Laboratory Information System Market Size, Share, Trends and Growth | 2034

Insight Pro Analytic
Jul 24
7 min read

Laboratory Information System Market Outlook

According to the report by Expert Market Research (EMR), the global laboratory information system (LIS) market attained a value of USD 2.10 billion in 2024. Aided by the growing need for digital transformation in the healthcare sector and the rising emphasis on efficient data management in laboratories, the laboratory information system market size is projected to grow at a CAGR of 9.00% between 2025 and 2034, reaching a value of USD 4.97 billion by 2034. The increasing demand for integrated healthcare systems and the rising volume of diagnostic testing across the globe are expected to significantly influence the expansion of the LIS market in the coming years.

A laboratory information system is a software-based solution designed to manage, store, and analyse laboratory data, including patient records, sample tracking, test results, billing, and reporting. LIS solutions help enhance workflow efficiency, improve data accuracy, and support compliance with healthcare regulations. As laboratories face growing pressure to deliver faster, more accurate diagnostics, the implementation of LIS has become critical for enhancing productivity and reducing operational errors.

The laboratory information system market is further supported by advancements in healthcare IT infrastructure, increased adoption of automation technologies, and growing awareness regarding the benefits of digital lab solutions. Government initiatives promoting healthcare digitalisation and the shift towards electronic health records (EHRs) are also contributing to the widespread adoption of LIS across hospitals, diagnostic centres, and research laboratories.

Laboratory Information System Market Size

The global laboratory information system market size of USD 2.10 billion in 2024 underscores the increasing prioritisation of digital infrastructure in medical and clinical laboratories. This valuation reflects rising investment in modernising laboratory workflows and the growing complexity of data management due to an increase in patient volumes, testing demands, and regulatory requirements. Laboratories across developed economies such as the United States, Canada, Germany, and the United Kingdom are at the forefront of LIS adoption, while emerging economies in Asia-Pacific and Latin America are rapidly catching up due to improvements in healthcare delivery systems and IT readiness.

As healthcare providers transition towards value-based care, there is greater emphasis on operational transparency, patient engagement, and performance metrics—all of which are facilitated by robust LIS platforms. With laboratories handling larger datasets and an expanding array of test parameters, the need for scalable and interoperable software solutions is driving further market growth. Cloud-based LIS solutions are especially gaining traction due to their cost-effectiveness, data accessibility, and scalability, making them a preferred option for both small and large laboratory settings.

Laboratory Information System Market Share

The laboratory information system market is broadly segmented based on product type, component, delivery mode, end-user, and region. Among product types, standalone LIS currently holds a significant market share, particularly in specialised and independent diagnostic laboratories. However, integrated LIS solutions, which combine seamlessly with EHRs, radiology information systems (RIS), and hospital information systems (HIS), are witnessing rapid adoption in large healthcare settings due to their ability to facilitate coordinated care and real-time data access.

By component, services such as software implementation, training, and maintenance account for a substantial portion of the market, as organisations often rely on third-party providers for LIS deployment and support. In terms of delivery mode, on-premise systems traditionally dominated the market due to data security concerns. However, cloud-based systems are steadily gaining share, particularly in light of remote access requirements, reduced upfront costs, and enhanced disaster recovery capabilities.

Hospitals represent the largest end-user segment in the LIS market, followed by clinical laboratories, research institutions, and pharmaceutical companies. Geographically, North America holds the leading market share, driven by a robust healthcare IT ecosystem, favourable reimbursement policies, and the presence of leading LIS vendors. Europe follows closely, while Asia-Pacific is poised for the fastest growth due to ongoing healthcare reforms and technological adoption in countries like China, India, and Japan.

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Laboratory Information System Market Trends

Several key trends are shaping the development of the global laboratory information system market. The increasing focus on interoperability and integration is among the most significant. Healthcare providers are seeking LIS platforms that can seamlessly integrate with other clinical systems, including EHRs and billing software, to enable comprehensive patient data access and streamline workflows across departments.

Another prominent trend is the rising popularity of cloud-based LIS. These solutions offer laboratories enhanced flexibility, data security, and ease of access across multiple locations. They are particularly beneficial for multi-site healthcare networks and emerging markets, where infrastructure limitations and budget constraints make on-premise solutions less feasible.

Artificial intelligence (AI) and machine learning (ML) are increasingly being incorporated into LIS platforms to automate data analysis, detect anomalies, and provide predictive insights. AI-powered LIS tools can reduce manual errors, accelerate result turnaround times, and support decision-making in complex diagnostic scenarios.

User experience is also becoming a focal point, with LIS developers placing greater emphasis on intuitive interfaces, mobile compatibility, and real-time dashboards. Customisation features are being prioritised to cater to the diverse needs of various laboratory settings, including pathology labs, molecular diagnostics labs, and research facilities.

Drivers of Growth

The global laboratory information system market is being driven by a multitude of factors. The most fundamental driver is the increasing volume and complexity of diagnostic testing, which has been further accelerated by the COVID-19 pandemic. Laboratories require efficient tools to manage the rising influx of data, ensure compliance with health regulations, and maintain high standards of accuracy and speed.

The growing emphasis on patient-centric care and precision medicine is another critical factor. LIS platforms play a pivotal role in supporting personalised treatment plans by enabling fast and accurate diagnostics. Integration with genomic data and clinical decision support systems (CDSS) further enhances the value of LIS in personalised healthcare delivery.

Government policies and incentives aimed at promoting healthcare digitalisation also contribute significantly to market growth. Various national initiatives, such as the Health Information Technology for Economic and Clinical Health (HITECH) Act in the United States and eHealth initiatives in Europe, have encouraged healthcare providers to adopt LIS for efficient data handling and reporting.

Additionally, the demand for automation in laboratories is rising as a means to reduce human errors, increase throughput, and lower operational costs. LIS solutions that support automation through barcoding, robotic process integration, and automated report generation are witnessing strong demand.

Industry Analysis

The laboratory information system industry is characterised by a competitive and evolving landscape. Key players such as Cerner Corporation, Orchard Software Corporation, McKesson Corporation, SCC Soft Computer, and LabWare Inc. hold a significant share of the global market. These companies leverage strong research and development capabilities, strategic acquisitions, and global distribution networks to maintain their market positions.

Meanwhile, smaller players and start-ups are entering the market with specialised, niche LIS offerings, often focusing on customisation, cloud-native platforms, or regional compliance needs. The increasing emphasis on interoperability and standards compliance has prompted vendors to collaborate with health information exchanges (HIEs) and regulatory bodies to ensure seamless data integration and patient privacy.

The LIS industry is also witnessing an uptick in mergers and partnerships, as companies seek to expand their service portfolios and geographic reach. For example, collaborations between LIS vendors and cloud service providers are helping enhance the scalability and data security of new solutions.=

Laboratory Information System Market Segmentation

The market can be divided based on component, product, delivery mode, end user and region.

Market Breakup by Component

Services
Software

Market Breakup by Product

Standalone LIS
Integrated LIS

Market Breakup by Delivery Mode

On-Premise
Cloud-Based

Market Breakup by End User

Hospital Laboratories
Independent Laboratories
Physician Office Laboratories
Others

Market Breakup by Region

North America
Europe
Asia Pacific
Latin America
Middle East and Africa

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

Orchard Software Corporation
Sunquest Information Systems, Inc.
Cerner Corporation
Computer Programs and Systems, Inc.
CompuGroup Medical SE and Co. KGaA
Medical Information Technology, Inc.
SCC Soft Computer
Epic Systems Corporation
Comp Pro Med Inc.
American Soft Solutions Corp.
Allscripts Healthcare Solutions
Meditech
Aspyra

Challenges and Opportunities

Despite the promising growth trajectory, the laboratory information system market faces certain challenges. One of the primary obstacles is the high cost of system implementation and maintenance, which can be a deterrent for smaller laboratories and healthcare facilities with limited budgets. Moreover, integrating LIS platforms with legacy systems and achieving seamless interoperability across diverse IT infrastructures remain complex and time-consuming processes.

Data security and patient privacy concerns are also significant challenges, especially with cloud-based systems. Compliance with regulations such as HIPAA (Health Insurance Portability and Accountability Act) in the United States and GDPR (General Data Protection Regulation) in Europe requires stringent safeguards, which can increase operational costs and legal risks.

Nonetheless, the market presents numerous opportunities. The growing demand for decentralised diagnostic testing, home-based sample collection, and point-of-care diagnostics creates a strong need for flexible, mobile-compatible LIS platforms. Furthermore, the rising interest in genomics, proteomics, and personalised medicine offers scope for LIS expansion into advanced diagnostic domains.

Opportunities also lie in emerging markets where healthcare digitalisation is gaining momentum. Governments and private sector players are investing in laboratory infrastructure, thereby opening up demand for cost-effective and adaptable LIS solutions. Vendors that offer scalable, modular, and interoperable platforms tailored to local market conditions stand to benefit significantly.

Laboratory Information System Market Forecast

The global laboratory information system market is expected to witness sustained and robust growth over the next decade. Valued at USD 2.10 billion in 2024, the market is projected to reach USD 4.97 billion by 2034, expanding at a CAGR of 9.00% during the forecast period. This growth will be driven by increasing diagnostic testing needs, digital healthcare transformation, and the continuous advancement of data management technologies.

As laboratories navigate the demands of modern healthcare—ranging from regulatory compliance to clinical accuracy and operational efficiency—LIS platforms will become an indispensable component of the healthcare IT ecosystem. Companies that prioritise innovation, user-centric design, data security, and integration capabilities will be well-positioned to lead in this dynamic and essential market. The future of the LIS industry will be defined by flexibility, automation, and precision, ensuring its relevance and value in the global healthcare landscape.