The global laboratory information systems (LIS) market is growing moderately, driven by increasing demand for advanced healthcare monitoring systems, better efficiency of laboratories, and hospitals and laboratories prioritizing for information systems. The LIS plays an important role in generating information effectively and accurately, which helps in clinical decisions.
As per P&S Market Research, the market for LIS was valued at $1,438.5 million in 2014 it is expected to witness a CAGR of 7.3% during the period 2015 to 2020, to reach $2,184.1 million by 2020. Rising need for improved laboratory efficiency, especially in the healthcare sector, is playing an important role in the overall growth of the LIS market. There are several other factors encouraging the growth of the market, such as significant investments from healthcare IT companies and surge in number of hospitals realizing the importance of LIS.
Rising need for integrated healthcare information systems, increase in healthcare initiatives by governments and continuous investments by major healthcare players also significantly impact the growth of the market. The LIS market is also poised for growth driven by major opportunities in emerging economies that hold significant potential in terms of demand of efficient and high quality laboratory information, and the need for powerful IT systems in diagnostic and medical laboratories.
Significant increase in adoption of smart phones is one of the key trends in the LIS market. The market is expected to witness rapid growth in demand of mobile based applications and solutions. In addition, new product launches is another major trend witnessed in the LIS market.
The application market of LIS has been categorized as clinical, drug discover and industrial. By application, the Clinical LIS segment accounted for the largest share in the global LIS market and it reported CAGR of 7.6% during 2011 to 2014, the highest among all segments. The growth of clinical LIS market was mainly driven by increasing numbers of tests and higher cost due to the emergence of new technologies.
Based on the components, the LIS market can be classified as software, hardware and services. The software segment accounted for the major portion of the global LIS market, followed by hardware and services. The software segment witnessed a CAGR of 7.2% during the period 2011 to 2014, the highest growth among all the components.
The LIS can be classified into web-based, cloud-based and on-premise, based on the mode of delivery. Web-based LIS is the preferred means of delivery as people now tend to access the laboratory reports through internet on their computers and smartphones. The on-premise delivery mode has witnessed slightly higher growth rate historically in European and Asia-Pacific markets, compared to the North American market. The cloud based technology is emerging at a fast rate and it is expected to overrun the growth of other methods.
The adoption rate of LIS is low in various countries across the globe, primarily due to the high costs incurred in implementation, maintenance, and up-gradation services; poor in-house IT skilled resources and complexity of system; and inadequate IT infrastructure. These key challenges pose threat to the growth of LIS market. Despite these challenges, the market still holds significant growth potential, mainly driven by increasing need for integrated IT infrastructure in medical and diagnostic laboratories, development in remote patient monitoring and various healthcare related initiatives by emerging economies.
The global LIS market is in growing phase in most of the countries and there are few large vendors holding the significant market share. Many new players are also entering the market, and the consolidation of small players with large players is shaping the competitive landscape. The competition in the LIS market is tough and the market players are trying to sustain themselves by differentiating their LIS products from their competitors. STARLIMS Corporation, Sunquest Corporation, McKesson, LabWare and LabVantage are some of the leading market players offering LIS solutions.
News Courtesy: P&S Market Research