The Clinical Laboratory Services Market is estimated to be valued at US$ 255.5 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Clinical laboratory services involve performing various medical tests on samples, such as blood, urine, etc. collected from patients. These tests help in detecting diseases, monitoring health conditions, and deciding on the appropriate treatment. Clinical laboratories provide a wide range of tests including hematology, clinical chemistry, microbiology, immunology, cytology, genetic testing, and other esoteric tests. Advancements in technologies have enabled laboratories to provide efficient and accurate diagnosis in a timely manner.
Market key trends:
The clinical laboratory services market is witnessing increasing consolidation trends as major players are adopting the strategy of acquiring small and mid-sized regional laboratories to expand their geographic presence and service offerings. For instance, in November 2019, Labcorp acquired Zientz, Vyai, and Depuro, expanding its specialty testing capabilities. Similarly, in July 2020, Quest Diagnostics acquired national diagnostic testing company Med Fusion, boosting its lab testing capacity. Such consolidation activities allow companies to offer a wider range of services to patients and healthcare providers across broader geographies.
Porter's Analysis:
Clinical laboratory services: Threat of new entrants: The threat of new entrants is moderate due to high cost of infrastructure, equipment, and compliance requirements. Bargaining power of buyers: High bargaining power of buyers like hospitals and healthcare facilities, can negotiate on price and quality of services. Bargaining power of suppliers: Suppliers have low bargaining power due to the availability of substitute lab equipment and materials suppliers. Threat of new substitutes: Low threat of substitutes due to specialized nature of services and low availability of substitutes. Competitive rivalry: Strong competitive rivalry exists among existing players due to expanding market for clinical laboratory testing.
SWOT Analysis:
Strengths: Large network, advanced testing instruments, skilled workforce. Weaknesses: High operational costs, vulnerability to pricing pressures. Opportunities: Growth in diagnostic testing, aging population. Threats: Changing insurance coverage, consolidation among laboratories.
Key Takeaways:
The global clinical laboratory services market size is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing prevalence of chronic and infectious diseases. North America dominates the market and is estimated to maintain its dominance over the forecast period owing to presence of major market players, high demand for diagnostic tests, and growing adoption of advanced technologies in the region.
The clinical laboratory services market in Asia Pacific is expected to grow at the fastest rate during the forecast period. Growth in this region can be attributed to increasing healthcare expenditure, rising medical tourism, and growing demand for diagnostic services.
Key players operating in the clinical laboratory services are Abbott Laboratories, Laboratory Corporation of America Holdings (Labcorp), Bio-Reference Laboratories, ARUP Laboratories, Charles River Laboratories, Labco S.A., Genoptix Medical Laboratory, Quest Diagnostics, Inc., Healthscope Ltd., Spectra Laboratories, and Sonic Healthcare Limited.
