The clinical laboratory services market is projected to grow significantly by 2027 on account of increasing awareness pertaining to early disease detection across the globe.

Clinical laboratories are healthcare institutions that offer various laboratory services to facilitate the diagnosis, treatment, and management of patients. Notably, the COVID-19 pandemic has bolstered emphasis on clinical laboratory testing. Increasing number of COVID-19 cases worldwide has created an enormous demand for rapid and accurate testing to treat and manage viral infections. Rising prevalence of infectious and chronic diseases, coupled with the growing geriatric population, has fostered business outlook in recent years.

Moreover, industry players have been actively employing profitable strategies to accommodate the surging demand for clinical testing and diagnoses worldwide, which has favorably impacted clinical laboratory services market dynamics. For instance, in August 2021, Quest Diagnostics, a U.S.-based clinical laboratory, announced the acquisition of select assets of Nationwide Laboratory Services (NLS), an independent clinical diagnostics laboratory. The deal enabled Quest Diagnostics to expand its diagnostic insights services for a range of medical conditions as well as COVID-19 to communities in South Florida.

To cite another instance, in November 2021, Labcorp, a major life sciences company, announced the establishment of its novel integrated bioanalytical laboratory in Singapore to expand its offerings across the Asia Pacific region. The new laboratory has been equipped with additional capabilities that complement the extensive range of bioanalytical services, which are now provided by Labcorp Drug Development. This has enabled the company to cater to mounting demand from the biotechnology and pharmaceutical industries.

The clinical laboratory services market has been segregated on the basis of service provider, test type, and region. In terms of test type, the market has further been categorized into medical microbiology & cytology, human & tumor genetics, clinical chemistry, and other esoteric tests. The clinical chemistry sub-segment is projected to reach a substantial valuation of around USD 132.6 billion by the end of 2027.

With respect to service provider, the clinical laboratory services market has been classified into clinic-based laboratories, hospital-based laboratories, and stand-alone laboratories. The hospital-based laboratories sub-segment garnered a sizable revenue of USD 123.1 billion in 2020 and is anticipated to progress at a sturdy pace over 2021-2027.

From the regional point of view, the Latin America clinical laboratory services industry registered a market share of nearly 7.6% in terms of revenue in 2020 and is poised to amass considerable gains over the study timeline. Meanwhile, the Middle East & Africa clinical laboratory services market is expected to observe steady growth by 2027, expanding at approximately 2.7% CAGR over the forecast timeframe.