Around 70% of medical decisions are based on lab results, as revealed by statistic released by Quest Diagnostics. Thus, optimization of laboratory facilities to deliver quality and cost-effective patient care is of utmost importance for clinical laboratory service providers. The three major types of clinical laboratory service providers are hospital-based laboratories, clinic-based laboratories and standalone laboratories. Major factors impacting the dynamics of global clinical laboratory service market include growing aging population, increasing disease burden, and increasing number of preventive health check-ups.
The global clinical laboratory services market was valued at US$ 168.9 billion in 2015 and is projected to expand at a CAGR of 7.3% during the forecast period (2016 – 2024).
According to the U.S. Census Bureau Report in 2015, around 8.5% of the world population was aged 65 years and above and is expected to reach around 12% of the world population by 2030. Moreover, as per the report, geriatric population is expected to be significantly higher in emerging economies of Asia and Latin America. Moreover, deaths caused due to non-communicable diseases such as cardiovascular diseases, lung disorders, cancer, and stroke is increasing rapidly worldwide, according to the U.S. Census Bureau Report. This alarming trend is mainly observed in emerging economies of Asia, Africa, and Latin America. Therefore, rising geriatric population and increasing risk of diseases, especially non-communicable diseases is expected to increase the demand for clinical laboratory service providers over the forecast period.
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Increasing health concerns coupled with growing risk of transmittable diseases among the populace is leading to rapid uptake in routine health check-ups by consumers. Unhealthy food habits is making the human population vulnerable to bacterial and viral infections. Demand is especially high for tests to detect malaria and tuberculosis, which are highly prevalent in tropical regions such as South Asia, Africa, and Latin America. Therefore, growth of the clinical laboratory services market in Latin America is projected to expand at a relatively high CAGR of 9.1% during the forecast period.
Market consolidation: The prevalent trend in the market
The global market for clinical laboratory services is undergoing consolidation. Laboratory Corporation of America Holdings (LabCorp) acquired Sequenom, Inc. in July 2016, thereby becoming the leader in non-invasive prenatal testing (NIPT) for reproductive health. The company also acquired ClearPath Diagnostics, a leading clinical laboratory service provider in Northeastern region of U.S., in October 2016. Inorganic growth strategies would continue to be a part of future roadmap for leading healthcare service providers in the long run in order to ensure sustained growth.