Market Size (2022)
USD 1.90 Billion
Fastest Growing Segment
Global Laboratory Information System
Market has valued at USD 1.90 Billion in 2022 and is anticipated to project impressive
growth in the forecast period with a CAGR of 8.37% through 2028. The Laboratory
Information System (LIS) is a software system utilized for the management,
recording, and storage of data in clinical laboratories. This system
facilitates the transmission of lab test orders to lab instruments and tracks
and records results in a searchable database. It is extensively employed in
hospitals, clinics, independent laboratories, and other healthcare settings to
monitor and manage data, ensure data quality, enhance security, and facilitate
end-user billing. Laboratory automation is increasingly adopted to address
labor shortages and reduce manual intervention in lab processes.
The use of dedicated workstations and
software to automate common lab activities improves lab productivity and allows
researchers to focus on critical tasks. Automation ensures high-quality data
and simplifies documentation. Stringent regulatory requirements for accurate
results drive the development of standardized systems with reproducible
outcomes. The advent of cloud-based services has brought significant
advancements to the LIS market. Virtualization advancements and improved access
to high-speed internet enable faster innovation at reduced costs. Companies
opting for cloud-based solutions only need to pay for software subscriptions,
eliminating the need for full licenses. This approach significantly reduces
in-house deployment expenses, cost per user, and IT personnel requirements.
Furthermore, cloud-based LIS solutions do not necessitate upfront capital
investments in hardware, alleviating financial burdens on healthcare
organizations and facilitating secure and expedient data transfer.
Key Market Drivers
Digitalization across Various Sectors around the World
The growing demand for increased
productivity across enterprises, coupled with the rising focus on regulatory
compliance and error prevention, is expected to drive the growth of the global
laboratory information management system (LIS) market. LIS services offer
enhanced visibility and control necessary for managing the complexities of
patient data in the healthcare industry. It is worth noting that enterprises
worldwide encountered an average of 20 security breaches in 2020, with this
number projected to increase during the forecast period. Consequently, this is
anticipated to significantly fuel the growth of the global market.
Furthermore, digitalization has been
steadily increasing across various sectors and is expected to continue its
upward trajectory in the coming years. The expenditure on digitalization is
also experiencing rapid growth. For instance, it is predicted that
approximately 65% of the world's Gross Domestic Product (GDP) will be digitized
by 2022, and digitally transformed organizations are projected to contribute
more than half of the global GDP by 2023, amounting to nearly USD 54 trillion.
Therefore, this factor is estimated to be a major driver for the growth of the
global laboratory information management system (LIS) market.
in Demand for Lab Automation
The demand for laboratory information
systems (LIS) is being fueled by the growing adoption of lab automation and
advancements in R&D labs, particularly in the pharmaceutical and
biotechnological sectors. Lab automation plays a crucial role in reducing human
errors associated with repetitive tasks like pipetting and plate movement, thus
enhancing accuracy. Moreover, the high efficiency of laboratory informatics
products is driving the market for laboratory information systems (LIS).
A survey conducted in 2020 by Astrix
Technologies LLC, a professional healthcare IT service provider, revealed that
61% of laboratory information management system (LIS) users have witnessed
profitability through the elimination of manual operations, 57% have improved
their sample management approach, and 46% have experienced a significant rise
in productivity within their laboratory settings.
According to the World Health
Organization's (WHO) 2019 report on patient safety and risk management
services, outpatient care settings in the U.S. reported a 5% rate of diagnostic
errors, with diagnostic errors accounting for 6% to 17% of all harmful events
in hospitals. This data indicates the potential for growth in the global
laboratory information systems market. Governments are actively supporting the
adoption of IT solutions and products in healthcare through various
initiatives. Additionally, the increasing need to control rising healthcare
costs is expected to drive the global laboratory information systems (LIS)
market in the forecast period.
Implementation of Laboratory Information Systems
The growing accessibility of advanced
healthcare in hospitals is a significant driver for the demand of Laboratory
Information Systems (LIS). This can be attributed to improved cost management,
efficient manpower allocation, automation of clinical testing for faster
results, and smoother software implementation in privately owned hospitals. The
demand for LIS is particularly high in smaller hospitals across the United
Engaging patients as active participants
in their care is a crucial strategy to enhance overall healthcare outcomes.
Patients should have the ability to access and share their health information.
Currently, there is an increasing desire among patients to have access to their
health-related documents. This growing demand is expected to fuel the adoption
of LIS in hospitals and clinics in the near future. According to the Health
Insurance Portability and Accountability Act (HIPAA), patients have the right
to request and receive a copy of their completed test reports from laboratories
within 30 days.
The rising competition among hospitals
to deliver quality care has resulted in a heightened demand for LIS. This is
because LIS enables systematic documentation, eliminates paperwork, and reduces
the chances of errors associated with clinical test report writing.
Additionally, LIS serves as a decision support system, enhancing
decision-making in clinical workflows. These advancements contribute to
improved healthcare quality in hospitals and clinics, leading to an increased
demand for LIS software and services in these healthcare facilities.
Demand for Compliance with Regulations and Quality Control
In an increasingly regulated healthcare
environment, laboratories are stringent in their adherence to regulatory
compliance and quality control standards. The Laboratory Information System
(LIS) plays a pivotal role in ensuring regulatory compliance by facilitating
process standardization, document tracking, and audit trail generation.
Moreover, it enables seamless integration with electronic medical records (EMR)
systems, empowering healthcare providers to access crucial laboratory data and
improve patient care outcomes. As laboratories strive to maintain high-quality
standards and meet regulatory requirements, the demand for innovative LIS
solutions continues to grow.