Life Science Analytics Market To Hit Value .2 Billion By 2027

Posted by Mrudula Anil Karmarkar on April 27th, 2021

The global life science analytics market size is expected to reach USD 13.2 billion by 2027, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 7.9% from 2020 to 2027. Rising applications of advanced analytics in life science applications and increasing demand from the pharmaceutical and medical device industry are the major parameters driving the market. Analytics are used widely used in the life science analytics industry to assess risk, assessment of the effectiveness of clinical trials, provide personalized medicine, develop faster and more productive research and development pipeline, forecasting profits, budgeting, controlling product price, and predict virus evolution.

The rising adoption of big data and artificial intelligence in the healthcare sector is estimated to drive the market during the forecast period. A survey conducted by Applied Clinical Trials in 2016 depicted that 58.0% of the clinical trials industry professionals consider big data in clinical trials as extremely important while 32.0% considered it moderately important. Furthermore, the growing impact of social media on the healthcare sector is fueling the growth of the market. As of 2016, the CDC has 18 Facebook profiles with a reach of 370,000 populations; a YouTube channel with over 8.8 million public views; 13 blogs; LinkedIn accounts; mobile apps, and many other reaches through social networking. The concept of social media is enabling the organizations to facilitate the integration of multiple information in a platform, rationalize the cost, & better target the providers and consumers (or patients).

mHealth, Electronic Health Records (EHR), eHealth, and mobile applications along with artificial and human intelligence data analytics are offering opportunities for customization of medical approaches, which in turn is increasing demand for data analytic tools in the life science industry over the forecast period. According to the Personalized Medicine Coalition, the number of drugs manufactured by personal medicine approaches has grown by 62% since 2012. Moreover, strategies adopted by key players such as partnerships, product launches, collaborations, mergers & acquisitions, and government initiatives are further boosting the market. For instance, in April 2016, IBM acquired Truven Health Analytics, a leading provider of cloud-based healthcare data and analytics, to strengthen its Watson Health portfolio. This was expected to give the company access to over 8,500 clients of Truven Health Analytics.

The increase in adoption of life science analytics in various applications, such as reporting of adverse events, management of Pharmacovigilance master data, brand reputation analysis, customer satisfaction analysis, tracking spending activity, is one of the key factors that is expected to propel market growth over the forecast period. In addition, factors, such as first call resolution analysis, reimbursement calculations, tracking of patient health outcome, reporting drug effectiveness, and budget estimation for new drug development, are among some other factors expected to drive the market potential. Growing awareness amongst the end-users regarding the benefits of big data analytics, such as focused sales and marketing analysis, pharmaceutical innovation and drug safety trials, and safety analysis are among few factors that are driving the market.

Life Science Analytics Market Report Highlights

• Descriptive analytics emerged as the leading type segment in 2020 with a revenue share of 36.0% in the market
• Based on components, the services segment accounted for the largest revenue share in 2020 and is also projected to expand at the fastest CAGR during the forecast period
• Amongst the application segment, sales and marketing support accounted for the largest revenue share in 2020, whereas research and development is projected to expand at the fastest CAGR during the forecast period
• Amongst the delivery segment, on-premises accounted for the largest revenue share in 2020, whereas on-demand is projected to expand at the fastest CAGR during the forecast period
• Based on end-user, the pharmaceuticals segment accounted for the largest revenue share in 2020, whereas biotechnology is projected to expand at the fastest CAGR during the forecast period
• North America accounted for the largest revenue share due to increasing government support and growing demand for analytics from life science companies.

Growing demand for improved patient outcomes is also anticipated to drive the market for life science analytics over the forecast period. Proper analysis and streamlined processes are improving operational efficiencies and patient outcomes. Some of the key examples are population health management with self-service analytics. Real-time analytics boosts the overall productivity and revenue cycle management by automating ad hoc visual analysis.

The rapid adoption of analytics in clinical trials is also contributing to market growth. Life science companies use analytics to enhance the efficiency of clinical trials and improve clinical trial data management. According to a survey conducted by ERT in May 2020, a provider of clinical services and medical devices, 82% of organizations are incorporating virtual clinical trial technology. Such adoption of advanced technologies is expected to drive the market.

Globally, healthcare expenditure is growing rapidly. According to a report published by the World Health Organization (WHO), global health spending increased from USD 7.6 trillion to USD 7.8 trillion. Furthermore, it stated that the cost of healthcare also increased drastically. Life science analytics can help in reducing healthcare costs in many ways. It can aid in reduction in clinical decision time or faster time to treatment, improved performance of healthcare professionals, risk mitigation, reduced hospitalization and readmissions, customized medication, and elimination of unnecessary testing. This in turn is estimated to drive the market.

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Growing strategic alliances, majorly collaborations and acquisitions among key market players, along with innovative product launches are some of the key strategies driving the market. For instance, in July 2016, Accenture acquired MOBGEN, which is an end-to-end digital services company to enhance digital mobility services in Europe. Some of the prominent players in the life science analytics market include:

• Accenture
• Cognizant
• IBM
• Oracle
• SAS Institute, Inc.
• Wipro Limited
• IQVIA
• TAKE Solutions Limited

Grand View Research has segmented the life science analytics market on the basis of type, component, application, delivery, end-user, and region:

Life Science Analytics Type Outlook (Revenue, USD Million, 2014 - 2027)

• Reporting
• Descriptive
• Predictive
• Prescriptive

Life Science Analytics Component Outlook (Revenue, USD Million, 2014 - 2027)

• Software
• Services

Life Science Analytics Application Outlook (Revenue, USD Million, 2014 - 2027)

• Research and Development
• Sales and Marketing
• Regulatory Compliance
• Supply Chain Analytics
• Pharmacovigilance

Life Science Analytics Delivery Outlook (Revenue, USD Million, 2014 - 2027)

• On-demand
• On-premises

Life Science Analytics End-user Outlook (Revenue, USD Million, 2014 - 2027)

• Medical Devices
• Pharmaceutical
• Biotechnology
• Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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