Market Overview

In consideration of financial performances in leading laboratory testing centers and small- and medium-sized centers, the domestic clinical laboratory testing service market is estimated at 620 billion yen, a 0.5% decline from the preceding fiscal year, based on sales at contract service providers.

The market once expanded rapidly between FY2020 and FY2022 during the pandemic, as demand for polymerase chain reaction (PCR) testing surged. In FY2022, however, outsourcing of laboratory testing decreased, as the NHI points for PCR testing was reduced, which led hospitals to perform the testing in-house. In FY2023, when the new coronaviruses were downgraded to class 5, commissioned testing cases nosedived, reducing the market size. By FY2024, the special pandemic-related demand had overall ended, leading to an increase in outpatient visits and resumed health checks at hospitals. The number of routine clinical tests in biochemistry, immunology, and hematology is trending toward recovery, and the outsourced clinical testing market has entered a phase of structural adjustment.  

*The market size basically does not include voluntary PCR testing that has been done at the expense of the recipients.  

Noteworthy Topics

Increased Advancement and Efficiency of Testing Processes Through ICT and AI Technologies

Testing processes in the clinical laboratory testing service market have advanced and increased efficiency through ICT and AI technologies.
As automated facilities have become more prevalent in leading laboratories, AI-powered image analysis techniques have emerged to sort specimens and support the interpretation of test images. AI technology is used diversely, such as for microscopic image analysis for a bacteriological examination, supporting the detection of abnormal cells in flow cytometric analyses, and classifying blood cell counts and urine sediment analyses. The use of AI improves the efficiency of clinical testing processes, reduces errors, and helps solve labor shortages, thereby improving testing quality. ICT and AI technologies are expected to play an important role in providing a competitive edge in the clinical laboratory testing service market.

Future Outlook

Now that the market for clinical laboratory testing services has matured, many businesses offer these services. However, testing requests are concentrated in major laboratories. Major companies invested in facilities using their revenues earned from special demand for COVID-19 PCR testing, thereby improving their testing capabilities and pursuing automation and efficiency. These investments are expected to contribute diversely to solve labor shortages, improve testing quality, and strengthen cost competitiveness.
Although the market may experience a decline in testing requests due to the promotion of digitalization and data sharing, testing in the preventive medicine area, including routine inspections and gene testing, is expected to enter the growth phase. Leading companies are required to balance competition and cooperation, which increases the importance of mergers and acquisitions (M&As) and business alliances.

Research Outline