U.S. Life Science Analytics Market Size, Share & COVID-19 Impact Analysis, By Type (Software and Services), By Delivery (On-premise and On-demand), By Application (Commercial Analytics, Personalized Therapy, Clinical Research Analytics, and Supply Chain Analytics) and By End User (Medical Device Companies, Pharmaceutical & Biotechnology Companies, Clinical Research Organizations, and Others), and Country Forecast, 2023-2030

The U.S. life science analytics market size was worth USD 4.88 billion in 2022 and is projected to grow at a CAGR of 14.1% during the forecast period. 

Life science analytics are the tools that are used in pharmaceutical, biotech, and medical device companies for different purposes. These advanced analytical solutions utilize data to catalyze research activities and aid in developing manufacturing and introducing new products. The growing investment of pharma and biotech companies in the research and development of new drugs is majorly driving U.S. life science analytics market growth.

• In 2022, Eli Lilly and Company invested USD 7,190.8 million in their research and development activities, witnessing a growth of 3.8% compared to USD 6,930.7 million in FY 2021.   

The continuous technological advancements in life science analytics software are contributing to its growing demand in the market. Therefore, to meet this growing demand, many of the key players are focusing on merging with competitor players and making strategic acquisitions to strengthen their positions in the market. In 2020, the COVID-19 impact on the market growth was positive owing to the increased focus of manufacturers on the development of vaccines.

U.S. Life Science Analytics Market Trends

Growing Technological Advancements in Analytical Tools

The fast-changing environment of life science industries, such as pharma, biotech, and medical devices, makes it essential to digitize and adopt future trends to improve the efficiency of their operations. These necessities have contributed to increasing adoption of cloud technology in the industry. Moreover, the ability of cloud service technology platforms to manage massive data provides centralized data security, and its improved accessibility to the user has contributed to its increased adoption. Moreover, the competence of cloud technology to collect sensitive data from clinical trials and its caliber to maintain cross-departmental data transparency has majorly contributed to its increased adoption in the life sciences industry.

• For instance, in May 2023, Apollo Intelligence, one of the leading providers of real-time global data and insights to the healthcare and life science industries, launched a next-generation market insights technology platform. This platform provides customers with advanced capabilities to support their progressive insight and data needs.   

U.S. Life Science Analytics Market Growth Factors

Growing Adoption of Analytical Solutions for Accelerating their Comprehensive Research Studies is Augmenting Market Growth

Clinical trials play an essential part in the process of drug development. Developing a new and novel drug is often costly and time-consuming. Utilization of tools, such as predictive analytics and descriptive analytics, can potentially accelerate different stages of the research and development process. The acceleration of this process has led to the increased adoption of these analytical tools among pharmaceutical and biotech companies in the country.

• For instance, according to an article published by A4BEE Magazine in March 2022, Moderna, Inc. delivered the first clinical batch of initial sequencing of the COVID-19 virus within 42 days. These were possible due to the scaling up of all operations using cloud and cloud-based solutions.

Therefore, the utilization of these cloud-based solutions has aided research and development facilities in analyzing drug candidates and creating vaccines.  This growing adoption of analytical tools in the life science industry has brought opportunities for many major players to strengthen their positions in the market. For instance, in October 2022, Cytel Inc., a provider of quantitative insights and health data analytics to the life science industry, acquired SDS Life Science AB and SDS MedteQ AB to expand their expertise and capabilities for the strategic development of drugs and medical devices.

Therefore, the continuous technological advancements in analytical tools have aided many organizations in the development of innovative drug products in a short period, which has contributed to the growing adoption of these analytical tools in the life science industry.

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Out of the total medical device manufacturing companies in the U.S., 44.0% are located in California. In addition, the number of Clinical Research Organizations (CROs) and investment of pharmaceutical and biotech companies in the research and development of new drugs is increasing. 

RESTRAINING FACTORS

Higher Implementation Cost Associated with Life Science Analytics Tools is Hampering Market Growth

Life science analytics tools play a vital role in turning up the business's wheels as they accelerate an organization's research and development process. However, the data handling tool is often expensive as it requires massive investment to customize the required features. These customized features also lead to an increase in the budget of the development team. In addition, the increased storage needs and requirement of resources for computing previous analytics and the variation in the cost depending on multiple factors, such as the amount and quality of a company’s corporate data, the requirement of big data analytics, customization efforts, and organizational agility have resulted in the increased cost of implementation.

• For instance, according to an article published by Itrex Group in September 2022, an enterprise-grade advanced analytical solution can cost USD 150,000 to 200,000 to build and implement. SaaS-based data analytics products cost up to USD 10,000 to 25,000 yearly as a maintenance fee.

U.S. Life Science Analytics Market Segmentation Analysis

By Type Analysis

Based on type, the market segment is divided into software and services.                                                                               

The services segment accounted for a larger market share in 2022. The growing clients’ emphasis on leveraging new technologies for the improvement of drug development capabilities primarily contribute to the segment’s growth. Moreover, the constant focus of drug discoverers on improving efficiency in operations in limited cost and time has pushed manufacturers and drug development organizations to make strategic acquisitions to accelerate their research process, contributing to the growth of the segment in the country.  

• For instance, in July 2022, Trinity Life Sciences acquired D Cube Analytics, a company that offers service delivery to the healthcare and life sciences industry. The acquisition aimed to accelerate the company’s growing analytics practice with more advanced technology.

The software segment is expected to grow at a minimal growth rate comparatively. The higher cost associated with the installation of software in the companies and the significant price changes faced by the life science companies under the inflation have majorly contributed to its minimal growth rate.

By Delivery Analysis

The market is segmented on the basis of delivery into on-premise and on-demand.

The on-demand segment held a larger share in 2022. The growing adoption of cloud solutions for supporting research & development activities and commercial functions of pharmaceutical and biotechnology companies is primarily contributing to the segment’s growth. Moreover, the ongoing drive to reduce costs, improve efficiency and productivity, and drive better decision-making abilities contributes to the increasing investment of life science companies in data-driven tools.

• For instance, according to an article published by IBM in July 2023, mobilizing data and applications from traditional on-premises data centres to the on-demand cloud infrastructure assisted life science companies in significant cost savings.

These mobilizations have aided the life science industry in accelerating the drug development process, reducing costs, and leveraging advanced analytical technologies.

The on-premise segment generated a significant amount of revenue and held a considerable share of the market during the forecast period. Different capital and operational costs associated with the installation of on-premise infrastructure majorly contribute to its minimal market share. In addition, the installation of on-premise infrastructure also leads to an increase in the organization's expenses by adding more staff for the building and maintenance of the infrastructure, which further limits the growth of the segment.

By Application Analysis

Based on application, the market is segmented into commercial analytics, personalized therapy, clinical research analytics, and supply chain analytics.

The clinical research analytics segment held a larger share in 2022 owing to the increased analytical testing for ensuring the safety and quality of drug products. The increasing importance of using analytical methods for the development of pharmaceutical products placed by regulators and formulators is contributing to its increasing adoption. Moreover, the increasing investment of pharmaceutical companies in the research and development of novel therapeutic drugs has contributed to the growing demand and market for life science analytics solutions.

• For instance, in FY 2022, Gilead Sciences, Inc. invested USD 4,977.0 million in research and development of new drugs and witnessed a growth of 8.2% compared to USD 4,601.0 million in FY 2021.

The commercial analytics segment is projected to grow at the fastest growth rate owing to its increasing use among organizations for determining their target audience. Moreover, its increasing adoption for identifying different growth opportunities and execution of new product categories further contributes to its segment growth.

In addition, the increasing use of analytical tools by life science companies for effective management of their logistics and supply chain anticipates its market growth.       

By End User Analysis

Based on end user, the market is segmented into medical device companies, pharmaceutical & biotechnology companies, clinical research organizations, and others.

The pharmaceutical & biotechnology companies segment held the largest share and dominated the U.S. life science analytics market in 2022. The integration of analytical capabilities for continuously monitoring the manufacturing procedures is driving the segment expansion. The necessity of supporting R&D processes through online mode for the development of higher quality drugs has majorly contributed to the growing adoption of life science analytics tools by the pharmaceutical & biotechnology companies. This adoption majorly aims to accelerate their R&D capabilities, significantly contributing to the segment growth.

• For instance, in May 2022, Agilent Technologies Inc. collaborated with APC Ltd., a process development solution provider to the biopharmaceutical and pharmaceutical industry. The collaboration aimed to deliver novel drugs to market more efficiently.

Contract research organization segment is projected to grow at a significant growth rate during the forecast period. The increased focus of research and development facilities towards the development of personalized medicines for the effective treatment of cancer and other rare diseases majorly contributes to the segment growth.        

List of Key Companies in U.S. Life Science Analytics Market

In terms of the competitive landscape, the market includes established and emerging companies. In 2022, the U.S. life science analytics market share was majorly held by Oracle, SAS Institute Inc., and IBM. The major market share is attributed to the companies offering advanced analytical tools and on-demand services.

For instance, in May 2023, ProPharma Group, a Research Consulting Organization (RCO), collaborated with H1, a healthcare intelligence and analytics provider. This strategic collaboration aimed to optimize the research and development of innovative drugs with AI, data-driven insights, and analytics.

Moreover, the growing focus of life science analytics companies and service providers on the development of a health cloud assessment framework for evaluating patient services is also aiding companies in marking their presence in the market. For instance, in November 2023, Accenture, in collaboration with Salesforce, Inc., developed a patient services health cloud assessment framework for evaluating legacy pharma patient services. This pharmaceutical data cloud provides a holistic view of patient data.

Advancements in science and technology are making treatment decisions more complex, which has contributed to the increasing investments by life science companies in adopting data and analytics capabilities. These factors are encouraging other players to expand their product offerings and increase strategic alliances with pharmaceutical and biotechnology companies to strengthen further and contribute to the U.S. life science analytics market growth. 

An Infographic Representation of U.S. Life Science Analytics Market

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LIST OF KEY COMPANIES PROFILED:

• SAS Institute Inc. (U.S.)


• Veeva Systems (U.S.)


• IBM (U.S.)


• Oracle (U.S.)


• Analytics8 (U.S.)


• Accenture (Ireland)


• IQVIA Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2022 – Indegene, a technology-led healthcare solution provider, collaborated with Tealium. The collaboration aimed to combine Tealium’s customer data platform with Indigene’s life science domain knowledge and drive faster and better business decisions for life science organizations.


• June 2022 – Truveta, one of the leading providers of EHR data and analytics, collaborated with Pfizer Inc. to deliver new safety insights for patients on a continuous basis. This data platform aids Pfizer Inc. in identifying, monitoring, and evaluating potential signals in patients during clinical trials and enables further research.  


• May 2022 – Tellius, Inc., collaborated with Indegene, a technology-led healthcare solution provider, to enable life science companies to drive faster and better business decisions.

REPORT COVERAGE

The U.S. life science analytics market research report includes a detailed market analysis of the market. It focuses on key aspects such as technological advancement and emerging trends in the U.S. market. Additionally, it includes new product launches, key industry developments such as mergers, partnerships, & acquisitions, and the impact of COVID-19 on the market. Besides this, the report also highlights key industry dynamics.

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