Laboratory Information System Global Market Report 2020-30: Covid 19 Growth and Change

Laboratory Information System Global Market Report 2020-30: Covid 19 Growth and Change

  • July 2020 •
  • 200 pages •
  • Report ID: 5948410 •
  • Format: PDF
Major players in the laboratory information system market are Cerner Corporation, McKesson Corporation, Epic Corporation Inc, Medical Information Technology Inc, SCC Soft Computer, Sunquest Information Systems Inc, CompuGroup Medical AG, Computer Programs and Systems Inc, Merge Healthcare Inc, and Orchard Software Corporation.

The global laboratory information system market is expected to decline from $1.62 billion in 2019 to $1.58 billion in 2020 at a compound annual growth rate (CAGR) of -2.42%. The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities. The entire supply chain has been disrupted, impacting the market negatively. The market is then expected to recover and reach $2.33 billion in 2023 at a CAGR of 13.8%.

The laboratory information system market consists of revenue generated by the companies offering laboratory information system software products and related services. A laboratory information system is a software or database that helps in efficient managing of a clinical laboratory for storing, processing, and tracking of data, which used by the hospitals, laboratories, physician offices and clinics for optimizing their workflow.

North America was the largest region for the laboratory information system market in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period.

In October 2019, Francisco Partners, an America-based technology-oriented private equity firm acquired Orchard Software Corporation, a privately-owned company specializing in developing laboratory information systems (LIS), for an undisclosed amount. This acquisition is expected to fuel the innovations and offer new technologies to the orchard customers using the experience of Francisco partners. Orchard Software Corporation was founded in 1993 and is a pioneer in the laboratory information systems, which deploys its software in the physician office, clinics, hospitals, and small laboratories.

The laboratory information system market covered in this report is segmented by product into standalone LIS; integrated LIS and by end-user into hospital laboratories; independent laboratories; physician office laboratories; others.

High costs associated with implementing and maintenance of laboratory information systems are anticipated to limit the growth of the laboratory information system market. The cost of a laboratory information system ranges from $4,000 and $100,000 and also an additional annual operating cost of $1000 to $5000. The operating costs comprise cost related to the software license, training the healthcare personal, maintenance, and service cost. The laboratories may opt for the lower-cost version owing to the high cost of software even when the requirement is for a higher-cost version to reduce the burden of the laboratories, causing an operational instability. Therefore, the high cost of a laboratory information system is expected to hinder the market.

A cloud-based laboratory information system is expected to become the leading trend in the laboratory information systems market. Cloud computing is associated with the sharing of computer resources and services including storage and servers over the internet for a reduced cost, increased speed, productivity, and security of the system in the network. The cloud system in laboratory information systems offers various advantages such as cost-efficiency, better results, and progress without space constrain. For instance, APEX laboratory information system by Apex HealthWare, LLC, Arxspan Laboratory Software? by Bruker Software Solutions, Orchard laboratory information system by Orchard Software Corporation are cloud-based systems, which improve efficiency, reduces errors, and enhance patient care. Thus, a cloud-based laboratory information system is expected to gain significant traction in the laboratory information system market.

The rising demand for lab automation is a major factor driving the growth of the laboratory information system market. A growing number of people are undergoing a series of tests, which in turn, increases the burden on the laboratories. The clinical laboratories are hiring more healthcare personnel to reduce the amount of workload on existing staff and minimize the number of errors associated with it in order to increase the efficiency and efficacy of the lab’s functioning for accurate results. According to the Bureau of Labour Statistics, around 12,000 additional clinical laboratory professionals are required every year to meet the demand; however, only half of the number is entering the field. Thus, laboratories opt for automation to ease the work. For instance, TriCore Reference Laboratories in Albuquerque, Mexico, introduced automation in its 20% of instrumentation, which performs almost 80% of the lab’s samples and displays helping the lab in managing and optimizing its functions for faster and accurate results.