North America LIMS Market by Mode of Delivery [On-premise, Cloud], Component [Service, Software], Type [Multi-purpose, Purpose-built], End User [Life Science, Food & Beverage, Petrochemical, oil & gas, Chemical, Environmental Industry) - Forecast to 2030

The North America Laboratory Information Management System Market is expected to grow at a CAGR of 7.1% from 2023 to 2030 to reach $763.5 million by 2030. A laboratory information management system (LIMS) is a software-based solution that integrates instruments, automates workflows, and manages samples and associated information. It helps to improve lab productivity and efficiency. The COVID-19 pandemic acted as a catalyst for the digitalization of laboratories. The pandemic brought unprecedented demand for innovative LIMS to pave the way for digital transformation. This avoided a complete shutdown, and the laboratory technicians could continue their work without interruptions. The pandemic also accelerated the adoption of secure cloud-based LIMS solutions for efficient remote-based working.

The growth of this market is driven by factors such as increasing R&D activities in the life sciences industry, the growing use of automation in laboratories, technological advancements in laboratory informatics solutions and the rising need to comply with regulatory frameworks. However, cost constraints are restraining the market’s growth.

The increasing adoption of cloud-based LIMS is expected to offer significant market growth opportunities. However, the migration from legacy LIMS to new systems and data security & privacy concerns pose a major challenge to the market’s growth.

Increasing R&D Activities in the Life Sciences Industry is Driving the Market Growth

Pharmaceutical companies constantly focus on research and development (R&D), the core of drug development processes. The biotechnology industry also continues to grow substantially due to increased investments in R&D to cater to the growing demand for innovation and new medical breakthroughs. The importance of R&D is evident due to the rising number of drug approvals. For instance, in 2020, the FDA’s Center for Drug Evaluation and Research (CDER) approved 53 novel drugs, an increase from 48 novel drugs approved in 2019. High R&D investments in the life sciences sector is expected to drive the adoption of LIMS in the coming years.

Increasing R&D spending has boosted the demand for efficient laboratory data management. Most pharmaceutical companies and CROs are using LIMS as it allows researchers to reduce human errors by enabling workflow automation, tracking reagents and lots, centralizing access and storage of quality control data, enhancing data integrity with automatic audit logging and revision control, and much more. Also, LIMS integrates with instruments or other in-lab systems to improve lab efficiency.

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Cloud-based LIMS Create an Opportunity for the Market

There is an exponential rise in the adoption of cloud-based LIMS due to their advantages, such as low upfront and maintenance costs, real-time analysis, easy integration with other systems & software, easy access to data from any location, internal and external sharing of data, flexibility, reliability, and scalability. In addition to large industries shifting their systems to cloud-based solutions for storage and data accessibility within the organization and at multiple geographic locations, cloud models are increasingly adopted by small to medium-sized businesses for their user-friendliness and cost-effectiveness. Growing awareness of the benefits of open platforms and most industries’ increasing focus on interoperability and collaborative solution design drive the demand for vertically integrated cloud platforms. These platforms provide data access to multiple stakeholders willing to share the risks and rewards of shared data assets.

Cloud-based solutions are increasingly becoming more secure than on-premise infrastructure, delivering better data backup and disaster recovery outcomes. The increasing confidence in cloud platforms, the wide availability of cloud-based informatics, and organizations’ increasing need to reduce costs, improve workflows, and leverage meaningful business intelligence are propelling the adoption of cloud-based informatics solutions, including cloud-based LIMS. To leverage growth opportunities in this segment, most start-ups in this field are launching cloud-based offerings, while most of the leading players are focused on adding cloud offerings to their product & service portfolios. For instance, in April 2022, JusticeTrax, Inc. (U.S.), a provider of forensic LIMS, launched the JusticeTrax Cloud initiative, a cloud-based solution. This solution provides enhanced security, guaranteed service availability, and faster deployment of product updates.

Additionally, in November 2021, Insightful Science, LLC (U.S.), a software provider in the life sciences space, acquired LabArchives LLC. (U.S.), a cloud-based LIMS provider, to expand its cloud-based scientific R&D software solutions portfolio.

Key Findings in the North America LIMS Market Study:

Among the Mode of Deliveries, the Web and Cloud-based LIMS Segment is Expected to Account for the Largest Share of the Market in 2023

The web and cloud-based LIMS offer real-time analysis capabilities of web and cloud-based LIMS, easy access to data, the ability of internal and external data sharing, cost-effectiveness, and scalability, owing to which they are preferred over the on-premise alternative.

Among the Offerings, the Software Segment is Expected to Account for the Largest Share of the Market in 2023

Software helps in efficient decision-making through advanced technologies, improved data and report quality, regulatory compliance, easy data accessibility, and better data storage. The large market share of this segment is attributed to advancements in software offerings, the growing need to integrate LIMS software into existing laboratory systems, increasing awareness about lab informatics, and the decreasing cost of informatics solutions.

The Purpose-built LIMS Segment is Projected to Grow at the Highest CAGR over the Forecast Period

Purpose-built LIMS is designed for a particular type of laboratory and industry. Purpose-built LIMS is specifically designed to address the needs of specific industries such as pharmaceutical manufacturing R&D, food & beverage, oil & gas, and QA/QC testing laboratories. Minimized project risks, simpler system upgrades, and enhanced compliance will likely enhance the demand for purpose-built LIMS, contributing to the largest share of this segment.

Among the End Users, the Life Sciences Segment is Expected to Account for the Largest Share of the Market in 2023

The large market share of this segment is attributed to the rise in R&D activities in pharmaceutical industries, the high adoption of LIMS in life science laboratories, and increased concerns over data integrity, validity, and security due to regulatory pressures, cost efficiency, and enhanced productivity. Furthermore, the availability of funding for adopting advanced technologies contributes to the growth of this market segment.

Among the Geographies, the U.S is Estimated to Be the Largest Market in 2023

The large market share of the U.S. is primarily attributed to factors such as the well-established economy and financial capability to adopt advanced technologies, substantial R&D investments by public institutions and pharmaceutical companies, stringent government regulations mandating the use of data management systems across various industries, a strong presence of large pharmaceutical and biotechnology companies, the presence of leading LIMS vendors, increasing demand for integrated laboratory systems, and the growing adoption of cloud-based LIMS solutions.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market players in the past few years. The key players profiled in the North America LIMS market report are LabWare, Inc. (U.S.), Thermo Fisher Scientific Inc. (U.S.), LabVantage Solutions Inc. (U.S.), LabLynx, Inc. (U.S.), Labworks LLC (U.S.), Agilent Technologies, Inc. (U.S.), Labii Inc. (U.S.), Accelerated Technology Laboratories, Inc. (U.S.), LABTrack (U.S.), Computing Solutions, Inc. (U.S.), Ovation (U.S.), CloudLIMS.com (U.S.), STARLIMS Corporation (U.S.), Illumina, Inc. (U.S), and Novatek International (Canada).

These market players focus on numerous strategies such as partnerships, collaborations, agreements, and acquisitions to retain or increase their shares. For instance, in November 2021, Insightful Science (U.S.) acquired LabArchives (U.S.) to expand its LIMS solutions for scientific discovery. Furthermore, in July 2021, Francisco Partners (U.S.) acquired the STARLIMS informatics product suite from Abbott (U.S.).

Scope of the Report:

North America LIMS Market Size & Trend Analysis, by Mode of Delivery

• Web and Cloud-based LIMS
• On-premise LIMS

North America LIMS Market Size & Trend Analysis, by Offering

• Software
• Services

North America LIMS Market Size & Trend Analysis, by Type

• Multi-purpose LIMS
• Purpose-built LIMS

North America LIMS Market Size & Trend Analysis, by End User

• Life Sciences
  • Pharmaceutical & Biotechnology Companies
  • Academic & Research Institutes
  • Biobanks & Biorepositories
  • Contract Research Organizations (CROs)
  • Other Life Sciences End Users
• Food & Beverage Industry
• Chemical Industry
• Petrochemicals and Oil & Gas Industries
• Environmental Testing Laboratories
• Other End Users
  (Notes: 1. Other life sciences end users include hospitals, medical device companies, diagnostic laboratories, and toxicology testing laboratories.
  2. Other end users include forensic laboratories, mining & metal laboratories, and contract manufacturing organizations (CMOs).)

North America LIMS Market Size & Trend Analysis, by Geography

• U.S.
• Canada

Key questions answered in the report: