Diagnostic & Medical Laboratories in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS 62151Revenue
$85.1bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
354k
Businesses
26,519
Wages
$XX.Xbn
Diagnostic & Medical Laboratories in the US industry analysis
Services provided by diagnostic and medical laboratories play a crucial role in patients' medical evaluations and treatment, with the data collected by laboratories benefiting the broader healthcare market, giving healthcare practitioners insights into the onset, severity and causes of patients' ailments and illnesses. The aging population and the preventive medicine movement are pivotal factors propelling the increased need for laboratory services. For instance, the increasing number of elderly patients undergoing preventive screening tests has increased demand, particularly to address irregular screening results. 2020 witnessed a surge in demand for testing services due to COVID-19, necessitating increased government funding for laboratories. This resulted in a 2020 spike in revenue, contributing to strong performance over the past five years, with industry revenue growing at a CAGR of 5.3% to reach $85.8 billion, experiencing a 2.5% increase in 2023 alone.
Trends and Insights
- Advances in medical technologies have posed a competitive threat to laboratories. Point-of-care testing has allowed hospitals to perform their own tests, avoiding medical laboratories.
- The clinical pathology service market has expanded. This results from its crucial role in interpreting patients' clinical data and diagnosing and classifying their conditions.
- Diagnostic and medical laboratories are often found near healthcare facilities. This is mainly so these hospitals and doctors' offices can easily refer their patients for lab work.
- Price competition in medical laboratories is intense. This drives consolidation as larger laboratories can better take advantage of low costs due to economies of scale and meet competitive market prices.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 5.1 % over the past five years, to reach an estimated $85.1bn in 2023.
Trends and Insights
Aging population causing laboratory technician shortage
- The expanding elderly population has spurred demand for clinical testing as this demographic frequently monitors their chronic illnesses and other health ailments.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Statutory phase in of payment reductions mean reduction caps at 15%
- Laboratories submit data during a collection period, validate during a reviewing window, and report to authorities. Private payors include health insurance issuers, group health plans, Medicare Advantage Plans, and Medicaid Managed Care Organizations.
Biggest companies in the Diagnostic & Medical Laboratories in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Quest Diagnostics Inc. | 10,836.8 | 2,651.9 | 24.5 | |
Laboratory Corporation Of America Holdings | 9,669.9 | 1,153.0 | 11.9 | |
Roche Holding AG | 2,068.0 | 504.6 | 24.4 |
To view the market share and analysis for all 14 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including General pathology services, Clinical pathology services and MRI imaging. General pathology services is the largest segment of the Diagnostic & Medical Laboratories in the US.
Trends and Insights
General pathology services face a decline
- General pathology typically encompasses molecular pathology services. It entails examining patients from the perspective of analyzing the basic mechanisms of disease rather than how disease occurs in each organ system. This segment examines how cells react to abnormal stimuli at a more macro level than clinical pathology.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Medical Instrument & Supply Manufacturing in the US
- Specialist Doctors in the US
- Hospitals in the US
International industries
- Pathology Services in Australia
- Pathology and Diagnostic Imaging Services in New Zealand
- Diagnostic & Ambulance Services in the UK
Table of Contents
About this industry
Industry definition
Laboratories in this industry provide analytic services to identify or determine the nature and cause of a disease or injury by evaluating a patient’s history, examination and data. These services are provided to healthcare providers or patients upon referral from health practitioners.
What's included in this industry?
General pathology servicesClinical pathology servicesMIR imagingAnatomic pathology servicesX-ray/radiology imagingOtherCompanies
Quest Diagnostics Inc.Laboratory Corporation Of America HoldingsRoche Holding AGPurchase this report to view all 14 major companies in this industry.
Related Terms
ANATOMICAL PATHOLOGY TESTCOMPUTED TOMOGRAPHY (CT) CAPITATED PAYMENT CONTRACTMAGNETIC RESONANCE IMAGING (MRI)MANAGED-CARE ORGANIZATION (MCO) MEDICAREMEDICAIDPOSITRON EMISSION TOMOGRAPHY (PET)ESOTERIC TESTSGENOMICSIndustry Code
NAICS 62151 - Diagnostic & Medical Laboratories in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Advances in medical technologies have posed a competitive threat to laboratories. Point-of-care testing has allowed hospitals to perform their own tests, avoiding medical lab...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The clinical pathology service market has expanded. This results from its crucial role in interpreting patients' clinical data and diagnosing and classifying their conditions...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Diagnostic and medical laboratories are often found near healthcare facilities. This is mainly so these hospitals and doctors' offices can easily refer their patients for lab...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Price competition in medical laboratories is intense. This drives consolidation as larger laboratories can better take advantage of low costs due to economies of scale and me...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Purchase costs are surging because of increased laboratory testing volumes. In addition to this, input prices are also rising.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Quest Diagnostics Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Laboratory Corporation Of America Holdings's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Roche Holding AG's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 11 additional companies
Detailed analysis
- Description and key data for Quest Diagnostics Inc., and factors influencing its performance in the industry
- Description and key data for Laboratory Corporation Of America Holdings, and factors influencing its performance in the industry
- Description and key data for Roche Holding AG, and factors influencing its performance in the industry
- Description, key data and performance trends for 11 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Patient Protection and Affordance Care Act increased the patient population with access to industry services. This Act expanded coverage and focused on quality and preven...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Automation is getting more and more popular in the industry. As a result, wages have become a smaller portion of the industry's revenue.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Diagnostic & Medical Laboratories in the US industry in United States in 2024?
The market size of the Diagnostic & Medical Laboratories in the US industry in United States is $85.1bn in 2024.
How many businesses are there in the Diagnostic & Medical Laboratories in the US industry in 2023?
There are 26,519 businesses in the Diagnostic & Medical Laboratories in the US industry in United States, which has grown at a CAGR of 0.6 % between 2018 and 2023.
Has the Diagnostic & Medical Laboratories in the US industry in United States grown or declined over the past 5 years?
The market size of the Diagnostic & Medical Laboratories in the US industry in United States has been growing at a CAGR of 5.1 % between 2018 and 2023.
What is the forecast growth of the Diagnostic & Medical Laboratories in the US industry in United States over the next 5 years?
Over the next five years, the Diagnostic & Medical Laboratories in the US industry in United States is expected to grow.
What are the biggest companies in the Diagnostic & Medical Laboratories in the US market in United States?
The biggest companies operating in the Diagnostic & Medical Laboratories market in United States are Quest Diagnostics Inc., Laboratory Corporation Of America Holdings and Roche Holding AG
What does the Diagnostic & Medical Laboratories in the US in United States include?
General pathology services and Clinical pathology services are part of the Diagnostic & Medical Laboratories in the US industry.
Which companies have the highest market share in the Diagnostic & Medical Laboratories in the US in United States?
The company holding the most market share in United States is Quest Diagnostics Inc..
How competitive is the Diagnostic & Medical Laboratories in the US industry in United States?
The level of competition is high and steady in the Diagnostic & Medical Laboratories in the US industry in United States.
