The life science analytics market, one of the most impactful new analytics industries, is projected to reach $42.0 billion by 2025 from $22.1 billion in 2020, at a CAGR of 13.7%.
The COVID pandemic period pushed the market to new horizons, especially since predictive analytics used in this sector drastically increases the speed clinical trials are conducted in.
Growth in the analytics market is mainly driven by technological advancements, big data in the life science industry, and the growing adoption of analytics solutions in clinical trials.
Increased adoption of analytics for sales and marketing applications, the need for improved data standardization, increased prevalence of chronic diseases, and growing pressure to curb healthcare spending also drives this growth.
On the other hand, high implementation costs are expected to restrain the growth of this market to a certain extent.
As business interactions around the world become increasingly digitized, massive amounts of data are created and can be evaluated through predictive analytics tools to give users a better understanding of market dynamics and underlying trends.
The drug development process is one of the most tedious and lengthy in any product. According to Edureka, on average, a pharmaceutical company requires about 12 years and millions of tests to officially release a new drug.
By using advanced modeling and simulations, algorithms can predict how the new drug will react in the body. This can ultimately decrease the number of lab experiments required and overall process time spent on drug development.
Based on type, the life science analytics market is segmented into descriptive, predictive, and prescriptive analytics.
Prescriptive analytics, which makes use of machine learning to help businesses decide a course of action, is expected to have the highest growth rate, according to the report.
On the other hand, the descriptive analytics segment accounted for the largest share of the life science analytics market.
In terms of region, Asia Pacific is expected to record the highest growth rate, while North America accounted for the largest market share in 2019.