Life Science Analytics Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global life science analytics market was valued at USD 28.1 billion in 2022, and a CAGR of 12.1% is expected during the forecast period. The rising prevalence of chronic diseases and the growing pressure to curb healthcare spending are the key factors driving growth in the market. The increasing adoption of analytics for sales and marketing applications is driving the demand in the market significantly. Lack of transparency in information on prices and quality is the key factor behind the significant growth in the market.

Increased investment by pharma and biotech companies in the research and development of drug therapy is driving growth in the market. The increase in demand for life science and analytical solutions is driving growth in the market. The increasing need to analyze the large amount of data is a time-consuming task, and the market is witnessing significant growth during the forecast period. Cloud-based solutions are the need of the hour. Increasing demand for cloud-based solutions is driving growth in the market.

Growth Drivers

With the rising complexity of healthcare systems and the abundant data generated, there is a continuous, growing need for analytics solutions to derive some actionable conclusions. Analytics play a crucial role in personalized medicine by analyzing genetic data, patient demographics, and medical histories to tailor treatment plans to individual patients, improve patient outcomes, and reduce healthcare costs.

Advancements in technology such as artificial intelligence, machine learning, and big data analytics are driving innovation in life sciences analytics, enabling more sophisticated data analysis, predictive modeling, and decision support capabilities, which is driving significant growth in the market. Analytics solutions and life sciences companies are ensuring compliance with regulatory requirements, managing risks associated with drug development and patient safety, and maintaining data integrity throughout the product lifecycle.

The increasing patient population worldwide and the increasing adoption of healthcare data management platforms in hospitals are driving significant growth in the market. Increasing demand from various hospitals to measure the cost-effectiveness of various therapies is driving growth in the market significantly. The increase in prescription rates for drugs is driving significant growth in the market.

Segmentation

By Type

·         Descriptive Analytics

·         Predictive Analytics

·         Prescriptive Analytics

By Components

·         Software

·         Services

By Delivery Model

·         On-Premise

·         On-Demand

By End-User

·         Pharmaceuticals and Biotechnology Company

·         Medical Device Companies

·         Research Centers

·         Third Party Administrators

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Life Sciences Analytical Market by on Delivery Model

On the basis of the on-demand model, the life sciences and analytical tool market is segmented into on-premise and on-demand. On-demand is the leading segment in the market and is expected to grow significantly. These are hosted in the cloud, offering scalability, flexibility, and accessibility from anywhere with an internet connection. This model typically relies on subscription-based pricing, making it more cost-effective for smaller companies or those with fluctuating analytical needs.

On the other hand, on-premise solutions involve installing and maintaining software on the company’s own servers and infrastructure, providing greater control and customization but requiring a higher upfront investment and ongoing maintenance costs. Increasing demand to analyze the large amount of data is the need of the time.

Life Sciences Analytical Market by components Market

On the basis of the components, the life sciences analytics market is segmented into software and services. Software is the leading segment in the life sciences market because of its versatility, scalability, and ease of integration with existing systems. Life Sciences companies heavily rely on software solutions for data management, analytics, and visualization to extract insights from vast amounts of data generated during research, clinical trials, and patient care. Advancements in artificial intelligence, machine learning, and big data analytics have enhanced the capabilities of software in analyzing complex biological and medical data, further solidifying its position as the leading segment.

Life Sciences Analytical Market by End-User Segmentation

On the basis of the end-user, the life sciences market is segmented into pharmaceutical and biotechnology companies, medical device companies, research centers, and third-party administrators. Pharmaceutical and biotechnology companies are leading in the life sciences analytics market due to their deep understanding of biological processes, access to large data sets, and the need for data-driven insights in drug discovery, development, and commercialization.

Their expertise in research development and regulatory compliance positions them well to leverage analytics for optimizing processes, identifying trends, and making informed decisions in areas like personalized medicine and precision healthcare. Medical device companies also play a significant role in the life sciences analytics market, albeit to a lesser extent compared to pharmaceuticals and biotechnology firms. They utilize analytics to enhance product development, improve manufacturing processes, ensure regulatory compliance, and optimize supply chain management.

Analytics help medical device companies in areas such as identifying market trends, assessing the effectiveness of their products, predicting maintenance needs for devices, and optimizing pricing strategies. The increasing amount of data produced by various organizations needs to be analyzed efficiently. Rising adoption of cloud-based solutions is driving significant growth in the market.

Regional Outlook

On the basis of the regions, the life science analytics market is segmented into 5 parts: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. North America is the leading segment and is expected to lead during the forecast period. Factors like robust healthcare infrastructure, significant research and development investments, advanced technology adoption, and a large pool of skilled professionals. The regulatory framework and collaborations between industry and academia contribute to its prominence in this field. Asia, the Pacific and Europe also play significant roles in the life sciences analytics market.

In Asia Pacific, rapid industrialization, urbanization, and a strong pharmaceutical industry, research excellence, and favorable regulatory environment contribute to its substantial presence in life-sciences analytics. Both regions are witnessing increased adoption of data-driven approaches in the healthcare and pharmaceutical sectors. The Middle East and Africa, especially the United Arab Emirates and South Africa, are also witnessing significant growth in the market.

Key Players

·         Accenture

·         IBM

·         Oracle

·         SAS Institute Inc.

·         Analytics8

·         IQVIA Inc

·         Veeva Systems

·         Cognizant

·         TCS

·         Infosys

·         Other Players