Good results: The industry will benefit from increasing demand from an aging population

IBISWorld’s industry research report on Diagnostic & Medical Laboratories can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.


Industry Threats & Opportunities

  • Consolidation has boosted profitability due to larger operations enabling laboratories to share their R&D expenditures
  • As healthcare expenditures rise, healthcare providers have implemented cost-cutting strategies
  • While healthcare reform presents opportunities, not all new regulations will be positive for the industry
  • Industry Analysis & Industry Trends

    Operators in the Diagnostic and Medical Laboratories industry are an integral part of patients' medical evaluation and treatment. Laboratories are vital to the healthcare sector, as industry operators provide healthcare practitioners with information concerning the onset, severity and cause of patients' ailments and illnesses. The aging population and the movement toward preventive care have stimulated demand for industry services. In the five years to 2022, the industry will benefit from scientific advances that yield new and improved service capabilities, coupled with the aging US population requiring more laboratory testing and diagnostic imaging services.

    Industry Report - Industry Key Buyers Chapter

    The Diagnostic and Medical Laboratories industry exhibits a low level of concentration, with the top four players accounting for an estimated 31.1% of industry revenue in 2017. However, market leaders Quest Diagnostics and Laboratory Corp of America generate 27.7% of total industry revenue. Over the past five years, consolidation has increased, particularly in the laboratory segment, but the industry still remains highly fragmented.

    The laboratory business model is highly based on fixed costs, which allows laboratories to benefit from large-scale operations and larger volumes. About 20.0% to 22.0% of the costs are variable (primarily supplies and bad debt); though more sizeable operators can purchase supplies at a discount. For

    Additional Insights for the Diagnostic & Medical Laboratories Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Diagnostic & Medical Laboratories Industry are

  • Ensuring pricing policy is appropriate
  • Having a good reputation
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Number of people with private health insurance and Total health expenditure in the Diagnostic & Medical Laboratories industry impact industry performance..

    shopping_cartVIEW PURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Industry Products

    What is the Diagnostic & Medical Laboratories Industry?

    Operators in this industry provide analytic services to identify or determine the nature and cause of a disease or injury through the evaluation of a patient’s history, examination and data. These services are provided to healthcare providers or patients upon referral from health practitioners.

    Industry Products
    General pathology services
    Clinical pathology services
    Magnetic resonance imaging (MRI) services
    Anatomic pathology services
    X-ray/radiography imaging services
    Industry Activities
    Operating diagnostic imaging centers
    Operating dental or medical X-ray laboratories
    Operating medical forensic laboratories
    Operating medical testing laboratories
    Operating blood analysis laboratories
    Operating medical bacteriological laboratories
    Operating computer tomography (CT-scan) centers
    Operating magnetic resonance imaging (MRI) centers
    Operating medical radiological laboratories
    Operating ultrasound imaging centers

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of people with private health insurance
  • Total health expenditure
  • Federal funding for Medicare and Medicaid
  • Number of adults aged 50 and older
  • Technological change for the Diagnostic and Medical Laboratories industry

  • Current Performance
  • Laboratory technician shortage
  • Pricing pressures
  • Personalized care
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthcare reform
  • Increased consolidation
  • Medical advances
  • Table: Diagnostic & Medical Laboratories Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Diagnostic & Medical Laboratories Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Veterinary Services
  • Primary Care Doctors
  • Specialist Doctors
  • Chiropractors
  • Emergency & Other Outpatient Care Centers
  • Hospitals
  • Psychiatric Hospitals
  • Specialty Hospitals

  • Key Selling Industries
  • Chemical Wholesaling
  • Inorganic Chemical Manufacturing
  • Medical Device Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Medical Supplies Wholesaling
  • Organic Chemical Manufacturing

  • Products & Services
  • General pathology services
  • Clinical pathology services
  • Other
  • X-ray/radiography imaging services
  • Magnetic resonance imaging (MRI) services
  • Anatomic pathology services
  • Chart: Diagnostic & Medical Laboratories Industry Products and Services Segmentation

  • Demand Determinants
  • Technology
  • Population aging
  • Preventative medicine
  • Cost of services and healthcare expenditure

  • Major Markets
  • Private insurance payments
  • Medicare and Medicaid payments
  • Health practitioners payments
  • Hospital payments
  • Other
  • Patient out-of-pocket
  • Outpatient care facility payments
  • Other healthcare providers payments
  • Chart: Major Market Segmentation for the Diagnostic & Medical Laboratories Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and utilities
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Diagnostic & Medical Laboratories

  • Basis of Competition
    Internal competition External competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Diagnostic & Medical Laboratories Industry

  • Industry Globalization
    Major Companies
    Quest Diagnostics Inc.Laboratory Corporation of America Holdings
  • Table: Quest Diagnostics Inc. - financial performance
  • Table: Laboratory Corporation of America Holdings - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Diagnostic & Medical Laboratories Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Diagnostic & Medical Laboratories Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of people with private health insurance (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Anatomical Pathology Test
  • A test that analyzes diseases by examining changes in human tissues and cells.
  • Capitated Payment Contract
  • A healthcare plan that allows payment of a flat fee for each patient it covers.
  • Computed Tomography (Ct)
  • A body scan that uses X-ray equipment to obtain image data from different angles around the body, and then uses computer processing to create a cross-section of body tissues, organs and bony anatomy.
  • Esoteric Tests
  • Tests that analyzes rare substances or molecules that are not performed in routine clinical labs.
  • Genomics
  • The study of DNA, genes and chromosomes.
  • Magnetic Resonance Imaging (Mri)
  • A procedure that uses a magnet linked to a computer to create detailed pictures of areas inside the body.
  • Managed-Care Organization (Mco)
  • Any organization that contracts with physicians for the delivery of medical care and exercises control over the care provided.
  • Medicaid
  • A joint federal and state program that helps pay for healthcare expense for the low-income population and certain aged and disabled individuals.
  • Medicare
  • A federal system of health insurance for people over 65 years of age and for certain younger people with disabilities.
  • Positron Emission Tomography (Pet)
  • A highly specialized imaging technique that uses short-lived radioactive substances and produces three-dimensional colored images.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Diagnostic & Medical Laboratories:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Diagnostic & Medical Laboratories market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Diagnostic & Medical Laboratories, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Join IBISWorld today

    Contact Us

    Want to speak to a representative? Call us.