Digital Pathology Market

Global Digital Pathology Market Size (2023 to 2028)

As per our analysis report, the global digital pathology market is projected to value USD 1000.2 million by 2028 from USD 577.8 million in 2023, growing at a CAGR of 11.66% during the forecast period.

Global Digital Pathology Market Share Insights:

• Based on type, the human segment had the major share of the global market in 2022.
• Based on product, the scanners segment led the market in 2022.
• Based on application, the teleconsultation segment accounted for the largest share of the global market in 2022.
• Based on end-user, the pharmaceutical and biotechnology segment was the biggest segment in the global market in 2022.
• Based on region, North America dominated the digital pathology market in 2022.

MARKET DRIVERS:

The growing cancer patient population worldwide boosts the global digital pathology market growth. According to the statistics published by the World Health Organization (WHO), approximately 10 million deaths happened due to cancer worldwide in 2020, which was the leading cause of death. The most common cancer types are breast, lung, prostate, colon, and rectum. The growing incidence of cancer is fuelling the need for accurate and efficient diagnostic procedures. The benefits that digital pathology offers such as faster slide scanning, improved image quality, and remote access to digital slides help significantly to help pathologists to make faster and more accurate diagnoses. The number of people diagnosing with cancer is growing significantly with each year passing and providing a way of a wealth of data for research and development efforts and driving innovation in the digital pathology field. The digital nature of pathology allows connecting pathologists and healthcare professionals to connect regardless of their location and results in improved accuracy in diagnosis and treatment decisions. Likewise, the growing prevalence of cancer is anticipated to fuel the demand for digital pathology services and contribute to market growth.

Growing initiatives for the commercial exploitation of profitable digital pathology systems will likely provide service providers with growth opportunities during the forecast period. Governments are taking initiatives such as decreasing restrictions on digital pathology software and hardware approvals. For instance, in April 2020, the U.S. Food and Drug Administration issued a waiver allowing pathologists to perform primary readings from their homes and decreased restrictions on the approval of software and hardware. This resulted in an increased digital pathology implementation.

Technological advancements and the growing number of R&D activities in digital pathology further contribute to market growth. The rising focus on improving the workflow and demand for faster diagnostic tools for chronic diseases, the growing aging population and the rising chronic disease prevalence propel the growth of the global digital pathology market. The growing prevalence of promoting quality services for poor people, advanced technology such as digital imaging, computerization, robotic light microscopy, and multiple fiber optics communications further fuels the market’s growth rate. Furthermore, the increasing use of scanners in pathology labs and the launch of innovative products in the medical sector to promote better diagnostic procedures boost the growth rate of the digital pathology market.

MARKET RESTRAINTS:

High initial setup and maintenance costs associated with digital pathology are one of the major factors hampering the market growth. Strict adherence to regulatory standards and compliance requirements, resistance from pathologists and healthcare professionals to change to digital pathology from the conventional methods and poor awareness or understanding about the benefits and capabilities of digital pathology further hinder the market growth. Lack of robust IT infrastructure and high-speed connectivity to handle the large volumes of data generated by slide scanning and image storage in some countries, interoperability and standardization issues impede the market growth.

Impact of COVID-19 on the global digital pathology market:

The COVID-19 outbreak has set new challenges for key market players, and the pandemic has positively impacted digital pathology services. Digital pathology plays a vital role in providing safeguarding clinical services to patients. Also, pathology-based research profoundly impacts market shares in the current situation. The digital pathology approaches are a new diagnosis procedure that evaluates surgical pathology slides from the formalin-fixed paraffin-embedded tissue (FFPE). In the peak time of the COVID-19 pandemic, researchers have found great digital pathology approaches in contacting patients without direct contact. The U.S. Food and Drug Administration (FDA) has approved Philips IntelliSite Pathology Solution to readily these consumer monitors. Also, FDA has approved other digital pathology solutions for the emergency use of COVID-19 cases.

COVID-19 positively affected the growth of the digital pathology market owing to the increased number of people using digital devices, favorable regulations, and a decrease in the number of patients physically coming to pathologists and doctors. The governments of several countries have taken measures such as lockdown and social distancing rules to combat and limit the spreading of coronavirus. This resulted in a decrease in the number of patient consultations. According to a research paper that was published in the Journal of Clinical Pathology in 2021, the pandemic's arrival boosted the adoption of these technologies in Switzerland. The shift from traditional to digital methods also took place in Switzerland. However, the impact of COVID-19 impact of global healthcare systems is thinning and the digital pathology market is expected to register healthy growth in the coming years.

REPORT COVERAGE:

This research report on the global digital pathology market has been segmented and sub-segmented based on the type, product, application, end-user, and region.

Digital Pathology Market - By Type:

• Human Digital Pathology
• Animal Digital Pathology   

Based on type, the human pathology segment is expected to hold the major share of the global market during the forecast period. The growing adoption of digital pathology solutions in healthcare institutions for enhanced diagnostics, research, and education, increasing number of advancements in imaging technologies, such as whole slide imaging, facilitating digital pathology implementation and growing demand for efficient storage, retrieval, and analysis of large volumes of pathology data majorly drive the growth of the human pathology segment in the global market. The rising need for remote collaboration and consultation among pathologists and the potential for improved accuracy, efficiency, and workflow optimization in pathology practices further boost the growth rate of the human segment in the worldwide market.

The animal segment is anticipated to witness a healthy CAGR during the forecast period. The growing veterinary healthcare industry, rising focus on animal health diagnostics, advancements in digital imaging and scanning technologies for veterinary pathology and growing demand for efficient storage, sharing, and analysis of animal pathology images and data propel the growth of the animal digital pathology segment in the worldwide market.

Digital Pathology Market - By Product:

• Scanners
• Software
• Communication Systems
• Storage Systems

Based on the product, the scanners segment is expected to occupy the most significant share of the global market during the forecast period. The growing adoption of digital pathology for efficient and accurate slide scanning and image acquisition and increasing demand for high-resolution scanners capable of capturing detailed pathology images drive the growth of the scanners segment in the global market. Advancements in scanner technology, such as faster scanning speeds and improved image quality and the benefits of digitizing slides for archiving, remote consultation, and collaboration, further propel the segmental growth.

The software segment is anticipated to witness a healthy CAGR during the forecast period owing to the rising need for advanced image analysis and interpretation tools for pathology and features like image management, annotation, and reporting capabilities driving software adoption.

Digital Pathology Market - By Application:

• Teleconsultation
• Disease Diagnosis
• Drug Discovery
• Training and Education

Based on application, the teleconsultation segment is predicted to lead the global digital pathology market and is likely to grow further during the forecast period. The rising need for remote pathology consultations and expert opinions, advancements in telecommunication and connectivity technologies, the ability to access and share digital pathology images and data remotely and the cost-effectiveness and convenience of telepathology for healthcare providers support the growth of the teleconsultation segment in the global market.

The drug discovery segment is expected to register the fastest CAGR during the forecast due to the increased availability of funding for research and development. The growing usage of digital pathology in preclinical and clinical research for drug development and increasing adoption of digital analysis of tissue samples for target identification and biomarker discovery.

Digital Pathology Market - By End Users:

• Pharmaceutical and Biotechnology
• Hospitals
• Academic Institutes

The pharmaceutical and biotechnology segment leads the global market during the forecast period based on end-users. It is likely to grow further during the forecast period due to the implementation of digital pathology for biodiversity, biopharmaceutical studies, and molecular analysis.

Digital Pathology Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

Geographically, the North American digital pathology market is estimated to contribute the largest share to the global digital pathology market during the forecast period. This trend is expected to continue throughout the forecast period due to the increasing adoption of digital pathology systems. Technological advancements and early adoption of digital pathology solutions, rising demand for efficient diagnostic tools and improved patient care, strong healthcare infrastructure and government initiatives promoting digitalization and growing prevalence of chronic diseases and the need for accurate diagnostics propel the growth of the North American market. Highly developed North American countries such as the United States and Canada significantly boost this regional market and are the primary reason behind North America's leading spot.

The European digital pathology market had the second-largest share of the worldwide market in 2022 and is expected to grow at a healthy CAGR during the forecast period. The growing cancer incidence and increasing adoption of teleconsultations in Europe primarily drive the Europe digital pathology market. The growing focus on personalized medicine and precision diagnostics, rapid adoption of digital pathology for research and clinical applications, supportive government regulations and funding for digital healthcare and increasing number of collaborations between industry and academia for advancements in digital pathology fuels the growth rate of the European market. The U.K., followed by Germany is anticipated to hold the leading share of the European market during the forecast period.

The digital pathology market in the APAC is forecasted to grow at a high CAGR during the forecast period due to rising awareness of digital pathology systems, a vast patient pool with chronic and infectious diseases, and rising healthcare expenditure in the Asia-Pacific region. The rising awareness and adoption of digital pathology solutions, growing prevalence of chronic diseases and need for efficient diagnostics and large patient population and increasing demand for telepathology in remote areas further contribute to the APAC market growth.

The Latin American digital pathology market is expected to showcase a healthy CAGR during the forecast period. The growing investments in healthcare infrastructure and digitization and rising burden of infectious diseases and the need for accurate diagnostics propel the digital pathology market growth in Latin America. The growing initiatives from the governments of Latin American countries to improve access to healthcare services and rapid adoption of digital pathology for pathology education and training further boost the growth of the Latin American market. Brazil, followed by Mexico, is expected to play a vital role in this regional market.

The digital pathology market in MEA is yet to gain its full potential and is estimated to grow at a steady CAGR from 2023 to 2028.

KEY MARKET PLAYERS:

Perkin Elmer, Inc., Definiens AG, Sectra AB, Koninklijke Philips N.V, G.E. Healthcare, Inspirata Co, Ventana Medical Systems, Inc., Leica Biosystems, 3D-Histech Ltd, Hamamatsu Photonics and K.K., Digipath Co. are some of the major companies in the global digital pathology market.

RECENT HAPPENINGS IN THE DIGITAL PATHOLOGY MARKET:

• In April 2020, SectraCompany received U.S. FDA clearance for 510(K) of digital pathology for primary diagnostics. Pathologists use this digital pathology for sitting at home and working without a microscope to get outcomes.
• In Jan 2017, Perkin Elmer launched a new Automated Quantitative Pathology Imaging System. This System, Vector Polaris, helps scientists research the immune system and learn about cancer cells.
• In March 2018, F. Hoffmann-La Roche AG, one of the leading players, launched VENTANA DP. It is a high-speed slide scanner for pathology and produces images of high quality.