The global life science analytics market size surpassed USD 7.1 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 7.8% from 2020 to 2027.
The global life science analytics market size is expected to hit around USD 13.3 billion by 2027, according to a new report by Vision Research Reports.
Rising applications of advanced analytics in life science applications and increasing demand from the pharmaceutical and medical device industry are the major parameters driving the market. Analytics are used widely used in the life science analytics industry to assess risk, assessment of the effectiveness of clinical trials, provide personalized medicine, develop faster and more productive research and development pipeline, forecasting profits, budgeting, controlling product price, and predict virus evolution.
The rising adoption of big data and artificial intelligence in the healthcare sector is estimated to drive the market during the forecast period.
mHealth, Electronic Health Records (EHR), eHealth, and mobile applications along with artificial and human intelligence data analytics are offering opportunities for customization of medical approaches, which in turn is increasing demand for data analytic tools in the life science industry over the forecast period. According to the Personalized Medicine Coalition, the number of drugs manufactured by personal medicine approaches has grown by 62% since 2012. Moreover, strategies adopted by key players such as partnerships, product launches, collaborations, mergers & acquisitions, and government initiatives are further boosting the market. For instance, in April 2016, IBM acquired Truven Health Analytics, a leading provider of cloud-based healthcare data and analytics, to strengthen its Watson Health portfolio. This was expected to give the company access to over 8,500 clients of Truven Health Analytics.
In 2019, the services segment accounted for the largest revenue share of 56.2% in the market. Owing to the increasing penetration of analytics services, such as social media analytics, preventive maintenance, manufacturing process, predictive life science analytics for medical devices, and benchmarking services, the services segment held the majority market share. The services market is anticipated to grow at a lucrative rate, as there is a prevailing trend of outsourcing these services. As healthcare companies lack in resources and skill set required for the deployment of analytics, these services are outsourced. The outsourcing can be a short-term project-based, or it can be a long-term contract.
In 2019, the sales and marketing support segment accounted for the largest revenue share of 34.5% in the market. This is due to the high penetration of life science analytics in various marketing and sales applications such as tracking market spending, measuring marketing ROI, and forecasting sales based on historical sales data.
However, the R&D segment is anticipated to grow at the fastest rate over the forecast period. Increasing R&D cost, decrease in innovations, and the impact of digitalization in research and development are amongst the few factors expected to boost the usage of life science analytics in research and development activities to improve its productivity. Moreover, deterioration of patient health outcomes and the falling number of FDA approvals are some of the factors that are anticipated to grow the investment by the private players in R&D applications.
In 2019, the on-premises segment accounted for the highest revenue share of 50.7% in the life science analytics market. This is due to the advantages offered such as reduced costs, power consumption, and maintenance along with the high penetration of on-premises deployment systems. However, the on-demand segment is expected to be the fastest-growing segment owing to the growing need for on-demand deployment to reduce the overall cost incurred in the server and also to get customized services according to the business requirements.
In 2019, the pharmaceutical segment dominated the market and accounted for the largest revenue share of 47.7%. This is attributed to the rising applications of life science analytics in the pharmaceutical sector such as drug discovery, reduction in clinical trials, sales and marketing, and risk management. According to the International Federation of Pharmaceutical Manufacturers and Associations, the cost of development of new pharmaceutical products has increased to USD 2.6 billion from USD 179.0 million in 1970.
In 2019, descriptive life science analytics was the most widely used analytical tool and thus, held the largest revenue share of 36.1%. Descriptive life science analytics technology is inclined towards the conversion of raw data into interpretable information. Descriptive life science analytics creates conclusions on what has happened in the market in the past, and this helps in understanding past behavior of consumers and factors that influence market dynamics, which in turn help in building critical queries.
The descriptive life science analytics segment is expected to witness rapid growth in the market, owing to the large customer pool that is interested in understanding the current market scenario. Moreover, the cost associated with purchasing descriptive data or reports is comparatively lower than that of predictive or prescriptive life science analytics, owing to which these reports can be purchased by stakeholders across the market spectrum.
However, the predictive life science analytics segment is expected to grow rapidly during the forecast period. This is attributed to the rising applications of predictive analytics in life science, such as forecasting pharmacovigilance workload, budget estimation, forecasting adverse events, EHR, and health outcome analysis.
In 2019, North America dominated the market and accounted for the largest revenue share of 51.5%. Some of the major factors contributing to the growth of the market in the region are the presence of supportive government policies for deployment of telehealth, availability of sound IT infrastructure, and high digital literacy.
In 2019, the U.S. held a market revenue share of 86.3%. Various initiatives being undertaken by government and non-government organizations have led to increasing penetration of life science analytics in the U.S. For instance, the National Health Information Technology (HIT) initiative in the U.S. promotes the adoption of healthcare IT that includes interoperability, privacy & security, and collaborative governance.
Some of the prominent players in the life science analytics market include:
SAS Institute, Inc.
TAKE Solutions Limited
Segments Covered in the Report
Research and Development
Sales and Marketing
Supply Chain Analytics
Middle East & Africa
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