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2 LABORATORY INFORMATION MANAGEMENT SYSTEMS/LIMS MARKET By Product (COTS & Legacy), Delivery Mode (On-premise, Hosted, Cloud), Component (Software & Services), End User Industries (Healthcare, CRO, Petrochemical, Oil and Gas, Chemical) FORECAST TO 2019 It s all about markets MARKETSANDMARKETS sales@marketsandmarkets.com
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4 1 MARKET OVERVIEW 1.1 INTRODUCTION Laboratory information management systems (LIMS) are software solutions that handle the receiving, processing, and storage of information to manage data, resources, and workflows in laboratories. LIMS facilitates appropriate documentation of sample and staff data; helps to store and manage equipment and maintenance histories; accelerates the validation process by enhancing the credibility of testing practices and data quality; and helps in instrument interfacing, sample tracking, results reporting, and regulatory compliance. Owing to this, LIMS increases productivity and responsiveness and enables timely decision making of labs (including pharmaceutical QA/QC, biotechnology, petrochemicals, oil and gas, process chemicals, water and environmental, food safety, agriculture, and contract labs). LIMS can be integrated with various laboratory workflow systems such as Enterprise Resource Planning (ERP), Chromatography Data Systems (CDS), Electronic Laboratory Notebook (ELN), and Scientific Data Management Systems (SDMS) to enhance the overall efficiency of the laboratory and the entire enterprise. Thus, integration and interoperability are important criteria while selecting an LIMS solution. The prominent players in the LIMS market are LabWare, Inc. (U.S.), LabVantage Solutions, Inc. (U.S.), STARLIMS Corporation (U.S.), Core Informatics LLC (U.S.), LabLynx, Inc. (U.S.), Thermo Fisher Scientific, Inc. (U.S.), Autoscribe Informatics (U.K.), PerkinElmer, Inc. (U.S.), and Computing Solutions, Inc. (U.S.). 1.2 EVOLUTION Laboratory information management systems (LIMS) are used in various industries, including the pharmaceutical and oil and gas industries. These systems are also used in petrochemical and refineries as well as in biobanks/biorepositories. Before LIMS was introduced, data management in laboratories was one of the most challenging tasks for researchers. Managing data with handwritten reports and charts was a tedious task, which increased the likelihood of human errors. To overcome these difficulties, LIMS was introduced in the 1980s. The first LIMS to be introduced was a home-grown system that helped to improve the accuracy and efficiency of data management. The first commercial LIMS was introduced and developed by Analytical Instrument Manufacturers. This first-generation LIMS transformed the old methodology of data storage and collection, which involved handwritten reports and charts with single centralized computer systems. These LIMS systems offered basic word processing for reports and helped in increasing the efficiency of laboratories. However, the firsgeneration systems were soon replaced by second-generation LIMS solutions, which used a third-party commercial relational database (RDB) to offer application-centric solutions. These LIMS systems were dependent on minicomputers such as digital VAX (virtual address extension), but these minicomputers were also replaced by personal computers (PCs) later. This shift in trend towards the adoption of PCs resulted in a significant increase in processing speeds, which ensured faster documentation. 3
5 1.3 MARKET SEGMENTATION LIMS MARKET, BY REGI ON The LIMS market is broadly segmented into North America, Europe, Asia, and the Rest of the World (RoW). The North American segment is further divided into the U.S. and Canada, while the European segment is divided into Germany, France, the U.K., Spain, Italy, and the Rest of Europe (RoE). RoW includes Latin America, the Middle East, Africa, and the Pacific countries. North America is expected to account for the largest share of this market due to the widespread adoption of LIMS in this region. The Asian market is poised to witness the highest growth during the forecast period. This high growth can be attributed to factors such as various initiatives taken by governments in the Asian countries for increasing HCIT adoption and increasing outsourcing activities by pharmaceutical companies to this region due to low manufacturing costs. FIGURE 1 LIMS MARKET SEGMENTATION, BY REGION LIMS Market, by Region North America Europe Asia Rest of the World (RoW) U.S. Germany Canada U.K. France Italy Spain Rest of Europe (RoE) 1.4 MARKET DYNAMICS With the increasing need to manage larger volumes of data while complying with stricter regulations and achieving higher quality and efficiency levels, laboratories are increasingly adopting LIMS. The global LIMS market is poised to grow at a CAGR of % during the forecast period (2014 to 2019). Increasing pressure to comply with the regulatory requirements is the major factor that drives the growth of this market. Additionally, factors such as the growing need to integrate healthcare systems, increasing replacement of old legacy LIMS systems with new commercial off-the-shelf (COTS) LIMS solutions, growth in biobanks/biorepositories, rising awareness regarding lab automation technologies, and technological advancements in LIMS are propelling the growth of this market. On the other hand, the growth of the market may be hindered due to high maintenance costs and service expenses, lack of trained HCIT professionals, and interoperability issues. 4
6 CHALLENGES OPPORTUNITIES RESTRAINTS DRIVERS Laboratory Information Management Systems/LIMS Market Forecast to 2019 A number of factors such as high growth opportunities in emerging economies, increasing deployment of cloud-based LIMS solutions due to their cost-effectiveness, and adoption of LIMS systems in academic research institutes due to the growing demand for personalized medicine are expected to create an array of opportunities for the growth of the LIMS market in the coming years. FIGURE 2 RISING PRESSURE TO COMPLY WITH THE REGULATORY REQUIREMENTS WILL DRIVE MARKET GROWTH D Rising pressure to comply with regulatory requirements Increasing replacement of legacy systems with COTS LIMS solutions Growth in biobanks/biorepositories Growing need to integrate healthcare systems Technological advancements Growing awareness of LIMS and its application areas R High maintenance costs & service expenses Lack of trained HCIT professionals O Cloud-based LIMS Adoption of LIMS by academic research institutes Emerging economies offer huge potential C Interface of LIMS with other laboratory systems Survival of small players 5
7 2 LABORATORY INFORMATION MANAGEMENT SYSTEM (LIMS) MARKET, BY PRODUCT TYPE 2.1 INTRODUCTION On the basis of products, the LIMS market is segmented into commercial off-the-shelf (COTS) LIMS and legacy LIMS. The changing requirements of laboratories across industries and the growing need for enterprise-wide integrated LIMS solutions that can support multiple businesses across different geographic locations are factors that are leading to the higher adoption of COTS LIMS solutions. Furthermore, COTS solutions also help to streamline laboratory workflow processes and improve decision-making and reporting, which are also expected to drive the growth of this market in the coming years. Some of the prominent players in this market are Thermo Fisher Scientific, Inc. (U.S.), STARLIMS Corporation (U.S.), Core Informatics LLC (U.S.), LabWare, Inc.(U.S.), and LabVantage Solutions, Inc. (U.S.). FIGURE 3 COTS LIMS PRODUCT SEGMENT TO DOMINATE THE MARKET IN Legacy LIMS Commercial Off-the-Shelf (COTS) LIMS ,000 1,200 Market Size ($Million) 6
8 3 LABORATORY INFORMATION MANAGEMENT SYSTEMS (LIMS) MARKET, BY DELIVERY MODE 3.1 CLOUD-BASED LIMS FIGURE 4 CLOUD-BASED LIMS TO WITNESS HIGHEST GROWTH IN ASIA RoW % CAGR % Asia % Europe % North America % Market Size ($Million) TABLE 1 CLOUD-BASED LIMS MARKET SIZE, BY REGION, ($MILLION) Region e 2019-p ( ) North America Europe Asia RoW Total e- Estimated, p-projected In 2014, North America is expected to command the largest share of ~% of the global cloud-based LIMS market. This geographic segment is poised to reach $ million by 2019 from $ million in 2014, at a CAGR of %. 7
9 4 LABORATORY INFORMATION MANAGEMENT SYSTEMS (LIMS) MARKET, BY COMPONENT 4.1 SOFTWARE FIGURE 5 LIMS SOFTWARE MARKET IN ASIA TO WITNESS DOUBLE-DIGIT GROWTH RoW % CAGR (%) Asia % Europe % North America % Market Size ($Million) TABLE 2 LIMS SOFTWARE MARKET, BY REGION, ($MILLION) Region e 2019-p ( ) North America Europe Asia RoW Total e - Estimated; p Projected In 2014, North America is expected to command the largest share of ~% of the global LIMS software market. This geographic segment is poised to reach $ million by 2019 from $ million in 2014, at a CAGR of %. 8
10 5 LABORATORY INFORMATION MANAGEMENT SYSTEMS (LIMS) MARKET, BY END USER 5.1 HEALTHCARE INDUSTRY TABLE 3 LIMS MARKET SIZE FOR HEALTHCARE INDUSTRY, BY END USER, ($MILLION) End User e 2019-p Pharmaceutical and Biotechnology Companies ( ) Biobanks/Biorepositories Contract Service Organizations Academic Research Institutes Total e - Estimated; p Projected In 2014, the pharmaceutical and biotechnology companies segment is expected to account for the largest share of ~% of the LIMS market for healthcare industry. This segment is poised to reach $ million by 2019 from $ million in 2014, at a CAGR of %. Rising pressure to comply with regulatory standards and growing research in biotechnology augment growth in laboratory automation and hence, the LIMS market. Also, the rising demand for early drug discovery requires modern laboratories to work faster, more accurately, and efficiently. LIMS makes this possible, thus boosting the growth in the forecast period. TABLE 4 LIMS MARKET SIZE FOR HEALTHCARE INDUSTRY, BY REGION, ($MILLION) Region e 2019-p ( ) North America Europe Asia RoW Total e - Estimated; p Projected In 2014, North America is expected to command the largest share of ~% of the LIMS market for healthcare industry. This segment is poised to reach $ million by 2019 from $ million in 2014, at a CAGR of %. 9
11 6 LABORATORY INFORMATION MANAGEMENT SYSTEMS (LIMS) MARKET, BY GEOGRAPHY 6.1 INTRODUCTION The LIMS market is segmented into four major regions North America, Europe, Asia, and the Rest of the World (RoW). The North American market is further segmented into the U.S. and Canada. The European market is segmented into the U.K., Germany, France, Italy, Spain, and the Rest of the Europe (RoE). The global Laboratory Information Management Systems (LIMS) market is estimated to be valued at $ million in 2014 and expected to reach $ million by 2019, at a CAGR of % from 2014 to North America is expected to account for the largest share of ~% of total LIMS market, closely followed by Europe with a share of ~% in However, Asia is estimated to register the highest CAGR of % during the forecast period, primarily due to the growing awareness of healthcare IT tools; increasing globalization and consolidation leading to greater outsourcing activities in this region due to the availability of low cost and skilled labor; and increasing awareness and availability of LIMS in this region. FIGURE 6 ASIA AND ROW MARKETS WILL BE THE NEW REVENUE POCKETS Canada % U.K. % Germany % U.S. % France % Spain % Italy % Rest of Europe (RoE) % Asia % Rest of the World (RoW) % <% Growth % % Growth % % Growth >% growth 10
12 FIGURE 7 ASIA: AN ATTRACTIVE DESTINATION FOR ALL END-USER SEGMENTS End User North America Europe Asia Rest of the World (RoW) Healthcare Industry Petrochemical Refineries and Oil and Gas Industries Chemical Industry Food and Beverage and Agricultural Industries Environmental Testing Laboratories Metals and Mining Industries Other End Users CAGR (%) from 2014 to 2019 Very Low <% Medium High Very High -% -% >% Note: Other end users include forensic laboratories and medical device industries Note: Other end users include forensic laboratories and medical device industry TABLE 5 LIMS MARKET SIZE, BY REGION, ($MILLION) Region e 2019-p ( ) North America Europe Asia RoW Total e -Estimated, p-projected North America is expected to command ~% of the LIMS market in This segment is poised to reach $ million by 2019 from $ million in 2014, at a CAGR of % from 2014 to This large share is attributed to the ongoing research activities and government support for research, availability of supporting IT infrastructure, technological advancements in LIMS, availability of all products and services, and stringent regulatory requirements in this region. 11
13 6.2 NORTH AMERICA U.S. FIGURE 8 NEW PRODUCT LAUNCHES WILL TRIGGER MARKET GROWTH 2014 U.S. CURRENT MARKET SCENARIO (2014) Market Size = $ million ( ) = % COTS LIMS $ Million 2019 $ Million Legacy LIMS Increase in research activities, growth in biobanks, governmental support, replacement of legacy with COTS LIMS likely to enhance adoption of LIMS in the U.S. New product launches by various market players will drive market growth $ Million $ Million COTS LIMS Legacy LIMS TABLE 6 U.S.: LIMS MARKET SIZE, BY END USER, ($MILLION) End User e 2019-p ( ) Healthcare Industry Petrochemical Refineries & Oil and Gas Industry Chemical Industry Food and Beverage and Agriculture Industries Environmental Testing Laboratories Metals and Mining Industry Other End Users Total e -Estimated, p-projected 12
14 6.3 EUROPE SPAIN TABLE 7 SPAIN: LIMS MARKET SIZE, BY END USER, ($MILLION) End User e 2019-p ( ) Healthcare Industry Petrochemical Refineries & Oil and Gas Industry Chemical Industry Food and Beverage & Agriculture Industries Environmental Testing Laboratories Metals and Mining Industry Other End Users Total e-estimated, p-projected In 2014, the healthcare industry is expected to command ~% of the LIMS market in Spain. This end-user segment is poised to reach $ million by 2019 from $ million in 2014, at a CAGR of % during the forecast period. TABLE 8 SPAIN: LIMS MARKET SIZE FOR THE HEALTHCARE INDUSTRY, ($MILLION) Healthcare Industry e 2019-p Pharmaceutical and biotechnology companies ( ) Biobanks/Biorepositories Contract Service Organizations (CROs and CMOs) Academic Research Institutes Total e-estimated, p-projected In 2014, the Pharmaceutical and biotechnology companies are expected to command ~% of the LIMS market for the healthcare industry in Spain. This segment is poised to reach $ million by 2019 from $ million in 2014, at a CAGR of % during the forecast period. 13
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