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The global clinical laboratory services market size was valued at USD 262.27 billion in 2022. The market is projected to grow from USD 258.71 billion in 2023 to USD 403.23 billion by 2030, exhibiting a CAGR of 6.5% during the forecast period.
Clinical laboratories are healthcare facilities where tests are conducted on clinical specimens to derive information regarding patients’ health for diagnosis, treatment, and disease prevention. These laboratories also provide emergency response support, research services, and train new laboratory personnel. The rising prevalence of chronic diseases and increasing geriatric population supports the utilization of such lab-based services.
Moreover, the increasing awareness of the importance of clinical tests and growing healthcare expenditure are expected to drive market growth during the forecast period. In addition, growth in strategic initiatives implemented by key players to offer advanced services and the introduction of innovative testing products are expected to favor the market growth during the forecast period.
Surge in Demand for Laboratory Testing During Pandemic Positively Impacted the Market Growth
In 2020, the COVID-19 pandemic had a positive impact on the global market due to a rise in the demand for clinical diagnostics and laboratory testing. Another factor that contributed to the positive impact of the pandemic was the surge in the number of patient visits to clinical laboratories for COVID-19 testing in different countries.
Furthermore, major market players reported a significant revenue increase in 2020, such as Laboratory Corporation of America, Sonic Healthcare Limited, and NeoGenomics Laboratories.
However, in 2022, a decrease in the number of COVID-19 tests and patient visits to clinical laboratories and hospital labs led to a decline in the market growth. The market witnessed a negative impact in 2023 too, and is expected to witness steady growth prospects during the forecast period.
Rising Focus of Companies on Developing Automated Clinical Laboratories is the Major Trend
The growing emphasis and initiatives by key players in terms of the development of automated clinical labs is one of the most prominent global clinical laboratory services market trends. As pressure has risen to decrease healthcare costs over the last decade, laboratories rely on developing automatic machinery to maintain profitability. Moreover, lab automation provides advantages such as the replacement of manual and repetitive tasks, an increase in throughput, and an improvement in the results' quality. Such advantages are expected to boost the demand for lab automation and propel the market growth in the coming years.
Several key companies are also emphasizing the launch of new and advanced diagnostic tests to expand clinical laboratory services globally. Thus, the growing technological advancements by the service providers and the rising introduction of advanced devices by prominent players are leading to the high adoption of these services, bolstering the market expansion.
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Rising Occurrence of Chronic Disorders to Propel the Market Growth
The global market is witnessing the mounting incidence of chronic disorders such as sickle cell disease, cystic fibrosis, autoimmune diseases such as rheumatoid arthritis and celiac disease, and several forms of cancer, including breast cancer. The factors contributing to the upsurge in the occurrence of such disorders include the increasing geriatric population, tobacco consumption and exposure, physical inactivity, and poor lifestyle. The growing prevalence of chronic diseases is further expected to increase hospitalizations and the number of clinical laboratory tests. This factor is anticipated to drive the market growth during the forecast period.
Moreover, the rise in the occurrence of chronic disorders has further increased the number of medical practitioner-prescribed clinical laboratory tests and hospitalizations.
Increasing Healthcare Expenditure by Government and Public-Private Partnerships to Impel Market Expansion
One of the significant factors propelling the market growth is the rising healthcare expenditure by the government. In order to combat the increasing demand for clinical laboratory diagnosis and services and for easy availability and accessibility to citizens without financial hardship, the government bodies of different countries are focusing on increasing their healthcare expenditures.
In terms of the growing demand for clinical laboratory testing, public-private partnerships are expected to play a crucial role in expanding the medical laboratory services' reach. The private-public partnerships provide lucrative advantages, which include highly scalable outcomes to strengthen a nation’s capacities to build technical skills, develop innovations, and map the prevalence of the chronic diseases. Such a rise in public and private partnerships coupled with increased government healthcare expenditures is expected to boost the clinical laboratory services market growth.
Shortage of Clinical Lab Personnel May Hamper the Market Growth
The lack of clinical lab personnel, especially in emerging countries, is one of the key hindrances to the market expansion. The market is further anticipated to be hampered by the inadequacy of equipment and a lack of skilled healthcare professionals.
In addition, resource-poor settings for diagnosis, such as the limited supply of equipment, poor staffing and monitoring, poorly equipped laboratory materials and personnel, and avoidance of good lab protocols during critical tests, may hinder the growth of the market in emerging regions.
Clinical Chemistry Segment Dominated Due to Growing Prevalence of Diabetes
On the basis of test type, the market is divided into hematology, clinical chemistry, microbiology & cytology, genetic testing, and others. The clinical chemistry segment accounted for the largest clinical laboratory services market share in 2022. The segment growth can be attributed to the high prevalence of diabetes, thyroid, and hormonal disorders coupled with the availability of at-home clinical lab testing services, providing easy access to diagnostic procedures. An increasing number of biochemistry test procedures is further expected to impel the segment growth.
The hematology segment held the second-highest position in the global market in 2022. The segment growth can be attributed to the rising patient population suffering from hemophilia, blood-clotting disorders, and leukemia, coupled with the surging number of hematology tests conducted in hospitals.
The genetic testing segment gained a substantial share in 2022. The segment growth can be credited to the escalating number of patients suffering from genetic disorders in various countries and the increasing number of hospitalizations.
The microbiology & cytology and others segment is anticipated to grow significantly during the forecast period due to rising cases of infectious diseases and launches of clinical lab tests by various key players to meet patient demands.
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Adult Segment Dominated Due to Growing Geriatric Population Suffering From Chronic Disorders
In terms of age, the global market is divided into adult and pediatric. The adult segment held the major share in the global market in 2022. The segment growth can be ascribed to the upsurge in the geriatric population suffering from chronic disorders across the globe. The rising adoption of advanced clinical laboratory tests among adults is further expected to propel the segment growth.
The pediatric segment occupied a substantial market share in 2022 owing to the growing incidence of genetic disorders in children coupled with favorable public health insurance policies for children in several countries such as the U.S., Germany, and others.
Favorable Reimbursement Policies by the Government to Drive the Public Segment Growth
By source of payment, the market is divided into private, public, and out of pocket. The public segment held the dominant share in the market in 2022. The increasing healthcare expenditure by the government, coupled with improving reimbursement policies are expected to boost segment growth during the forecast period.
The private and out-of-pocket segment held a significant share in the market in 2022.The private and out-of-pocket segment are expected to grow due to the increasing disposable income, and growing emphasis about early diagnosis among the population. Furthermore, the growing strategic partnerships between healthcare providers are expected to boost the private segment growth. For instance, in January 2021, American Hospital Dubai, a Middle East healthcare provider and Mayo Clinic Laboratories entered a strategic partnership to advance patient care through enhanced laboratory diagnostics. Such strategic partnerships are anticipated to increase the visits in laboratories, increasing the payment through private insurance.
Hospital-based Laboratories Held the Dominant Share Due to Growing Demand for Clinical Services
In terms of service provider, the global market is classified into stand-alone laboratories, clinic-based laboratories, hospital-based laboratories, and others. The hospital-based laboratories segment accounted for the dominant share in the market in 2022. The segment growth can be credited to the rising number of hospital labs, increasing technological advancements in automated clinic labs, surging number of patient visits to hospitals for testing, and growing demand for clinical laboratory services.
The stand-alone laboratories segment exhibited leading CAGR during the forecast period 2023-2030. The stand-alone laboratories segment is expected to grow due to strategic activities by numerous vital players to introduce new laboratories and provide easy access to diagnostic care services.
The clinic-based laboratories segment is projected to register moderate CAGR during forecast period. The emergence of clinic-based laboratories coupled with the rising demand for clinical laboratory services and research initiatives in developed countries are major factors behind the clinic-based laboratories segment expansion.
Based on region, the global market is segmented into North America, Europe, the Asia Pacific, Latin America, and the Middle East & Africa.
North America Clinical Laboratory Services Market Size, 2022 (USD billion)
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The North America market dominated the with the valuation at USD 110.41 billion. The strong healthcare expenditure and growing demand for clinical laboratory tests for regular body check-ups and other long-term disorders such as cancer, arthritis, and heart diseases are the major factors behind the region’s dominance.
Europe held a moderate share in the global market due to improved healthcare facilities and high adoption of clinical laboratory testing for the on-time diagnosis of life-threatening diseases. The strong support by the government in terms of health insurance coverage is further bolstering the regional growth.
Asia Pacific market is projected to gain a maximum CAGR during the forecast period. The growing focus of prominent players on the regional expansion of their clinical laboratories and launches of advanced testing solutions is expected to drive the market growth in the region.
Moreover, the growth of Latin America and the Middle East & Africa markets can be ascribed to the improving healthcare infrastructure, surge in healthcare expenditure, and growing awareness regarding preventive care.
Prominent Market Players Dominated Due to Expanded Service Offerings
The competitive landscape of the global market reflects a highly fragmented structure. It comprises innumerable global and regional players. Prominent players such as Laboratory Corporation of America, Eurofins Scientific, and Quest Diagnostics Incorporated dominated the global market in 2022. Their dominance can be ascribed to their strong services portfolio and a robust presence in the U.S. and Europe markets. Some other factors behind these companies’ established market presence include a more extensive customer base, several clinical laboratories, and innovative test launches.
ARUP Laboratories, Sonic Healthcare Limited, NeoGenomics Laboratories, Inc., and Illumina, Inc. are the some other prominent players operating in the market. The prominence is due to their increasing strategic initiatives to expand their brand presence. Other players, such as DDRC SRL Diagnostics (SRL Diagnostics), Charles River Laboratories, and Metropolis Healthcare Limited India, are focusing on increasing their geographical presence in key regions and diversifying their services portfolio, which is expected to strengthen their market position.
An Infographic Representation of Clinical Laboratory Services Market
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The report encompasses a complete analysis of the market. It highlights vital aspects such as test type, age, source of payment, service provider, and geography. It also provides insights into market dynamics, the prevalence of chronic diseases, overview on accreditation bodies for laboratories, prominent players, and COVID-19 impact on the market. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
CAGR of 6.5% from 2023-2030
Value (USD Billion)
By Test Type, Age, Source of Payment, Service Provider, and Region
By Test Type
By Source of Payment
By Service Provider
Fortune Business Insights says the global market stood at USD 262.27 billion in 2022 and is estimated to reach USD 403.23 billion by 2030.
The market is projected to grow at a CAGR of 6.5% during the forecast period.
The market size of North America was USD 110.41 billion in 2022.
Based on test type, the clinical chemistry segment dominates the global market.
North America held the dominant share in the global market in 2022.
The rising prevalence of chronic disordersis driving the global market growth.
Laboratory Corporation of America, Quest Diagnostics Incorporated, and Eurofins Scientific are some of the top players in the market.
The major contributing factors to the adoption of these services are increasing disease prevalence and a surge in strategic initiatives by key players to offer advanced offerings.
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