[153 Pages Report] The LIS market is projected to reach USD 2.4 billion by 2024 from USD 1.8 billion in 2019, at a CAGR of 6.3% during the forecast period. Factors such as the rising prevalence of chronic diseases, the need for laboratory automation & increased lab efficiency, and the development of integrated LIS are driving the growth of the LIS market. In addition, emerging countries and personalized medicine, along with the popularity of cloud-based LIS, are expected to provide significant opportunities for players in the market. However, high maintenance and service costs, the requirement of specialized laboratory units, interfacing issues, and a dearth of skilled professionals will challenge market growth in the coming year.

By delivery mode, on-premise LIS segment accounted for the largest share of the LIS market in 2018

Based on delivery mode, the LIS market is segmented into on-premise and cloud-based LIS. In 2018, the on-premise LIS segment accounted for the largest share of the LIS market. The large share of this segment is primarily due to the fact that on-premise delivery allows end users to use solutions from multiple vendors, which enables customizations as per end-user requirements.

The rising emphasis on improving the quality of diagnostics will drive the adoption of the LIS among hospital laboratories

Based on end user, the LIS market is segmented into hospital laboratories, independent laboratories, physician office laboratories, and other end users (blood banks, retail clinics, and nursing homes). The hospital laboratories segment accounted for the largest market share in 2018. The use of LIS in hospitals and hospital laboratories can significantly reduce waiting times for patients and improve the quality of diagnostics. Moreover, LIS can facilitate long-distance discussions with experts and also make digital slide images of specimens (such as blood smears or frozen sections) available online. Owing to these benefits, hospitals across the world are increasingly adopting LIS.

By product, standalone LIS accounted for the largest share of the LIS market in 2018

Based on product, the LIS market is segmented into standalone LIS and integrated LIS. In 2018, the standalone LIS segment accounted for the largest share of the LIS market. The large share of this segment is primarily due to the ability of standalone LIS to work offline and its user-friendly nature as compared to integrated LIS.

The heavy dependency of end users on service providers will drive the services segment in the LIS market

Based on component, the LIS market is segmented into services and software. The services segment accounted for the largest market share in 2018. The large share of this segment can be attributed to their indispensable nature and repetitive requirement. End users of LIS rely heavily on service providers for consulting, data storage, implementing services, training, maintenance, and regular upgrades of solutions

North America will continue to hold a significant share of the LIS market during the forecast period

Geographically, North America accounted for the largest share of the LIS market in 2018. The large market share of North America in the LIS market can be attributed to the increased reimbursement for pathology procedures, rising prevalence of cancer, and the presence of several major players in the US.

Market Dynamics

Driver: Rising prevalence of chronic diseases

The prevalence and incidence of chronic diseases are increasing globally. According to the WHO, chronic diseases such as heart disease, cancer, chronic respiratory diseases, and diabetes are the leading cause of mortality, representing 60% of all global deaths. CVD is the leading cause of deaths in the US, with a prevalence projected to reach 40.5% (~116 million people) of the total population by 2030 from 37.8% in 2015 (Source: American Heart Association). According to the American Cancer Society, cancer accounts for one in every seven deaths, worldwide. The International Agency for Research on Cancer (IARC) also estimated the number of new cancer cases to increase to 19.3 million per year by 2025.

The growing prevalence of and concern for chronic diseases necessitates the demand for advanced diagnostic and laboratory services. The government is implementing various initiatives for patients with chronic illness such as cancer in order to make it cost-effective to provide them treatment. For instance, in 2016, the National Institutes of Health (NIH) launched the All of Us Research Program in the US, which involved a group (cohort) of at least 1 million volunteers from around the country. Participants provided genetic data, biological samples, and other information about their health. In January 2015, the US Precision Medicine Initiative provided USD 215 million to various research institutions, including NIH, the Food and Drug Administration (FDA), and the Office of the National Coordinator for Health Information Technology (ONC). Through this initiative, the National Cancer Institute received USD 70 million for the use of precision medicine in oncology research. In addition, in July 2016, the French government announced an investment of USD 760.8 million (EUR 670 million) in genomics and personalized medicine for improving disease diagnostics.

Such growth in the support for disease treatment methods and research will also drive the demand for associated technologies and solutions. Laboratory Information Systems can provide fast and accurate subtyping for diseases, as well as provide rapid access to cancer data, decrease redundancy and costs, and facilitate the integration and collection of data from different types of instruments and systems. As a result, the growing prevalence of diseases and rising support for associated research can be expected to favor market growth.

Restraint: High maintenance and service costs

The high maintenance and service costs associated with Laboratory Information Systems form a major restraint to market growth. According to industry experts, the maintenance cost of IT solutions is more than the actual price of the software. Service and maintenance (which includes modifying the software as per changing user requirements) represent a recurring expenditure, amounting to almost 20�30% of the total cost of ownership. Moreover, training and implementation costs together represent around 15% of the actual price. Owing to these factors, many small and medium-sized laboratories find it difficult to invest in these systems; this limits their adoption.

Opportunity: Significant growth potential of emerging countries

China, Malaysia, Singapore, Brazil, India, and Middle Eastern countries are major upcoming markets for Laboratory Information Systems. In most of these countries, the Laboratory Information Systems market is still in the nascent stage. In addition, these markets lack proper standards and government regulations, thus offering potential growth opportunities for vendors unable to meet the standards set by governments in markets such as the US.

Over the last few years, there has been a significant increase in the number of clinical research activities in Asian countries. According to Clinicaltrials.gov, in June 2017, ~15% of the world�s clinical trials were being carried out in Asian countries. The large volume of data generated during such research activities is expected to necessitate the use of data management systems.

Prominent players operating in the Laboratory Information Systems market are also focusing on strengthening their presence in these emerging economies. In 2015, LabVantage Solutions, Inc. (US) announced the general availability of LabVantage Pharma in the Indian market. This enabled the company to serve its Asian customer base through local industries that can better understand the needs of customers and provide customized support services. Such launches will help strengthen the distribution networks of market players and lead to an increase in the implementation of Laboratory Information Systems in emerging economies. Moreover, with markets in the US and Europe reaching the maturity phase, the majority of market players is expected to shift their focus to emerging markets.

Report Scope

Report Metric Details Market Size Available for Years 2017�2024 Base Year Considered 2018 Forecast Period 2019�2024 Forecast Units Value (USD) Segments Covered Delivery Mode, Product, Component, End User, and Region Geographies Covered North America (US & Canada), Europe (Germany, UK, France, Italy, Spain, & RoE), Asia Pacific (China, Japan, India, Australia and New Zealand, & RoAPAC), and the RoW (Latin America and the Middle East & Africa) Companies Covered 12 major players, including Orchard Software Corporation (US), Cerner Corporation (US), Sunquest Information Systems Inc. (US)

This research report categorizes the laboratory information systems market based on delivery mode, product, component, end user, and region.

On the basis of delivery mode, the laboratory information systems market has been segmented as follows

On-premise LIS

Cloud-based LIS

On the basis of product, the laboratory information systems market has been segmented as follows

Standalone LIS

Integrated LIS

On the basis of component, the laboratory information systems market has been segmented as follows

Services

Software

On the basis of end user, the laboratory information systems market has been segmented as follows

Hospital laboratories

Independent laboratories

Physician office laboratories

Other end users

On the basis of region, the laboratory information systems market has been segmented as follows:

North America US Canada

Europe Germany UK France Italy Spain RoE

Asia Pacific China Japan India Australia and New Zealand RoAPAC

Rest of the World (RoW) Latin America Middle East & Africa



Key Market Players

Orchard Software Corporation (US), Sunquest Information Systems Inc. (US), Cerner Corporation (US), Computer Programs and Systems, Inc. (US), CompuGroup Medical AG (Germany), Meditech (US), SCC Soft Computer (US), Epic Systems Corporation (US), Comps Pro Med, Inc. (US), Schuyler House (US), LabWare, Inc. (US), LabHealth (US), American Soft Solutions Corp (US), LigoLab LLC (US), Allscripts Healthcare Solutions, Inc. (US), Common Cents Systems, Inc. (US), XIFIN, Inc. (US), Cirdan Ltd (Ireland), Clinical Software Solutions Ltd (US), TECHNIDATA (France), Aspyra LLC (US), Clinlab, Inc. (US), HEX Labs (US), LabSoft, Inc. (US), and NovoPath, Inc. (US) are the key players in the LIS market.

Recent Developments:

May 2019, Evident, a member of the CPSI family of companies extended their partnership with Sunnybrook Health Sciences Centre (Canada) to create first made-in-Canada, hospital information system solution.

November 2016, Sunquest acquired UNIConnect, a firm that specializes in software for molecular laboratories. This acquisition was aimed to deliver an end-to-end precision medicine solution that advanced patient care.

Key questions addressed by the report:

Where will all these developments take the industry in the mid to long term?

What are the upcoming laboratory information systems (LIS)?

Which of the end-user segments will dominate the laboratory information systems (LIS) market in the future?

Emerging countries have immense opportunities for the growth and adoption of laboratory information systems (LIS). Will this scenario continue in the next five years?

Where will all the advancements in laboratory information systems (LIS) offered by various companies take the industry in the mid to long term?

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