Global Digital Pathology Market Research Report: Forecast (2024-2030)

Market Definition

Digital pathology entails the process of converting standard glass microscope slides that hold tissue samples into digital form. This is achieved through the use of high-resolution scanning methods, which create digital images for pathologists and healthcare experts to observe and scrutinize using computer screens rather than conventional microscopes.

Market Insights & Analysis: Global Digital Pathology Market (2024-30):

The Global Digital Pathology Market size was valued at around USD 2.5 billion in 2023 and is estimated to grow at a CAGR of about 9.8% during the forecast period, i.e., 2024-30. The demand for pathology tests is being fueled by the increasing prevalence of chronic illnesses and the larger numbers of hospital admissions. Moreover, as workloads continue to rise in traditional pathology circles, there is an expected uptick in adoption rates for digital tools. This trend would be supported further due to widespread applications within modern medicine coupled with a growing awareness surrounding innovative diagnostics that are likely to bolster both market growth and patient pools seeking diagnoses. For instance,

• Express Healthcare's 2022 article stated that utilizing digital tools boosted the productivity and efficiency of pathologists by approximately 15%, surpassing traditional pathology workflows.

The prevalence of sedentary lifestyles, widespread tobacco use, and rapidly growing global population indicate that this concerning trend will likely persist. As a result, there is an urgent need to embrace digital pathology solutions in the healthcare sector, as they can lead to faster diagnosis and treatment of diseases.

Moreover, numerous renowned medical institutions and hospitals have embraced digital pathology solutions. This has resulted in encouraging other healthcare organizations to adopt similar practices in their own countries. Thus, the increasing adoption and integration of digital pathology into traditional diagnostic methods are contributing to a surge in demand for this technology on a global scale. The increasing usage of digital pathology in medical institutions for diagnosing diseases and training purposes has been identified as the main factor contributing to market growth & expansion. This demand for effective solutions in digital pathology has significantly increased due to the growing number of cases involving communicable and non-communicable diseases (NCDs).

Global Digital Pathology Market Driver:

Rising Cases of Chronic Disorders Driving the Market Size & Volume – The anticipated surge in chronic illnesses and the subsequent need for more testing are expected to boost the uptake of products. This, coupled with market players' increasing efforts to address the rising demand for diagnostics, will likely drive market growth. Additionally, broader applications of these platforms, including predictive analysis, are predicted to further contribute to this upward trend. For instance,

• In April 2022, PreciseDx unveiled its new digital platform capable of pinpointing Parkinson's disease (PD) with precision, even before severe symptoms manifest.

Such product launches will support the increasing demand for these systems with the added benefits of machine learning in the coming years. Additionally, the expected surge in market growth is attributed to the rise of government-funded research programs aimed at promoting innovation in pathology's digital tools. For instance,

• In March 2022, Inspirata was granted clearance by the U.S. Food and Drug Administration (FDA) for its Dynamyx software to replace traditional glass slides as a primary diagnosis tool, resulting in better availability of the software across the United States.

Moreover, it offered an open platform that harmonized with various scanners used throughout different industries. In addition, increasing approval for digital tools is expected to boost the adoption of these devices, thereby augmenting market growth & development.

Global Digital Pathology Market Opportunity:

Unlocking Growth Opportunities with the Integration of Artificial Intelligence in Digital Pathology – One of the significant inclinations in the global digital pathology industry is that key consumers are increasingly adopting digital tools based on Artificial Intelligence due to a greater need for workflow management. Major companies now place more emphasis on patenting innovative technology and offering personalized platform solutions to crucial stakeholders, thus gaining an edge over their competitors. Furthermore, manufacturers who specialize in developing machine learning and AI-powered systems will likely help boost demand for enhanced pathology solutions in the coming years, thereby promoting growth within this sector. For instance,

• In December 2021, three digital pathology algorithms based on Artificial Intelligence (AI) were introduced by F. Hoffmann-La Roche Ltd. These Research Use Only (RUO) programs were specifically created to aid pathologists in the assessment of breast cancer markers, namely Ki-67, ER, and PR, through deep-learning image analysis techniques.

Moreover, several companies are striving to obtain regulatory approvals for medical devices integrated with AI to introduce them into the market and optimize pathology operations. For instance,

• In September 2023, Medtech company Sigtuple received U.S. FDA approval for its blood smear application. This device is used in AI-assisted digital microscopy.

Global Digital Pathology Market Challenge:

High Upfront Costs for the Installation of Devices Impeding Market Growth – Despite the advantages and potential uses of incorporating these systems into contemporary medicine, there are upfront expenses involved in digitizing tools that can aid pathology. The cost of installation is significant; furthermore, using such technology to standardize workflow necessitates training. These digital devices require software to carry out various tasks like analyzing data and storing information, which generates individual fees or is included as part of a comprehensive system package. For instance,

• In 2022, the NCBI released an article revealing that digital pathology scanners typically range in price from USD 100,000 to USD 400,000. Additionally, implementing digital solutions in pathology necessitates further expenses such as staff and pathologist training fees, technical assistance costs for these new systems' operation, and regulatory or licensing expenditures related to storing images digitally.

Due to the exorbitant cost of high-throughput scanners, whole slide images (WSI) remain out of reach for many smaller and mid-sized pathology labs. In recent years, WSI has had an average price point worldwide of around USD 237K each. Moreover, as more pathologists retire than enter the workforce in recent years, this trend is causing concern within the industry. Thus, the scarcity of pathologists has directly impacted the market, resulting in reduced adoption and training for pathology tools due to their high cost and installation expenses. Consequently, this factor has hurt market size & volume.

Global Digital Pathology Market Trend:

Increasing Investment in the Development of Customized Solutions – With the growing demand for digitization in pathology, competition among market leaders has intensified. Additionally, as high-throughput algorithms are increasingly employed to discover new drugs and treatments, major players have begun investing more heavily in creating innovative tools that can streamline their operations and deliver customized solutions. For instance,

• In March 2022, Nucleai revealed that it had successfully obtained a Series B funding round of USD 33 million. The organization specializes in designing an AI-driven pathology platform aimed at anticipating how patients will respond to different kinds of treatments.

Moreover, it is expected that the company's investment in digitization will facilitate the ongoing development of its platform and bolster its presence within biopharma companies and contract research organizations. The market is projected to experience growth with increasing investments by domestic enterprises and industry stakeholders launching innovative tools, coupled with an upsurge in product launches catering to the growing demand for digital diagnostic tools.

Global Digital Pathology Market (2024-30): Segmentation Analysis

The Global Digital Pathology Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024-2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Solutions:

• Software-based
• Service-based
• Hardware-based

Hardware-based digital pathology solutions have experienced notable market growth and captured a remarkable market share, primarily propelled by the rising demand for digital cameras, scanners, and communication systems. This surge in demand has been instrumental in facilitating the seamless transfer of sample images across diverse end-users, such as healthcare institutions, pharmaceutical companies, and biopharmaceutical companies. For instance,

• In March 2023, Agilent Technologies Inc. partnered with Hamamatsu Photonics K.K. to incorporate Hamamatsu’s slide scanner system into Agilent’s digital pathology solution.

Moreover, the ability to transfer images without compromising their quality or essential characteristics has significantly contributed to the traction gained by hardware-based solutions in the digital pathology industry. This trend underscores the growing reliance on advanced technological infrastructure to enhance efficiency and accuracy in pathology workflows, driving the adoption of hardware-centric solutions across various sectors.

Based on End User:

• Biotech & Pharma Companies
• Hospitals & Clinics
• Diagnostic Centers
• Others (Academic & Research Institutes)

The global market size is expected to see significant growth, with the hospitals & clinics segment emerging as its primary end-user. This can be attributed to a surge in diseases, specifically non-communicable ones (NCDs), which have prompted healthcare facilities to upgrade their diagnostic capabilities. The quest for accuracy and promptness in diagnoses has led hospitals across the board to seek digital pathology solutions that are increasingly accessible due to advancements in technology, making them user-friendly and cost-effective. As small community health centers up through large specialized medical institutions work on coping with an increasing volume of patient admissions and providing more comprehensive pathology services, this trend looks likely to only intensify moving forward.

Moreover, the growth of the segment is expected to be driven by endeavors to launch cutting-edge products through collaborations with major hospitals and a rise in digital tool usage propelled by an upswing in patient traffic. The installation of pathology tools and systems has been instrumental for top-notch medical facilities across developed nations such as the U.S., UK, etc., thereby helping them attract a significant number of patients.

Global Digital Pathology Market (2024-30): Regional Projections

Geographically, the Global Digital Pathology Market expands across:

• North America
•  South America
•  Europe
•  The Middle East & Africa
•  Asia-Pacific

North America has captured a significant market share in the Global Digital Pathology Market, primarily due to high-level investments in the healthcare sector across countries like the US, Canada, and Mexico. North America has emerged as a prominent hub for digital pathology solutions, witnessing rapid growth over the historical period. This surge can be attributed to various factors, including the widespread availability of digital pathology products and the significant presence of leading industry players in the region. Moreover, the escalating demand for high-quality diagnostics, particularly in light of the prevalent occurrence of cancer cases, has further propelled the adoption of digital pathology solutions across North America.

Moreover, the North American market is experiencing growth driven by the increased focus of market players on inorganic growth tactics, such as partnerships and collaborations. Such efforts aim to introduce inventive digital tools that efficiently manage workflow while fulfilling a growing need for customized solutions. For instance,

• In January 2022, the PocDoc test, a smartphone-based pathology assessment for cardiovascular diseases, was released by Vital Signs Solutions Ltd. This digital five-marker lipid panel examination provides the gold standard in under six minutes and can be carried out at home.

Global Digital Pathology Industry Recent Development:

• 2023: Philips partnered with Saint-Joseph Hospital & Marie-Lannelongue Hospital to fully integrate digital pathology to improve personalized cancer care by collecting comprehensive diagnostic information at the anatomical, cellular, and molecular levels.
• 2022: F. Hoffmann-LA Roche Ltd. launched the VENTANA DP 600 slide scanner for digital pathology, enhancing patient care with precision diagnostics.

Gain a Competitive Edge with Our Global Digital Pathology Market Report

1. Global Digital Pathology Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Digital Pathology Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.