Europe LIMS Market by Mode of Delivery [On-premise, Cloud], Component [Service, Software], Type [Multi-purpose, Purpose-built], End User [Life Science, Food & Beverage, Petrochemical, Oil & Gas, Chemical, Environmental Industry) - Forecast to 2030

The Europe LIMS Market is expected to grow at a CAGR of 7.3% from 2024 to 2030 to reach $527.5 million by 2030. A laboratory information management system (LIMS) is a software-based solution that integrates instruments, automates workflows, and manages samples and associated information. It helps to improve lab productivity and efficiency. The COVID-19 pandemic acted as a catalyst for the digitalization of laboratories. The pandemic brought unprecedented demand for innovative LIMS to pave the way for digital transformation. This avoided a complete shutdown, and the laboratory technicians could continue their work without interruptions. The pandemic also accelerated the adoption of secure cloud-based LIMS solutions for efficient remote-based working.

The growth of this market is driven by factors such as increasing R&D activities and government initiatives, the growing use of automation in laboratories, technological advancements in laboratory informatics solutions, and the rising need to comply with regulatory frameworks. However, cost constraints are restraining the market’s growth.

The increasing adoption of cloud-based LIMS is expected to offer significant market growth opportunities. However, the migration from legacy LIMS to new systems and data security & privacy concerns pose a major challenge to the market’s growth.

Increasing R&D Activities and Government Initiatives is Driving the Market Growth

R&D is crucial for drug discovery and development, driving the demand for efficient lab and data management. The growing number of organizations involved in R&D are shifting from traditional old systems to digital laboratory solutions. Laboratory informatics solutions allow researchers to capture the experiment process, relevant data, and conclusions drawn while facilitating a searchable repository of experimental data that researchers can access for effective collaboration.

According to the Federal Statistical Office, Statistisches Bundesamt data, in Germany, research and development spending was USD 133.2 billion (112.6 billion) in 2021, an increase of upto 5.6% compared to the previous year. Furthermore, according to the European Commission data, in 2021, the highest R&D intensity was recorded in Sweden (3.35%), followed by Austria (3.22%) and Belgium (3.19%). The remaining highest ratios were observed in Germany (3.13%), Finland (2.98%), and Denmark (2.81%).

The European Commission’s new framework, Horizon 2020, is the largest-ever research and innovation program in Europe for various fields, including life sciences, with a budget of USD 95 billion (EUR 77 billion) from 2014 to 2020. Horizon 2020 opened funding opportunities for future and emerging technologies and the ICT Work Programme for life science researchers. Thus, increasing R&D activities and government funding will ultimately boost the demand for effective data management and drive the laboratory informatics market in Europe.

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Cloud-based LIMS Create an Opportunity for the Market

There is an exponential rise in the adoption of cloud-based LIMS due to their advantages, such as low upfront and maintenance costs, real-time analysis, easy integration with other systems & software, easy access to data from any location, internal and external sharing of data, flexibility, reliability, and scalability. In addition to large industries shifting their systems to cloud-based solutions for storage and data accessibility within the organization and at multiple geographic locations, cloud models are increasingly adopted by small to medium-sized businesses for their user-friendliness and cost-effectiveness. Growing awareness of the benefits of open platforms and most industries’ increasing focus on interoperability and collaborative solution design drive the demand for vertically integrated cloud platforms. These platforms provide data access to multiple stakeholders willing to share the risks and rewards of shared data assets.

Cloud-based solutions are increasingly becoming more secure than on-premise infrastructure, delivering better data backup and disaster recovery outcomes. The increasing confidence in cloud platforms, the wide availability of cloud-based informatics, and organizations’ increasing need to reduce costs, improve workflows, and leverage meaningful business intelligence are propelling the adoption of cloud-based informatics solutions, including cloud-based LIMS. Most start-ups in this segment are launching cloud-based offerings to leverage growth opportunities in this segment. In contrast, most leading players focus on adding cloud offerings to their product & service portfolios. For instance, in April 2022, JusticeTrax, Inc. (U.S.), a provider of forensic LIMS, launched the JusticeTrax Cloud initiative, a cloud-based solution. This solution provides enhanced security, guaranteed service availability, and faster deployment of product updates.

Key Findings in the Europe LIMS Market Study:

Among the Mode of Deliveries, the Web and Cloud-based LIMS Segment is Expected to Account for the Largest Share of the Market in 2024

The web and cloud-based LIMS offer real-time analysis capabilities of web and cloud-based LIMS, easy access to data, the ability of internal and external data sharing, cost-effectiveness, and scalability, owing to which they are preferred over the on-premise alternative.

Among the Offerings, the Software Segment is Expected to Account for the Largest Share of the Market in 2024

Software helps in efficient decision-making through advanced technologies, improved data and report quality, regulatory compliance, easy data accessibility, and better data storage. The large market share of this segment is attributed to advancements in software offerings, the growing need to integrate LIMS software into existing laboratory systems, increasing awareness about lab informatics, and the decreasing cost of informatics solutions.

The Purpose-built LIMS Segment is Projected to Grow at the Highest CAGR over the Forecast Period

Purpose-built LIMS is specifically designed to address the needs of specific industries such as pharmaceutical manufacturing R&D, food & beverage, oil & gas, and QA/QC testing laboratories. Minimized project risks, simpler system upgrades, and enhanced compliance will likely enhance the demand for purpose-built LIMS, contributing to the largest share of this segment.

Among the End Users, the Life Sciences Segment is Expected to Account for the Largest Share of the Market in 2024

The large market share of this segment is attributed to the rise in R&D activities in pharmaceutical industries, the high adoption of LIMS in life science laboratories, and increased concerns over data integrity, validity, and security due to regulatory pressures, cost efficiency, and enhanced productivity. Furthermore, the availability of funding for adopting advanced technologies contributes to the growth of this market segment.

Among the European Countries Included in the Report, Germany is Estimated to be the Largest Market in 2024

The large market share of Germany is primarily attributed to factors such as high inclination towards the adoption of advanced technologies, increasing automation in research laboratories, increasing government funding for research activities, growing demand for cost-effective workflow management systems, stringent government regulations mandating the use of data management systems across various industries, and a strong presence of large pharmaceutical and biotechnology companies.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market players in the past few years. The key players profiled in the Europe LIMS market report are Siemens AG (Germany), Dassault Systèmes (France), Autoscribe Informatics (U.K.), LabWare, Inc. (U.S.), Thermo Fisher Scientific Inc. (U.S.), LabVantage Solutions Inc. (U.S.), Agilent Technologies, Inc. (U.S.), STARLIMS Corporation (U.S.), Illumina, Inc. (U.S), Novatek International (Canada), Accelerated Technology Laboratories, Inc. (U.S.), Labii Inc. (U.S.).

Scope of the Report:

Europe LIMS Market Size & Trend Analysis, by Mode of Delivery

• Web and Cloud-based LIMS
• On-premise LIMS

Europe LIMS Market Size & Trend Analysis, by Offering

• Software
• Services

Europe LIMS Market Size & Trend Analysis, by Type

• Multi-purpose LIMS
• Purpose-built LIMS

Europe LIMS Market Size & Trend Analysis, by End User

• Life Sciences
  • Pharmaceutical & Biotechnology Companies
  • Academic & Research Institutes
  • Biobanks & Biorepositories
  • Contract Research Organizations (CROs)
  • Other Life Sciences End Users
• Food & Beverage Industry
• Chemical Industry
• Petrochemicals and Oil & Gas Industries
• Environmental Testing Laboratories
• Other End Users
  (Notes: 1. Other life sciences end users include hospitals, medical device companies, diagnostic laboratories, and toxicology testing laboratories.
           2. Other end users include forensic laboratories, mining & metal laboratories, and contract manufacturing organizations (CMOs).)

Europe LIMS Market Size & Trend Analysis, by Geography

• Germany
• U.K.
• Italy
• Spain
• France
• Switzerland
• Benelux
• Belgium
• Rest of Europe

Key questions answered in the report: