Life Science Software Market Size, Share & Industry Analysis, By Deployment (Cloud and On-premise), By Application (Preclinical and Clinical Trials, Supply Chain Management, Research and Development, Commercial Engagement and Branding, Pharmacovigilance, and Regulatory Compliance), By End-user (Biotechnology and Pharmaceutical Companies, Medical Research Centers, Medical Device Companies, and Others), and Regional Forecast, 2024-2032

The global life science software market size was valued at USD 14.70 billion in 2023, and is projected to grow from USD 16.11 billion in 2024 to USD 36.25 billion by 2032, exhibiting a CAGR of 10.7% during the forecast period. North America dominated the global market with a share of 35.31% in 2023.

Life science software refers to a solution that can capture patient data, pharma-related data, and clinical evidence collection tools, and others, aiding life sciences laboratories and enterprises to automate their procedures and manage and store data in their workflows more efficiently. It helps life sciences enterprises enhance the importance of life science tools across the supply chain, simplify partnerships with contract manufacturers, fulfill quality rules and guidelines, and increase inventory management.

With the adoption of this software, life science enterprises find it flexible to structure trials that minimize patient and investigator liability while also creating evidence that showcases value to a range of stakeholders. Hence, the life science industry is experiencing a surge in investments, mergers and acquisitions, and partnerships deals across the globe. For instance,

• As per Industry Specialists’ Report 2024, the worldwide life sciences sector has embraced a huge surge in deal-making, with M&A (mergers and acquisitions) investment totaling USD 191 billion till 10^th December 2023, in comparison with USD 142 billion in 2022.

The COVID-19 pandemic disruptions accelerated digital renovation and the pace of digital transformation in the life sciences sector. It pushed life sciences enterprises to fast-track the implementation of digital manufacturing capabilities, to run manufacturing with fewer employees, and to make use of modernized technologies such as machine learning and AI to monitor, analyze, and actively modify production processes and supply necessities. Thus, the pandemic helped accelerate the life science software market growth.

Impact of Generative AI

Advanced Features of Generative AI Technology in Life Science Software to Fuel the Market Growth

Generative AI holds huge potential to transform marketing teams in the life sciences industry. It enables hyper-customized content at scale and accurate evaluation of sales efficiency. These AI models, such as VAEs (variational autoencoders) and GANSs (generative adversarial networks), can be adopted to design drug-like molecules with anticipated properties, such as great binding similarity to low toxicity or a target protein. Moreover, generative AI can be used to develop synthetic gene orders for uses in synthetic biology, such as generating new biosynthetic trails or improving gene appearance for bio-manufacturing determinations. Other implementations of generative AI models in life sciences include the imputation of missing data amplification for model training and many more. Such advanced applications of generative AI are enhancing its usage across life science enterprises. For instance,

• According to Industry Experts, approximately over 90% of medtech and biopharma companies expect generative AI to have a positive impact on their business in coming years. A majority of life sciences firms (~66%) are using generative AI to test ideas and develop use cases.

Such increasing usage and implementation of generative AI in life science software fuels the market growth.

Life Science Software Market Trends

Usage of Data Analytics in Life Science Software to be the Market Trend

The usage of data analytics in life science software helps accelerate scientific invention to bring theories to the market, facilitate analytical decision-making and partnership in a complex ecosystem, offer transparent and valuable insights in a vastly regulated environment, and provide many other benefits.

Applied AI has updated the life sciences value chain, enabling the formulation of precise business decisions depending on data the enterprise has developed or assimilated. Moreover, cloud and industrialized ML enable life sciences firms to implement new AI methodologies more consistently at a rapid pace and greater scale, fast-tracking tech-driven invention.

• According to Industry Experts, Life sciences enterprises make around 45% of their technological investments in these prominent analytics-linked technologies such as applied AI, industrialized machine learning (ML), and edge and cloud computing and anticipate harnessing most of their short- to medium-term advantages from them.

Such added benefits of data analytics generate numerous business opportunities and set the trend in the market.

Life Science Software Market Growth Factors

Implementation of Marketing Automation to Drive the Market Growth

To increase their presence and acquire a new customer base, life sciences enterprises desire to win new potential customers, as it is essential for them to stay on the lead of changing marketing trends in the market. In addition, the pandemic has renovated how businesses market their brands, services, and products, i.e., through emerging marketing tactics such as digital marketing.

By setting up automated email tracking and workflows, enterprises can initiate emails to be sent to potential prospects after they have engaged in a specific action (e.g., downloaded a particular piece of content). Marketing automation solutions also offer vendors several progressive tools, such as a solo platform for analytics and dashboarding, closed-loop recording, and gathering and storing data.

Moreover, precise data-driven methodology can help create higher-quality leads, minimize customer churn rate, enhance customer engagement, and deliver a superior customer experience. For instance,

• As per industry experts, advancing commercial practices has helped top biopharma companies gain an additional USD 1 billion in revenue in modern times.

Other benefits of the implementation of automated marketing include tailored and personalized content at scale to engage prospects in a more effective manner. In addition, it helps to make sure that marketing and overall sales are on the same path. It also nurtures leads more effectively and efficiently, among many others. Hence, various life science software vendors are developing solutions with marketing and commercialization to boost revenues. For instance,

• In September 2022, Veeva Crossix announced the launch of two new solutions to enhance omnichannel marketing for life sciences companies. HCP Trigger Data associates customers’ engagement with a company’s website with their HCP (healthcare professional) visits. It offers an all-inclusive perspective of patient engagement and HCP across promotional and field channels.

Such marketing automation features enhance software productivity and aid businesses in gaining better sales and revenues.

RESTRAINING FACTORS

Increasing Cyberattacks and Data Breach Attacks May Hamper the Market Growth

Although data loss from insiders, or insider risk, is prevalent across all sectors, it is exclusively destructive for enterprises in the life sciences industry. These firms handle a huge amount of sensitive data, such as patient information, formulations, product designs, trial outcomes, and manufacturing particulars. Protecting delicate data from illegal access is essential to maintaining an economic edge and ensuring uninterrupted business functions. Its non-adherence results in expensive lawsuit procedures and reputational harm.

Thus, life sciences enterprises, such as medical device manufacturers, pharmaceutical companies, and biotech companies, are experiencing increased rates of insider-based data loss. For instance,

• According to IBM’s Data Breach Report 2023, pharmaceutical and healthcare data breaches cost an average of USD 4.82 million, one of the highest across several sectors.

Such loss of higher costs in the life sciences sector hampers the market growth.

Life Science Software Market Segmentation Analysis

By Deployment Analysis

Data Control Offered by Cloud Deployment to Foster the Segment Expansion

Based on deployment, the market is bifurcated into cloud and on-premise.

The cloud deployment is anticipated to grow with the highest CAGR during the forecast period. Cloud-based deployments allow users to operate on huge datasets, such as genome sequence datasets, in actual time with the surge in the level of automation. It also enables the utilization of the power of modern computing. Thus, enterprises are increasing the number of cloud deals and investments in the life science sector. For instance,

• In November 2023, Accenture and Salesforce collaborated to aid life sciences firms in developing a Salesforce life science cloud driven by AI and data. Both firms are investing in the progression of Salesforce's Life Sciences Cloud, which will feature new modernizations, assets, and accelerators empowered by artificial intelligence and data.


• As per Industry Experts, in 2021, more than 80% of the leading 20 worldwide pharma and medtech companies were functioning in the cloud.

By Application Analysis

Enhancement of Clinical Functions by Using the Solution to Impel the Preclinical and Clinical Trials Segment Growth

By application, the market is categorized into preclinical and clinical trials, supply chain management, research and development, commercial engagement and branding, pharmacovigilance, and regulatory compliance.

The preclinical and clinical trials segment accounted for the largest market share in 2023. Implementation of life science software in clinical trials helps users enhance clinical functions, save time and unify data, fast-track study with incorporated workflows, simplify trial supply and randomization management, and much more. Such benefits contribute to the growth of the preclinical and clinical trials segment.

The research and development segment is anticipated to grow with the highest CAGR during the period. Increasing investments in research and development in pharmaceuticals and biotechnology companies cater to the segment’s growth. For instance,

• As per an Industry Experts’s Study in 2021, venture funding in the U.S. digital healthcare sector accounted for around 30% after the COVID-19 pandemic.

By End-user Analysis

Higher Strategic Investments in Biotechnology and Pharmaceutical Companies to Drive the Segment Growth

Various end-users of life science software include biotechnology and pharmaceutical companies, medical research centers, medical device companies, and others (genomics and others).

The biotechnology and pharmaceutical companies segment accounts for the largest revenue share in the market and is projected to grow with the highest CAGR during the forecast period, owing to a rise in strategic investments in these companies. The increasing investments help these companies in various aspects, such as the development of new drugs, commercialization of new products, new innovations, and many more. For instance,

• According to Industry Experts Data 2023, as of December 2023, biopharma and pharma services companies together accounted for 279 strategic investments and 344 strategic investments in 2022 and 2021, respectively.

Life science software offers various benefits to medical device companies, medical research centers, and others, such as maximizing revenue growth, enhancing proficiency, and exploring better solutions for medical device companies, actual-time results, improving customer experience, and reducing compliance costs. The software helps these medical device companies enhance their productivity, enforce procedure standards over manufacturing, and fast-track time to market their products and solutions, thereby contributing to the progress of software across companies.

REGIONAL INSIGHTS

The market has been analyzed by regions: North America, Europe, the Asia Pacific, the Middle East & Africa, and South America.

North America held the largest market share in 2023, owing to the huge presence of life sciences companies headquartered in the U.S. The country is the topmost investment target of the globe’s biggest life sciences enterprises, with several targeting their national markets. Moreover, life science companies are increasingly embracing cloud technologies to accelerate tech-driven business transformations in the U.S.

The region also accounts for the largest number of partnerships, mergers, and acquisition deals in the life science sector, thereby contributing to the market growth. For instance,

• In May 2023, Patient Square Capital announced the establishment of Elevage Medical Technologies ("Elevage"). This portfolio company helps encourage medical device firms by offering deep strategic expertise and capital. The company made a commitment of USD 300 million in investment to these medical device companies.

According to Fortune Business Insights, the Asia Pacific is projected to grow with the highest CAGR during the study period. China and Japan are among the top countries with the most life sciences companies. In addition, various big life science companies are investing and making partnership deals in developing nations such as India, Japan, and Singapore to bring new technologies into the pharma sector of these regions and expand their business portfolio. For instance,

• In October 2023, 65LAB, in collaboration with Evotec SE, announced the launch of 65LAB to enhance drug discovery and the generation of new therapeutics firms in Singapore. Lightstone Ventures with Evotec instigated 65LAB to make use of the global competencies of its partners, such as financing, networks, firm creation, and drug progress expertise.

Europe is predicted to grow with a noteworthy life science software market share during the study period. The European landscape offers an environment to an extensive range of opportunities for foreign life science companies. In addition, European countries’ governments, such as Germany, the U.K., Belgium, and France, among others, are greatly initiating and investing in life science software, as these countries are among the top attractions for biopharmaceutical innovations. For instance,

• In June 2023, Merck KGaA, the life science enterprise of Germany and BASF Pharma Solutions introduced new criteria for the electronic transfer of regulatory and quality documentation from suppliers to customers in the biopharmaceutical and pharma industry.

The Middle East & Africa and South America are estimated to grow with considerable growth rates during the forecast period. Rising developments and innovations in countries such as the UAE and Brazil are augmenting the growth of these regions. These regions also have a greater number of foreign investments in the life science sector. In addition, the UAE is among the top countries with a higher number of investors.

List of Key Companies in Life Science Software Market

Key Players Implement Mergers, Acquisitions, and Partnerships to Expand Their Businesses

Prominent market players, such as SAP SE, Microsoft, IQVIA, Veeva Systems, Salesforce, Inc., Oracle, and Optum, Inc., among others, are focusing on offering advanced innovative technology-driven life science software. These players are expanding their product portfolio owing to the growing demand for generative AI, data analytics, machine learning, and others. Moreover, market players are implementing several business strategies, such as mergers, acquisitions, and partnerships, to extend their businesses around the world.

List of Key Companies Profiled:

• SAP SE (Germany)


• IQVIA Inc. (U.S.)


• Microsoft (U.S.)


• Veeva Systems (U.S.)


• Salesforce, Inc. (U.S.)


• Dassault Systèmes (Medidata) (France)


• Oracle (U.S.)


• CEGEDIM GROUP (France)


• Optum, Inc. (U.S.)


• IBM (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: ArisGlobal and Nextrove announced a new partnership. The partnership opens up a greater pool of high-quality resources that are accessible to pharmaceutical enterprises so they can implement modernized LifeSphere solutions.


• February 2024: Oracle Life Sciences and ObvioHealth expanded their partnership worldwide with effective efforts toward introducing trials in the Asia Pacific. The partnership would enable the effective capture, incorporation, and analysis of various sources of clinical trial health information from clinicians, participants, labs, and devices across the globe.


• October 2023: Trinity introduced Launch Accelerator 2.0 to offer smart, skilled launch planning with personalization and tech-driven support for pharma users. Launch Accelerator 2.0 is a flexible cloud-driven project management tool that uses real-world launches to monitor cross-functional Project Management Office (PMO) teams and Global Launch.


• October 2023: Accenture announced the acquisition of ConcentricLife to reinforce its healthcare communications and marketing competencies for the life sciences sector. The acquisition strengthens Accenture Song’s continuous investment in developing end-to-end solutions for its Life Sciences customers through appropriate experiences and communications.


• May 2023: IQVIA, in collaboration with (RED), announced support to strengthen the laboratory system. The USD 5 million partnership would impact the life-saving money channel to the worldwide Fund’s Laboratory Systems Incorporation Fund.

REPORT COVERAGE

The market research report highlights leading regions across the world to offer a better understanding to the user. Furthermore, the report provides insights into the latest industry growth trends and analyzes technologies deployed rapidly globally. It further highlights some drivers and restraints, helping the reader gain in-depth knowledge about the market analysis.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 10.7% from 2024 to 2032
Unit	Value (USD billion)
Segmentation	By Deployment Cloud On-premise By Application Preclinical and Clinical Trials Supply chain management Research and Development Commercial Engagement and Branding Pharmacovigilance Regulatory Compliance By End-user Biotechnology and Pharmaceutical Companies Medical Research Centers Medical Device Companies Others (Genomics and others) By Region North America (By Deployment, By Application, By End-user, and By Country)   U.S. (By End-user) Canada (By End-user) Mexico (By End-user) Europe (By Deployment, By Application, By End-user, and By Country) Germany (By End-user) U.K. (By End-user) France (By End-user) Italy (By End-user) Spain (By End-user) Russia (By End-user) Benelux (By End-user) Nordics (By End-user) Rest of Europe Asia Pacific (By Deployment, By Application, By End-user, and By Country) China (By End-user) India (By End-user) Japan (By End-user) South Korea (By End-user) ASEAN (By End-user) Oceania (By End-user) Rest of the Asia Pacific Middle East & Africa (By Deployment, By Application, By End-user, and By Country) Turkey (By End-user) Israel (By End-user) GCC (By End-user) North Africa (By End-user) South Africa (By End-user) Rest of the Middle East & Africa South America (By Deployment, By Application, By End-user, and By Country) Brazil (By End-user) Argentina (By End-user) Rest of South America