Life Science Analytics Market

Life Science Analytics Market Size (2023 to 2028)

The global life science analytics market size is anticipated to grow with a CAGR of 11.5% between 2023 to 2028 and be worth USD 27.49 billion in 2023 and USD 47.6 Billion by 2028. 

Life Science Analytics Market Share Insights:

• Based on components, the services segment dominated the market and held 58.4% of the global life science analytics market share in 2021.
• Based on the type of analytics, the descriptive segment led the market and captured 33.2% of the global market in 2021.
• Based on application, the sales and marketing segment held 28.4% of the global market in 2021.
• North America was the most dominating region in the global market and held 46% of the global market share in 2021.
• The European region is estimated to be growing at a CAGR of 9.2% from 2022 to 2027.
• The APAC region is expected to be worth USD 10.5 billion by 2027.

Impact of Covid-19 on the global life science analytics market:

Clinical trial analytics is rising with the evolving regulatory procedure criteria for performing clinical trials and the difficulty in data collection, reviewing, and compiling a report quickly for submission to the health authority. Clinical trial analytics helps understand the trial's outcome at each stage (Phase I, II, III, IV). It becomes a decision-making variable, such as whether to continue with the trial or stop the trial, submit the clinical data report as required by regulatory authorities as soon as possible, and avoid delays in regulatory approval.

The pandemic led to significant economic losses worldwide and resulted in setbacks for the global economy. However, the life science analytics market had a positive impact from the COVID-19 pandemic. The attention of the healthcare system has been entirely shifted toward attending to the needs of COVID-19 patients, and hospitals have experienced massive growth in the number of hospital visits and admissions. At the same time, the adoption of home healthcare and remote medical care has seen a spike in usage, which boosted the life science analytics market growth during the COVID-19 pandemic. In addition, the dependency of healthcare systems on analytical solutions such as blockchain, cloud computing, AI, and others is growing, further resulting in the life science analytics market growth. During the forecast period, the life science analytics market is anticipated to showcase a healthy CAGR.

MARKET DRIVERS:

The growing demand for real-time data analysis and improved decision-making in the healthcare and pharmaceutical industries primarily drives the growth of the life science analytics market. In addition, increasing data volume by medical devices and electronic health records (EHR) is expected to favor market growth. Furthermore, the growing adoption of technological developments such as machine learning and big data is further fuelling the growth rate of the life science analytics market.

MARKET RESTRAINTS:

The growth of the global life science analytics market is challenged by factors such as high implementation costs and competition from major key players.

REPORT COVERAGE:

This research report on the global life science analytics market has been segmented and sub-segmented based on the analytics type, delivery mode, application, end-user, and region.

Life Science Analytics Market - By Analytics Type:

• Descriptive Analytics
• Predictive Analytics
• Prescriptive Analytics

Based on analytics type, the descriptive analytics segment is anticipated to account for a significant share of the global market during the forecast period. Furthermore, it is likely to grow at a high pace during the forecast period due to the factors such as increasing adoption of descriptive analytics by life stakeholders to analyze past trends and events occurring in real-time in life science to develop strategies to boost the revenues of their companies.

However, the predictive analytics segment is also expected to show significant growth during the forecast period due to the growing interest in adopting life science analytics to predict future outcomes and be prepared for multiple consequences. 

Life Science Analytics Market - By Component:

• Software
• Services

Based on components, the services segment dominated the market in 2022, and the segment’s domination is estimated to continue during the forecast period. The segment's growth is majorly driven by the growing adoption of outsourcing and third-party providers for the services of life science analytics due to a lack of resources. In addition, the growing awareness among the market participants regarding the advantages associated with availing services from third-party service providers, such as specialized skills, the latest technologies, and cost-effectiveness, is fuelling the segment’s growth rate.

On the other hand, the software segment is anticipated to register the fastest CAGR during the forecast period due to the growing adoption of technological developments, the preference for remote and home healthcare solutions, and the adoption of IT solutions in healthcare.

Life Science Analytics Market - By Delivery Mode:

• On-demand
• On-premises

Due to the growing preference for cloud and web-based systems, the on-demand delivery system is expected to dominate the market during the forecast period.

The on-premises segment is also expected to grow. However, it is likely to rise slower than the on-demand segment as the continuous demand for life science analytics is yet to spread. 

Life Science Analytics Market - By Application:

• Clinical and Preclinical Trials
• Research and Development
• Regulatory Compliance
• Sales and Marketing
• Supply Chain Management
• Pharmacovigilance

Based on application, the sales & marketing segment is forecasted to dominate the global life science analytics market during the forecast period. It is also anticipated to grow at the highest CAGR owing to the growing demand for post-marketing surveillance and the rising adoption rate of analytics in life science companies to boost sales & organize marketing campaigns.

However, the R&D segment is also expected to showcase a healthy CAGR in the coming years, owing to increasing research funding. In addition, the application of life science analytics in drug discovery and clinical trial management, along with the creation of new products by key market players, is supporting growth of the research segment.

Life Science Analytics Market - By End-User:

• Pharmaceutical and Biotechnology Companies
• Medical Device Companies
• Biomedical Research Centers
• Third-party Administrators (TPA)

Based on end-user, the pharmaceutical & biotechnology companies segment held the major share of the global life science analytics market in 2022 and is predicted to witness a healthy CAGR during the forecast period owing to the growing adoption of analytics solutions by the major market companies and new entrants.

However, the biomedical research centers segment is also expected to showcase a notable CAGR during the forecast period due to growing interest in research and development by key market players and finding from numerous sources.

Life Science Analytics Market - By Region:

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

Regionally, the North American market is predicted to dominate the global life science analytics market, followed by Europe during the forecast period. The domination of the North American region in the global market has continued for the last several years. The presence of key market participants and the growing adoption of new analytics techniques favor regional market growth. In addition, the growing aging population and the presence of many pharmaceutical and medical device manufacturers and biotechnology companies are propelling the growth rate of the North American life science analytics market. The U.S. had the leading share of the North American market in 2021, followed by Canada. The rising focus to develop a data-driven healthcare system in the U.S. by the U.S. government is one of the major factors fuelling the market growth in the U.S. Furthermore, the growing adoption of personalized medicine in the U.S., which primarily depends on data analytics is promoting the U.S. life science analytics market growth.

The Europe life science analytics market had substantial share of the worldwide market in 2022 and is anticipated to register a healthy CAGR during the forecast period. The UK, Germany, Spain, Russia, and Italy are predicted to occupy leading share of the European market during the forecast period.

The life science analytics market in Asia Pacific is projected to expected to register fastest CAGR during the forecast period. The growth of the APAC market is primarily driven by the increasing incidence of chronic diseases, expanding life science industry, the growing adoption of advanced technologies, and the growing efforts from the key market participant to capture the potential of developing countries of the APAC market.

The life science analytics market in Latin America is anticipated to grow at a healthy CAGR during the forecast period.

The MEA life science analytics market is predicted to hold a moderate share of the worldwide market during the forecast period.

KEY MARKET PLAYERS:

Some of the notable companies dominating the global life science analytics market profiled in this report are SAS Institute Inc., IBM Corporation, Oracle Corporation, Quintiles, Inc., Accenture, Cognizant, Wipro Limited, TAKE Solutions, MaxisIT, Inc. and SCIO Health Analytics.

RECENT HAPPENINGS IN THIS MARKET:

In March 2020, Infosys and IBM formed a collaboration to assist enterprises of various industries including financial services, insurance and healthcare boost their digital transformation using IBM public cloud.