Clinical Laboratory Services Market Size

Clinical Laboratory Services Market Analysis

The Clinical Laboratory Services Market size is estimated at USD 277.96 billion in 2024, and is expected to reach USD 380.65 billion by 2029, growing at a CAGR of 6.49% during the forecast period (2024-2029).

The COVID-19 pandemic impacted the clinical laboratory services market positively. Clinical diagnostics and technology, including molecular and serological testing for severe COVID-19 infections, increased globally during the pandemic. There was also an increase in rapid and widespread testing developments through improvements in clinical diagnostics and testing technology that helped increase the overall demand. For instance, in February 2021, Thermo Fisher Scientific launched the TaqPath COVID-19 HT Kit, which is for use on its automated amplitude platform, to increase its COVID-19 testing capacity by combining Thermo Fisher's extraction and real-time PCR instruments with liquid handling products from Tecan Group.

It has been observed that clinical laboratory services were largely used during the COVID-19 pandemic, which contributed to the growth of the market studied. Currently, the market studied has reached its pre-pandemic nature in terms of demand for services. It is expected that it will witness healthy growth shortly.

The rising incidence of chronic and infectious diseases and the increasing demand for accurate and early disease diagnosis techniques drive the market. The burden of infectious diseases and chronic disorders is constantly growing worldwide. As clinical diagnostic tests represent one of the most accurate methods for identifying and characterizing various biomarkers of chronic diseases and for detecting microorganisms, their demand is increasing with the rising burden of diseases such as cancer and tuberculosis (TB). For instance, according to an update from the WHO, about 10 million people globally had tuberculosis as of 2021, of which 5.6 million were men, 3.3 million were women, and 1.1 million were children. Due to the high burden of such diseases, the demand for clinical services is expected to increase, driving the growth of the market studied.

The growing burden of cancer is also expected to boost the demand for clinical diagnostics. For instance, according to Globocan Statistics 2020, there were 19.3 million new cases of cancer all over the world, accounting for both sexes, and the same source reported that the incidence of cancer is growing at a rapid pace globally. It is estimated that the number of new cancer cases in both sexes will reach 30.2 million by 2040.

Hence, owing to the increased burden of target diseases, market players are focusing on technological advancements for their products to have a competitive edge over the other players, which is expected to augment the growth of the market studied further. For instance, in July 2022, SRL Diagnostics launched the Fatty Liver Index for the diagnosis of non-alcoholic fatty liver disease. Thus, the launch of technologically advanced products, coupled with increased awareness about the early diagnosis of diseases, is anticipated to drive growth in the clinical laboratory services market.

However, stringent regulatory issues in various countries and the lack of skilled laborers are expected to restrain the market growth during the forecast period.