The increasing prevalence of chronic diseases, increasing use of point-of-care diagnostics, and rising healthcare expenditures bolster the growth of the diagnostic labs market. Additionally, the growing developments in diagnostics laboratories are likely to emerge as a significant future trend in the diagnostic labs market from 2022 to 2028. However, a shortage of skilled professionals hampers the overall market growth.
Consequently, the health-tech era took off and transformed the healthcare segment to unimaginable levels. Since then, various start-ups have emerged that have revolutionized the industry with innovations such as telemedicine, teleconsultation, and, in particular, diagnostic solutions. Diagnostics labs form the backbone of healthcare. Technology adoption is essential to meet the increasing consumer demand and have a competitive advantage in the market. In light of this, industry players are harnessing the power of technology to offer new generation healthcare solutions. The technology used in diagnostic labs is rapidly moving toward complete transformation with the help of the latest developments in artificial intelligence (AI) and machine learning (ML). From developing accurate and efficient diagnostic solutions to adapting to technological interventions, various forward-thinking R&D teams are already working to develop newer and simpler blood analysis and diagnosis methods. Some of the developments in the diagnostics lab market are as follows:
Therefore, such developments would boost the market for diagnostics labs shortly.
North America is estimated to continue its dominance in the diagnostic labs market during 2022–2028. The region is anticipated to witness substantial demand for diagnostic labs over the forecast period, owing to the increasing adoption of technological advancements and rising research and development activities in this region. Improved healthcare infrastructure and appropriate reimbursement policies also support the North America diagnostic labs market. The US is expected to hold the largest market share in the North American market from 2022 to 2028. The market is expected to grow in the coming years owing to the increasing adoption of technological advancements and rising emphasis on improving treatment outcomes. The US diagnostic labs serve as the foundation for millions of patients' early diagnosis, prevention, and personalized care, accelerating demand at a large scale. For example, early diagnosis, prevention, and personalized care in diagnostic labs in the US involve routine blood tests of patients and ground-breaking genetic and molecular diagnostics. Diagnostic laboratories play a vital role in improving patient outcomes and quality of life delivery of better healthcare value to the healthcare system, according to the American Clinical Laboratory Association (ACLA) report. Additionally, diagnostic laboratory services comprise only 2.3% of US healthcare expenditure and 2% of medicare expenditure. Therefore, diagnostic laboratories are an integral part of the US healthcare system and the patient it services. Moreover, nearly 25% of US patient care quality indicators for adults are included in laboratory tests. Quality indicators are standardized, evidence-based measures of healthcare quality that can be used readily by hospitals serving inpatient administrative data for tracking and measuring clinical performance and outcomes. Such quality indicators play a vital role in ensuring high-quality, cost-effective clinical care by informing laboratory medicine professionals to obtain objective scientific data and deliver an interpretation of results of US adults. Such factors mentioned above are driving the growth of the diagnostic labs market.
Based on revenue source, the diagnostic labs market is segmented into healthcare plan operators and insurers, out-of-pocket, and public system. The healthcare plan operators and insurers segment is estimated to account for the largest market share during 2022–2028. There has been an increase in the number of private insurers that offer customizable insurance products. Many of the provisions provided by the Global Government are similar to the Affordable Care Act, which focuses on expanding healthcare insurance coverage. It generates incentives for employers to provide health coverage and compels people who are not covered under the insurance program of their governments or employers to purchase private healthcare insurance. In 2018, ~23% of Global had private medical/hospital insurance, and ~9.6% had dental insurance. Moreover, ~70% of beneficiaries, who receive health insurance facilities, receive their private health insurance as an employment benefit. Private health plan operators offer healthcare services through facilities or accredited healthcare organizations. Alternatively, they can reimburse enrollees for purchased health care services. The aforementioned factors will help boost the healthcare plan operators and insurers segment in the forecast period.
Companies operating in the diagnostic labs market adopt the product innovation strategy to meet the evolving customer demands worldwide, allowing them to maintain their brand name in the global diagnostic labs market.
The regional trends and factors influencing the Diagnostic Labs Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Diagnostic Labs Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 297.06 Billion |
| Market Size by 2028 | US$ 514.28 Billion |
| Global CAGR (2021 - 2028) | 8.3% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Lab Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Diagnostic Labs Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Diagnostic Labs Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
Based on lab type, the diagnostic labs market is segmented into single/independent laboratories, hospital-based labs, physician office labs, and others. Based on testing services, the diagnostic labs market is segmented into physiological function testing, general and clinical testing, esoteric testing, specialized testing, non-invasive prenatal testing, COVID-19 testing, and others. By revenue source, the diagnostic labs market is segmented into healthcare plan operators and insurers, out-of-pocket, and public system. Based on geography, the diagnostic labs market is primarily segmented into North America, Europe, Asia Pacific, Middle East & Africa (MEA), and South & Central America. The market in North America is further segmented into the US, Canada, and Mexico. The European diagnostic labs market is subsegmented into France, Germany, the UK, Spain, Italy, and the Rest of Europe. The market in Asia Pacific is subsegmented into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The diagnostic labs market in the MEA is further segmented into Saudi Arabia, the UAE, South Africa, and the Rest of the MEA. The diagnostic labs market in South & Central America is segmented into Brazil, Argentina, and the Rest of South & Central America.
Answer: Diagnostic laboratories play an important role in reducing the widespread impact of certain diseases. The experts in the pathology labs are skilled enough to get into the details of the underlying problems. As diagnostic chains and insurance coverage expand, clinical laboratory tests are becoming more common. This is due to the increasing demands for the early detection of diseases and the earliest possible search for causes to receive appropriate therapy. Due to an increased burden of COVID-19 testing or a drop in demand for other types of diagnostic tests, several laboratories have stopped performing other diagnostic procedures. During the first wave of COVID-19, diagnostic labs were forced to offer at-home sample collection services as the number of cases and people coming into the labs increased.
Based on lab type, hospital-based labs took the forefront leaders in the worldwide market by accounting largest share in 2022 and is expected to continue to do so till the forecast period.
Increasing prevalence of chronic diseases and increasing use of point-of-care diagnostics is one of the most significant factors responsible for the overall market growth.
The physiological function testing segment dominated the global diagnostic labs market and accounted for the largest revenue of US $94.66 million in 2022.
Global diagnostic labs market is segmented by region into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. In North America, the U.S. is the largest market for diagnostic labs market. The US is estimated to hold the largest share in the diagnostic labs market during the forecast period. The presence of top players and favorable regulations related to product approvals coupled with commercializing new products are the contributing factors for the regional growth. Additionally, the increasing number of technological advancements is the key factor responsible for the Asia-Pacific regional growth for diagnostic labs accounting fastest growth of the region during the coming years.
Quest Diagnostics Incorporated; Eurofins Scientific; Laboratory Corporation of America Holdings; Exact Sciences Laboratories LLC; SYNLAB International GmbH; Dasa Labs; KingMed Diagnostics; BioReference; Sonic Healthcare Limited; Healius Limited are among the leading companies operating in the global diagnostic labs market