Clinical Services Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Clinical Services market size was estimated at USD 259.8 billion in 2023 and is projected to reach USD 422.6 billion in 2030 at a CAGR of 7.2% during the forecast period 2024-2030.

The Clinical services market has experienced significant growth, driven by various factors including the impact of the COVID-19 pandemic, rising incidence of chronic and infectious diseases, and increasing demand for accurate diagnostic techniques. During the pandemic, there was a surge in clinical diagnostics and testing technologies, exemplified by Thermo Fisher Scientific's launch of the TaqPath COVID-19 HT Kit, which enhanced testing capacity globally. Although the market has returned to pre-pandemic levels in terms of service demand, ongoing growth is anticipated.

Chronic diseases like cancer and tuberculosis (TB) continue to impose a substantial burden globally, underscoring the critical role of clinical diagnostic tests in early disease detection and management. For example, the World Health Organization reported that millions worldwide are affected by TB, highlighting the need for robust diagnostic services. Similarly, cancer cases are on the rise, with estimates suggesting a significant increase in new cases by 2040, necessitating advanced diagnostic capabilities.

Technological advancements are pivotal in driving market growth, with companies like SRL Diagnostics launching innovative products such as the Fatty Liver Index for non-alcoholic fatty liver disease diagnosis. This focus on technological innovation is crucial for market players seeking competitive advantage and meeting the growing demand for early disease diagnosis.

However, the market faces challenges such as stringent regulatory requirements across different regions and a shortage of skilled labour. Regulatory bodies like the Clinical Improvement Amendments (CLIA) in the US ensure safety and quality standards, influencing market operations. Additionally, while substitutes like at-home diagnostic kits and direct-to-consumer lab testing exist, they often lack the precision and versatility of Clinical services, maintaining the market's unique value proposition.

Mergers and acquisitions are prevalent among key players, facilitating expansion, access to new technologies, and market consolidation. For instance, Laboratory Corporation of America Holdings' acquisition of Personal Genome Diagnostics Inc. exemplifies strategic initiatives to broaden service portfolios and strengthen market positions.

 the Clinical services market is characterized by moderate growth with accelerating pace, driven by technological innovation, rising disease burdens, and strategic expansions. Despite regulatory challenges and workforce constraints, ongoing advancements in diagnostic technologies are expected to sustain market expansion, meeting the evolving healthcare needs globally.

Delvens Industry Expert's Standpoint

The independent and reference laboratories segment is poised for robust growth in the clinical laboratory services market. In countries like India and China, where access to medical diagnostic facilities remains limited for a significant portion of the population, independent laboratories are filling a crucial gap. The rise in accreditation of medical labs in India, from 6,200 to 6,975 by March 2022, underscores the growing demand for these services across the country. Strategic partnerships and collaborations, such as GC Labs' expansion in Southeast Asia, highlight efforts to strengthen diagnostic networks and expand market presence.

The global market is driven by increasing chronic disease burdens, heightened demand for early diagnosis, and rapid advancements in pathology and molecular capabilities. Digital pathology and the preference for comprehensive health checkups are gaining traction, spurred further by the COVID-19 pandemic's impact on healthcare resource utilization. The introduction of innovative diagnostic technologies, including companion diagnostics and biochips, is enhancing market growth. Additionally, the surge in clinical trials for novel drug candidates is expected to drive further demand for clinical laboratory services, positioning the sector for continued expansion and innovation.

Market Portfolio

Key Findings

• On the basis of Test type, in 2023, the clinical chemistry segment dominated the market with a significant revenue share of 54.9%. This segment's leadership is driven by its integral role in pathology analysis, encompassing tests on body fluids like urine, plasma, and serum. Key tests include glucose, creatinine, urea, and various enzymes, analysed using techniques such as spectrophotometry and immunoassay. Automation is increasingly adopted to enhance efficiency and customer experience in clinical chemistry testing. Meanwhile, the genetic testing segment is poised for robust growth, projected to achieve a lucrative CAGR during the forecast period. This growth is fuelled by intensive research in genetic and proteomic studies, focusing on hereditary and gene-mutation-related disorders. The rising demand for personalized oncology care and the need for accurate early diagnosis of infections and cancers are further catalysts for segment expansion.

• On the basis of Service Provider, in 2023, hospital-based laboratories commanded the largest share of the market at 52.4%, driven by their capacity to handle a high volume of tests for complex and severe diseases, which are typically more cost-intensive. This dominance is expected to persist as more hospitals integrate laboratories within their premises and expand outreach programs to cater to patients with critical conditions. For instance, the collaboration between Tenaris and San Jose Municipal Hospital in Argentina to enhance testing capabilities reflects this trend. the stand-alone laboratories segment is poised for substantial growth, projected to achieve a lucrative CAGR over the forecast period. These labs are increasingly focusing on enhancing patient outcomes by offering diagnostic services at retail locations. They excel in processing large volumes of tests quickly and efficiently, often at lower costs compared to hospital-based labs. This scalability has been particularly advantageous since the onset of the COVID-19 pandemic, with emerging players in the standalone sector expected to further drive market expansion through innovative clinical testing services.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America is poised to lead the market during the forecast period, driven by increasing chronic and infectious disease prevalence, rising demand for point-of-care diagnostics, and adoption of portable rapid testing devices. For example, the CDC's efforts in tracking and managing infectious diseases highlight the region's proactive approach to healthcare management.

Regional Analysis

North America to Dominate the Market

• In 2023, North America held a dominant revenue share of 36.84% in the Clinical services market. This leadership is attributed to factors such as a high prevalence of chronic diseases, a robust healthcare infrastructure, and an aging population. The region benefits from well-established healthcare systems and comprehensive reimbursement frameworks for Clinical services. Additionally, new entrants are attracted to the market's lucrative opportunities, as seen with Detect Diagnostics setting up a new laboratory in the U.S. Moreover, national trade groups like the American Clinical continue to support and advance diagnostic capabilities across the country.

• Asia Pacific is poised to experience the fastest compound annual growth rate (CAGR) during the forecast period. This growth is driven by increasing scientific research, unmet medical needs, economic development, and improvements in healthcare infrastructure and regulations. Rising public awareness and the availability of advanced medical treatments are further expected to bolster the region's expansion in Clinical services, which gained critical importance during the COVID-19 pandemic, highlighting the growing demand for testing and fostering new partnerships for enhanced lab testing services.

Competitive Landscape

• Abbott             
• Illumina Inc.
• ARUP Laboratories
• OPKO Health, Inc.
• Bioscientia Healthcare GmbH
• Charles River Laboratories
• NeoGenomics Laboratories
• Genoptix, Inc.
• Healthscope
• Eurofins Scientific
• The Laboratory Glassware Co.
• Laboratory Corporation of America Holdings
• Fresenius Medical Care AG & Co. KGaA
• QIAGEN
• Quest Diagnostics Incorporated
• Siemens Healthcare Private Limited
• Tulip Diagnostics
• Sonic Healthcare Limited
• Merck KGaA
• Myriad Genetics, Inc.
• Bionano Genomics Inc.

Recent Developments

• In August 2023, Laboratory Corporation of America Holdings (Labcorp) announced an agreement to acquire Tufts Medicine Outreach Laboratory Business. This strategic move aims to expand Labcorp's diagnostic testing and laboratory services, enhancing its capabilities in healthcare diagnostics and strengthening its market position.

• In September 2022, Bionano Genomics Inc. launched Bionano Laboratories, integrating Bionano's optical genome mapping (OGM) data services with Lineagen's clinical testing services. This initiative includes the debut of Bionano Laboratories' first laboratory-developed test (LDT) based on OGM technology.

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