Market OverviewClinical reference laboratories are generally used to support the diagnosis or analysis for the patient care and the medical research. Laboratory services are essential part of treatment, disease diagnosis, and the monitoring response to the treatment, clinical research and disease surveillance programs. The test results, thus, should be precise, consistent, and reproducible. Producing quality results includes stepwise procedure of thoughtful perfect implementation, planning, and thorough inspection of results by whole team involved.
The growing value-based outsourcing from the hospitals will boost market for the clinical reference lab services, use of advanced computerisation technology in the reference laboratories and the cost and time savings for clinics and hospitals due to rise in outsourcing by the independent laboratories are major drivers driving the market growth. However, the healthcare budgetary limits will hamper the development of the market, and also the high costs of advanced tools may lead to increase in the prices of specific tests constrain the growth of the market.
Segment OverviewThe adoption of the value-based services has augmented pace as the hospitals presently have started outsourcing even all their radiology and pathology diagnostic services. One of the major reasons for growing outsourcing by the hospitals is that hospital resources are becoming constrained as result of decreasing Medicare reimbursements. Cut down in the clinical lab reimbursement under Medicare have profound impact on U.S. lab industry.
It was not restricted to direct billings, but U.S. clinical labs which depend on Medicare for almost 20% of the billings and certain groups is as high as the 80% of business that got affected. Furthermore, in continuous efforts to defend the hospital's bottom line, various hospital CEOs are considering to outsource numerous value-based services. The companies such as Inspirata and Aurora Diagnostics are increasing to offer these outsourcing contracts from the hospitals. Hence, increasing value-based outsourcing from the hospitals has improved the market for the independent reference laboratory services.
Regional OverviewThe North America is projected to dominate global clinical reference laboratory market over the forecast period. The market share can be accredited to increasing number of the reference laboratories in the region and presence of prominent players in U.S, which creates lucrative prospect for the investors. The market for the clinical reference laboratories in the Europe is likely to be second-largest during forecast period.
The rising laboratory outsourcing trend in countries such as France and Germany generates more opportunities for the independent reference service providers, which will increase the revenue for the market in the region. Moreover, due to changing demographics and the aging population, requirement of the laboratory testing for investigation on cardiovascular, diabetes, and genetics is anticipated to increase in coming years. Moreover, the companies operating in the Europe are concentrating on mergers and acquisitions, this is further expected to support the market growth. Asia-Pacific is projected to be fastest-growing market owing to developing healthcare infrastructure and also the increasing disposable income.
Competitor overviewIn February 2017, PeaceHealth and Quest Diagnostics augmented access to the innovative, high-value laboratory services in Pacific Northwest. Both parties formed two-part arrangement to expand the delivery of the laboratory services in U.S.
In January 2017, ARUP made the highly appreciated ISO 15189 status from College of American Pathologists (CAP), this enabled it to establish the six laboratory divisions, with about 70 individual labs into close, synchronised communication by the integrating new system.
In February 2017, Unilabs attained Alpha Medical, leading medical diagnostics corporation in Slovakia and Czech Republic, the two important Eastern European marketplaces. The acquisition aligned with the services portfolio and the company’s high-end quality standards.
Key Players
- Sonic HealthCare Limited,
- Aurora Diagnostics,
- Unilabs,
- Quest Diagnostics,
- ARUP Laboratories,
- Clinical Reference Laboratories,
- SYNLAB International Gmbh,
- KingMed Diagnostics
Market SegmentationBy Provider Type
- Stand Alone,
- Clinical Based
- Hospital-Based Market
By Application
- Laboratory Medicine
- Clinical Trials
- Others
By Geography
- North America
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- Japan
- China
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- UAE
- Rest of LAMEA
