Laboratory Information System Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Product (Standalone LIS, Integrated LIS), By Component (Services, Software), By Delivery Mode (On-Premises, Cloud-Based), By End-user (Hospital Labs, Independent Labs, Physician Office Laboratories, Others), By Region and Competition

Market Overview

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

Rapid 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.

Surge 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.

Large-scale 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 States.

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.

Increasing 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.