Digital Pathology Market, By Product (Scanner, Software, Storage Systems, and Other Products), By Application (Drug Discovery, Disease Diagnosis, Training & Education, and Other Applications), By End-User (Hospitals & Clinics, Clinical Laboratories, Pharma & Biotech Companies, and Other End-Users), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

Digital Pathology Market size is expected to be worth around USD 2185.8 Million by 2032 from USD 918.5 Million in 2022, growing at a CAGR of 9.3% during the forecast period from 2023 to 2032.

The rising prevalence of cancer, the expanding use of digital pathology in drug development, and the rising acceptance of digital pathology to enhance lab efficiency are the primary drivers of this market’s growth. Also, the availability of cost-effective scanners for private pathology organizations has increased market growth potential. Rapid technical improvements in digital pathology systems and an increase in the aging population are the main drivers of market growth in this industry.

In the field of “digital pathology,” data is gathered, analyzed, and shared using digital tools. The production of digital slides can be done with a digital microscope, whole-slide scanning equipment, or a combination of both.

Key Takeaways

• In 2022, the global digital pathology market was valued at USD 918.5 million.
• The market is estimated to register a CAGR of 9.3% between 2023 and 2032.
• Primary drivers of market growth include the rising prevalence of cancer, increased use in drug development, and enhanced lab efficiency through digital pathology.
• Cost-effective scanners for private pathology organizations have contributed to market growth potential.
• Rapid technical improvements in digital pathology systems and an aging population are key growth drivers.
• Scanners were the dominant product segment in 2022 and are expected to continue leading during the forecast period.
• The disease software segment is anticipated to grow throughout the projection period.
• Hospital and clinics represent the largest end-user segment due to the need for rapid and precise disease diagnosis.
• Integration with other healthcare technologies, use in drug research, and AI acceptance are market opportunities.
• North America accounted for 42% of global revenue in 2022, while Asia Pacific is expected to have the fastest CAGR growth in the forecast period.

Product Analysis

Based on a product analysis, the scanner segment dominated the market in 2022, and this trend is expected to continue during the forecast period. During the Rise in research and development activities in the pharmaceutical and medical device sector. Increasing demand for diagnosis for diseases, and surge in the adoption of digital pathology systems. Throughout the projection period, the disease software segment is anticipated to increase.

Because of the increased need for important data storage to share,  analyze, and preserve for future use, as well as remotely access the data, the storage system segment is expected to expand throughout the course of the projection period.

Application Analysis

The market is divided into drug discovery, disease diagnosis, training and Education, and Other applications on the basis of application. The drug discovery segment is anticipated to grow during the forecast period due to the rise in the demand for potential pipeline drugs for treating life-threatening diseases along with emerging applications of pathology tools. The disease diagnosis segment is expected to grow during the forecast period due to the rising burden of pathological tests. Therefore, the rising applications of digital tools in drug discovery and disease diagnosis.

End-User Analysis

The market is divided into hospitals and clinics, Clinical laboratories, pharma, and biotech companies based on end-users. The Hospital and clinics segment dominated the largest market share in End-User analysis. A large percentage of end users of digital pathology systems are hospitals and clinics because they need rapid and precise disease diagnosis for patient care. By giving pathologists access to digital pictures that are simple to access, share, and analyze, digital pathology technologies can increase the efficiency and accuracy of diagnosis.

Digital pathology solutions are also used in research institutions for investigations into disease patterns and the creation of new treatments. By evaluating tissue samples for efficacy and safety, pharmaceutical and biotechnology businesses employ digital pathology tools to speed drug development.

Key Market Segments

Based on Product

• Scanner
  • Brightfield
  • Other Scanners
• Software
  • Integrated Software
  • Standalone Software
• Storage Systems
• Other Products

Based on Application

• Drug Discovery
• Disease Diagnosis
• Training & Education
• Other Applications

Based on End-User

• Hospitals & Clinics
• Clinical Laboratories
• Pharma & Biotech Companies
• Other End-Users

Drivers

The market is growing as a result of rapid advances in technology.

The market is anticipated to grow as a result of quick technology developments in digital pathology systems. The growth is being aided by the use of digital imaging, computers, and robotics. One such method that has several benefits over traditional light microscopes and is predicted to grow in popularity is whole slide imaging.

Increasing the use of AI in healthcare

The application of AI in healthcare is expanding with a rising focus on improving patient care quality, AI is being used more often in the healthcare industry, including pathological diagnostics, among other areas of healthcare services.

Restraints

Digital pathology is quite expensive.

The market will see slow development because of the high cost of digital pathology and the low adoption rate in developing and emerging nations. Augmenting serves as a modular hardware platform with built-in software applications for digital pathology, keeping the cost of digital pathology cheap.

Opportunity

Integrating digital pathology solutions with other healthcare technologies

Electronic health records and imaging systems for healthcare may both be integrated with digital pathology solutions. Enabling more precise and fast diagnoses can increase the effectiveness of healthcare services.

Use in drug research and development

By offering a more accurate and thorough examination of tissue samples, digital pathology technologies can enhance drug development and discovery. As a result, it may be possible to create medications that are more precise and effective, which would improve patient outcomes and save medical costs.

Artificial intelligence acceptance

It is anticipated that the use of AI in digital pathology will spur the creation of increasingly complex and sophisticated solutions, enhancing the precision and effectiveness of analysis and diagnosis.

Trends

Connectivity with other healthcare technology

The integration of digital pathology solutions with other healthcare technologies, such as electronic health records and imaging systems, is escalating. This can make healthcare delivery more effective and make it possible for diagnoses to be made more quickly and accurately.

Telepathology

Telepathology is the process of diagnosing pathology samples remotely. It is becoming increasingly popular, especially in rural locations where access to pathology services may be restricted. Digital pathology systems may be used to monitor and diagnose patients from a distance, enhancing patient access to medical treatment.

Image analysis development tools

New developments in this field are increasing the precision and effectiveness of digital pathology diagnosis. Pathologists are able to diagnose patients more accurately because to image analysis software’s ability to spot patterns and abnormalities in digital pictures.

Regional Analysis

North America accounted for 42% of global revenue in 2022 for digital pathology, which makes it the largest region. The market in this area is primarily driven by ongoing R&D deployment, encouraging government efforts linked to the development of technologically sophisticated systems, increased acceptance of digital imaging, and the presence of large competitors. Due to the growing use of digital pathology for disease detection, feed-in tariff rules in the US, and enhanced cancer diagnostic quality, the market in the area is expected to grow.

The forecast timeframe calls for Asia Pacific to see the fastest CAGR growth. Developments in the medical sector, the growing usage of digital imaging in emerging countries, and the availability of untapped markets in the Asia Pacific are possible causes of the growth. The healthcare industry in the area has had a great influence on the market since cancer is more prevalent there and affects a large population.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The global digital pathology market is highly competitive, with different types of players which are operating in the space. The market share of these companies depends upon the product category and region. The competition in this market is expected to remain high in the coming years.

In 2022, Hamamatsu Photonics Inc. and Danaher are the dominating market share. To raise its market share company focuses on the execute different techniques such as collaboration initiatives, new product development, and also M&A.

 Market Key Players

• Olympus Corporation
• Hamamatsu Photonics Inc
• Thermo Fisher Scientific Inc.
• Hamamatsu Photonics K.K.
• 3DHISTECH Ltd.
• Koninklijke Philips N.V.
• Apollo Enterprise Imaging Corp
• Sectra AB
• Huron Technologies International Inc.
• Nikon Corporation
• Danaher Corporation
• Glencoe Software Inc.
• Indica Labs Inc.
• Perkinelmer Inc.
• Visiopharm A/S
• Other Key Players

Recent Developments

• In June 2024: Hamamatsu Photonics completed the acquisition of NKT Photonics A/S. This strategic move expands Hamamatsu’s capabilities by integrating NKT Photonics’ advanced fiber lasers and photonic crystal fibers into its portfolio. The acquisition, which initially faced regulatory challenges, was finalized for approximately €247 million. This integration aims to enhance offerings in quantum computing, hyperspectral imaging, and high precision measurement equipment, among other areas.
• In August 2023: Thermo Fisher Scientific announced the completion of its acquisition of CorEvitas. This acquisition enhances Thermo Fisher’s capabilities in providing regulatory-grade, real-world evidence solutions, which could contribute to the Digital Pathology market by integrating multi-therapeutic data intelligence platforms and clinical registries.
• In June 2023: Olympus Corporation announced the acquisition of Odin Vision, a London-based cloud-AI endoscopy company. This acquisition is pivotal for Olympus as it enhances their digital health strategies, integrating AI-powered diagnostics and treatment solutions into their services. Following this acquisition, Olympus is establishing Digital Excellence Centers (DECs) globally, beginning in London, to foster development in digital health solutions. This strategic move aims to optimize healthcare delivery by leveraging AI and software innovations.

Report Scope