Life Science Analytics Market- By Type (Descriptive, Reporting, Prescriptive, and Predictive), By Component (Software and Services), By Application (Sales & Marketing Support, Research & Development, Supply Chain Analytics, Regulatory Compliance, Pharmacovigilance, Pre-Clinical Trials, and Other Applications), By End-User (Medical Device, Biotechnology, Pharmaceutical, and Other End-Users), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Report Overview

Global Life Science Analytics Market size is expected to be worth around USD 20.9 Billion by 2033 from USD 9.7 Billion in 2023, growing at a CAGR of 8.0% during the forecast period from 2024 to 2033.

Life science analytics utilizes big data to enhance global collaboration by harnessing precise clinical research data. It plays an integral part in standardizing trial information and assuring its adherence with established standards, while advanced analytics play an essential role in early risk detection and proactive mitigation measures.

Life science analytics plays a crucial role in particular areas, such as achieving operational excellence to drive through the patient’s intellectual journey, strategizing the patient’s intent to the real-world results, and detecting the prescription and treatment patterns. In addition, the life science industry promptly implements analytics by relying on reporting and descriptive analysis in assembling databases and using predictive and prescriptive analysis in expected future trends. This will likely anticipate boosting the market growth.

The increasing influence of the internet and social media is another major driving factor that significantly impacts the life sciences industry. In addition, it directly impacts patient engagement by driving the implementation of analytical solutions. As a result, life science organizations and human facilities are readily implementing analytical solutions to increase operational, financial, and clinical outcomes, boosting the market.

Key Takeaways

• Market Size: Life Science Analytics Market size is expected to be worth around USD 20.9 Billion by 2033 from USD 9.7 Billion in 2023.
• Market Growth: The market growing at a CAGR of 8.0% during the forecast period from 2024 to 2033.
• Type Analysis: In 2023, the descriptive type segment will hold the largest market share at 62.4%.
• component Analysis:In 2023, the services segment accounted for the highest revenue share of 62.4%.
• Application Analysis: The sales and marketing segment accounted for the largest share, over 39.3%.
• End-Use Analysis: In 2023, the pharmaceutical segment dominated the market by accounting for the highest market share of 51.8%.
• Regional Analysis: North America dominated the market by accounting for the highest revenue share of 56.1% in 2023.
• Data-Driven Insights: Life science analytics involves collecting, analyzing, and interpreting large datasets to gain insight into various areas of the life sciences – drug discovery, clinical trials, patient outcomes etc.
• Drug Development: Analytics plays a pivotal role in drug discovery and development, helping identify promising new candidates while also assessing their efficacy and safety.

Type Analysis

The Descriptive Type Segment Dominates the Market with The Highest Revenue Share

In 2023, the descriptive type segment will hold the largest market share at 62.4%. The reason behind the dominance is the emergence of COVID-19 to understand the disease treatment procedure and prognosis required for the virus. Market players are mining techniques on descriptive datasets to drive the outcomes and future trends. The predictive analysis is estimated to register the rapid growth rate over the forecast period.

This is due to the rapidly increasing adoption rate of analytical solutions and supporting stakeholders in adopting proper strategies to increase market performance.

Component Analysis

The Services Segment Has Accounted for the Highest Revenue Share

In 2023, the services segment accounted for the highest revenue share of 62.4% owing to the increasing trend of outsourcing services which covers training, implementation, maintenance, planning, and staffing. Life science organizations lack adequate resources and expertise; this will propel the segment’s growth over the forecast period.

Services which was provided by cloud management services and skilled professionals are expensive. Companies like Cloudera, Microsoft, and others primarily provide all the services.

Application Analysis

The Sales and Marketing Segment Dominated the Market

The sales and marketing segment accounted for the largest share, over 39.3%. The segment’s growth is due to the growing adoption rate of analytical solutions in sales & marketing and the increasing prevalence of post-marketing surveillance.

The research and development are estimated to register the fastest growth rate of 10.2% over the forecast period. The increasing implementation of analytical solutions in clinical trial management systems and drug discovery and development leads to the segment’s growth.

End-User Analysis

The Pharmaceutical Segment Held the Largest Share of the Market

In 2023, the pharmaceutical segment dominated the market by accounting for the highest market share of 51.8%. The factors responsible for segment dominance are drug discovery and development, efficient resource management, enhanced drug utilization, and clinical trial designing and managing processes.

Key Market Segments

Based on Type

• Descriptive
• Reporting
• Prescriptive
• Predictive

Based on Component

• Software
• Services

Based on Application

• Sales & Marketing Support
• Research & Development
• Supply Chain Analytics
• Regulatory Compliance
• Pharmacovigilance
• Pre-Clinical Trials
• Other Applications

Based on End-User

• Medical Device
• Biotechnology
• Pharmaceutical
• Other End-Users

Drivers

Increasing Pressure to Reduce Healthcare Spending

Around the globe, the cost of healthcare is increasing because of the development of expensive medical technologies and prescription drugs, rising demand for healthcare services, rising prices of medical services, rapid growth in the elderly population, lack of transparency of information on quality and prices, rising prevalence of chronic diseases.

Furthermore, hospital readmissions, operational inefficiencies, adverse drug events, and medical errors raise healthcare costs. Therefore, the primary key driver for the growth of the global life science analytics market is the need to reduce increasing healthcare costs.

Restraints

High Costs of Advanced Analytical Solutions

The life science analytics market has known benefits, but despite that, the high adoption & licensing fees for advanced analytics solutions are one of the major restraints. The reason is that many stakeholders and pharmaceutical companies have faced budgetary concerns. However, a few prominent companies have the funding and capability to utilize massive data for providing actionable insights prominently.

Although, as per the industry experts, the price of these solutions was around US$ 10,000 million, it depends on the factors like the type of analytics solutions, application areas, delivery model, amount of data, and product features.

Opportunities

Big Data Analytics for R&D productivity

The life science industry faced challenges, such as the push for generics, rising costs, patent expirations, lower margins, lower R&D productivity, and rising stringency of FDA regulations. But, the impact of these challenges can be reduced by using various advanced technologies like analytics. From multiple solutions, analytics solutions can process data, such as protocols, millions of documents, images, applications, and study records, to provide a combined view.

For example, big data analytics potentially benefit finding patients to enroll in clinical trials based on genetic information, information collected in E-health records, and social media profiles. Companies are also using smart devices to collect vast quantities of real-world data that were not available for research and development teams in the past.

Trends

Development in Healthcare IT Infrastructure and Digitalization of Healthcare Will Boost the Market Growth.

The increasing trend of advancements in healthcare IT infrastructure around developed as well as developing economies and the digitalization of healthcare is boosting the demand for analytical solutions. Favorable government initiatives and increasing digital literacy drive the demand for analytical solutions.

The increasing trend of implementation of big data analytics and integrating AI algorithms in analytical solutions are increasing the demand for services. Increasing technological collaborations, favorable funding options, and the emergence of start-ups are significantly increasing the market’s growth.

Regional Analysis

North America Dominates the Global Life Science Analytics Market During the Forecast Period

North America dominated the market by accounting for the highest revenue share of 56.1% in 2023. The factors which are responsible for the dominance of the region are the presence of key market players, increasing digital literacy, the emergence of start-ups, advancements in healthcare IT infrastructure, readiness to adopt analytical solutions, growing geriatric population, increasing demand for value-based care, and the increasing incidence rate of non-communicable diseases.

Asia Pacific is estimated to register the fastest growth rate over the forecast period by collecting a revenue share of 12.4%. The growth is due to the factors like developing healthcare infrastructures, increasing healthcare IT expenditures, increasing digital literacy, the entry of key market players, high-skilled personnel, and economic development and the availability of low-cost. Key players are developing strategies for entering the market to expand their business in APAC.

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

A few key players in the market are developing advanced analytical solutions and systems. In addition, various companies have focused on developing innovative product development strategies to enhance their product offerings by revising their collaborations and partnerships across the market.

Life science organizations are adopting analytical solutions in delivering value-based care and personalized medication. For instance, IQVIA Connected Intelligence was introduced so that it will be easier for customers to make decisions and use analytical solutions to discover data-driven insights. To deliver Connected Intelligence solutions, IQVIA integrated its expertise in healthcare analytics with innovative technologies.

 Market Key Players

• IQVIA
• Oracle
• Accenture
• Cognizant
• IBM
• Wipro Limited
• Take Solutions Limited
• SAS Institute Inc.
• Other Key Players

Key Industry Developments

• IQVIA (April 2024): IQVIA expanded its partnership with Salesforce to accelerate the development of Salesforce’s Life Sciences Cloud. This collaboration integrates IQVIA’s Orchestrated Customer Engagement (OCE) platform and software capabilities with Salesforce’s CRM technology, enhancing customer engagement in the life sciences sector​.
• Accenture (November 2023): Accenture and Salesforce partnered to develop the Salesforce Life Sciences Cloud. This platform, powered by AI, aims to transform healthcare professional experiences and patient engagement by leveraging Accenture’s expertise in biomedical research​.
• Oracle (February 2021): Oracle provided analytical support to Nemours Children’s Health System to adopt cloud business applications aimed at enhancing various business departments within the organization. This move is part of Oracle’s strategy to expand its services in the life sciences analytics market​.

Report Scope