Clinical Labs are a 120+ Billion-Dollar Industry Globally
The global market for clinical laboratory services is estimated at $121.5 billion for 2019. This is up 2.9% from the estimated value in 2010 of $93.9 billion, according to a new Kalorama Information report. (https://kaloramainformation.com/product/clinical-laboratory-services-market-5th-edition/ )
Growth is driven by an aging population, a growing incidence of chronic diseases, but it is more than that. The advanced laboratory testing technologies and practices that have developed command higher prices and drive revenue growth. There are also a number of inhibitors to growth such as the growing emphasis to reduce health costs and uncertain economic conditions.
Global markets for clinical laboratory services are expected to increase at CAGR of 3.8% over the next five years, reaching a market value of $146.4 billion by 2024. 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, it will be offset by an increase in volume.
The clinical laboratory market in the United States is highly competitive with more than 400 providers of lab services in operation. The market share situation is nearly tied: Quest Diagnostics is the leading clinical laboratory service provider in the United States in 2019. Quest continues to focus on providing top quality service to the laboratory industry and has remained competitive through several strategic acquisitions and alliances. Laboratory Corporation of America follows Quest, but only marginally. The company continues to strengthen its position in the market through unique product offerings and strategic alliances.
Global markets for clinical laboratory services are expected to increase at CAGR of 3.8% over the next five years, reaching a market value of $146.4 billion by 2024.
The report found that The United States and China are the most attractive clinical laboratory markets for growth and new opportunities Analyses comparing various metrics, including population size and growth, aging population trends, diabetes prevalence, inflation rate, GDP spending on health, and laboratory market growth trends and demand, expose the countries with the most attractiveness for current providers and new entrants alike.
The report said that test pricing is expected to be impacted by attempts by governments to control costs, such as CMS’ revised reimbursement schedules. Testing in the esoteric segment is scrutinized by payers and continues to impose limitations and ‘medical necessity’ clauses to limit payments in some areas.
The report said that the growth in genetic testing in markets outside the U.S. are increasing and producing new opportunities for market expansion. The U.S. market is more mature, and it continues to struggle with competition; however, there is some growth expected for specialty testing in the U.S. market. Testing volume is expected to increase during the 2019-2024 period as a preventative approach to healthcare drives orders.
