witness lucrative growth during the forecast period due to improvements in employee benefit policies such as annual medical check-ups in the corporate sector. Furthermore, government bodies in many countries are also making it mandatory for companies to have health check-ups of employees. For Instance, in November 2020 the union government of India proposed a new set of labor rules making it mandatory for companies to have an annual check-up of employees above 40 years of age. The key market players are coming up with customized packages for corporate clients. Quest diagnostics provided COVID-19 testing & symptom check for employers across the U.S. looking forward to resuming offices post-pandemic.

The walk-in segment will be driven by the rise in awareness regarding health and wellness, resulting in more individuals opting for routine check-ups. A population above 50 is the target patient population for this segment. The growing geriatric population & increasing life expectancy is expected to further drive the segment growth, especially in Asia & Europe where the aging population is very high.

Region Insights

North America held the largest market share in 2021. As per the Centers for Disease Control and Prevention (CDC), four in every ten American adults are having multiple chronic diseases. Cardiovascular disorders are the most common chronic ailment & the leading cause of death in the U.S. accounting for 1 in 3 deaths. The CDC is focusing on the diagnosis & prevention of risk factors like cholesterol & blood pressure causing heart problems.

Asia-Pacific is expected to fastest growth during the forecast period from 2022 to 2030 due to the availability of cost-effective pathology tests in the region. According to the facts published by the Asian Diabetes Prevention Initiative, 60% of diabetics globally are Asians. China & India have the highest diabetes prevalence with 113.9 & 65.1 million adults having diabetes in respective nations. Asians have reported 3-5% more body fat compared to European’s making them more prone to diabetes. Diabetes may result in complications like heart issues, kidney damage, eye & foot damage, and hearing impairment. The Asian Diabetes Prevention Initiative is thus promoting the early diagnosis of diabetes to reduce the burden of healthcare expenditure in developing countries.

Europe is expected to witness lucrative growth during the forecast period due to the increasing adoption of advanced imaging techniques, a higher proportion of the elder population & rising demand for esoteric testing. The high prevalence of cancer in Denmark & France is creating more opportunities for oncology testing services. As per the World Cancer Research Fund International, Denmark, France, Belgium, Hungary, Ireland; & Netherlands have an average cancer rate of 300 per 10,000 people, indicating the high prevalence of oncology & the need for diagnosis. However, the high cost of advanced imaging devices & unfavorable reimbursement scenario in the region is restricting the entry of new players.

Key Companies & Market Share Insights

The pathology laboratories market is highly fragmented with the presence of several large & small players Adoption of new diagnostic techniques, partnerships, mergers, and geographical expansions are the key strategies adopted by the market players. For instance, In Jan 2022, Quest Diagnostics acquired Pack Health, a patient engagement company, for enhancing value-based service In May 2021, Quest Diagnostics collaborated with Paige, aimed at enhancing the quality of oncology testing through the advancement in AI-generated pathology. Some of the prominent players in the pathology laboratories market include:

• Quest Diagnostics Incorporated

• Eurofins Scientific

• Laboratory Corporation of America Holdings

• Exact Sciences Laboratories LLC

• Spectra Laboratories

• SYNLAB International GmbH

• Sonic Healthcare Limited

• Dr. Lal Path Labs

• Metropolis Healthcare

• Kingmed Diagnostics

• Healius Limited

• BioReference.

• Centro de Diagnósticos

• Falco Holdings

• Unilabs

Pathology Laboratories Market Report Scope

Global Pathology Laboratories Market Segmentation

This report forecasts revenue growth at the regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2027 to 2030. For this study, Grand View Research has segmented the pathology laboratories market report based on type, testing services, end-use, and region:

• Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Hospital-based

  • Standalone Labs

  • Diagnostic Chains

• Testing Services Outlook (Revenue, USD Billion, 2017 - 2030)

  • General Physiological & Clinical Tests

  • Imaging & Radiology Tests

  • Esoteric Tests

  • COVID-19 Tests

• End Use Outlook (Revenue, USD Billion, 2017 - 2030)

  • Physician Referrals

  • Walk-ins

  • Corporate

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE