Five year forecast for the lab data management software market

Top-Down Analytics (TDA) is a management consulting firm specialising in analytical technologies that provides decision-making information to the leaders of scientific technology companies. TDA has published its report on the lab data management software market which discusses the market conditions at the end of 2023 and shares TDA’s forecast for the next five years.

Thank you to Glenn Cudiamat and TDA for completing this informative market research and for allowing us to report on the results. This blog will give an overview of TDA’s predictions for the years ahead, looking at each software in greater detail.

The market at the close of 2023

TDA reports that the overall lab data management software market was valued at over $2 billion by the end of 2023. Market growth was largely concentrated in the life science sector primarily due to the increased demand for research data and regulatory compliance. Within this sector, the pharma / bio industry accounted for nearly half of the demand. North America and Europe occupied roughly three quarters of the overall market while ten main vendors dominated. TDA reveals that, at the end of 2023, Thermo Fisher Scientific, Agilent and Waters came out on top.

Looking ahead towards 2028

The market is expected to grow by around 6 percent annually, reaching a projected size of $3 billion by 2028. This is the result of several factors including an elevated demand for increased productivity and regulatory compliance. TDA also expects more users to adopt both cloud-based technologies and artificial intelligence (AI)-powered analytics which will further support growth. The report predicts that, of all lab data management software, the e-Notebooks and lab execution system (ELNs/ LES) market will expand the most.

Maintaining its dominance, pharma / bio is predicted to be the fastest growing end-market largely due to the aforementioned implementation of cloud-based solutions. In a shift from 2023, Asia, alongside North America, is forecast to be the fastest growing region as a result of the expansion of research and development (R&D) in the Asian pharma / bio sector.

Lab information management systems (LIMS)

• TDA predicts that the LIMS market will experience annual mid-single digit growth fuelled by the globalization of research and the need for standardised data management
• The increasing use of personalised and multi-omic medicine is also expected to drive demand for LIMS
• Future trends in the LIMS market include AI-driven analytics, cloud-based solutions and mobile LIMS applications.

e-Notebooks and lab execution systems (ELNs/LES)

• Leading the pack, the ELNS/LES sector is forecast to grow by high-single digits each year
• While on premise ELNS have previously dominated the market, the next five years will see the expansion of cloud-based deployments
• According to TDA, demand will centre around life science labs situated in North America and Europe.

Scientific data management systems (SDMS)

• SDMS are expected to see annual mid-single digit growth as the need for data sharing and regulatory compliance increases
• The pharma / bio market is expected to be both the largest and fastest growing segment
• In the upcoming years, the SDMS market will focus on interoperability with other lab software, advanced data visualisation and improved support for multi-omics research.

Chromatography data systems (CDS)

• The democratisation of liquid chromatography instruments will generate a market worth of just under one billion US dollars by the end of 2028
• CDS are forecast to profit from the expansion of the pharma / bio industry in Asia
• TDA notes that growth in this sector is largely dependent upon the adoption of cloud-based solutions and the integration of other software platforms.

Mass spectrometry (MS) data systems

• TDA estimates that the MS data systems market will be valued at just over half a billion US dollars by 2028 due partially to the development of high-resolution liquid chromatography (LC)/MS
• The amalgamation of MS with genomics and transcriptomics will prompt demand for MS data systems
• Although the performance of this market will be largely determined by growth in demand for instruments, TDA highlights that software must respond to end-user requirements.

TDA supports leaders in the scientific technology industry in identifying market opportunities through the provision of quantitative and qualitative survey solutions. They publish an annual industry report which can be accessed here. For more information on how they can help your business visit their website.

All the information included in this blog is sourced from the TDA Lab Data Management Software report which is generated through the comprehensive assessment of a range of data including the TDA database, trade reports, press releases, and NIH grants.

The report is available from TDA for $9000, please contact the business directly on glenn@tdaresearch.com or contact us directly. The Scott Partnership works with businesses operating in the scientific technology industry, supporting their entry into both local and international markets. We have supported the global market for lab management for more than two decades. Please get in touch to discuss your challenges and see how we can help support your goals.