Growth Opportunities Emerge for Independent Reference Laboratories as Hospitals Increasingly Outsource or Sub-contract Lab Services

Wednesday, May 11, 2016 Hospital News J E 4
Budget restrictions in public hospitals coupled with the competitive test prices at independent labs encourage the latter, finds Frost & Sullivan

LONDON, May 11, 2016 /PRNewswire/ -- The Western European clinical laboratories market is seeing strong trends that will alter the market share of participants. While the hospital lab segment is currently the largest in terms of volume and revenues, competition from independent clinical labs is rising. Public hospitals, in particular, are outsourcing or sub-contracting services to independent reference labs due to budgetary constraints. The lower turn-around-time, competitive prices, and productivity gains for hospital operators also make independent labs more attractive.

New analysis from Frost & Sullivan, Analysis of the Western European Clinical Laboratories Market (, finds that the market earned revenues of $53.62 billion in 2015 and estimates this to reach $69.03 billion in 2020. The study covers hospital-based labs, independent labs, and physician office labs across the United Kingdom, Germany, France, Italy, Spain, Benelux and Scandinavia.

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"The increasing market share of large reference groups such as Labco, Unilabs and Sonic confirms the competitive edge of independent labs," said Frost & Sullivan Transformational Health Research Manager Sangeetha Prabakaran. "Larger groups with private equity are also consolidating and acquiring clinical reference lab group companies, expanding the segment."

The maturity of these trends, however, varies across countries in the region. For instance, outsourcing and subcontracting to independent labs is more prevalent among private hospitals in Spain. Germany and France too are proving lucrative for private independent labs. In smaller countries such as Luxembourg, public hospitals are supplying clinical lab services internally while private hospitals prefer outsourcing such services to private labs. In the United Kingdom as well, stringent budgets force National Health Service (NHS) hospitals to outsource their clinical lab services.

"Physician office labs constitute the smallest segment as cost pressures and low reimbursement schemes for co-payment dampen demand," added Sashidhar. "In Germany, the list of reimbursable tests is broader but dependent on physician speciality."

Going forward, strongest demand is expected in clinical lab services for diabetes, cardiovascular, and genetic testing. Across service segments, the price of tests and quality of services will be the key competitive factors in the Western European clinical lab services market.

Analysis of the Western European Clinical Laboratories Market is part of the Life Sciences ( Growth Partnership Service program. Frost & Sullivan's related studies include: Analysis of the Global Human Albumin Market and Product Pipeline, Analysis of the Cardiac Biomarker Diagnostics Market, A Product and Pipeline Analysis of the Global Immunoglobulin Market, US Nucleic Acid Purification Market, Product and Pipeline Analysis of the Global Colorectal Cancer Market, Analysis of the Ethiopian Pharmaceutical Market, Asia-Pacific Point-of-Care Testing Market, and Analysis of the US Clinical Laboratories Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Analysis of the Western European Clinical Laboratories MarketMB51-52

Contact:Jana SchönebornCorporate Communications – EuropeP: +49 (0)69 77033 43E:


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SOURCE Frost & Sullivan



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