Global Digital Pathology Market

Digital Pathology Market: Increasing Adoption in Cancer Research and Diagnosis to boost the market for Digital Pathology Scanning: Global Industry Analysis and Opportunity Assessment, 2015 - 2025

Digital pathology is a dynamic, image-based environment that enables the acquisition, management and interpretation of pathology information generated from a digitized glass slide. Digital pathology is also known as “Virtual Microscopy”. This report analyzes the total revenue generated through sales of digital pathology systems, which includes scanners, software and services. In addition, the report analyzes the revenue generated through digital pathology service provided by end users such as pathology labs, research centers and others. Digital pathology systems are gaining traction among pathologists, mainly due to its operational efficiency and rising need for integrated healthcare facilities. Over the years, there has been a surge in the need to connect laboratories to hospitals and clinics owing to increased demand for pathology screening service in disease diagnosis and prognosis. This has led to a rise in emphasis on product innovation in digital pathology systems. Thus, and increasing number of players are entering the digital pathology market with varied service offerings.

The global digital pathology market has been estimated to be valued at US$ 326.7 Mn by the end of 2015, and is projected to witness a significant increase in market value due to rising demand for digital pathology systems from end-use segments such as hospitals, research centres and diagnostic laboratories.

Drivers and Trends

Rise in cancer incidences and increasing demand for collaborative second opinion technology by patients is paving the way for overall growth of the digital pathology market globally. Increased spending on cancer diagnostics and healthcare IT spending structure reforms has led to the wide popularity of digital pathology systems among hospitals, research centers and diagnostic laboratories. Increasing number of hospitals and diagnostics laboratories is a factor also expected to boost overall demand for digital pathology systems globally.

Currently, digital pathology is widely used in North America owing to a vast number of companies in the market, and increasing inclination of healthcare service providers towards integrated healthcare information technology platform and commercialization of multipurpose instruments with cloud-enabled technologies to provide better interoperability for diagnostic results, is expected to fuel growth of the global digital pathology market throughout the forecast period. Secondly, tele-pathology trends, i.e. remote sharing of glass slides, is gaining popularity owing to its economic nature as compared to other conventional slide sharing practices.

Revenue from the global digital pathology market is expected to expand at a significant CAGR in regions such as Western Europe and North America over the forecast period. Digital pathology industry is consolidating, as players in the industry are entering into partnerships, mergers and acquisitions and well-planned distribution strategies to capitalize on the overall opportunities present in untapped markets in Latin America and Eastern Europe. Though this market is growing at a significant rate, the high cost of digital pathology scanners and software along with cost of implementation services, coupled with ambiguity regarding regulations for the use of digital pathology systems in primary diagnosis is proving to be a major restraint for overall growth of the market.

Analysis by Region

North America is expected to remain the dominant market in the global digital pathology market throughout the forecast period and revenue is projected to expand at a CAGR of 11.8% over the forecast period. The U.S. market is expected to remain the dominant market among other countries in North America throughout the forecast period owing to supporting government policies encouraging adoption of healthcare IT services. Western Europe market is followed by the North America market as more number of players are expected to enter into the former market during the forecast period. Japan is expected to be the next lucrative market for digital pathology companies, and the market in this region is estimated to register a CAGR of 11.3% in terms of revenue over the forecast period.

Analysis by Product

The global digital pathology market is segmented into scanners, software and services. Scanners segment is further sub-segment into fluorescent digital pathology scanners and bright field digital pathology scanners. The software segment is further sub-segmented into image analysis and digital pathology information systems. On the basis of deployment mode, the image analysis and digital pathology information systems sub-segments are categorized as on-premise delivery and cloud based delivery solutions. The services segment is further sub-segmented into installation & integration services, consulting services and maintenance services. Currently, the digital pathology scanners segment accounts for major share of the global market; whereas, digital pathology software and services segment is expected to witness impressive growth during the forecast period.

In the software segment, the image analysis software sub-segment is expected to register a significant CAGR of 9.2% and remain the dominant sub-segment in the global market over the forecast period. In the services segment, the installation and integration services sub-segment is expected to register fastest CAGR of 13.6%, owing to increasing number of research centers and hospitals expected to adopt digital pathology scanners and software for easing diagnostics workflow.

Analysis by pathology screening services

The digital pathology screening services market is segmented into hematology, histopathology, chemical pathology and medical microbiology. The histopathology segment is expected to dominate the overall digital pathology market by the end of forecast period, i.e. by 2025. The hematology and medical microbiology segments are projected to register below average growth rates over the forecast period. Meanwhile, the histopathology segment is projected to register fastest CAGR over the forecast period in terms of value. Digital pathology adoption for histopathology procedures is fuelling growth of this segment currently.

Analysis by End-use

Based on end user, the market has been segmented into hospitals, diagnostic laboratories and research centers. Hospitals segment is sub-segmented into depending upon the number of beds in hospital. The diagnostics laboratories segment is further sub-segmented into in private and public laboratories. In terms of value, research centers segment is estimated to account for 57.4% share of the global market by 2025 end.

Competitive Landscape

Some of the key players covered in the global digital pathology market report include Perkin Elmer, Inc., Definiens AG, Sectra AB, Koninklijke Philips N.V, GE Healthcare, Inspirata Co., Ventana Medical  Systems, Inc., Leica Biosystems, 3D-Histech Ltd., Hamamatsu Photonics, K.K., Digipath Co., ZEISS, Olympus Corporation, Yokogawa Electronic Corporation and Quorum Technologies Inc. The report offers insights on the various strategies related to software development, market consolidation initiatives and analyses of the various market players’ specific strengths, weaknesses, opportunities and threats.

Global-digital-pathology-market

Future Market Insights (FMI) offers a 10-year forecast of the global digital pathology market between 2015 and 2025. In terms of value, the market is expected to register a CAGR of 11.4% during the forecast period. This study provides insights regarding the market dynamics and trends in all seven regions that are expected to influence the current market environment and future status of the global digital pathology market over the forecast period.

Report Description

This report examines the global digital pathology market for the period 2015–2025, with the primary objective being to offer key insights on developments in the global digital pathology market, that are significantly helping  to provide more integrated and digitised platform for the healthcare service providers by making the process of sharing slides across the health care sector mush easier.

The global digital pathology market report begins by defining digital pathology systems and the various components such as scanners, software and services that make up the whole package. It also lists the various end users opting for digital pathology systems, followed by an overview section, along with its parent market. Overview section includes FMI’s analysis of key trends, drivers, restraints and opportunities estimated to influence growth of the global digital pathology market over the forecast period. Impact analysis of key growth drivers and restraints based on weighted average model has been analysed to better equip customers and readers with region-specific trends, drivers, restraints and market insights.

Major factors driving growth of the global digital pathology market include increasing spending on cancer diagnostics and monitoring, increasing spending on healthcare IT and collaborative approach between pathologists and cloud service providers to facilitate faster decision making. Furthermore, increasing demand for image analysis software and personalised medicine has triggered growth of global digital pathology market. Research indicates that there is growing need for integrated modules of digital pathology, which enables better interoperability reliable outcome to pathologists. Secondly, there is growing need for automation in diagnostic procedures, starting from sample collection to final diagnosis, and this is estimated to further fuel demand for digital pathology systems for application in research laboratories and diagnostic laboratories. However, factors such as high capital cost for implementing digital pathology systems and stringent regulatory guidance for the use of digital pathology systems in primary diagnosis are factors hampering growth of the digital pathology market.

The global digital pathology market is segmented based on the basis of product type into hardware (scanners), software and services. Scanners segment is further sub-segmented into fluorescent scanners and bright field scanners. Scanners segment is further sub-segment into fluorescent digital pathology scanners and bright field digital pathology scanners. The software segment is further sub-segmented into image analysis and digital pathology information systems. On the basis of deployment mode, the image analysis and digital pathology information systems sub-segments are categorized as on-premise delivery and cloud based delivery solutions. The services segment is further sub-segmented into installation & integration services, consulting services and maintenance services.  On the basis of end user, the market is segmented into hospitals, diagnostic laboratories and research centres. A detailed analysis of all the categories of end users has been provided in terms of market size, Y-o-Y growth rate, absolute $ opportunity and BPS analysis.

The report analyses the market based on digital pathology screening services such as haematology, chemical pathology, histopathology and medical microbiology. A thorough analysis, along with the market attractiveness index of each of these categories, has been provided in the report.

In the above sections - by product, end user, pathology screening services and region - we evaluate the present scenario and future growth prospects of the global digital pathology market for the period 2015 - 2025. We have considered 2014 as the base year and provided data for the forecast period, i.e. 2015-2025.

The next section of report highlights the digital pathology market by region. It provides the market outlook for 2015-2025 and sets the forecast within the context of the global digital pathology market. The study discusses key regional trends, drivers and restraints contributing to growth of digital pathology market, worldwide. Key regions assessed in this report include North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan (APEJ), Japan and the Middle East & Africa.

To ascertain size of the global digital pathology (devices) market, we have considered the revenue generated from the sale of digital pathology software and scanners. The forecast presented here assesses total revenue generated across the digital pathology market, globally over the forecast period. In order to offer an accurate forecast, we started by sizing the current market, which forms the basis of how the digital pathology market is expected to develop in the future. Given the characteristics of the market, we have triangulated the outcome on the basis of supply-side and demand-side perspective, and downstream industry and economic envelope.

It is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse based on key parameters, such as Year-On-Year (Y-o-Y) growth rates to understand the predictability of the market and to identify the right opportunities available in the market.

The global digital pathology market has been segmented in terms of products, pathology screening services, end users and regions, are analysed on the basis of their respective Basis Point Share (BPS) to understand individual segments’ relative contribution to market growth. This detailed level of information is important for identification of various key trends in the global market.

Another key feature of this report is the analysis of key segments in terms of absolute dollar opportunity. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical for assessing level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective of digital pathology market.

To understand key growth segments in terms of growth, Future Market Insights developed the digital pathology market ‘Attractiveness Index’. The resulting index helps providers to identify real market opportunities and take informed decisions.

In the final section of the report, we offer the ‘Competitive Landscape’ section to provide report audiences with a dashboard view and to examine the key differentiators among competitor firms. Key categories of providers covered in the report are digital pathology scanners, software and service providers. This section is primarily designed to provide clients with an objective and detailed comparative assessment of key providers specific to a market segment in the digital pathology value chain. This section also includes market strategies and SWOT analysis of the key players in the market.

Detailed profiles of digital pathology companies included are in the scope of the report to evaluate their long-term and short-term strategies. Key players in the market include:

  • Perkin Elmer, Inc.,
  • MedImmune, LLC (AstraZeneca),
  • Sectra AB
  • Koninklijke Philips N.V
  • GE Healthcare
  • Inspirata Co.
  • Ventana Medical Systems, Inc.
  • Leica Biosystems
  • 3D-Histech Ltd.
  • Hamamatsu Photonics, K.K.
  • Digipath Co.
  • ZEISS
  • Olympus Corporation
  • Yokogawa Electronic Corporation.

Key Segments Covered

  • By Product
    • Scanner
      • Bright Field Scanner
      • Fluorescence Scanner
    • Software
      • Image Analysis Platform
        • On-premises Delivery
        • Cloud-based Delivery
      • Digital Pathology Information Systems
        • On-premises Delivery
        • Cloud-based Delivery
    • Services
      • Installation and Integration
      • Maintenance Services
      • Consulting Services
  • By End Use
    • Hospital
      • 500+ Beds
      • 200–499 Beds
      • Less than 200 Beds
    • Diagnostic Laboratories
      • Private Laboratories
      • Public Laboratories
    • Research Centers
  • By Pathology Screening Services
    • Hematology
    • Chemical Pathology
    • Histopathology
    • Medical Microbiology