The advanced laboratory testing technologies and practices that have developed command higher prices and drive revenue growth, and this can be masked because of the large dollar volume of the market.
ARLINGTON, Va. (PRWEB) February 13, 2020
The global market for clinical laboratory services is estimated at $121.5 billion for 2019. This is up 2.9% from the estimated value of $93.9 billion in 2010, according to a new report from Kalorama Information. Kalorama classifies clinical lab services as a high-volume/low-growth market.
“Growth in this market is driven by an aging population and a growing incidence of chronic diseases,” said Bruce Carlson, publisher for Kalorama, part of Science and Medicine Group. “Also, the advanced laboratory testing technologies and practices that have developed command higher prices and drive revenue growth, and this can be masked because of the large dollar volume of the market.”
There are also a number of inhibitors to growth, such as the growing emphasis to reduce health costs and uncertain economic conditions.
Emerging economies will be a driving source of new growth, while increasing laboratory revenues are expected in the primary U.S. market. The U.S. market is likely to experience continued downward pressure for pricing; however, it will be offset by an increase in volume.
The clinical laboratory market in the U.S. is highly competitive with more than 400 providers of lab services in operation. The market share situation is nearly tied: Quest Diagnostics was the leading clinical laboratory service provider in the U.S. in 2019. Quest continues to focus on providing top-quality service to the laboratory industry and has remained competitive through several strategic acquisitions and alliances. Laboratory Corporation of America follows Quest but only marginally. The company continues to strengthen its position in the market through unique product offerings and strategic alliances.
The report, titled "Clinical Laboratory Services Market, 5th Edition," found that the U.S. and China are the most attractive clinical laboratory markets for growth and new opportunities. Analyses comparing various metrics, including population size and growth, aging population trends, diabetes prevalence, inflation rate, gross domestic product (GDP) spending on health, and laboratory market growth trends and demand, expose the countries with the most attractiveness for current providers and new entrants alike.
Test pricing is expected to be impacted by attempts by governments to control costs, such as the U.S. Centers for Medicare and Medicaid Services'' revised reimbursement schedules, according to the Kalorama report. Testing in the esoteric segment is scrutinized by payors and continues to impose limitations and "medical necessity" clauses to limit payments in some areas.
In addition, the report noted that the growth in genetic testing in markets outside the U.S. are increasing and producing new opportunities for market expansion. The U.S. market is more mature, and it continues to struggle with competition; however, there is some growth expected for specialty testing in the U.S. market. Testing volume is expected to increase during the 2019-2024 period as a preventive approach to healthcare drives orders.
The report is available at https://kaloramainformation.com/product/clinical-laboratory-services-market-5th-edition/.
About Kalorama Information
For more than 30 years, Kalorama Information has been a leading publisher of market research in healthcare areas, including in vitro diagnostics (IVD), imaging, biotechnology, healthcare, medical devices, and pharmaceuticals.