North America Clinical Laboratory Test Market

• Growing healthcare expenditure is driving the market growth

Market CAGR for North American clinical laboratory test market is being grown due to rising healthcare expenditures. Expanding regulatory backing and increased spending in clinical laboratory tests are expected to propel the market. The economies of North America are sophisticated, and there are strict regulations governing the approval of new tests. 

The FDA has authorized these experiments in accordance with the 510(k) medical device rule. Panel tests conducted on instruments must go through a similar FDA approval procedure in order to be authorized for commercialization. In Canada, these tests must have approval from Health Canada.

The market is expanding due to the result of favorable regulatory policies and high insurance coverage (almost 100%). If these tests are quickly invoiced to insurance providers, it is simpler for patients to estimate expenses. Urinalysis, blood tests, and screening checks are covered by Medicaid. However, local hospital costs are more expensive than the price of tests.

Obesity and diabetes, which both raise illness risk and lead to metabolic imbalances, are two diseases for which aging has emerged as a prominent risk factor. The demand for clinical laboratory testing is expected to rise as a result. The majority of affluent countries now have life expectancies above 80 years, according to the World Health Organization. 

Aging is a vital risk factor for the emergence of infectious diseases because it is driven by the connection of numerous environmental and genetic factors that modify immunity, metabolism, and organ functions. Consequently, diagnostics and screening can be quite important in the overall management of health. The market for clinical laboratory testing is being driven by the increase in the worldwide geriatric population as well as the demand for acute and long-term healthcare. Thus, driving the North America Clinical Laboratory Test market revenue.

By region, the study provides the market insights into North America. The North American North America Clinical Laboratory Test market area will dominate this market, owing to an increase in the count of geriatric population. In addition, the growing spread of chronic diseases like cancer will boost market growth in this region. US held the fastest growth while Canada is expected to register fastest CAGR over the projected period.

The FDA and EMA's regulatory frameworks are extremely important to the US’s healthcare sector. Laboratory-designed tests (LDTs), which are tests developed internally by clinical laboratories that deliver accurate and quick findings, are governed by the Food and Drug Administration (FDA). The mentioned factors are expediting the growth of US Clinical Laboratory Test Market.

The Canada clinical laboratory test Market is expanding as more people become aware of the value of early disease identification and the advantages of early treatment. Some of the government measures that are to blame for the growth of the Canadian clinical diagnostics industry include the federal government's proposed Bill C-17 in the House of Commons, which would grant provinces and territories an additional $2 Bn as a one-time top-up, split evenly by population.

Further, the major countries studied in the market report are The US, and Canada.

Figure 2 NORTH AMERICA CLINICAL LABORATORY TEST MARKET SHARE BY REGION 2023 (USD Billion)  

Source Secondary Research, Primary Research, MRFR Database and Analyst Review 

Leading market players are aggressively adopting new business tactics to extend their product offerings, which will help the North America Clinical Laboratory Test market, grow faster. 

Market participants are also undergoing a range of strategic activities to expand their  presence, with important market developments including new product developments, contracts & agreements, mergers & acquisitions, increased investments, & collaboration with other similar organizations. To expand and survive in a more competitive and rising market climate, North America Clinical Laboratory Test industry must offer cost-effective items.

Manufacturing locally to minimize capital requirements is one of the key business tactics used by manufacturers in the North America Clinical Laboratory Test industry to benefit clients and increase the market sector. In recent years, the North America Clinical Laboratory Test industry has offered some of the most significant advantages to medicine. 

Major players in the North America Clinical Laboratory Test market, including Aurora Diagnostics, Laboratory Corporation of America, LifeLabs Medical Laboratories, Quest Diagnostics, and others, are attempting to enhance market demand by investing in research and development operations.

Quest Diagnostics Inc. (Quest Diagnostics) offers diagnostic information services to patients and physicians through a network of laboratories and business-owned patient service centers. It provides a variety of services, including anatomic pathology, clinical trial testing, life insurer services, genetic testing, gene-based testing, and other specialized tests, as well as a range of medical information technology and diagnostic devices. Among others, Quest Diagnostics offers its services to hospitals, clinics, managed care organizations, other health insurance companies, laboratories, and governmental organizations. 

In February 2023, Cleveland Diagnostics, Inc., a biotechnology business in commercial development that creates next-generation diagnostic tests for the early diagnosis of malignancies, today announced a deal intended to increase patient access to the firm's cutting-edge IsoPSA prostate cancer test. Patients will be able to access IsoPSA through an agreement with Quest Diagnostics (NYSE DGX), the country's top provider of diagnostic information services, and, after receiving a prescription from their doctor, provide a blood sample for testing at one of more than 2,100 Quest Diagnostics patient service centre locations nationwide.

Laboratory Corp of America Holdings (LabCorp) offers Clinical laboratory services and complete drug development assistance. It is concentrated on the creation and marketing of various diagnostic technologies and testing services. The business provides clinical diagnostics laboratory services, including standard, genomic, and specialized tests. Forensic identity services, clinical trials services, drug testing services, deoxyribonucleic acid (DNA) identification services, paternity testing services, general and specialty laboratory testing, bone marrow and human leukocyte antigen (HLA) testing, patient services, personalized medicine, and hospital services are just a few of the services it offers. 

Through Covance, it also provides medication development services. Through a network of primary laboratories and patient care facilities, it provides services to managed care organizations, physicians, hospitals, government agencies, and biotechnology and pharmaceutical businesses.

In May 2022, AtlantiCare, the largest healthcare provider in southern New Jersey, and Labcorp (NYSE LH), a top  life sciences firm, announced today that they have completed a transaction to deepen their long-term strategic partnership. Select assets from AtlantiCare's clinical outreach business, which serves the patients of the AtlantiCare Physician Group and Affiliated Physicians throughout southern New Jersey, will be acquired by Labcorp. The deal is the latest in a string of fresh and expanded partnerships between Labcorp and health systems around the nation, highlighting the value Labcorp contributes to enhancing patient care and laboratory services.