"Designing Growth Strategies is in our DNA"
The global digital pathology market size was valued at USD 908.9 million in 2022. The market is projected to grow from USD 1,019.4 million in 2023 to USD 2,694.6 million by 2030, exhibiting a CAGR of 14.9% during the forecast period.
Digital pathology is a field that utilizes digital tools to collect, interpret, analyze, and share information. Digital slides are created from either a whole slide scanning device from previously prepared devices or directly with a digital microscope. The digital slide is then further used for analysis through high throughput algorithms, shared Over the Air (OTA), or stored for future use.
The rising prevalence of chronic diseases and increasing hospital admissions for treatment are supporting the demand for pathology tests. Furthermore, rising workload is anticipated to drive adoption of digital tools in the traditional pathology ecosystem. Moreover, the rising applications of these devices in modern medicine and growing awareness of novel diagnostics are expected to increase the patient pool for diagnosis and support market growth.
Utilization of Digital Pathology for Accurate Diagnosis during Pandemic Bolstered Market Growth
The COVID-19 pandemic accelerated the market progress due to a considerable rise in the digitization of pathological systems. The market’s growth was also attributed to the significant spike in the adoption of these devices, favorable regulations for emergency use cases, and decline in in-person visits to pathologists and physicians. The global market witnessed a growth rate of 31.2% in 2020 as compared to 11.6% in 2019. Frequent lockdowns and social distancing rules were enforced by governments to control the spread of the Coronavirus, which led to a significant reduction in the number of in-person patient consultations.
Moreover, virtual education expanded to ensure that physicians could provide high-quality care to patients. In March, the Centers for Medicare & Medicaid Services (CMS) announced regulatory changes to make it easier for patients in the U.S. to receive medical care through telepathology services. A huge shift toward virtual care resulted in the transformation of most companies to satisfy the incessant demand for tele services.
However, there was a recovery in patient volumes similar to the pre-pandemic levels, which impeded the staggering growth of the market during the pandemic. This was due to the relaxation of regulations and mandates imposed by various governments globally. In 2021, the patient volume bounced back to its pre-pandemic levels owing to higher vaccination coverage among the general population. The market was estimated to witness a strong growth rate in 2022, and might record a significant CAGR during the forecast period due to strong adoption of these products and services.
Integration of Artificial Intelligence Will Transform Market
Increasing adoption of Artificial Intelligence-based digital tools by key consumers owing to a higher demand for workflow management is a key trend in the global market. The rising focus of major companies involved in patenting innovative technology on offering a customized platform for key stakeholders provides them with a competitive advantage in the market. Additionally, key manufacturers involved in developing solutions using machine learning and AI are expected to support the increasing demand for advanced pathology solutions, thereby fueling market growth.
Moreover, strategic initiatives to develop and standardize sharing platforms to enable seamless transfer of data across the industry are anticipated to support the adoption of Artificial Intelligence in pathology and, subsequently, the growth of the market.
Request a Free sample to learn more about this report.
Rising Burden of Chronic Disorders to Drive Market Progress
Higher incidence of chronic diseases and subsequent increase in the number of tests are estimated to support the product adoption. Increasing product adoption, along with rising efforts of market players to cater to the growing need for diagnostics, is anticipated to drive the growth of the market. Moreover, increasing applications of these platforms, such as in predictive analysis are expected to augment market growth.
Such product launches will support the increasing demand for these systems with added benefits of machine learning.
Moreover, increasing approval for digital tools is expected to boost the adoption of these devices, thereby augmenting the market growth. Additionally, increasing research programs funded by governments to support innovation in digital tools in pathology is anticipated to drive market growth.
Growing Digitization in Pathology Workflow to Propel Market Progress
The increasing demand for digitization in pathology has given rise to competition among key players in the market. This factor combined with the rising need for drug discovery through the use of high through-put algorithms in the market has prompted major players to invest in developing novel tools to streamline their workload and customize their solutions.
Rising investments by domestic companies and industry stakeholders to launch novel tools, along with the rising number of product launches to cater to the increasing demand for digitalizing diagnostic tools, is anticipated to support the growth of the market.
High Upfront Costs for Installation of Devices to Hamper Market Growth
Although incorporating and utilizing these systems in modern medicine has its benefits and applications in pathology, digitization of tools incurs a high upfront cost for installation and training to use those systems to regularize the workflow. Digital devices are expensive and require software to analyze, share, and store the data, which may either incur individual costs or be part of an end-to-end full-system product offering.
In recent years, an increasing number of pathologists are retiring as compared to the number of pathologists joining the workforce. This factor has directly affected the market due to an acute shortage of pathologists. Thus, the high cost of these pathology tools and its installation has decreased the number of consumers adopting and training for these systems, thereby affecting the market adversely.
Digital Pathology Hardware to Witness Robust Adoption Owing to Strong Demand for Timely Pathology Outcomes
Based on product, the market is segmented into hardware, software, and storage systems. The hardware segment accounted for the largest share of the global market. Rise in the number of laboratories performing in-vitro tests and increasing need for timely outcomes are responsible for the growing demand for hardware products, which is anticipated to drive the segment’s growth.
The hardware segment is further sub-segmented into scanners, tissue microarrayer, and others. The growing demand for digital databases to store specimens across the globe is anticipated to boost the segment’s growth during the forecast period. The scanner segment is expected to register the fastest growth rate during the forecast timeline due to growing product approvals and launches.
The software segment is anticipated to grow steadily during the forecast period due to increasing demand for Artificial Intelligence (AI)-based algorithms in the market owing to their rising applications in pathology data processing and assisted analysis. The software segment is further sub-segmented into pathology management, digital microscopy viewers, image analyzers, and others. The increasing prevalence of infectious diseases has fueled the demand for in-vitro diagnostic tests, resulting in a higher workload for pathologists. Software, such as microscopy viewers, image analyzers, and others can assist pathologists in disease diagnosis, thereby reducing workload and enhancing the quality of diagnosis. These are some of the key reasons that are augmenting the segment's growth.
The storage systems segment is anticipated to grow at a steady pace throughout the forecast period due to the high demand for storing key data to share and analyze it in the future and access the data remotely in an instant. Furthermore, the introduction of novel digital tools by leading companies is fueling the product adoption in the market.
To know how our report can help streamline your business, Speak to Analyst
Drug Discovery Segment’s Growth Attributed to Due to Strong Demand for Potential Pipeline Drugs
Based on application, the market is segmented into disease diagnosis, drug discovery, and others. The drug discovery segment is anticipated to record the highest CAGR during the forecast period owing to the increasing demand for potential pipeline drugs for treating life-threatening diseases. Moreover, several applications of pathology tools are emerging in drug discovery, such as high-throughput screening.
The disease diagnosis segment is expected to grow at a significant rate during the forecast period owing to the increasing burden of pathological tests among the patient population and rising awareness of early diagnosis to anticipate the risk of a disease and take preventive action. Moreover, growing collaborations among companies to improve the diagnosis of life-threatening diseases is also supporting the growth of the market.
Therefore, the rising applications of digital tools in drug discovery and disease diagnosis, such as high throughput screening, deep learning, and cancer diagnostics, among others, are anticipated to drive the growth of the segment.
Hospitals & Clinics Segment Leads Due to Wide Adoption of Digital Pathology Services and Rising Patient Admissions
Based on end-user, the global market is segmented into hospitals & clinics, clinical laboratories, and others.
The hospitals & clinics segment held the largest share of the global market in 2022. The dominance of the segment is attributed to the increasing number of patient admissions and pathology services offered by major hospitals. Moreover, initiatives to introduce advanced products through partnerships with key hospitals and higher adoption of digital tools due to increased patient footfall are anticipated to drive the segment's growth. Leading hospitals in the U.S., the U.K., and other developed countries have installed pathology tools and systems to enhance the workflow, which has been pivotal in attracting a large patient pool.
The clinical laboratories segment is also anticipated to grow during the analysis period due to the increasing number of laboratories developing databases by digitizing slides using digital tools. Moreover, key digital solution providers are collaborating with each other to expand their product portfolios by offering customized solutions. These factors are estimated to foster the growth of the segment.
Furthermore, higher adoption of telepathology during the pandemic for remote diagnostics also provided an opportunity to clinical laboratories for improving awareness of such products among key consumers.
Geographically the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
North America Digital Pathology Market Size, 2022 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
North America market value stood at USD 323.7 million in the global market in 2022. The growing incidence of chronic diseases, such as cardio-diabetic disorders and increasing geriatric population, which is at a higher risk of developing such disorders, are expected to increase the demand for pathology tests. The growing burden of tests, coupled with the rising demand for streamlining workload, is anticipated to improve the adoption of digital tools among pathologists in the region.
Moreover, market players are increasing their emphasis on inorganic growth strategies, such as partnerships and collaborations to launch innovative digital tools to manage workflow and cater to the rising demand for customized solutions. These are the major factors responsible for driving the growth of the North American market.
Europe holds the second position in terms of market share. Surge in the number of patients preferring digital tools over traditional pathology and strategic developments, such as patenting of proprietary technology by key industry players is boosting the regional market growth. Moreover, the growing adoption of technologically advanced products in the region and regulatory approvals for these products are expected to augment the market’s progress.
Asia Pacific digital pathology market is expected to register the highest growth rate during the forecast period. Rising number of healthcare chains partnering with key companies to manage the increasing volume of tests in diagnostic laboratories is estimated to augment the regional market growth. Moreover, increasing investments by public and private institutions along with a growing healthcare infrastructure is accelerating the adoption of digital tools and solutions among key stakeholders. Moreover, the increasing patient population is driving the market growth in Asian countries.
Latin America and the Middle East & Africa regions are developing steadily in the global market. The increasing influx of patients owing to growing medical tourism and rising adoption of digitization are estimated to drive the regional market’s growth. Moreover, factors, such as increasing spending on healthcare by patients and rising applications of digital tools, such as remote review of cases, virtual education, decreased response time, and improved workflow are some key reasons expected to enhance the market growth in these regions.
Broad Product Portfolios and Rising Inorganic Business Activities by Key Players Will Spur Market Competition
F. Hoffmann-La Roche Ltd., Koninklijke Philips N.V., Leica Biosystems Nussloch GmbH, and 3DHISTECH Ltd. accounted for the highest market share in 2022. The dominance of these companies is attributed to their strong portfolio of digital tools and rising research & development investments to launch technologically advanced tools. Moreover, strategic collaborations with key service providers and a well-established distribution channel are the other key factors driving the market. The prominent companies operating in the market are focused on introducing technologically advanced products to gain a competitive advantage over other firms.
Moreover, several companies, such as PaigeAI, Inc, PathAi, Aiforia, and others are focusing on providing customized solutions in the market to integrate and analyze data from various devices.
An Infographic Representation of Digital Pathology Market
To get information on various segments, share your queries with us
The global market research report provides a detailed analysis of the market. It focuses on key aspects, such as leading companies, products, applications, and end-users. Additionally, it offers insights into the latest digital pathology market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.
CAGR of 14.9% from 2023-2030
Value (USD million)
Fortune Business Insights says that the global market stood at USD 908.9 million in 2022 and is projected to reach USD 2,694.6 million by 2030.
In 2022, the market size in North America was valued at USD 323.7 million.
The market will be recording a CAGR of 14.9% during the forecast period.
By product, the hardware segment will lead the market.
Increasing prevalence of chronic diseases and rising applications of digital tools in diagnostics are the key factors driving the market.
F. Hoffmann La Roche Ltd, Koninklijke Philips N.V., Leica Biosystems Nussloch GmbH, and 3DHISTECH Ltd. are the top players in the market.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry