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The laboratory information management system market size is forecast to increase by USD 1.63 billion at a CAGR of 13.46% between 2023 and 2028. The growth of the laboratory management system industry depends on several factors, including adherence to compliance and government regulations, the rise in chronic diseases and the aging population, and the high demand for bio-banking. LIMS, a type of software, is used to manage large quantities of samples and data of a modern laboratory. The LIMS can effectively reduce the workload of modern labs by enforcing standard workflows, an essential aspect of clinical trial support services. Therefore, it improves the work efficiency of the laboratory.
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The market is thriving due to increasing demand for scientific data integration solutions in research facilities. With a growing volume of datasets, experiments, and tests, labs require efficient management of research findings and data-driven decisions. The pharmaceutical and biotechnology industry's compliance with regulations such as 21 CFR Part 11 and Clinical Laboratory Improvement Amendments (CLIA) drives the adoption of LIMS solutions. Moreover, the emergence of medical cannabis and cannabis testing expands the market's scope. Challenges include the need for skilled IT professionals to implement and maintain LIMS solutions, particularly in universities like the University of Minnesota. Additionally, ensuring data security and compliance with regulations while enhancing operational efficiency, sample tracking, data analysis, and result reporting pose significant challenges for LIMS providers amidst evolving industry trends and increasing reliance on cloud-based solutions. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Adherence to compliance and government regulations is the major driver affecting the growth of the laboratory management system (LIMS) market. Industries, such as food and beverages and healthcare, need to comply with strict government regulations. This has resulted in laboratories automating the handling of data to remove the risks associated with misuse and erroneous analysis of data, necessitating laboratory automation systems. The regulations also demand easy accessibility and secure storage of data for a long period of time.
However, the increases IT spending in laboratories and boosts the adoption. Other such regulations include ISO 17025, ISO 17020, ISO 15181, Clinical Labs Improvement Amendments, and Good Automated Manufacturing Practice. Such regulations are put in place to ensure that a laboratory is following all the proper procedures. The above factors will increase the market growth during the forecast period.
The emergence of Saas-based LIMS is the major trend driving the growth of the market. The high demand for bio-banking is another major factor supporting the market share growth. The bio-bank plays a critical role in research and requires a LIMS solution to effectively manage and track data quality, bio-species location, security, compliances, end-user billing, and patient demographics.
Further, this helps in improving the sampling of data that involves different laboratories, FDA, and partner organizations and in integrating research information. These factors will facilitate market growth and trends during the forecast period.
Increasing data security and privacy concerns are the major hindrances to the growth of the market. Many business organizations prefer cloud-based solutions to on-premises solutions because of their cost-effectiveness and ease of accessibility. Thus, cost-effective cloud deployment with better features and agility is the best option for such organizations. The cloud has become an integral part of IT in government healthcare agencies.
Moroever, the benefits of cloud-based solutions include low upfront costs, simplified management of software maintenance and upgrades, effective security, high reliability, and integrative capabilities to connect functional gaps in existing systems and processes. Thus, the implementation and the data stored in the cloud are likely to be leaked, which, in turn, hampers the growth of the market.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
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Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Abbott Laboratories - The company offers a LIMS that promotes health and well-being for people in all stages of life where one can search for all products, business areas, or pharmaceutical therapy areas.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the on-premise segment will be significant during the forecast period. LIMS, generally deployed on-premises, provides better data security with high control compared to that of cloud-based deployment. This will facilitate market growth during the forecast period.
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The on-premise segment was valued at USD 670.20 million in 2018. The on-premises model requires large investments in infrastructure. Further, this system lacks flexibility, which is one of the major factors for a product to be competitive in the market. Moreover, owing to the high cost associated with its maintenance, firms are looking for an alternative solution. Such factors are expected to reduce its demand in the market during the forecast period. However, owning and maintaining a server increases the perceived level of data security. Hence, large firms with enough resources are less likely to shift to other solutions.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market growth and market trends and analysis and drivers that shape the market during the forecast period. The infrastructural capabilities of vendors in the North American market are driving the adoption of LIMS across laboratories in the US. Due to technological advances and an increase in the use of digital solutions and tools, information management systems have become an integral part of modern research and observation centers. Further, the evolution of artificial intelligence and machine learning has increased efficiency and productivity by smoothening the decision-making process. Such factors will increase the market growth during the forecast period.
Segment Overview
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is witnessing significant growth driven by the increasing demand for laboratory automation and digitalization across various sectors, including academic institutions, biotech companies, and clinical research organizations. LIMS professionals play a crucial role in system implementation, integration, and training, supported by technical support and adherence to regulatory standards. The market is characterized by advancements in real-time analytics, enabling drug discovery and precision medicine in the pharmaceutical and biotechnology industry. Cloud-based IT solutions provided by data center vendors and software developers facilitate data accessibility, scalability, and real-time analytics, supporting personalized healthcare initiatives. Financial investments in software licenses, hardware infrastructure, and analytical instruments further drive market expansion, reflecting the growing importance of data analytics and regulatory compliance in healthcare laboratory informatics.
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Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.46% |
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Market Growth 2024-2028 |
USD 1.63 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.6 |
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Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
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Performing market contribution |
North America at 41% |
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Key countries |
US, Germany, UK, China, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Abbott Laboratories, Accelerated Technology Laboratories Inc., Agile Frameworks LLC, Attune Technologies Pvt. Ltd., Autoscribe Informatics, Benchling Inc., Broughton Software Ltd., Comp Pro Med Inc., Computing Solutions, Eusoft Ltd., Illumina Inc., LabLynx Inc., LabVantage Solutions Inc., LabWare Inc., Labworks LLC, Nous Infosystems Pvt. Ltd., Novatek International, PerkinElmer Inc., Shimadzu Corp., and Thermo Fisher Scientific Inc. |
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Market dynamics |
Parent market growth analysis, Market Forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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