The industry will benefit as demand from downstream diagnostic and medical labs increases
Los Angeles, CA (PRWEB) March 28, 2013
The Laboratory Information Management Systems industry has grown sluggishly over the past five years due to slow growth in downstream industries. During the five years to 2013, industry revenue is expected to grow at an average annual rate of 0.3% to $403.1 million, driven primarily by demand from diagnostic and medical laboratories. Revenue is anticipated to grow 0.9% in 2013 alone. “Revenue declined from 2009 to 2011, however, as a result of weakened demand from manufacturing, which uses laboratory information management systems for industrial lab testing,” says IBISWorld industry analyst Andrew Krabeepetcharat.
Laboratory Information Management Systems industry revenue was stagnant during the past five years as a result of the recession, but maintained positive growth as it recovered, due to the positive effects of a 26.8% jump in corporate profit in 2010. “In the five years to 2013, corporate profit is expected to grow, allowing more companies to invest in laboratory information management systems to manage laboratory data and information,” adds Krabeepetcharat. Furthermore, as companies invest more in research and development (R&D), client demand for laboratory information management systems (LIMS) increases. In the past five-year period, R&D expenditure grew at an annualized rate of 3.1%, bolstering industry demand.
The industry has a moderate level of concentration. The industry's two major companies, Abbott Laboratories and Thermo Fisher Scientific, are expected to earn more than a third of industry revenue. The industry provides a relatively niche product with a narrow downstream market. As a result, the industry does not have many operators; IBISWorld estimates that the industry has just 31 operators. In addition, over the past five years, the industry has experienced some consolidation, contributing to a higher level of concentration. For example, in 2009, Abbott acquired STARLIMS Technologies and LabVantage acquired the LIMS business of Applied BioSystems.
Over the five years to 2018, industry revenue is forecast to grow, driven by a recovering economy and expansion in downstream industries. Demand from diagnostic and medical laboratories is forecast to rise over this period, paving the way for increased use of LIMS in laboratories. Additionally, private investment in computers and software is forecast to increase, providing potential industry growth as industrial laboratories require management for the increasing amount of data and information being used. For more information, visit IBISWorld’s Laboratory Information Management Systems in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Firms in this industry develop laboratory information management system (LIMS) software. LIMS software is designed specifically for industrial and medical-related laboratories to help manage data and information. This industry does not include manufacturers of laboratory equipment.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.