Laboratory Information System Market Outlook
The global laboratory information system (LIS) market reached a value of USD 2.10 billion in 2024. Aided by the increasing digitalisation of healthcare facilities, rising demand for efficient data management in laboratories, and the growing need for automation in diagnostic processes, the market is anticipated to grow at a CAGR of 9.00% between 2025 and 2034 to reach a value of USD 4.97 billion by 2034.
A laboratory information system (LIS) is a software-based solution designed to manage, record, and store data related to medical laboratory operations. It facilitates the tracking of laboratory samples, patient demographics, test orders, and diagnostic results, streamlining workflows and improving the quality and accuracy of lab testing. The growing complexity of laboratory procedures and the rising volume of diagnostic tests being performed globally have significantly increased the need for robust and efficient information systems, thereby supporting the growth of the laboratory information system market.
Laboratory Information System Market Size
The global laboratory information system market has experienced consistent expansion, driven by a combination of technological innovation, rising healthcare expenditure, and the need for improved operational efficiency in clinical laboratories. The market was valued at USD 2.10 billion in 2024, with North America currently accounting for a significant share due to its advanced healthcare infrastructure and high adoption rates of digital health solutions. As healthcare systems across the world continue to modernise and place greater emphasis on patient safety, data transparency, and rapid diagnosis, the LIS market is expected to witness accelerated growth.
By 2034, the market is projected to almost double in size, reaching an estimated value of USD 4.97 billion. This growth will be supported by increasing government initiatives to promote electronic health record (EHR) adoption, the expansion of diagnostic laboratories, and the rising demand for integrated healthcare solutions that enhance clinical decision-making.
Laboratory Information System Market Share
The laboratory information system market is composed of various segments based on product type, delivery mode, component, and end-user. Among these, standalone LIS software holds a significant share, although integrated LIS solutions are gaining traction due to their compatibility with other hospital systems, including EHRs and radiology information systems (RIS).
Based on delivery mode, web-based and cloud-based LIS solutions are becoming increasingly popular, especially among smaller and mid-sized laboratories, due to their lower upfront costs, scalability, and ease of access. However, on-premise LIS systems still maintain a stronghold in large healthcare facilities that require greater control over data security and system customisation.
In terms of end-users, hospitals dominate the market owing to their high patient volumes and complex diagnostic needs. Diagnostic laboratories, blood banks, and academic institutes also represent key user segments, contributing significantly to the overall market share.
Request your free report sample now and see the contents firsthand – https://www.expertmarketresearch.com/reports/laboratory-information-system-market/requestsample
Laboratory Information System Market Trends
One of the prominent trends shaping the laboratory information system market is the integration of artificial intelligence (AI) and machine learning (ML) capabilities into laboratory workflows. These technologies enhance data interpretation, improve diagnostic accuracy, and automate routine tasks, thereby reducing manual errors and turnaround times. AI-powered LIS solutions are especially beneficial in managing large volumes of test data and identifying patterns that support clinical decision-making.
Another important trend is the rise of cloud-based LIS systems. As healthcare organisations strive to reduce infrastructure costs and enhance remote access to lab data, cloud deployment has emerged as a preferred model. Cloud-based LIS also facilitates seamless collaboration between different healthcare providers, improving patient care coordination and test result accessibility.
Interoperability is also gaining attention in the LIS market. Healthcare institutions are increasingly investing in solutions that support data sharing across multiple platforms, such as LIS, EHRs, and laboratory automation systems. This integration promotes continuity of care and streamlines laboratory operations.
Moreover, there is a growing focus on compliance with global regulatory standards such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States and the General Data Protection Regulation (GDPR) in the European Union. As regulatory scrutiny intensifies, LIS vendors are enhancing their systems to ensure secure and compliant data management.
Drivers of Growth
The primary factor driving the growth of the laboratory information system market is the increasing demand for efficient data handling and automation in laboratories. With the rise in chronic diseases and an ageing population, the volume of diagnostic testing has surged, necessitating the implementation of digital systems that can manage complex data sets and streamline operations.
Technological advancements in the healthcare IT sector are also contributing to market expansion. Features such as automated sample tracking, real-time data analysis, and advanced reporting capabilities are transforming the way laboratories function, enhancing both productivity and accuracy.
The growing emphasis on personalised medicine and precision diagnostics is another key growth driver. As laboratories seek to process and interpret vast volumes of genetic and molecular data, LIS solutions provide the digital backbone for managing these sophisticated workflows. The integration of LIS with genomic data analysis platforms is opening new possibilities in disease diagnosis and treatment planning.
Furthermore, the global response to infectious disease outbreaks such as COVID-19 has highlighted the importance of robust laboratory infrastructure. Governments and healthcare organisations are investing heavily in diagnostic preparedness, driving demand for LIS solutions that ensure efficient test result management, scalability, and reporting capabilities.
Industry Analysis
The laboratory information system industry is marked by high levels of innovation, consolidation, and strategic collaborations. Leading companies in the market are continuously enhancing their product offerings through the incorporation of advanced technologies and user-centric design. Notable players include Cerner Corporation, Sunquest Information Systems Inc., LabWare Inc., McKesson Corporation, and Orchard Software Corporation.
Mergers and acquisitions have become a common strategy among vendors seeking to expand their market presence and improve their technological capabilities. Partnerships between LIS providers and healthcare IT companies are also on the rise, aimed at developing integrated, end-to-end solutions for hospitals and laboratories.
The industry is also witnessing a shift towards user-friendly interfaces and customisable modules that can adapt to the specific needs of different types of laboratories. As customer expectations evolve, vendors are focusing on enhancing the overall user experience and providing scalable solutions that can grow with the laboratory’s needs.
Laboratory Information System Market Segmentation
The market can be divided based on component, product, delivery mode, end user and region.
Market Breakup by Component
- Services
- Software
Market Breakup by Product
- Standalone LIS
- Integrated LIS
Market Breakup by Delivery Mode
- On-Premise
- Cloud-Based
Market Breakup by End User
- Hospital Laboratories
- Independent Laboratories
- Physician Office Laboratories
- Others
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Competitive Landscape
Some of the major players explored in the report by Expert Market Research are as follows:
- Orchard Software Corporation
- Sunquest Information Systems, Inc.
- Cerner Corporation
- Computer Programs and Systems, Inc.
- CompuGroup Medical SE and Co. KGaA
- Medical Information Technology, Inc.
- SCC Soft Computer
- Epic Systems Corporation
- Comp Pro Med Inc.
- American Soft Solutions Corp.
- Allscripts Healthcare Solutions
- Meditech
- Aspyra
Challenges and Opportunities
Despite its strong growth prospects, the laboratory information system market faces several challenges. One of the major barriers is the high cost of deployment, particularly for small and medium-sized laboratories. The implementation of a full-featured LIS often involves significant capital investment, along with training and maintenance expenses.
Data privacy and cybersecurity concerns also pose significant challenges. As LIS systems store and manage sensitive patient information, ensuring robust data protection and compliance with global data privacy laws is critical. A breach in data security can have severe legal and reputational consequences for healthcare institutions.
Another challenge is the lack of standardisation and interoperability among various healthcare IT systems. Disconnected systems can hinder data exchange and complicate workflows, undermining the potential benefits of LIS integration.
Nonetheless, the market is ripe with opportunities. Emerging markets in Asia-Pacific, Latin America, and the Middle East are witnessing increased healthcare investments and digital transformation efforts, presenting new growth avenues for LIS vendors. The rising adoption of telemedicine and remote diagnostics is also boosting the demand for LIS platforms that support virtual workflows and remote data access.
As precision medicine gains traction, LIS systems that offer integration with next-generation sequencing platforms and bioinformatics tools will be in high demand. Vendors that can offer modular, AI-enabled, and interoperable solutions will be well-positioned to capitalise on these emerging trends.
Laboratory Information System Market Forecast
Looking ahead, the global laboratory information system market is expected to maintain a strong upward trajectory, driven by technological innovation, increasing diagnostic needs, and the ongoing transformation of healthcare infrastructure. With a projected CAGR of 9.00% during 2025-2034, the market is set to reach a value of USD 4.97 billion by the end of the forecast period.
As healthcare providers continue to prioritise data accuracy, patient safety, and operational efficiency, the demand for advanced LIS solutions will grow significantly. Vendors that focus on delivering secure, scalable, and user-friendly systems will gain a competitive edge in a rapidly evolving market landscape.
Media Contact:
Company Name: Claight Corporation
Email: sales@expertmarketresearch.com
Toll Free Number: +1-415-325-5166 | +44-702-402-5790
Address: 30 North Gould Street, Sheridan, WY 82801, USA
Website: http://www.expertmarketresearch.com