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May 2024
The global life science analytics market size is calculated at USD 10.47 billion in 2024, grew to USD 11.27 billion in 2025, and is projected to reach around USD 21.85 billion by 2034. The market is expanding at a CAGR of 7.63% between 2025 and 2034. The growing research and development activities and technological advancements drive the market.
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Data analytics in the life science sector is essential for analyzing vast amounts of data, enabling companies to operate better and faster in a highly regulated landscape. It refers to collecting, analyzing, and interpreting data from the pharmaceutical, biotechnology, and healthcare sectors. It covers every aspect of life science from drug discovery to administering medicines. Life science data analytics has numerous benefits, such as improved decision-making, accelerated research and clinical trial processes, enhanced patient care with better resource allocation, access to disease surveillance, and outbreak prediction. It also manages an organization’s sales or marketing data, allowing companies to take essential measures to improve their sales.
The growing research and development activities in various fields, such as drug discovery, genomics, personalized medicines, proteomics, etc., lead to vast amounts of data, boosting the market. This also results in an increasing number of clinical trials, potentiating the need for data analytics. The rising collaboration between companies also increases the demand for data analytics as it empowers all stakeholders with approachable analytics. Technological advancements streamline the entire data analytics process, providing exceptional outcomes. The increasing investments in the healthcare or life science sectors also potentiate market growth.
Artificial intelligence (AI) and machine learning (ML) algorithms have immense potential to revolutionize data analytics. ML facilitates the handling of large datasets, reducing the burden on researchers. Deep learning algorithms can analyze numerous medical images and detect early signs of disease or predict disease outcomes in the future. Natural language processing (NLP) can help extract data from unstructured sources, improving clinical decision-making and accelerating research. AI and ML can standardize data entry processes, reducing manual errors. They can also streamline the entire regulatory process through automated compliance monitoring tools. Thus, AI and ML offer a diverse range of services, including streamlining data collection and processing, ensuring data quality and consistency, improving data integration and accessibility, enhancing security, and maximizing efficiency with limited resources.
Growing Drug Discovery Research
The major growth factor of the life science analytics market is the growing drug discovery research. The rising incidences and prevalence of chronic disorders due to the increasing geriatric population globally favor the development of novel drugs or biologics. Data analytics play a vital role in drug discovery and development due to the need to handle large, complex datasets. It aids researchers in identifying the potential biological targets and genetic data. It also helps to screen millions of compounds from datasets to find the most promising candidate for further testing. It can also detect the safety and efficacy of drugs through seamless biological data analysis. Hence, data analytics in drug discovery accelerates the time-to-market of drugs and significantly reduces cost. This enables key players to strengthen their position in the market and stay competitive.
Lack of Domain-Specific Solutions
The major challenge faced by the market is the lack of domain-specific solutions. Several data analytics companies provide generalized solutions for diverse fields within the life sciences sector. Such services fail to address domain-specific problems and provide irrelevant or incomplete insights, restricting the market.
Cloud Computing
The future of the life science analytics market is promising, driven by the advent of cloud computing. Cloud computing refers to delivering computing services and offers scalable computing power and storage solutions. This makes managing and analyzing large datasets easier. It is estimated that 57.1% of healthcare and life sciences organizations acknowledge data as a crucial business asset, necessitating the use of cloud computing. It eliminates the need for suitable infrastructure to install a device. Cloud computing facilitates the user to access data from anywhere and at any time through multiple devices. This enables researchers to collaborate across different locations globally, driving global innovation in life science research. Cloud-based tools integrate diverse data sources such as electronic health records, genomics data, and lab results.
By component, the services segment held a dominant presence in the life science analytics market in 2024 and is expected to grow at the fastest rate in the market during the forecast period. Numerous data analytics companies offer services to help life science companies optimize their processes and grow their businesses. They have deep industry expertise to understand and solve nuanced challenges. The advent of cutting-edge technologies such as AI and ML enables them to provide advanced services. The availability of affordable services and the lack of skilled professionals in certain organizations to handle large amounts of data boost the segment’s growth. Opting for data analytics services allows life science companies to focus on their sales and business outcomes.
By type, the descriptive segment held the largest share of the life science analytics market in 2024. Descriptive analytics summarizes and interprets historical data to identify patterns and relationships. It is most widely preferred as it provides detailed data about sales, productivity, and customer needs. It helps life science companies increase their sales and revenue by analyzing previous business data. The growing collaborations among life science companies and increasing market competitiveness augment the segment’s growth. The rising number of pharma and biotech startups also increases the demand for descriptive analytics. It is essential to build core competencies before advancing upward in the data analytics maturity model.
By type, the predictive segment is anticipated to grow with the highest CAGR in the life science analytics market during the studied years. Predictive analytics involves the use of data, statistics, and machine learning algorithms to predict and plan future outcomes. Around 66% of life science companies globally use AI and ML to enhance their business operations, including compliance improvement and supply chain transformation. Predictive analytics predicts maintenance issues, identifies potential fraud, and avoids customer churn by identifying signs of customer dissatisfaction.
By application, the sales & marketing support segment led the global life science analytics market in 2024. Data analytics leverage insights from customer data and provide personalized marketing strategies. This helps them to meet customer requirements and enhance customer engagement. Data analytics helps life science companies make informed decisions by analyzing customer data and market trends. The increasing number of life science companies and rising investments promote the segment’s growth. It is estimated that there are more than 64,000 life science companies globally.
By application, the research and development segment is projected to expand rapidly in the life science analytics market in the coming years. Data analytics streamline the research, accelerating the process and reducing overall cost. It can analyze millions of scientific publications and identify emerging trends or potential drug interactions, accelerating discovery. The growing research and development activities to develop novel therapeutics, diagnostics, and medical devices potentiate the segment’s growth. Favorable regulatory frameworks and increasing investments drive the latest innovations in life science research.
By delivery, the on-demand segment registered its dominance over the global market in 2024 and is predicted to witness the fastest growth in the market over the forecast period. On-demand data analytics is a service that allows users to access data analytics while controlling costs and deadlines. The growing demand for personalized services for improving business outcomes fuels the segment’s growth. Data analytics services are only provided upon request and provide insights into customer needs for particular products and services. The rising need for increasing access from remote locations with reduced costs and maintenance also increases the demand for on-demand analytics.
By end-user, the pharmaceutical segment held the major share of the life science analytics market in 2024. Pharmaceutical companies utilize data analytics for various applications such as drug discovery, clinical trials, manufacturing, supply chain management, and regulatory compliance. The growing drug discovery research and the increasing number of clinical trials support the segment’s growth. Every year, thousands of clinical trials are initiated globally. Patient recruitment and detailed analysis of patient health data result in vast amounts of data, necessitating data analytics for pharmaceuticals.
By end-user, the biotechnology segment is estimated to show the fastest growth in the market over the forecast period. Data analytics is essential to analyze large volumes of biological data generated from experiments, enabling researchers to identify patterns and make informed decisions. The burgeoning biotechnology sector and the increasing number of startups propel the segment’s growth. The segmental growth is also attributed to the growing demand for biologics and personalized medicines and rising genomics research.
North America dominated the global life science analytics market share by 51% in 2024. Favorable regulatory frameworks and technological advancements drive the market. The state-of-the-art research and development activities and new product launches promote the use of data analytics tools for managing complex data. The presence of key players such as Clarivate plc, IQVIA, NVIDIA, and Oracle holds a major share of the market in North America. The increasing number of life science companies also contribute to market growth. There are more than 7,000 life science companies in the U.S. and more than 2,000 life science companies in Canada. The increasing investments by government and private organizations for R&D activities and rising collaborations and mergers & acquisitions promote the market.
Asia-Pacific is projected to host the fastest-growing market in the coming years. The rising incidences and prevalence of chronic disorders lead to growing research and development activities, potentiating market growth. The burgeoning pharma and biotech sectors in Asia-Pacific countries, owing to increasing investments boost the market. The Chinese government invested $52 billion in science and technology in 2024. Similarly, the Japanese and Indian governments announced an investment of Yuan 297.7 billion in fiscal year 2024 and Rs 28,508 crore in 2025-26, respectively. The rising adoption of advanced technology to provide cutting-edge solutions increases the demand for data analytics.
Frank Lane, Senior Vice President and Head of Data Orchestration at Trinity Life Sciences, commented that due to a lack of advanced data orchestration, many life science organizations are now data-rich but insights-poor. In order to leverage the power of data to drive customer engagement strategies, direct tactical sales and marketing efforts, and facilitate global collaboration across business units to better serve the market, he continued, the pharmaceutical data ecosystem is intricate and needs specific expertise.
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May 2024
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