COVID-19 Testing Increases Demand in $150 Billion Clinical Laboratory Services Market, Future Growth Linked to Global Economies
The global market for clinical laboratory services grew to an estimated $150.4 billion during 2020, with COVID-19 testing demand increasing the market by more than $26 billion over the year. These findings are according to insights featured in Clinical Laboratory Services Market, 6th Edition, a new report by leading medical market research publisher Kalorama Information.
Clinical laboratories are an essential part of the health industry. Kalorama Information estimates that between 70% – 80% of physicians’ diagnoses are a result of laboratory tests. In addition to diagnosing patients, clinical lab testing is performed to evaluate disease progression, monitor drug treatment and conditions, determine individual therapy, and several other reasons. In oncology indications, clinical laboratory services are involved in 100% of patient care plans.
The fact is, clinical laboratories are improving physicians’ ability to treat patients like never before. There is a shift in healthcare utilization primarily due to reducing healthcare spending, which makes the laboratory an even more valuable part of the treatment plan.
Besides the remarkable growth in 2020 due to COVID-19 demand, Kalorama Information points to a number of other drivers affecting steady growth for this market. Among these are:
- an aging population,
- a growing incidence of chronic diseases and management,
- increasing emphasis on diagnosis and disease monitoring,
- and a growth in advanced laboratory testing technologies and practices.
Global markets for clinical laboratory services are forecast to increase at a compound annual growth rate (CAGR) of 2.8% over the next five years. Emerging economies will be a driving source of new growth while increasing laboratory revenues are expected in the primary U.S. market. The U.S. market is likely to experience continued downward pressure for pricing, however, Kalorama Information does not anticipate that it will be offset by an increase in volume.