Digital Pathology Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global digital pathology market growth forecasted to transform from USD 1.1 billion in 2024 to USD 2.0 billion by 2029, driven by a CAGR of 13.1%. The growth of the market is primarily driven by the rising demand for telepathology solutions, which allow pathologists to review cases remotely and consult globally in real-time, as well as government funding, growing applications in drug development, and companion diagnostics. Moreover, the integration of AI algorithms with digital scanners has opened new opportunities for predictive analytics, further contributing to market growth. For instance, Roche (Switzerland) collaborated with PathAI (US) to develop an AI-enabled digital pathology algorithm for companion diagnostics. However, the shortage of skilled pathologists, high implementation costs, and concerns about reimbursement pose challenges to market growth.

Digital Pathology Market – Global Forecast and Growth Insights to 2029

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Digital Pathology Market Dynamics to 2029

Driver: Advancements in Technology

Technological advancements like whole-slide imaging (WSI), image analysis software, and artificial intelligence (AI) have revolutionized digital pathology. These innovations have significantly enhanced diagnostic precision, operational efficiency, and automated workflow processes, thereby increasing the appeal of digital pathology among healthcare providers.

Digital pathology enables telepathology, where pathologists can review slides remotely. This capability is crucial for areas with limited access to pathology expertise, leading to improved patient care outcomes through faster diagnosis and treatment.

Restraint: Workflow Integration

Integrating digital pathology systems into existing laboratory workflows can be complex. It may require changes in processes and training for pathologists and laboratory technicians. Ensuring seamless integration with existing laboratory information systems (LIS) and electronic health records (EHR) is crucial but challenging.

Opportunity: AI and Machine learning applications

Artificial intelligence (AI) and machine learning (ML) are becoming integral to digital pathology, aiding pathologists in identifying abnormalities, measuring biomarkers, and forecasting outcomes through image analysis. These AI tools hold promise in boosting diagnostic precision, minimizing mistakes, and refining treatment strategies, ultimately leading to better patient results. Over the past two decades, global scientific publications on AI have surged more than sixfold, exceeding 60,000 annually. Reflecting this interest, at least 26 governments have developed national AI strategies in recent years. These technologies have the potential to enhance diagnostic accuracy, streamline workflow efficiency, and improve patient outcomes.

Challenge: Cost of Implementation

Moving from traditional microscopy to digital pathology requires substantial initial investments. These encompass acquiring digital slide scanners, setting up storage systems for vast image files, and establishing IT infrastructure capable of managing and processing digital pathology data. These expenses may pose challenges, particularly for smaller laboratories or healthcare facilities with limited financial resources.

Digital Pathology Market Map & Ecosystem Overview

The digital pathology market’s ecosystem comprises entities responsible for delivering digital pathology solutions to end users via various deployment models. The demand continues to grow and expand as enterprises implement digital pathology software to reduce costs and optimize the workload performance of their health systems. Solution and service providers continue to enhance and mature their offerings to increase the value addition.

Solution providers in the digital pathology market develop high-end digital pathology solutions based on the customer’s requirements.

Digital Pathology Market Landscape & Ecosystem Analysis 2024

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By product, software segment is the fastest growing in the digital pathology industry in 2023.

By product, the digital pathology market is segmented into scanners, software, and systems segments. The software segment registers the highest CAGR during the forecast period. The software segment in the digital pathology market is growing rapidly due to several factors. Advancements in AI and machine learning are enhancing the analysis of pathology data, improving diagnostic accuracy and efficiency. AI-powered software helps pathologists detect patterns and anomalies in digital images that may be overlooked otherwise. Additionally, software solutions are crucial for integrating digital pathology systems with existing healthcare IT infrastructure, such as EHR and LIS, streamlining workflows and improving data accessibility.

By type, the human pathology segment of the digital pathology industry registers the highest growth rate during the forecast period.

Based on type, the digital pathology market is segmented into human pathology and veterinary pathology. Human pathology registers a high growth rate during forecast period due to the rising prevalence of chronic diseases such as cancer. Digital pathology has significant potential in human specimen slide analysis. It also improves productivity and efficiency for healthcare providers and reduces manual errors. Owing to this, companies are adopting organic strategies. For instance, In March 2024, Koninklijke Philips N.V (Netherlands) and Amazon Web Services (AWS) announced an expanded collaboration with AWS to address the growing need for secure, scalable digital pathology solutions in the cloud. This collaboration will help to accelerate workflow efficacy and will help in enabling seamless integration with existing healthcare system to deliver holistic patient care.

The drug discovery segment accounted for the largest share of the global digital pathology industry in 2023.

Based on application, the digital pathology market is segmented into drug discovery, disease diagnosis, training and education segment. The drug discovery segment accounted for the largest share of the application segment in 2023. This is due to the accuracy of the drug development process; digital pathology allows researchers to analyze vast datasets quickly and accurately. Moreover, AI helps in structure-based drug discovery by predicting the 3D protein structure because the design is in line with the chemical environment of the target protein site, thus helping to predict the effect of a compound on the target along with safety considerations before their synthesis or production. Additionally, this approach transforms global pharmaceutical research by enabling data sharing to integrate dispersed pharmaceutical pathology laboratories worldwide. This, in turn, provides pathologists with instant access to relevant pathology data globally. Growing life science R&D, rising government funding for research, and increasing digital pathology applications in life science and nanotechnology research are driving the growth of this segment.

Pharmaceutical and biotechnology companies are largest end users of the digital pathology industry.

Based on end users, the Digital Pathology market is segmented into pharmaceutical and biotechnology companies, hospital and reference laboratories, and academic and research institutes. Pharmaceutical and biotechnology companies dominate the digital pathology market due to their extensive research and development needs. They use advanced technologies to streamline drug discovery and testing. Digital pathology provides high-resolution imaging, efficient data management, and precise analysis, which enhances their ability to study diseases, identify biomarkers, and evaluate drug efficacy. It accelerates preclinical and clinical trials with faster, more accurate diagnostics. Additionally, the seamless sharing of digital slides and data across global teams boosts collaborative research, driving innovation and productivity. These companies' significant investments in cutting-edge technologies optimize research outcomes and maintain their competitive edge.

North America dominates the global digital pathology market.

The digital pathology market is segmented into five major regional segments, namely, North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. In 2023, North America accounted for the largest share of the Digital Pathology market. This is due to its advanced healthcare infrastructure and significant investment in healthcare technologies, Additionally, North America, particularly US, has a high prevalence of cancer, driving the demand for efficient and accurate diagnostic tools.

Prominent players in the digital pathology market include Fujifilm Holdings Corporation (Japan), Danaher Corporation (US), Koninklijke Philips N.V. (Netherlands), Mikroscan Technologies, Inc. (US), PathAI (US), Hamamatsu Photonics K.K. (Japan), F. Hoffmann-La Roche Ltd (Switzerland), 3DHISTECH (Hungary), Apollo Enterprise Imaging (US), XIFIN, Inc. (US), Proscia Inc. (US), KONFOONG BIOTECH INTERNATIONAL CO., LTD. (China), Glencoe Software, Inc. (US), Aiforia (Finland), Paige AI, Inc. (US), Huron Digital Pathology (Canada), Hologic, Inc. (US), Corista (US), Indica Labs Inc. (US), Objective Pathology Services Limited (Canada), Sectra AB (Sweden), OptraSCAN (US), Akoya Biosciences, Inc. (US), Motic Digital Pathology (US), and Kanteron Systems (Spain).

Digital Pathology Market Report Scope and Insights

Digital Pathology Market Segmentation and Analysis

By Product

• Scanners
  • Brightfield Scanners
  • Other Scanners
• Software, By Type
  • Integrated Software
  • Standalone Software
    • Information Management Software
    • Image Analysis Software
• Software, By Deployment Mode
  • On-Premises
  • Cloud-Based
• Storage Systems

By Type

• Human Pathology
• Veterinary Pathology

By Application

• Drug Discovery
• Disease Diagnosis
• Training & Education

By End User

• Pharmaceutical & Biotechnology Companies
• Hospitals & Reference Laboratories
• Academic & Research Institutes

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Sweden
  • Denmark
  • Rest of Europe (RoE)
• Asia Pacific
  • Japan
  • China
  • India
  • Rest of APAC (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America (RoLATAM)
• Middle East & Africa
  • GCC Countries
  • Rest of Middle East & Africa (RoMEA)

Digital Pathology Market Recent Developments and Insights

• In March 2024, Koninklijke Philips N.V. (Netherlands) announced an expanded collaboration with AWS to address the growing need for secure, scalable digital pathology solutions in the cloud. This collaboration will help to accelerate workflow efficacy and will help in enabling seamless integration with existing healthcare systems to deliver holistic patient care.
• In February 2024, Roche announced its collaboration with Path AI to develop AI-enabled digital pathology algorithms in the companion diagnostics space. This collaboration will allow Roche to accelerate its ability to meet the demand from biopharma companies looking to develop AI-enabled companion diagnostics and provide end-to-end solutions.
• In March 2022, Roche Diagnostics partnered with SRL Diagnostics. Under this partnership, SRL Diagnostics planned to transform its lab at Fortis Memorial Research Institute with Roche Diagnostics.
• In March 2023, Agilent Technologies announced its partnership with Hamamatsu Photonics K.K. to incorporate NanoZoomer range, including the S360MD Slide Scanner System, into its end-to-end digital pathology solution.
• In June 2021, Danaher Corporation enhanced the integration of digital pathology into diagnostic pathways with DICOM imaging. The company announced that its Next Generation Aperio GT 450 DX Scanner now includes support for DICOM imaging.

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