Projections Indicate Life Sciences Market Will Double by 2025
The life science analytics market, which includes services and software, could reach a worth of $42.0 billion by 2025 (doubling that of 2020), at a compound annual growth rate (CAGR) of 13.7% between 2020–2025. This growth will be driven by big data, technological advancements, increased adoption of analytics solutions in clinical trials, and the need for data standardization, among others.
The benefits of analytics applied to life science are manifested in the early detection of prescription and treatment patterns across the entire health system. With the help of digital technologies, companies can improve their R&D productivity, manufacturing capabilities, sales effectiveness, and compliance management.
Life science analytics capitalizes on big data to increase global collaboration based on highly accurate clinical research by standardizing trial data and validating its adherence. For example, analytics can help detect potential risks early and enable them to be proactively addressed.
The global life science analytics market is expected to witness high growth during the forecast period 2020–2025. This growth can be attributed to an increase in the prevalence of chronic diseases, the demand for a more precise and personalized medicine, and a focus on improving patient outcomes. Various organizations are also receiving grants to develop personalized medicine based on big data solutions, primarily for cancer and diabetes.
The life science analytics market is segmented into descriptive, predictive, and prescription analytics. In 2019, the segment that accounted for the largest share was descriptive analytics, although prescriptive analytics is projected to grow at the highest CAGR for the forecast period 2020–2025. This is due to this segment’s ability to ensure a synergistic integration of both predictions and prescriptions.
In terms of the segmentation of the market based on components into services and software, the services segment had the largest share in 2019 and is believed to also register the highest growth for the period 2020–2025. This is particularly attributed to the recurring need for software upgrades and maintenance.
When looking at the life science analytics market by region, North America accounted for the largest share in 2019, in particular, due to the strong economies of the US and Canada and their investments in technology. However, Asia is expected to grow at the highest CAGR for the forecast period thanks to research and development (R&D) investments, more research in drug development, and rising pressure to comply with regulations, as well as lower manufacturing costs in the region.
Leading Market Players
On the basis of users and applications, the life science analytics market includes biotech companies, medical equipment enterprises, research centers, and third party users.
Among the prominent players operating in the global life science analytics market, we find Accenture, Oracle Corporation, SAS Institute Inc., IBM Corporation, Wipro, Cognizant, SCIO Health Analytics, Allscripts Healthcare Solutions, Infosys Limited, MaxisIT, Cerner Corporation, IQVIA, Microsoft, Optum, and Cotiviti.
Opportunities for Investment
Based on the current scenario and the results of the forecasts, there’s a variety of growth opportunities in the life science analytics market, especially in the North America and Asia regions, which have strong economies and heavy R&D investments.
In terms of segments, descriptive and prescriptive analytics are projected to keep their growth or increase it. In terms of components, the best prospects are for services, particularly recurring ones. With the increasing development of personalized medicine, primarily for cancer and diabetes, precision medicine that uses genomic data to develop tailored solutions is expected to benefit greatly from advanced analytics and predictive modeling.
Among the challenges to consider are the restraints created by the high costs of implementing solutions, in particular in emerging economies and small- and medium-sized pharma and biotech companies. Data privacy issues can arise, too, such as an increased risk of exposing sensitive patient information to undesired individuals and the need for protections that safeguard health data.