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The life science software market size is forecast to increase by USD 4.56 billion, at a CAGR of 8.58% between 2023 and 2028. The market's growth is driven by several key factors, including an increased emphasis on storing patient information, the need to improve operational efficiency in managing life science data, and ongoing technological innovations in life sciences software. These factors highlight the industry's focus on improving data management practices and leveraging technology to enhance research and development processes. The emphasis on patient information storage reflects the importance of data security and privacy in the healthcare sector, while technological innovations aim to streamline operations and improve overall efficiency in life sciences.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including ANSYS Inc., Dassault Systemes SE, Dotmatics, eResearchTechnology GmbH, Fujitsu Ltd., Healthcare Radius, Hewlett Packard Enterprise Co., Honeywell International Inc., International Business Machines Corp., IQVIA Holdings Inc., Oracle Corp., PerkinElmer Inc, Salesforce Inc., SoftFormance, Thermo Fisher Scientific Inc., Trinity, Veeva Systems Inc., and ZS Associates Inc. Additionally, Bio Rad Laboratories Inc offers life science software such as IH AbID Software, nity Next Peer QC, UnityWeb, UnityWeb, Unity Data Management, IH Com, and IH Web.
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The Market experiences robust growth driven by increasing demands in the biopharmaceutical, medical technology, and clinical care industries. The surge in healthcare practitioners' reliance on comprehensive integrated solutions for data management and analytics underscores the market's momentum. Key drivers include advancements in technological solutions, facilitating efficient drug identification, and clinical trial administration. However, challenges like ensuring regulatory compliance, maintaining product quality, and addressing cost efficiency concerns emerge. Navigating these trends and challenges becomes crucial for stakeholders in the evolving landscape of life science software. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Growing focus on storing patient information is notably driving the market. The rise in patient numbers contributes to a surge in medical records, prompting substantial investments by healthcare providers in life sciences solutions for efficient data storage. Medical institutions possess vast amounts of patient data, focusing on leveraging recorded patient data to enhance healthcare services, leading to significant investments in healthcare business intelligence and analytics solutions. Organizations are increasingly involved in mergers and acquisitions (M&A) with pharmaceutical companies, emphasizing the importance of medical data.
The escalating demand for computer-based patient records (CPRs) and supporting systems is evident, driven by the growing challenges in information management for healthcare practitioners. Thanks to technological advancements, CPR systems can now provide cost-effective access to more accurate, complete patient care data, addressing information management difficulties. This underscores the importance of biopharmaceutical, medical technology, data, and other critical aspects in the evolving landscape of healthcare. Hence, such factors are driving the market growth.
The emergence of precision medicine is an emerging trend in the market. Precision medicine uses genomics and identifies lifestyle and environment as essential factors for human health. In addition, this approach is extensively used in genomics and medical device manufacturing. Furthermore, it also develops new models for enterprises.
Moreover, the technology eliminates issues emanating from human error to improve product and service qualities. In addition, it is witnessing increased adoption in the life sciences industry. Furthermore, machines are error-free; unlike people, they do not lose focus or become emotional and tired and provide consistent levels of accuracy and quality outputs. In addition, life science software speeds up processing and offers analysis and business insights. Hence, such factors are driving the market during the forecast period.
Increasing data security and privacy concerns in the life sciences industry is a major challenge hindering the market. The healthcare industry prefers cloud-based solutions to on-premises solutions owing to their cost-effectiveness and ease of accessibility. In addition, organizations focus on acquiring affordable cloud solutions that have multiple features. Furthermore, the cloud is an integral part of the IT infrastructure in government healthcare agencies.
Moreover, these solutions aid data management through centralized data storage and high-speed networks, which increase productivity and enhance data sharing and collaboration. In addition, the benefits of cloud-based solutions include low upfront costs, easy software maintenance, enhanced security, integrative capabilities, and the capacity to connect functional gaps in the existing systems and processes. Hence, such factors are hindering the market during the forecast period.
By Deployment
The cloud-based segment is estimated to witness significant growth during the forecast period. Cloud-based segments offer scalability and flexibility, enabling life sciences organizations to easily adjust resources based on changing demand. In addition, this is particularly important in R&D activities where project sizes and computational requirements can vary significantly over time. Furthermore, cloud-based software eliminates the need for upfront investments in hardware infrastructure and reduces the total cost of ownership.
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The cloud-based segment was the largest segment and was valued at USD 4.60 billion in 2018. Moreover, life sciences companies can leverage a pay-as-you-go model, paying only for the resources and services they use, thereby reducing capital expenditure and improving cost efficiency. In addition, cloud-based platforms enable remote access to data and applications from anywhere with an Internet connection. Furthermore, this facilitates collaboration among geographically dispersed teams of researchers and clinicians, enhancing productivity and enabling real-time collaboration on projects and studies and a rise in new life sciences software launches. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The several applications of life science software in the pharmaceutical segment will increase the market growth. Several pharmaceutical companies can benefit from the global healthcare standard provided by life science software. In addition, it enhances the existing ERP, augments the capabilities of logistic partners, and collaborates with trading partners such as contract packagers. Moreover, it also increases the visibility of the company, helps analytics, and offers risk management. Furthermore, these software solutions assist pharmaceutical companies throughout the product lifecycle, lowering time-to-market, speeding up research and drug discovery, and streamlining commercial operations to achieve top-line growth. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 46% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The demand for security, easy access to data, and the need for effective management of patient information fuel the market in North America. In addition, the US and Canada are the key contributors to the market in North America. Moreover, SAS Institute, Oracle, and Veeva Systems are some of the major vendors in the life sciences software market in the region. In addition, due to the high penetration rate of technology, the advent of big data, and overall technological maturity, the life sciences industry of these economies has witnessed extensive digitalization and generates a huge volume of data. Hence, such factors are driving the market growth in North America during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 trends strategies.
Global 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.
Market analysis and report of 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 research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is propelled by the increasing adoption of advanced technology in the health and life sciences industry. Document management tools, electronic health records (EHRs), and emerging revenue pockets contribute to the sector's growth. The demand for comprehensive, integrated solutions in biopharmaceutical, medical technology, and clinical care industries is rising, driven by the need for improved patient care delivery and the development of novel drugs. With a focus on medication research and development, drug repurposing, and pharmaceutical productivity, the market responds to the global demand for innovative healthcare solutions. The dynamics of the global market are shaped by various factors, including technological advancements, acquisitions, and merger tactics. The market experiences increased efficiency in sales and marketing applications, leading to advancements in healthcare data standardization. Advanced analytical tools aid in novel drug discovery and contribute to valuable real-world evidence through wearable device data.
The integration of genetic makeup and health history into electronic health records enhances personalized patient care. Despite the positive trends, the industry faces challenges such as stringent regulatory environments and compliance standards for software providers. Data privacy and security concerns, including protecting sensitive patient data and personal health information, necessitate robust security measures to prevent data breaches. The Market encompasses various segments, including biopharmaceuticals, clinics, hospitals, and the startup ecosystem. Chronic diseases, healthcare costs, and the adoption of value-based medicine further contribute to the market's expansion. The integration of analytics techniques and regulatory compliance ensures a holistic approach within the healthcare ecosystem. In summary, the market thrives on technological innovation and integration, providing comprehensive solutions to enhance patient care delivery and advance pharmaceutical research and development.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.58% |
Market Growth 2024-2028 |
USD 4.56 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.18 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 46% |
Key countries |
US, Japan, Germany, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ANSYS Inc., Bio Rad Laboratories Inc., Cegedim SA., Dassault Systemes SE, Dotmatics, eResearchTechnology GmbH, Fujitsu Ltd., Healthcare Radius, Hewlett Packard Enterprise Co., Honeywell International Inc., International Business Machines Corp., IQVIA Holdings Inc., Oracle Corp., PerkinElmer Inc, Salesforce Inc., SoftFormance, Thermo Fisher Scientific Inc., Trinity, Veeva Systems Inc., and ZS Associates Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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