Laboratory Information Systems Market to Surpass USD 10.6 Billion by 2035, Expanding at a CAGR of 12.5% from 2025 to 2035

The global Laboratory Information Systems (LIS) Market (https://www.transparencymarketresearch.com/laboratory-information-systems.html)is witnessing a transformative phase driven by rapid digitalization, laboratory automation, and increasing integration with hospital and clinical management systems. Valued at US$ 3.3 billion in 2024, the market is projected to cross US$ 10.6 billion by 2035, expanding at a compound annual growth rate (CAGR) of 12.5% from 2025 to 2035. This remarkable growth trajectory reflects the mounting demand for real-time data management, workflow efficiency, and interoperability across healthcare and life sciences sectors.

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Analysts' Viewpoint

The growth of the Laboratory Information Systems market is deeply intertwined with the increasing complexity of clinical diagnostics, the rising number of diagnostic tests, and the global emphasis on healthcare automation. Analysts point out that laboratory automation, cloud adoption, and integration with Electronic Health Records (EHRs) are among the major trends driving the industry forward.

Moreover, the expansion of personalized medicine and the growing importance of precision diagnostics have made efficient data handling a critical requirement in modern laboratories. As a result, LIS platforms are evolving from simple data repositories into comprehensive, AI-enhanced, cloud-integrated systems capable of providing actionable insights to clinicians and researchers.

Market Drivers

Growing Need for Laboratory Automation and Workflow Efficiency
Automation has become a cornerstone in laboratory operations as the volume of diagnostic tests and research samples continues to increase exponentially. Manual data entry and traditional workflows no longer meet the demands for accuracy, speed, and compliance in modern laboratories.

Laboratory Information Systems automate critical functions such as sample tracking, test scheduling, data entry, and result reporting, thereby reducing human errors and enhancing productivity. Automation also allows laboratories to standardize workflows across multiple sites, improving scalability and resource utilization.

Clinical and public health laboratories, in particular, are focusing on automation to handle high-volume testing and time-sensitive reporting. This growing dependence on automation to enhance turnaround times and ensure quality assurance continues to be a primary growth catalyst for the LIS market.

Integration with Electronic Health Records (EHRs)

Integration between LIS and EHRs is becoming increasingly vital for streamlined patient care and improved decision-making. A well-integrated LIS-EHR ecosystem enables seamless data exchange between laboratories and healthcare providers, minimizing the risk of manual errors and ensuring timely access to test results.

Such integration allows for automated test ordering, real-time result updates, and better coordination across departments, fostering an interconnected healthcare ecosystem. This not only enhances diagnostic accuracy but also supports regulatory compliance, particularly in markets governed by frameworks such as HIPAA, CLIA, and the HITECH Act.

Furthermore, EHR-LIS integration is a critical component of connected care systems, enabling healthcare providers to access comprehensive patient data at the point of care. This capability enhances clinical decision-making and facilitates value-based healthcare models.

Expansion of Cloud-Based LIS Solutions
Cloud-based LIS platforms are reshaping the market landscape by offering laboratories scalable, cost-efficient, and flexible solutions. Cloud deployment models allow laboratories to minimize infrastructure costs while enhancing data accessibility and remote management.

The adoption of Software-as-a-Service (SaaS) LIS platforms also enables continuous updates, better security, and real-time data backup, ensuring system reliability and business continuity. Emerging markets, where cost and IT resource constraints limit the adoption of traditional on-premise systems, are especially benefiting from cloud-based LIS offerings.

As artificial intelligence and machine learning are increasingly embedded into LIS systems, cloud-based solutions are expected to dominate future implementations, driving the next wave of digital transformation in healthcare laboratories.

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Market Segmentation Overview

By Product

Integrated LIS (Dominant Segment):
The integrated LIS segment holds the largest market share due to its ability to unify multiple laboratory operations-ranging from sample management to billing-within a single system. Large hospitals, diagnostic networks, and research institutes prefer integrated platforms for centralized operations, data consistency, and better compliance management.
Standalone LIS:
Standalone systems are typically used by smaller laboratories or specialized testing facilities that require independent systems with specific functionalities. However, this segment is gradually losing ground to integrated and cloud-based models.

By Delivery Mode

On-premise
Cloud-based (fastest growing)
Web-based

By Component

Software
Services

By End-user

Hospital Laboratories
Independent Laboratories
Physician Office Laboratories
Others

Competitive Landscape

The global LIS market is characterized by a mix of established technology providers and emerging innovators offering specialized and modular systems. Key players include:

Thermo Fisher Scientific Inc., Siemens, LabVantage Solutions Inc., LabWare, Oracle, STARLIMS Corporation, Autoscribe Informatics, Illumina Inc., CloudLIMS, McKesson Medical-Surgical Inc., LabLynx, NovoPath, LABTRACK, and Ovation.

These companies focus on strategic acquisitions, partnerships, and product innovations to enhance interoperability, cloud integration, and AI capabilities.

Recent Industry Developments

July 2025: Clinisys acquired Orchard Software from Francisco Partners, strengthening its position in the global LIS market. This acquisition combines two industry leaders and expands their collective capabilities in scalable and flexible informatics solutions.
December 2022: CompuGroup Medical US (CGM) acquired Medicus Laboratory Information Systems to broaden its U.S. market presence. Medicus, a trusted LIS developer for over 15 years, adds robust laboratory management software and middleware expertise to CGM's portfolio.
Conclusion

The Laboratory Information Systems Market is on a strong growth trajectory, driven by the global push toward automation, digitization, and interoperability in healthcare. The market's value is expected to triple by 2035, reaching over US$ 10.6 billion, underpinned by rapid advancements in cloud technology, AI-driven analytics, and EHR integration.

As laboratories continue to modernize and regulatory pressures increase, LIS solutions will remain at the heart of healthcare transformation-enhancing efficiency, data accuracy, and patient outcomes worldwide.

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