Laboratory Information System (LIS) Market Share, Size and Growth Analysis By 2029

The global market for laboratory information systems (LIS) is anticipated to grow significantly, reaching an estimated US$ 2,176.54 million by 2028, up from US$ 1,104.27 million in 2021. This growth represents a compound annual growth rate (CAGR) of 10.4% from 2022 to 2028.

LIS are essential tools in laboratories, facilitating the management of various functions such as workflow optimization, integration of instruments, record-keeping, logistics, decision-making, enterprise resource planning, and ensuring privacy and security. Given the vast amounts of data generated in laboratory settings, LIS play a crucial role in organizing and safeguarding patient information, thereby minimizing the risk of data loss or misplacement. By streamlining data management, LIS reduce administrative burdens, enhance communication, and improve the quality of information available to healthcare providers.

Growth of Cloud-Based LIS Solutions

The rise in demand for cloud-based LIS solutions is notable, as these systems typically incur lower capital and operational costs compared to traditional on-premise systems. Cloud-based LIS enable healthcare organizations and clinical laboratories to efficiently share and integrate data across multiple locations, enhancing the data collection process. The advent of internet-enabled cloud services has significantly advanced the LIS market, with improvements in virtualization and increased access to high-speed internet facilitating rapid innovation at reduced costs. Organizations utilizing cloud solutions benefit from a subscription-based payment model, eliminating the need for substantial upfront investments in hardware and minimizing the requirement for extensive IT support.

Effects of the COVID-19 Pandemic on the LIS Market

The COVID-19 pandemic had a profound impact on various industries globally, including healthcare. In 2020, the pandemic caused significant disruptions across sectors such as manufacturing, energy, and construction. However, the demand for laboratory information systems surged as they proved invaluable for laboratories during this crisis. Facilities equipped with LIS were able to conduct diagnostics more rapidly, significantly reducing turnaround times. This efficiency was crucial in shortening the quarantine periods for suspected cases and facilitating timely treatment for COVID-19 patients. Throughout the pandemic, numerous laboratories, contract research organizations (CROs), research institutes, and pharmaceutical companies maintained operations, leading to increased productivity. Consequently, web-hosted solutions contributed to prolonged operational lifespans, lower ownership costs, and favorable returns on investment. Since the onset of the pandemic, key players in the LIS sector have partnered with both public and private entities to leverage advanced technologies for enhancing COVID-19 testing capabilities, thus positively influencing the growth trajectory of the global LIS market.

Market Segmentation

The global LIS market is categorized based on product type into integrated LIS and standalone LIS. In 2021, the standalone LIS segment held the largest market share; however, the integrated LIS segment is projected to experience the highest CAGR of 10.9% during the forecast period. Additionally, the market is divided into software and services based on components. Delivery modes include on-premises, web-based, and cloud-based options. The end-user segmentation comprises hospital laboratories, independent labs, and physician office labs. Hospital labs are the predominant end-users, serving as the primary access point for health services in many regions. These labs require LIS to enhance patient care and service delivery, managing a variety of tasks such as sample analysis, clinical trials, and biobank management. The increasing volume of bio-samples and the need to comply with regulatory standards are critical priorities for hospitals, driving the demand for effective laboratory information systems.

Regional Insights

North America and Europe are the leading regions in the global LIS market, with many key players operating in these areas. Meanwhile, research and development investments in countries like China and India are on the rise, leading to an increased demand for LIS to support data storage, regulatory compliance, and validation processes. These regions are also developing cost-effective, high-performance systems to extend advanced medical services to remote areas. Furthermore, the growth of medical tourism in Asia Pacific nations such as India, Vietnam, Malaysia, Indonesia, Thailand, and the Philippines presents lucrative opportunities for LIS market players. The rising incidence of diseases in this region has heightened the demand for diagnostic testing. For instance, data from Globocan 2020 indicated that China recorded approximately 19,292,789 new cancer cases. Additionally, government regulations are increasingly promoting the adoption of LIS in traditional laboratory settings. The combination of a large patient population, a skilled workforce in testing services, abundant healthcare facilities, and lower clinical trial costs is expected to further propel the LIS market in Asia.

Key sources referenced in the preparation of this report include the World Health Organization (WHO), Korea Biotechnology Industry Organization, Swiss Healthcare Startups, Spanish Federation of Health Technology Companies (FENIN), American Society for Clinical Pathology, and AusBiotech, among others.