Market Size of Life Sciences Analytics Industry
| Study Period | 2021 - 2029 |
| Market Size (2024) | USD 11.06 Billion |
| Market Size (2029) | USD 16.03 Billion |
| CAGR (2024 - 2029) | 7.71 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Life Science Analytics Market Analysis
The Life Sciences Analytics Market size is estimated at USD 11.06 billion in 2024, and is expected to reach USD 16.03 billion by 2029, growing at a CAGR of 7.71% during the forecast period (2024-2029).
The outbreak of COVID-19 contributed to the rise in demand for analytics, as several clinical trials were conducted for the vaccines for COVID-19. In March 2020, the US Department of Veterans Affairs (VA), Department of Energy (DOE), Department of Health and Human Services (HHS), and National Security Council (NSC) formed the COVID-19 Insights Partnership. The COVID-19 Insights Partnership is leveraging big data analytics tools to research and find possible treatments for the virus. For instance, in November 2021, a predictive analytics model was developed based on an artificial neural network (ANN) model to predict the future number of daily cases and deaths caused by COVID-19 in a generalized way. It showed approximately 86% overall accuracy in predicting the mortality rate and 87% in predicting the number of cases. Thus, life sciences analytics models have proven to be effective in the wake of the COVID-19 pandemic, contributing to market growth. Hence, the COVID-19 pandemic has had a significant positive impact on the market studied. Additionally, due to the significance of analytics, the demand for life science analytics is expected to grow considerably in the future.
The significant factors for the growth of the life sciences analytics market include the rising adoption of analytics solutions in pharmaceuticals and clinical trials, growing pressure to reduce healthcare spending, the need for improved patient outcomes, and the emergence of advanced analytics methods in life science companies.
There is a rise in the use of analytics in clinical trials, as conducting clinical trials has become complex because it involves various activities and generates high volumes of data from different systems. With the changing regulatory protocol requirements for clinical trial conduction and the challenges in data collection, analysis, and preparation of a report quickly for submission to the health authority, the adoption of analytics for clinical trials is on the rise. For instance, in June 2021, IQVIA launched a SaaS-based clinical data analytics platform, Clinical Data Analytics Suite (CDAS), for rapid and intelligent clinical trials.
The emergence of advanced analytics in life science companies is also one of the major factors driving market growth. The 2021 ISG Provider Lens Life Sciences Digital Services Report revealed that life sciences companies in the European region are interested in using analytics to support marketing and sales efforts and optimize supply chain operations. Several other companies are also developing analytics solutions, boosting the adoption and use of analytics solutions. For instance, in September 2021, ZS launched ZAIDYN, a platform for life sciences companies of all sizes to digitally transform and scale customer engagement, field performance, analytics, and clinical capabilities. The emergence of such solutions and products encourages life science companies to develop more advanced analytics solutions, thereby boosting market growth.
In June 2021, JADBio entered into a distribution agreement with QIAGEN to sell and distribute the JADBio offering within the QIAGEN Digital Insights portfolio. JADBio is an AutoML platform with leading-edge AI tools and automation capabilities. It is built to enable life-science professionals to build and deploy accurate and interpretable predictive models quickly and timely, regardless of their data science expertise. Thus, the participation of life sciences companies in developing advanced analytics contributes to market growth.
Thus, factors such as new launches by companies, strategic partnerships, and increasing focus on the implementation of analytics in life sciences are expected to boost the market's growth significantly over the forecast period.
However, a lack of skilled personnel and high implementation costs are expected to restrain the market growth during the forecast period.
