Clinical Laboratory Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Clinical Laboratory Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global clinical laboratory services market is estimated to be USD 2,26,812.3 million in 2021. It is expected to reach USD 3,40,432.2 million by 2027, registering a CAGR of 6.83% from 2022 to 2027.

The outbreak of COVID-19 is expected to positively impact the clinical laboratory services industry, as the pandemic has boosted the clinical laboratory testing services. Based on the study published in National Center for Biotechnology Information in July 2020, it was found that the clinical diagnostics and technology, including molecular and serological testing approaches for severe acute respiratory syndrome‐coronavirus 2 (SARS‐CoV‐2) testing, had increased. There is also a rising number of developments of rapid and widespread testing through improvements in clinical diagnostics and testing technology that has helped in increasing the overall demand. For instance, in February 2021, Thermo Fisher Scientific launched the TaqPath COVID–19 HT Kit, which is for use on its automated amplitude platform, to increase its COVID-19 testing capacity by combining Thermo Fisher's extraction and real-time PCR instruments with liquid handling products from Tecan Group.

The market is primarily driven by the rising incidences of chronic and infectious diseases and the increasing demand for accurate and early disease diagnosis techniques. The burden of infectious diseases and chronic disorders is constantly growing worldwide, and as clinical diagnostic tests represent one of the most accurate methods for the identification and characterization of various biomarkers of chronic disease,s as well as for the detection of microorganisms, their demand is increasing with the rising burden of diseases such as cancer and tuberculosis (TB). For instance, according to the October 2021 update of the World Health Organization, about 10 million people fell ill with tuberculosis in 2020 all over the world, of which 5.6 million were men, 3.3 million were women, and 1.1 million were children. Thus, due to the high burden of these diseases, the demand for clinical services is expected to increase, driving the growth of the studied market.

The growing burden of cancer is also expected to positively affect the demand for clinical diagnostics. For instance, according to the Global Cancer Observatory (Globocan) Statistics 2020, there were 19.3 million new cases of cancer all over the world, accounting for both sexes, and the same source reported that the incidence of cancer is growing at a rapid pace globally, and it is estimated that the number of new cases of cancer in both sexes will reach to 30.2 million by 2040. Hence, owing to the increased burden of the target diseases, market players are focusing on technological advancements of their products to have a competitive edge over the other players, which will further augment the growth of the studied market. For instance, in October 2019, Belgium-based Helena Biosciences launched Glyco Liver Profile at the world's first Liver Glycomics Congress to monitor and predict liver disease. Thus, the launch of technologically advanced products, coupled with increased awareness toward the early diagnosis of the diseases, are anticipated to drive growth in the clinical laboratory services market. However, stringent regulatory issues in various countries and the lack of skilled laborers are expected to restrain the market growth during the forecast period.

Key Market TrendsIndependent and Reference Laboratories Segment Expected to Register Healthy Growth Over the Forecast Period

In highly populated and developing countries like India and China, where a significant share of the population does not have access to proper medical diagnostic facilities, there is a huge opportunity for independent laboratories to thrive in the studied market as they can fill the wide gap of clinical service providers in these regions and hence, the number of independent laboratories is increasing. For instance, according to the National Accreditation Board for Testing and Calibration Laboratories (NABL) of India, as of November 2020, there were around 6,200 NABL accredited medical labs were present, which increased to 6,975 by March 2022 owing to the surge in demand for these facilities all over the country.

The independent laboratory segment is experiencing huge consolidation as players are focusing on strategic partnerships and collaborations, which is likely to drive the growth of the market. For instance, in October 2020, U-Diagnostics, a diagnostic laboratory in the Netherlands, partnered with CENTOGENE, a major provider of COVID-19 testing in Germany, to provide increased COVID testing services throughout the Netherlands. Also, in July 2020, Diaceutics PLC, a company focused on diagnostic network solutions for the development and commercialization of precision medicine diagnostics, patterned with Targos Molecular Pathology and HistoCyte Laboratories to enhance and expand diagnostic testing services in 2,500 labs worldwide. Therefore, all these developments are fueling growth in the studied segment as well as the overall clinical laboratory services market.

North America Expected to Dominate the Clinical Laboratory Services Market Over the Forecast Period

The major factor driving the growth of the North American clinical laboratory services market is the presence of key players and government organizations in the country, which enables awareness among the general population and allows them to access the services conveniently. For instance, the American Clinical Laboratory Association is a not-for-profit organization that offers members the benefits of representation, education, information, and research.

The high burden of the target and chronic diseases in the region and increasing demand for early diagnostics are the other major factors that are driving the growth of the studied market in the North American region. For instance, according to the Canadian Cancer Society’s 2021 report, about 229,200 new cancer cases will be diagnosed in Canada in 2021, and on average, 628 Canadians are diagnosed with cancer every day, which is further expected to increase in the future. Also, as per the same report, lung, breast, colorectal, and prostate cancer are the most diagnosed types of cancer in Canada (excluding non-melanoma skin cancer). Further, with the emergence of the COVID-19 pandemic, many established and new players in the market expanded their diagnostics capacity owing to the huge surge in demand which is further expected to augment the growth of the studied market in the region. For instance, in February 2021, Omega Corporation announced the expansion of its clinical laboratory operations in Canada with the launch of a polymerase chain reaction test for the detection of all variants of COVID-19.

Moreover, in North America, the United States is expected to hold a major market share in the clinical laboratory services market during the forecast period due to the presence of robust healthcare infrastructure coupled with the high demand for clinical services owing to the high prevalence of various diseases. For instance, according to the September 2020 report of the Centers for Diseases Control and Prevention, about 51.8% (129 million) of civilian, noninstitutionalized adults had been diagnosed with at least 1 of 10 selected chronic conditions, and 24.6% (61 million) of adults had one chronic condition, and 27.2% (68 million) had two or more chronic conditions in 2018 which show a high prevalence of chronic diseases among the American population. The presence of key market players in the country, new product innovations, and launches are further expected to complement the growth of the clinical laboratory services market in the country. For instance, in March 2020, Abbott received emergency use authorization from the United States Food and Drug Administration for its quick molecular point-of-care test based on the company’s ID NOW platform. Therefore, due to the above-mentioned factors, the North American region is expected to hold a major market share in the studied market over the forecast period of the study.

Competitive Landscape

The market for clinical laboratory services is highly competitive, and various global and local companies are present in the market. A major share of the market is grabbed by the global players, and local companies are also focusing on delivering innovative services to the people, which is allowing these companies to establish their considerable place in this market. With a rising need for technology, it is expected that few new entrants will be seen in the market in the future, and these players will gain a substantial share. Some of the major players in the market include LabCorp, and Quest Diagnostics.

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1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Technological Advancements in Clinical Testing
4.2.2 Rising Burden of Target Diseases and Growing Demand for Early Detection
4.3 Market Restraints
4.3.1 Regulatory Issues
4.3.2 Lack of Skilled Professionals
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Test Type
5.1.1 Clinical Chemistry
5.1.2 Immunology
5.1.3 Cytology
5.1.4 Genetic
5.1.5 Microbiology
5.1.6 Hematology
5.1.7 Other Test Types
5.2 By Service Provider
5.2.1 Hospital-based Laboratories and Others
5.2.2 Independent Laboratories
5.2.3 Others
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Italy
5.3.2.5 Spain
5.3.2.6 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 South Korea
5.3.3.6 Rest of Asia-Pacific
5.3.4 Middle-East and Africa
5.3.4.1 GCC
5.3.4.2 South Africa
5.3.4.3 Rest of Middle-East and Africa
5.3.5 South America
5.3.5.1 Brazil
5.3.5.2 Argentina
5.3.5.3 Rest of South America
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Charles River Laboratories
6.1.2 Fresenius Medical Care
6.1.3 Illumina, Inc.
6.1.4 Laboratory Corporation of America Holdings (LabCorp)
6.1.5 NeoGenomics Laboratories
6.1.6 Quest Diagnostics Incorporated
6.1.7 OPKO Health
6.1.8 Myriad Genetics, Inc.
6.1.9 Eurofins Scientific
6.1.10 Sonic Healthcare Limited
6.1.11 Cerba HealthCare
6.1.12 SYNLAB International GmbH
6.1.13 A.P Moller Holding (Unilabs)
6.1.14 Enzo Clinical Labs
6.1.15 Genova Diagnostics
6.1.16 H.U. Group Holdings, Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS

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