KEY FACTORS SHAPING THE DIGITAL PATHOLOGY MARKET
Increased Spending on Cancer Diagnostics and Monitoring
Growing incidence of cancer is resulting in increased reimbursement spending by governments of various countries globally. Complications arising due to late diagnosis of cancer, especially with regard to blood cancer and lung cancer, are resulting in need for more expensive treatments and medical procedures.
The commercial success of digital pathology in research activities is driving demand for these systems from the cancer research sector and is also attracting investments on digital pathology systems for clinical diagnostics applications.
To curb the cancer wave, government in some countries are spending substantially on cancer diagnostic services and campaigns. According to National Health Society (NHS), U.K., cancer services incur a cost of around US$ 8.3 Bn to NHS, of which, majority of this amount is spent on diagnosis and monitoring during 2018. This shows the potential for digital pathology industry in cancer diagnostic and monitoring in future.
Increasing Preference for Outsourcing R&D
The biopharmaceutical industry has experienced substantial numbers of patent expiration in the last decade. This has increased the demand for biosimilar research and developments, especially for cancer treatment. Hence, increasing research and development activities in cancer research has significantly driven growth of the pathology industry in the recent past.
Pharmaceutical companies are allocating tasks of biosimilar development to Contract Research Organizations (CROs), in-vitro diagnostics (IVD) companies, clinical laboratories, regulatory consultants, and Contract Manufacturing Organizations (CMOs), and these companies are improvising to provide more cost effective solutions to clients, thus leading to increasing adoption of digital pathology technologies.
Greater Emphasis on New Product Developments
The digital pathology industry is evolving at a rapid pace and is expected to favor companies that have primary focus on product development during the forecast period. Manufacturers engaged in the development of novel digital pathology solutions are focusing on introducing highly advanced and more user-friendly instruments to meet the varying needs of consumers.
A majority of major players in this industry are focusing on the commercialization of cost effective digital pathology systems in order to exhibit their core competencies in small scale pathologies. Moreover, these companies are also focusing on integrating with cloud service providers to provide total services to consumers. For example, in October 2019, Sectra introduced digital pathology solution software solutions with Software Point LIMS (Laboratory Information Management System).
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DIGITAL PATHOLOGY MARKET STRUCTURE ANALYSIS
- Some of the market leaders roughly capture around 60% revenue share in market and include Danaher Corporation, F. Hoffmann-La Roche AG, and Huron Technologies International, Inc.
- Major digital pathology vendor companies are entering into strategic alliances with each other, with the objective to enhance their product offerings and to expand their product portfolios. This is turn will enable these players to increase their brand presence in the global market.
- Manufacturers of digital pathology solutions are consistently making changes in their software category platform, to enhance the capabilities of digital pathology image analysis range of solutions to their clients.
- Base year considered - 2018
- Actual estimates/Historical data - 2014 - 2018
- Forecast period - 2019 - 2029
- Forecast units - Value (US$) Mn
- Segments covered - Component Type, Application, End-User, and Region
- Regions covered - North America (U.S. & Canada), Europe (U.K., Germany, France, Spain, Italy, Russia, and Rest of Europe), Latin America (Brazil, Mexico, and Rest of LA), East Asia (China, Japan and South Korea) South Asia (India, Indonesia, Malaysia, Thailand and Rest of South Asia), Oceania (Australia and New Zealand) and MEA (GCC, South Africa, Turkey, and Rest of MEA)
- 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., and Sectra AB.
- Report coverage - Revenue forecast, volume analysis, pricing analysis, company share, competitive landscape, growth factors, and trends
Equipment Captures 50% of Total Revenue
Digital pathology equipment continues to witness higher demand and investments than software and services. Whole slide scanners remain highly preferred among end users, while tissue microarrays are expected to gain significant traction as a valuable screening tool used in translation research. Innovations are also forthcoming to match the advances in diagnostic software and the advent of AI and automated diagnosis.
To tap into opportunities offered the COVID-19 outbreak, market players are working on improving their service offerings with greater emphasis on consulting services which are expected to overtake the need for installation and integration services by 2022.
Developed Regions Take the Center Stage
Growth prospects of the digital pathology market remain high in North America and Europe, given the concentration of leading market players such as PerkinElmer Inc., Koninklijke Philips N.V., Ventana Medical Systems Inc., and Leica Biosystems in these regions.
In addition to collaborating with the U.S. government to ramp up the production of medical ventilators, Philips as well as Leica Biosystems received digital pathology FDA waivers to allow pathologists use their technologies to work remotely during the COVID-19 pandemic. Moreover, as the pandemic’s epicenter shifts from China to the U.S. and Italy, market players are specifically focused on these countries in the current scenario.
Optimal Remote Operations to Break Down Regulatory Barriers - Future Growth Lever
Remote operations in the field of pathology have long been difficult, in the view of reliance on physical glass slides and strict regulatory requirements. However, the scenario is changing amidst the outbreak of COVID-19 - mandating pathology organizations to perform the complex and time-consuming validation requirement to read cases at home.
As the pandemic crisis unfolds across multiple countries, regulatory requirements for the deployment of digital pathology equipment and services are being broken down which is likely to open a new widow of opportunities. Further, advantages of digital pathology in saving time on commutes and accessing cases on-demand are expected to offer tailwinds to future market growth.
How Growth will Unfold
Over the years, digital pathology has provided a novel platform for clinical pathology, facilitating convenient and reliable data sharing among scientists and laboratory technicians for diagnostics and multi-research pathology studies. Adoption in clinical pathology accounts for over 30% of the total market revenue, while stakeholders are capitalizing on drug development application amidst the trend of personalized medicine.
Moreover, revenue generated from the use of digital pathology in drug development is expected to surpass that of basic research & applied application by 2026. Furthermore, key market players focusing on advanced technologies to enable efficient remote operations in the time of public health crisis are likely to be rewarded in the long run.
DIGITAL PATHOLOGY MARKET TAXONOMY
The global digital pathology market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach to the reader.
- Whole Slide Scanners
- Brightfield Slide Scanners
- Fluorescence Slide Scanners
- Combination Slide Scanners
- Clinical Microscope
- Tissue Microarrays
- Whole Slide Scanners
- Image Viewing and Analysis Softwares
- Digital Pathology Information Systems
- Installation and Integration Services
- Consulting Services
- Maintenance and Validation Services
- Image Viewing and Analysis Softwares
- Clinical Pathology
- Molecular Diagnostics
- Basic & Applied Research
- Drug Development
- Diagnostic Laboratories
- Pharmaceutical & Biotechnology Companies
- Forensic Laboratories
- Research Institutes
- Contract Research Organizations (CROs)
- North America
- Latin America
- East Asia
- South Asia