U.S. Laboratory Informatics Market Analysis Report By Product (LIMS, ELN, ECM) By Delivery Mode (Cloud Based, Web Hosted, On Premise) By Component, by End Use, And Segment Forecasts, 2018 - 2025

Industry Insights

The U.S. laboratory informatics market size was estimated at USD 998.5 million in 2017. It is anticipated to register a CAGR of 4.9% over the forecast period. Growing demand for laboratory automation is expected to boost the adoption of laboratory information systems in the future. Surging demand for scientific data integration solutions among end-use industries including life sciences, contract research organizations, food & beverage, and chemical is projected to stoke the growth of the market.

Increasing need for clinical workflow management in laboratories to improve operational efficiency is likely to propel the market in the coming years. Furthermore, rising adoption of laboratory information management systems (LIMS) among independent and hospital-based labs to reduce the incidence of diagnostic errors and manage high data volumes is one of the key factors stirring up the adoption of laboratory informatics in the U.S.

In addition, laboratory information systems offer benefits such as improved regulatory compliance, systems process optimization, intellectual property rights protection, paperless information management, and reduced throughput time. They also offer improved information quality, reduce the labor cost, and provide faster & effective data analytics. Owing to the associated benefits, these systems are being increasingly used by contract research organizations (CROs), biobanks, and academic research institutes.

Furthermore, growing adoption of wireless technologies in laboratories to allow remote access to information is estimated to fuel growth prospects. In addition, advancements in laboratory equipment help in replacing manual data evaluation methods, including the construction of calibration curves and measuring peak areas or height in a shorter time than traditional methods. For instance, the autosampler robotic system helps in sample preparation, which eliminates errors and saves cost & time on process execution.

Product Insights

Laboratory information management systems (LIMS) held the largest share in the U.S. laboratory informatics market in 2017. The growth of the segment can be attributed to spiraling demand for integrated LIMS platforms in accordance with requirements of life sciences and research companies to reduce the incidence of errors in data management and improve analysis. The segment will continue to lead the market until 2025.

Electronic lab notebooks (ELN) accounted for the second leading share in the market and is poised to exhibit steady growth due to increasing adoption by research organizations to process unstructured information, enable easy knowledge sharing, and ensure intellectual property protection. Rising penetration of mobile devices is further boosting the popularity of ELNs.

Similarly, enterprise content management (ECM) is anticipated to exhibit noteworthy growth over the forecast period. This can be attributed to advantages offered by ECM such as cost reduction, process automation, reduction of resource bottlenecks, effective content sharing, minimization of the number of lost documents, and better risk management.

Delivery Mode Insights

The cloud-based solutions segment was the leading revenue contributor in the U.S. laboratory informatics market on the basis of delivery mode in 2017. It provides remote access to data and reduces efforts associated with the retrieval of information. As the data is stored remotely on cloud, hardware failures do not result in data loss because of networked backups. Companies using cloud-based solutions do not require external servers and equipment, thereby reducing the cost. Remote access to data and real-time data tracking are some of the other associated advantages that are expected to contribute to the growth of the segment.

On-premise solutions offer users complete control over data, hardware, and software platforms. However, the market for on premise delivery mode is projected to expand at a relatively slower rate owing to disadvantages such as long duration of the implementation process and high set-up cost associated with various hardware. Increasing adoption of cloud computing solutions is likely to further slow down the growth of web-based & on premise solutions over the forecast period.

Component Insights

The services segment dominated the market in 2017. It will be the most promising segment during the forecast period. Increasing the outsourcing of laboratory information management solutions is supplementing the growth of the segment. As large pharmaceutical research labs lack resources and skill set required for deployment of analytics, these services are outsourced by them.

The software segment is estimated to post healthy growth during the same period owing to the availability of technologically advanced software, such as SaaS, which offers effective information management solutions for laboratories. These software are capable of performing critical functions such as data capture, transfer, interpretation, analysis, and storage. Upgraded versions of these software are required to effectively perform the aforementioned functions.

End-use Insights

Life science companies were the dominant end users of laboratory informatics in the U.S. in 2017. This can be attributed to the growing demand for laboratory informatics to improve product quality, develop innovative products, and enhance operational efficiency. Increasing advancements in the healthcare industry due to rising R&D activities in the field of medicinal research is poised to fuel the demand for laboratory information systems in the coming years. Hospitals and research laboratories are increasingly adopting LIMS in an attempt to improve patient health information tracking, patient engagement, billing, and workflow management.

CROs are anticipated to experience the fastest growth during the forecast period due to the burgeoning trend of outsourcing by life science companies. Rising number of clinical trials, soaring need to reduce operational cost, and surging demand for novel drugs and devices are expected to create a shift from in-house manufacturing to outsourcing. Growing adoption of LIMS by CROs to reduce total operational cost is likely to aid market growth.

U.S. Laboratory Informatics Market Share Insights

Some of the prominent companies operating in the market are Thermo Fisher Scientific, Inc.; Waters; Cerner Corporation; LabWare; Core Informatics; LabVantage Solutions, Inc.; LabLynx, Inc.; McKesson Corporation; PerkinElmer Inc.; Abbott Laboratories; Agilent Technologies; and IDBS.

Among various firms operating in the market in the U.S., Thermo Fischer Scientific Inc. along with its acquired entity Core Informatics are spending the most on research and development activities focused on new solution development and existing solutions up-gradation. Owing to the aforementioned activities, Thermo Fisher Scientific Inc. is projected to present the market with technologically advanced products over the forecast period. Moreover, companies, which are at the forefront, such as Abbott Laboratories and Agilent Technologies are other participants with significant revenue contribution towards laboratory informatics research and development. In 2018, Abbott Informatics launched ELN Templates in the STARLIMS Content Library in a probe to strengthen its LIMS platform.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. laboratory informatics market report on the basis of product, delivery mode, component, and end use:

•  Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Laboratory Information Management Systems (LIMS)

  • Electronic Lab Notebooks (ELN)

  • Scientific Data Management Systems (SDMS)

  • Laboratory Execution Systems (LES)

  • Electronic Data Capture (EDC) & Clinical Data Management Systems (CDMS)

  • Chromatography Data Systems (CDS)

  • Enterprise Content Management (ECM)

• Delivery Mode Outlook (Revenue, USD Million, 2014 - 2025)

  • On-premise

  • Web-hosted

  • Cloud-based

• Component Outlook (Revenue, USD Million, 2014 - 2025)

  • Software

  • Services

• End-use Outlook (Revenue, USD Million, 2014 - 2025)

  • Life Sciences

  • CRO

  • Petrochemical Refineries & Oil and Gas

  • Chemical Industry

  • Food and Beverage and Agriculture

  • Environmental Testing Laboratories

  • Other Industries (Forensics and Metal & Mining Laboratories)