North America Laboratory Information System Market Size & Share Analysis - Growth, Trends & Forecasts (2024 - 2029)

North America Laboratory Information System Market Analysis

The North America Laboratory Information System Market size is estimated at USD 1.40 billion in 2024, and is expected to reach USD 2.20 billion by 2029, at a CAGR of 9% during the forecast period (2024-2029).

A Laboratory Information System (LIS) is a software tool that manages and improves laboratory functions. It helps in collecting, handling, and understanding data from laboratory tests and processes. Increasing demand for electronic health records (EHR), rising diagnostic testing, and technological advancements in LIS offerings are the major driving the market growth.

The increasing adoption of LIS in United States healthcare settings is projected to drive market growth during the forecast period. For instance, according to the article published by the International Journal of Computational Intelligence Systems in March 2023, there is an increase in the adoption of LIS in United States healthcare settings for the automatic detection, quality control, and automatic archiving of test results. 

As per the same source, the United States-based laboratories are also implementing Integrated Laboratory Information Systems (ILIS), such as IBM System34, to increase the effective working load and obtain a large amount of useful data without additional staff. These systems are being leveraged for automatic detection, quality control, and archiving of test results. LIS not only enhances the efficiency of laboratory operations but also ensures data accuracy and compliance. The United States healthcare landscape strongly emphasizes technology integration, and this trend is likely to fuel the demand for advanced LIS solutions.

In addition, the rising number of collaborations and acquisitions between significant healthcare companies in the region is also poised to drive market growth during the forecast period. For instance, in August 2024, eLabNext, a company under the Eppendorf Group, known for its flexible Digital Laboratory Platform featuring a Laboratory Inventory Management System (LIMS) and Electronic Lab Notebook (ELN), teamed up with US Lab Partners. US Lab Partners is a strategic consulting and advisory firm that helps life sciences companies with labs, facilities, and EH&S programs. 

This partnership aims to ensure that clients of US Lab Partners, which include academic spin-outs and established biotech and pharma firms, are supported with both physical facilities and vendor relationships, as well as digital tools. These tools are essential for improving laboratory workflows, managing samples, ensuring compliance, and meeting other operational needs.

Similarly, in August 2024, Quest Diagnostics expanded into the Canadian healthcare market by acquiring Canadian lab firm LifeLabs for USD 1.01 billion. This acquisition boosts Quest Diagnostics' diagnostic testing capabilities and expands its services in Canada. With this move, Quest Diagnostics aims to meet the growing demand for laboratory services in Canada, strengthening its competitive edge and driving innovation in diagnostics. 

Thus, such collaborations between established players in the healthcare industry contribute to adopting LIS and expanding its usage in more extensive healthcare networks, thereby influencing market growth.

Furthermore, various providers of laboratory indormation system are focused to launch in Mexico to support country's health sector with advanced technologies. For instnace, in Februray 2022, Dedalus, the Italian-born international provider of tech and software solutions for the health industry launched in Mexico to support the growing demand for solutions and push forward the digital transformation of the country’s health sector. Such initiatives are projected to boost the market growth.

Therefore, factors such as the increasing adoption of LIS in North American healthcare settings, the rising number of collaborations and acquisitions between significant healthcare companies in the region are projected to drive market growth in the North American region during the forecast period. However, costs associated with implementing laboratory information management systems and rising data security and privacy concerns may restrain market growth during the study period.

North America Laboratory Information System Market Trends

The Cloud-based Segment is Expected to Register a Significant Share of the Market Over the Forecast Period

North America Laboratory Information System Industry Segmentation

As per the scope of the report, a laboratory information system is software used to store and manage the data in laboratories. These systems are widely used in hospitals and clinics to maintain records of the patient’s medical history and send laboratory test orders. The North America laboratory information system market is segmented into component, mode of delivery, end-user, and geography. By component, the market is segmented into software and service. By mode of delivery, the market is segmented into on-premise and cloud-based. By end-user, the market is segmented into hospital, clinics and other end-users. The other end-user segment is further bifurcated into laboratory information system contract research organizations and diagnostic laboratories. By geography, the market is segmented into United States, Canada, and Mexico. The report offers the value (in USD) for the above segments.