Clinical Laboratory Services Market

Clinical Laboratory Services Market Size (2022 to 2027)

As per our research report, the global clinical laboratory services market size is valued at USD 212.72 Billion in 2022 and is expected to reach USD 272.79 Billion by 2027, forecasted to be growing 5.1% between 2022 to 2027.

The global demand for clinical laboratory services rises in the Covid-19 pandemic period is one of the fastest-growing market segments for medical technologies. Medical diagnostics and therapies depend on reliable and timely reporting of laboratory test results, and the movement towards preventive and customized care requires more complicated and efficient tests and biomarkers. In the past, automation growth improved efficiency, timeliness, and analytical results and benefited the laboratory stakeholders (the silo model) rather than the end-user.

However, the shift in the world in laboratory medicine, with the introduction of more complex and accurate testing, including genetic tests, could lead the clinical laboratory back to its original task of offering true and proper medical service – and to playing a more effective role in the patient's journey. By linking the dramatic developments in the test menu to the updated payment models, we will ensure a promising future for clinical practice and, above all, for patients and healthcare systems.

MARKET DRIVERS:

Increased palliative care for chronic illness, the growing aging population base in developing countries, and globally increasing the incidence of target diseases are majorly accelerating the growth rate of the global clinical laboratory services market.

The market for clinical laboratory services is further projected to be driven by the growing burden of chronic diseases and the rising demand for early diagnostic tests. Also, the launch of technological products, including microarrays, biochips, and companion diagnostics, are most likely to support market growth. In addition, other factors such as increasing investment and funding by the government and private organizations for the development of clinical laboratories and increasing healthcare expenditure are projected to propel market growth.

During the projected period, significant technological advances to improve productivity and lower costs are expected to drive the market for clinical laboratory services. Growing awareness among the people about the early diagnosis and diseases management is expected to increase the market growth.

In addition, emerging infectious diseases have the potential to inflict significant death, morbidity, and economic harm. As a result, measures to avoid new infectious illnesses would boost market demand. Also, clinical laboratories have embraced international standards, which can help with interoperability and automation. For example, in November 2020, Co-Diagnostics, Inc. acquired Central Drugs Standard Control Organization (CDSCO) permission to manufacture and distribute Saragene COVID-19 2-gene multiplex RT-PCR test in India through a joint venture with CoSara Diagnostics Pvt. Ltd. Furthermore, market firms are working to introduce new services to meet unmet patient demand. Thermo Fisher Scientific, Inc., for example, introduced cGMP-compatible CTS Series Laboratory Equipment in July 2020. The equipment includes centrifuges, CO2 incubators, biological safety cabins, and other laboratory equipment often used in gene and cell therapy production. Furthermore, technological advancements have brought various commonly used devices in testing and diagnostics, such as microarrays, biochips, and other similar devices, simplified and shortened testing procedures in terms of complexity and time.

MARKET RESTRAINTS:

Clinical laboratories face severe shortages of research sets, specimen collection materials, and personal protective equipment (PPE). However, some organizational and functional aspects can create significant clinical laboratory services barriers to provide a timely and effective response to this communicable outcome. However, the lack of adequate infrastructure in developing countries, such as India and China, and the lack of qualified clinical laboratory professionals hinder clinical laboratory services market growth during the forecast period. In addition, there are various causes associated with errors in everyday clinical laboratories, such as those related to measurement rules, blood sampling, or pathological conditions.

Impact of COVID-19 on the global clinical laboratory services market:

The effect of the COVID-19 pandemic is huge and covers almost every aspect of life across the world, with a wave of direct health impacts falling at different places across each country. The effect on all countries' economies has been profound and has yet to be track in progress. The increasing local incidence of COVID-19 has a profound effect on laboratory operations. Although volume increases have been seen for laboratory tests diagnosis and management of COVID-19, including those with minimal evidence to support their use, overall test volumes declined substantially. During events such as COVID-19, monitoring such patterns can better guide laboratory management, staffing, and test stewardship recommendations for resource management and availability.

REPORT COVERAGE:

This research report on the global clinical laboratory services market has been segmented and sub-segmented based on test type, service provider, application, and region.

Clinical Laboratory Services Market – By Test Type:

• Human & Tumor Genetics
• Clinical Chemistry
• Medical Microbiology & Cytology
• Other Esoteric Tests

Based on the test type, the clinical chemistry segment is estimated to dominate the global clinical laboratory services market during the forecast period and accounted for a market share of 48.8% in 2020 owing to factors such as the presence of various clinical chemistry tests, the emergence of point testing methods, and availability of alternative sampling methods, and the adoption of advanced technologies. Ortho Clinical Diagnostics, for example, introduced a clinical chemistry system in February 2020, completing its integrated Vitros XT range, which is meant to cover the most common lab procedures. With single-test slides, the firm projected a maximum throughput of 755 tests per hour and 1,130 tests per hour with dual-test slides. Furthermore, the company's XT 3400 system has obtained CE certification and is accessible in the United States, Canada, Europe, India, Japan, and a few Middle Eastern and African countries.

Clinical Laboratory Services Market – By Service Provider:

• Hospital-Based Laboratories
• Stand-Alone Laboratories
• Clinic-Based Laboratories

Based on the service provider, the hospital-based laboratories segment is predicted to lead the market for clinical laboratory services and accounted for a market share of over 55.0% in 2020 owing to a large number of turnaround times for patient testing, which is disproportionately more expensive for complicated and severe illness conditions. Furthermore, due to attempts to enhance patient outcomes by providing diagnostic capabilities at the retail level, stand-alone laboratories are expected to be the fastest-growing category throughout the projected period.

Clinical Laboratory Services Market – By Application:

• Bioanalytical & Lab Chemistry Services
• Toxicology Testing Services
• Cell & Gene Therapy Related Services
• Preclinical & Clinical Trial Related Services
• Drug Discovery & Development Related Services
• Others

Based on the application, the bioanalytical & lab chemistry services segment held a significant share of 53.12% in 2020. The segment growth is driven by many investigational drugs undergoing clinal trials and a growing number of novel drug candidates for clinical trials. In addition, the technologies such as molecular biology, immunochemistry, mass spectroscopy, chromatography, and ELISA are widely used in bioanalytical and lab chemistry applications.

Clinical Laboratory Services Market – By Region:

• North America
  • The United States
  • Canada
  • Rest of North America
• Europe
  • United Kingdom
  • Germany
  • France
  • Spain
  • Italy
  • Rest of EU
• Asia Pacific
  • India
  • China
  • Japan
  • Australia
  • New Zealand
  • South Korea
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
  • Rest of Latin America
• The Middle East and Africa

Geographically, the North American clinical laboratory services market led the global market and recorded the largest market share of over 40.7% in 2020. Favorable reimbursement policies, an increase in investments by government and private organizations for the development of clinical laboratory tests, and advanced technology availability in the region are constantly accelerating the North American regional market. In the North American region market, the United States is expected to expand significantly within the region due to the high prevalence of chronic illnesses in the nation, which necessitates clinical laboratory services for effective treatment and patient care. According to the National Center for Biotechnology Information, 45.0 percent of the US population, or 133 million individuals, had at least one chronic illness in 2018.

The European clinical laboratory services market is anticipated to grow the most significant market share during the forecast period. The clinical laboratory services market in this region is being driven by government initiatives to raise awareness about preventative screening, expanding public and private support for research on the development of clinical laboratory tests, and increasing the use of genome-based laboratory testing. In the European regional market, countries such as the UK, Germany, France, Spain, and Italy contribute significantly. In contrast, the UK has dominated the Clinical services market in Europe. Growing burden on chronic diseases, rising demand for early diagnostic tests, and introduction of technologically advanced products uplift the UK market growth.

The Asia Pacific clinical laboratory services market is one of the fastest-growing regional markets in the global market. The APAC market growth is largely driven by improving healthcare infrastructure, Y-O-Y rising hospitals, and healthcare spending. China dominated the clinical services market during the current previous year. Technological advancement in the healthcare sector, expanding clinical laboratories in-country and mergers and acquisitions, and research and development activities are majorly driving countryside market growth. The Indian clinical services market is anticipated to showcase a good market share and contribute to the APAC regional market growth. This is because of increasing disposable income, education, raising awareness about the prevention of severe diseases, and support from the government through investments and funding for market expansion.

KEY MARKET PARTICIPANTS:

Companies playing a dominating role in the global clinical laboratory services market are Qiagen, OPKO Health, Inc., Abbott, Quest Diagnostics, Inc., Arup Laboratories, Charles River Laboratories International, Inc., Laboratory Corporation of America Holdings (LabCorp), Fresenius Medical Care, NeoGenomics Laboratories, Inc., and Siemens Healthcare GmbH.