Market Trends of Life Sciences Analytics Industry
This section covers the major market trends shaping the Life Sciences Analytics Market according to our research experts:
Pharmaceutical and Biotechnology Companies are Expected to Witness the Rapid Growth in Coming Years
Analytics in clinical research helps pharmaceutical companies analyze data for the comparison of ongoing trials at different sites and populations, prepare reports for submission to the regulatory authority, and get approvals.
The roles of the pharmaceutical companies are to invest in the research and development of new compounds, commit to bringing new drugs to the market to enhance patients' health and quality of life, maintain strict governance when conducting clinical trials, and conduct product development activities for patients and healthcare professionals, following ethical and legal principles.
In October 2021, Ever Fortune.AI and Medexprim announced their strategic partnership dedicated to improving healthcare analytics and medical AI development. This collaboration will expand both companies' networks of hospitals, further connect healthcare innovations between Asia and Europe, bring value to Taiwanese and European hospitals, and strengthen their research ecosystem, bringing a broader mix of General Data Protection Regulation across Europe. It will also allow meeting pharmaceutical companies' needs for patient insights for clinical trials, particularly in oncology and cardiology.
Moreover, in the current scenario, where there is high competition from other major companies, analytics benefits the pharmaceutical and biotech industry. For instance, analytics has helped accelerate drug discovery, optimize clinical trials, and effectively target a specific patient population. For example, in March 2022, the leading research-driven biopharmaceutical company Boehringer Ingelheim and precision medicine software company Lifebit Biotech Ltd entered into a partnership in which Lifebit will support Boehringer Ingelheim in building a scalable data, analytics, and infrastructure platform within its IT environment.
In addition, analytics plays a vital role in getting insights into patient behavior to improve drug delivery and the effectiveness of healthcare. Hence all these factors mentioned above are contributing to the segment's growth.
North America is Expected to Dominate the Life Sciences Analytics Market
North America holds a significant share of the life science analytics market as the region is well-established in terms of healthcare R&D. In addition, a considerable rise in healthcare spending by the government and the increasing importance of life science analytics in drug development are other factors fueling the market growth in the region.
Analytics is required to track those trials and manage the companies' data, which helps understand the components needed for new drug discovery or drug development. For instance, in March 2022, the SDG Group entered into a partnership with Snowflake, as the company launched the Healthcare and Life Sciences Data Cloud to bring better patient care and business results. It will enable the SDG group to successfully and securely unlock the power of data and analytics to maximize business value.
The life sciences and pharmaceutical industries face R&D and regulatory changes challenges. The introduction of the Affordable Care Act (ACA) in the United States is changing the regulatory framework, increasing scrutiny and reimbursing based on health outcomes. To tackle these challenges, most companies in the United States are implementing analytics independently or using third-party analytics services for support.
Analytics solutions create an impact that provides simple reporting solutions to descriptive and predictive analytic solutions. The companies based in the United States are adopting new analytics solutions in their business, which include the analysis of clinical research data from the SAS database, helpful in early-stage drug development, analyzing adverse event incidence and reporting in clinical trials, and revenue forecasting and prediction of health outcomes. For instance, in September 2021, Honeywell acquired Performix Inc., a manufacturing execution system (MES) software provider for the pharmaceutical and biotech industries. The acquisition was focused on developing an integrated software platform for customers in the life sciences industry, striving to achieve faster compliance, improved reliability, and better production throughput at the highest levels of quality.
Canada is also witnessing significant growth in the market studied owing to the increasing focus of the Canadian government on the development of the life sciences industry. For instance, data published by the Canadian Government in August 2022 stated that the government took decisive action to ensure access to critical vaccines, therapeutics, and other life-saving medicines by developing a comprehensive strategy to re-build a strong and resilient domestic biomanufacturing and life sciences sector. This initiative by the Canadian government is expected to fuel the life sciences analytics industry in the coming years.
With the life sciences and pharmaceutical companies leveraging support from third-party solution providers in clinical development, trial planning, cohort building, market analytics, and patient analytics, the US market for life science analytics is expected to witness high growth over the forecast period.
