Digital Pathology Market

2021 Analysis and Review: Digital Pathology Market by Product Type – Equipment, Software, Services for 2021 – 2031

Digital Pathology Market Snapshot

[178 Pages Report] The global Digital Pathology Market value is expected to total US$ 6,199 Mn for 2021, according to Future Market Insights. The overall sales of digital pathology products and services are expected to reach US$ 22,870.2 Mn by 2031, growing at a CAGR of 13.5% in the forecast 2021 – 2031.

Innovations in technology and integration of new services such as electronic medical records in the global healthcare sector are driving interest towards digital pathology solutions. While on premise information systems use will remain dominant at US$ 626.8 Mn, cloud-based information systems are likely to rise at a 16.9% CAGR through 2031. 

Key Points Covered in Digital Pathology Market Study

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting Digital Pathology Market growth
  • Segment-wise analysis, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Digital Pathology and How to Navigate
  • Recommendation on Key Winning Strategies 

2016-2020 Digital Pathology Market Outlook Compared to 2021-2021 Forecast

According to Future Market Insights (FMI), the sales of Digital Pathology products and services have grown at ~10% CAGR from 2016-2020. Increasing adaptation of digital pathology devices in emerging economies to improve healthcare services is elevating growth.

The global Digital Pathology Market was valued at~ US$ 5.54 Bn in 2020. The market is expected to grow at a CAGR of ~ 13.5% during the forecast period of 2021-2031. Elevated healthcare-based IT spending and increased focus on cancer research are expected to fuel the growth of digital pathology devices across the globe over the forecast period.

Manufacturers are focusing on the integration of digital pathology with cloud platforms, and are collaborating with the cloud service providers for data sharing and scanning services to clients. Consumers are focusing on health issues and are proactively conducting full-body check-ups, which tends to the growth of the digital pathology market in the forecast period.

How are Research and Development Initiatives Contributing towards Digital Pathology Market Growth?

Recent years have witnessed increased investments for biosimilar research and developments programs, especially for cancer treatment and Covid-19 treatment which has significantly driven the growth of the digital pathology industry. Pharmaceutical companies are allocating tasks of biosimilar development to Contract Research Organizations (CROs), in-vitro diagnostics (IVD) laboratories, clinical laboratories, and regulatory consultants.

These companies are improvising to provide more cost-effective solutions to clients, creating a requirement for digital pathology devices to diagnose, research, and invent for effective healthcare solutions.

How is the Demand for Cancer Diagnostic Research Influencing Development Activities?

The widespread prevalence of cancer is resulting in the increased spending on digital pathology devices. Complications that are arising due to late diagnosis of cancer, especially in the case of blood cancer and lung cancer, are resulting in the need for large capital resources during treatments and diagnosis.

The success of digital pathology in research is driving the demand for these systems from the cancer research sector. This is also attracting government investors to invest in digital pathology systems for clinical diagnostics applications.

According to the National Health Society (NHS), In 2018, the U.K., cancer services donated around US$ 8.3 Bn to the NHS. A major amount is spent on diagnosis and monitoring of cancer treatment. This defines the high demand for digital pathology systems in cancer diagnostic and monitoring processes.

What are the Factors Restraining Demand for Digital Pathology Products?

The higher cost of digital pathology services is the major factor hampering the growth of the market in most low-income countries. The cost of maintenance and training for digital pathology is very high and may not be suitable for small-scale laboratories.

Lack of standardization in regulatory guidance in the commercial sale of digital pathology products hampers growth prospects. In the U.S, guidelines specifically indicate that digital pathology services are to be used only in research and development activities and not for clinical use. Such regulations and guidelines limit the adoption of digital pathology products and slow-down market growth significantly.

What is the Impact of the COVID-19 Crisis on Market Developments?

The impact of the covid-19 pandemic on the market has largely been positive. The introduction of rapid test kits for the covid-19 virus has strongly aided sales. However, restrictions in terms of transportation, production, and technological developments are short term concerns. Investments in healthcare research are expected to continue rising for the foreseeable future, creating lucrative opportunities, especially with major developments in AI and analytics improvements through the coming decade.

Country-wise Insights

How is the Digital Pathology Market Faring in the U.S.?

The U.S. holds a 36% share in the global market. The presence of established players in the region, rising adaptation of digital imaging methods and adoption of advanced technology provides key opportunities for manufacturers to deliver novel products. The research and development sector in the U.S. is highly developed.

Increased use of digital pathology devices for diagnosis is coupled with favorable reimbursement policies in the U.S., which improves the quality of cancer diagnosis, is further fueling growth in the country.

What are the Factors Driving Revenue Generation in Germany?

The German market accounts for over 20% of the Europe market in 2021. The country has strict guidelines which are proposed by the Association of German Pathologists. This is key for operational use to IT experts, pathologists and researchers.

Scientists in pathology laboratories will accelerate the demand for pathology services in in the EU, with Germany holding a prime position owing to a matured healthcare sector. The prevalence of cancer and chronic conditions supports regional growth.

What are the Key Factors Which Enabling Growth in China?

The market for digital pathology in China is exhibiting a 23.5% CAGR and is expected to account for more than 70% of the East Asia market in 2031. China is the leading supplier of rapid diagnostic kits on a global scale due to the easy availability of the manpower and raw material.

China played a major role in supplying covid-19 diagnostic kits all over the globe. The availability of funding by the government for public healthcare and access to resources are major factors for the growth of the market. 

What is the Scope of Growth for the Market in India?

India is a high potential market for digital pathology services, which is expected to hold 70.0% of the South Asia value share in 2031 at a CAGR of nearly 26% during the forecast period. The growth can be largely attributed to the availability of low-cost labor.

An increase in demand for novel treatment options, better facilities for patient care, and reduction in expenses in laboratory facilities is expected to fuel growth. The Indian government is now focusing on increasing investments into the healthcare sector through the “Make in India” initiative.

The government is also raising funds for the research and development in the healthcare sector every year to develop new drugs and medical devices which supports the rise in regional revenue. In July 2021, the Union government announced a plan to set up over 42 diagnostic and virology research laboratories in the country at a cost of Rs. 324 crores.

Category-wise Insights

Why are Clinical Pathology Applications Highly Sought-after?

Clinical laboratories primarily diagnose the cause of the disease by the means of body fluids analysis including blood tests, urine tests, or tissue extracts through digital pathology devices. Clinical pathology applications will account for 30% of the global value share in 2021.

 The increasing prevalence of the chronic diseases, cancer patients, diabetes cases, and more are necessary. Consequently, the demand from clinical pathology laboratories will continue to rise for the foreseeable future.

How are Hospitals Contributing to Market Growth?

Until recently, hospitals would outsource diagnostics of samples to external centers to analyze body fluids in a bid to minimize costs. However, through the coming decade, hospitals are expected to raise funds and develop their own diagnostic laboratories to provide services for customers inside one roof.

The need pathology devices with developed technologies significantly boosts the demand and creates revenue generation opportunities through the upcoming decade. The segment will account for 34.5% of the market in 2021.

Competitive Landscape

Manufacturers are focusing on product development by offering a wide range of diagnostic products. Moreover, major players in the digital pathology market are focused on enhancing their global and regional presence through acquisitions and expansion on a global scale.

  • In May 2021, Leica Biosystems collaborated with the European Society for Digital and Integrative Pathology (ESDIP) to Support the pathology Labs to develop the laboratories according to new digital pathology devices.
  • In March 2021, Roche signed a definitive merger agreement with GenMark Diagnostics, Inc. in an effort to widen its portfolio and distribution channel for consumers in Europe.

Scope of the Report

Attributes

Details

Base year considered

2020

Historical data available for

2016 – 2020

Forecast period

2021 – 2031

Forecast units

Value (US$) Mn and Volume (Units)

Key Segments covered

Product Type, Application, End-User, and Region

Key countries covered

US, Canada, Brazil, Mexico, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia and New Zealand, GCC Countries, Turkey, South Africa

Key Players

  • Danaher Corporation
  • F. Hoffmann-La Roche AG
  • Huron Technologies International Inc.
  • Koninklijke Philips N.V.
  • Olympus Corporation
  • Hamamatsu Photonics K.K.
  • Carl Zeiss AG
  • Nikon Corporation
  • 3DHISTECH Ltd.
  • Hologic Inc.
  • PerkinElmer, Inc.
  • Visiopharm
  • OptraSCAN, Inc.
  • Inspirata, Inc.
  • Sectra AB.

Report coverage

Revenue forecast, volume analysis, pricing analysis, company share, competitive landscape, growth factors, and trends

Customization & Pricing

Available upon Request

Key Questions Answered in Report

  •   How much is the digital pathology market worth?

    The global digital pathology market is worth USD 6.19 Bn in the year 2021 and is expected to reach USD 22.87 Bn by 2031 owing to extensive research toward the development of new techniques for patient treatment.

  • What is the demand outlook of the digital pathology market?

    The demand for digital pathology kits will increase in the forecast period as the biotech companies are increasing research on cancer therapy kits to expand the product portfolio fulfilling the demands of the market rising at a CAGR of 13.5%.

  • What was the digital pathology market CAGR for the last 5years?

    Historically, the market has grown at a CAGR of 9.9% from 2016 to 2020.

  • What are the key trends of the digital pathology market?

    Integration of healthcare IT systems and digital pathology technologies provides a combined system for healthcare services, which will create key opportunities for market players.

  • What is driving the demand of the digital pathology market?

    Growing demand for diagnostic laboratories has increased sales in the digital pathology market. Ongoing research on cancer diagnostics therapy will drive the market during the forecast years.

  • What is the share of the top 5 players in the digital pathology market?

    The cumulative market share of the top 5 players including Danaher Corporation, F. Hoffmann-La Roche AG, Huron Technologies International, Inc., Koninklijke Philips N.V., and Olympus Corporation constitutes around 71% of the overall market.

  • What are the top 5 countries driving demand for digital pathology?

    The U.S, Japan, China, Germany, and India are the top 5 countries that are driving the demand for the digital pathology market.

  • What is the North America digital pathology market outlook?

    North America holds around 42.3% revenue share in the overall digital pathology market. The U.S. remains the fastest-growing country over Canada exhibiting a CAGR of 9.7% over the forecast period.

  • At what rate is the digital pathology market going to register growth in Europe?

    Europe is set to exhibit a CAGR of 10.3% during the forecast period owing to the high prevalence of cancer cases in the region.

  • Which countries are the key exporters in the digital pathology market?

    The key exporters of digital pathology kits are countries such as the U.S., Japan, China, Germany, and India.

  • What are the key digital pathology market statistics in Korea and Japan?

    Japan’s digital pathology market remains the fastest growing market in developed nations. It is expected to exhibit a growth of 12.3% during the forecast period. South Korea holds a revenue share of 1.7% in the global digital pathology market.

key segment

By Product Type:

  • Equipment
    • Whole Slide Scanners
      • Brightfield Slide Scanners
      • Fluorescence Slide Scanners
      • Combination Slide Scanners
    • Clinical Microscope
    • Tissue Microarrays
  • Softwares
    • Image Viewing and Analysis Softwares
      • On-premise
      • Cloud-based
    • Digital Pathology Information Systems
      • On-premise
      • Cloud-based
  • Services
    • Installation and Integration Services
    • Consulting Services
    • Maintenance and Validation Services

By Application:

  • Clinical Patholog
  • Molecular Diagnostics
  • Basic & Applied Research
  • Drug Development
  • Others

End-User:

  • Hospitals
  • Diagnostic Laboratories
  • Pharmaceutical & Biotechnology Companies
  • Forensic Laboratories
  • Research Institutes
  • Contract Research Organizations (CROs)
  • Clinics

Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • The Middle East and Africa (MEA)

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