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Laboratory information systems (LIS) help in integrating and managing clinical laboratory information and processes such as test requests, specimen processing, and result delivery which enables effective decision making. LIS allows diagnostic tests to be ordered and results delivered via the web, reducing paperwork and delay while also decreasing errors. It plays a pivotal role in ensuring high quality patient care by lowering turnaround time for test results, improving workflow efficiency, and enhancing productivity.
The global laboratory information systems market was estimated to be valued at US$ 1.4 Bn in 2020 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth of the laboratory information systems market is increasing adoption of cloud-based LIS. Cloud-based LIS offers advantages such as lower upfront costs, easy access of results and reports from anywhere, automatic updates, and scalability. Small and medium sized laboratories are increasingly adopting cloud-based LIS as it eliminates the need for expensive on-premise hardware and software and reduces high maintenance costs. Growing adoption of cloud-based technologies in healthcare is aiding adoption of cloud-based LIS. In North America, SaaS-based (Software as a Service) cloud LIS adoption rate is over 35% and growing steadily. Implementation of favorable government policies supporting digitization of healthcare infrastructure is another driver boosting market growth.
Porter’s Analysis
Threat of new entrants: Low requirement of capital and intellectual property protection make it easy for new players to enter the market. However, presence of large established players and need for developing application expertise raise entry barriers.
Bargaining power of buyers: Buyers have high bargaining power due to availability of alternative vendors. However, long-term contracts and customized solutions reduce switching costs.
Bargaining power of suppliers: A few large suppliers and availability of alternative components ensure competitive pricing with moderate bargaining power.
Threat of new substitutes: New technologies like cloud-based LIS may impact on-premise systems. However, regulated healthcare industry is conservative to new changes and migration is a gradual process.
Competitive rivalry: Large players continually invest in R&D to gain technological leadership. Fragmented industry structure increases competition.
Key Takeaways
The global Laboratory Information Systems market is expected to witness high growth. The global laboratory information systems market was estimated to be valued at US$ 1.4 Bn in 2020 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.
Regional analysis: North America holds the largest share of the global LIS market owing to rising healthcare expenditure and stringent regulatory mandates for medical practices and hospitals in the region. Asia Pacific is expected to witness the fastest growth on account of increasing healthcare infrastructure, investments by key players and rising medical tourism.
Key players: Key players operating in the Laboratory Information Systems market are Orchard Software Corporation (US), Clinisys (US), Oracle Corporation (US), Computer Programs and Systems, Inc. (US), and CompuGroup Medical (Germany). Oracle recently acquired Cerner’s healthcare asset module to strengthen its product portfolio. Clinisys focused on strategic partnerships for expanding regional presence in Asia and Europe.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
