Market Overview

Considering the sales and profits at major clinical laboratory testing center operators and management at small and mid-size centers, the domestic outsourced clinical laboratory testing market size in FY2020 (based on the sales at service providers) was estimated to have risen by 8.9% on a YoY basis to reach 627.0 billion yen.

As FY2020 saw spread of COVID-19 infections, general patients were reluctant to see doctors at medical institutions, which led the number of general inspection items performed to overall decline from the previous fiscal year. On the other hand, COVID-19 testing alone substantially boosted the entire outsourced clinical laboratory testing market.

Noteworthy Topics

Majority of COVID-19 PCR Tests Performed at Private Testing Centers

In FY2020, in order to accept orders of performing COVID-19 PCR testing, organizing for such testing was enhanced mainly at private companies. Since September 2020, the domestic number of PCR tests for COVID-19 has expanded, together with the number of testing entrusted to private companies. According to the implementation status of COVID-19 PCR testing announced by MHLW, about 60% of the testing in FY2020 was performed by private inspection companies. Special surge in demand for PCR testing has strengthened the presence of outsourcing business of clinical laboratory testing.

Future Outlook

The clinical laboratory testing market size for FY2021 is likely to continue being driven by COVID-19-related testing just like the previous fiscal year. After FY2022, the testing for COVID-19 is likely to be subdued, while the conventionally performed inspection items are likely to recover.

Although outsourced clinical laboratory testing business has already been consolidated into upper-ranking companies, the superiority or inferiority among the companies has become more apparent by pros and cons of the COVID-19 testing, which may bring about further corporate reorganizations and business alliances.

Research Outline