Clinical Laboratory Services Market Size By Test (Human & Tumor Genetics, Clinical Chemistry, Medical Microbiology & Cytology, Other Esoteric Test), By Service Provider (Hospitals, Stand-Alone Laboratories, Clinics), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, Japan, China, Brazil, Mexico, South Africa), Application Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2024

Industry Trends

Clinical Laboratory Services Market size was USD 196.9 billion in 2015, with 6.4% CAGR estimation from 2016 to 2024.
 

U.S. Clinical Laboratory Services Market Size, by Test, 2012- 2024 (USD Bn)

 

Growing global geriatric population base and increasing patient awareness regarding early disease diagnosis will significantly impact global market size.
 

Clinical laboratory services form an indispensable part of healthcare diagnostics industry contributing to over 80% of healthcare diagnoses. The demand for such services is on rise owing to the benefits such as short stay at hospitals and reduced frequency of visits to the physicians. Furthermore, awareness regarding early detection of diseases related to gynaecology, oncology and endocrinology should drive demand for these services.
 

Rising geriatric population base is associated with increase in patient’s susceptibility towards acquiring infectious diseases and leading to development of diseases such as cardiovascular and neurological diseases. The growing aging population had led to rise in number of screening and diagnostic test propelling the industry growth.   
 

Adoption of innovative solutions that offer accurate clinical results with higher efficiency and lowest error rates coupled with implementation of various informatics and data management solutions to perform seamless operation to analyzing 100 to 150 billion samples a year should also impact the industry positively.
 

Introduction of technologically advanced products such as microarrays, biochips, and companion diagnostics have heightened the demand for early disease detection. Increasing prevalence of chronic diseases and consequent need to curb healthcare expenditure should also accelerate clinical lab service market growth.
 

Clinical Laboratory Services Market, By Product

In terms of test type, clinical chemistry took up the industry share of over 47% in 2015. Rising demand for early disease diagnosis due to increasing prevalence of target diseases such as cardiovascular, diabetes, liver & kidney disorders, and blood disorders is considered as most significant factor accounting for its largest share.
 

On the basis of service provider, hospital-based laboratories held largest industry share in 2015 with market size of USD 113.4 billion, while Stand-Alone laboratories was identified as the most lucrative service provider owing to the extensive range of tests offered by these labs, and ability to handle large test volumes coupled with rapid delivery of test results.
 

Clinical Laboratory Services Market, By Region

U.S. market share held the largest industry revenue of over USD 64 billion in 2015. The factors contributing to largest regional share include presence of large test volumes and growing adoption of advanced diagnostic technologies.
 

Europe market size looks set to cross USD 62 billion by 2024.  Rising awareness pertaining to disease prevention through early diagnosis and availability of sophisticated diagnostic tests should stimulate industry growth.  High prevalence of target diseases will present manufacturers with lucrative future growth opportunities in this region.
 

APAC medical laboratory service market should gain significant traction in the coming years, with target revenue slated to reach over USD 76 billion by 2024.  Large geriatric population base in Japan and China should significantly contribute towards regional industry growth. Moreover, development of healthcare infrastructure supporting the implementation of advanced diagnostic technologies in the developing nations should also propel the demand.
 

Competitive Market Share

Global market share was dominated by players such as Quest Diagnostics, Sonic Healthcare, LabCorp and Genptix Medical Laboratory. These players collectively grabbed a revenue share of over 45% of overall market in 2015. Mergers and acquisitions aimed at strengthening regional presence and diverse product offerings were the key strategies adopted by industry players.
 

The other industry participants include Healthscope Ltd., Labco S.A., Charles River Laboratories, Bio-Reference Laboratories, and Abbott Laboratories among others.
 

Clinical Laboratory Services Industry Background

The medical lab service market is governed by the presence of ambiguous regulatory framework which may limit the estimated market growth. The regulatory framework is established by organizations such as the U.S. FDA and CE. There is no clear regulatory framework/guidelines catering to the diagnostic sector in developing countries such as India and China. The lack of sophisticated regulatory frameworks in countries with high untapped opportunities is expected to impede market growth during the forecast period. The U.S. FDA has its control over laboratory developed tests (LDTs) which refer to in-house clinical laboratories developing diagnostic tests to provide rapid and efficient results to the end users. Risks associated with LDTs have a considerable impact on profit margins owing to additional costs and possible delays in the commercialization of newly developed tests.

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