Digital Pathology Market Size, Share, and Growth Forecast for 2024 - 2031

Digital Pathology Market Size and Share Analysis

The global digital pathology market is estimated to reach a size of US$ 8.05 Bn in 2024. It is predicted to rise at a CAGR of 13.5% through the assessment period to reach a value of US$ 17.2 Bn by 2031.

Increasing prevalence of cancer and growing need for quick diagnostic tools are anticipated to fuel growth in the digital pathology market. Demand for computerized pathology is rising because of early telepathology acceptance, surging healthcare spending, and growing emphasis on precision medicine as well as drug development.

In terms of healthcare spending, the U.S. tops the world, with an average per capita spending of about US$ 12,914 in 2021. The healthcare sector contributes to around 17.8% of the country’s GDP.

While healthcare spending in Europe often involves several publicly supported institutions, it nevertheless reflects economic considerations. For instance, the cost of healthcare in Germany is around US$ 7,383 per person, or 12.8% of GDP. This substantial investment backs a strong universal healthcare program.

France, on the other hand, emphasizes accessible and comprehensive care by allocating about US$ 5,343 per capita, or 11.2% of GDP. The U.K. invests  nearly US$ 5,387 per person (11.9% of GDP), concentrating on its publicly funded National Health Service (NHS).

Rising prevalence of chronic diseases and increasing hospital admissions further support demand for pathology tests. Increasing workload in traditional pathology ecosystems and awareness of novel diagnostics are anticipated to raise the patient pool for diagnosis and support market growth. Hospitals and pharmaceutical firms are among the stakeholders served by the industry, which is increasing demand for cardinal pathology services and solutions.

Key Highlights of the Market

• Development of accurate and efficient diagnostic tools is required due to the rising incidence of chronic illnesses, such as cancer and heart disease.
• Innovations in whole-slide imaging, image analysis software, and AI have significantly improved diagnostic precision and operational efficiency.
• Telepathology solutions enable real-time global consultation and real-time case review, while healthcare IT adoption streamlines processes and reduces costs.
• Adoption of digital pathology is fueled by the globalization of healthcare services, emphasizing patient-centered care and efficiency enhancement.
• In 2024, hospitals are estimated to attain a market share of 26.8% due to rising admissions.
• Based on applications, the clinical pathology segment is projected to account for a market share of 23.3% in 2024 due to rising prevalence of cancer.
• Owing to research and development investments, North America is estimated to attain a market share of 44.2% in 2024. 
• Europe is anticipated to capture a market share of 28.3% in 2024 with developments in healthcare technology.

Market Attributes	Key Insights
Digital Pathology Market Size (2024E)	US$ 8.05 Bn
Projected Market Value (2031F)	US$ 17.2 Bn
Global Market Growth Rate (CAGR 2024 to 2031)	13.5%
Historical Market Growth Rate (CAGR 2019 to 2023)	10.6%

 

Growing Cancer Prevalence in North America Surges Digital Healthcare Services

In 2024, the digital pathology market in North America will likely hold a 44.2% market share due to research expenditures and surging adoption of digital imaging. Increasing prevalence of chronic illnesses and rising use of technology in managing them are the main drivers.

• According to recent studies, lung cancer is likely to account for 234,580 new cases in the U.S. in 2024. Kidney and renal pelvis cancer will account for 81,610 new cases, with the latter being more common.
• The International Diabetes Federation reports 14 million adults in Mexico living with diabetes, and Canada has 8.8% of the population diagnosed with diabetes. The launch of products and services in the country, such as Digital Diagnostics' IDx-DR autonomous AI software and the Welch Allyn RetinaVue 700 Imager, is likely to drive the market.

Focus on Drug Discovery to Create Novel Opportunities across Europe

Rising incidence of cancer, emphasis on workflow efficiency, and need for quick diagnostic tools are contributing to the growth of the digital pathology industry in Europe. Leading players are investing in healthcare, adopting telepathology, and focusing on drug discovery and precision medicine. The region is anticipated to hold a 28.3% share in 2024. For instance,

• In February 2024, F. Hoffmann-La Roche Ltd partnered with PathAI to create AI-based digital pathology algorithms for Roche's Tissue Diagnostics division.
• PathAI launched the AISight Digital Pathology Image Management System in August 2023 to enhance pathology workflows. 

The digital pathology scanner business is experiencing developments in Europe due to the rapid growth of AI, cloud technologies, and high-resolution imaging. 

Clinical Pathology Leads Amid Need for Innovative Screening Methods

Category	Value Share in 2024
Application- Clinical Pathology	23.3%

In 2024, the clinical pathology segment emerged as the preeminent force in the market, representing a substantial 23.3% share. The segment plays a key role in the early diagnosis and monitoring of a wide range of diseases, including critical conditions such as cancer, diabetes, and cardiovascular diseases.

Rising health issues has fueled a surging demand for unique diagnostic methods, leading to the growth of digital pathology technologies. Clinical pathology is also gaining importance in drug discovery through high screening methods.

Integration of innovative technologies not only improves diagnostic efficiency but also aids in the development of targeted therapies. It helps in enhancing the significance of the clinical pathology segment in healthcare.

Hospitals Seek Efficient Solutions due to Rising Admission Rates

Category	Value Share in 2024
End User- Hospitals	26.8%

The digital pathology market is dominated by hospitals, with a projected 26.8% share in 2024. This growth is attributed to the increasing number of hospital admissions and extensive pathology services provided by large-scale hospitals.

Strategic agreements with leading hospitals have facilitated the delivery of cutting-edge technologies and increased the use of digital tools to manage the growing patient load. For instance,

• After the global pandemic, Leica Biosystems Aperio at Regional Veteran Affairs Medical Center adopted telepathology due to COVID-19.
• Mayo Clinic's CDSS for complex chronic illnesses and Johns Hopkins University's CDSS for 85% accuracy in predicting long-COVID complications highlight the importance of innovative diagnostic tools.

The integration of digital pathology systems has streamlined workflows, reduced diagnostic turnaround times, and improved general efficiency in large hospital settings.

Market Introduction and Trend Analysis

The medical specialty of pathology helps identify and detect illnesses, including cancer. Digital pathology analyzes organ cells and interprets tissue samples using sophisticated imaging instruments and algorithms.

The market for digital pathology is rising, particularly in developed countries, with around 10% of pathology labs in the U.S. adopting digital solutions. Increasing prevalence of chronic diseases and cancer is driving demand for precise and timely pathological services.

• In 2023, the National Cancer Institute estimated that around 2.0 million new cases of cancer were diagnosed in the U.S., with lung cancer being the most common cancer-causing death.

Novel technology has boosted the adoption of AI-based digital pathology services, improving diagnostic capacity, image analysis, and efficient workflows. Digital pathology also enhances collaboration among pathologists, ensures the long-term preservation of specimens, and integrates artificial intelligence for automated analysis.

Historical Growth and Course Ahead

The global digital pathology market recorded a CAGR of 10.6% in the historical period from 2019 to 2023. Digital pathology, which has had a significant influence on ordinary pathology research and diagnostic services, has become more widely used because of the COVID-19 pandemic.

Growing number of teleconsultations, use of digital pathology to improve lab productivity, and in companion diagnostics as well as drug development are propelling the market. Diagnostic image processing is also being improved by artificial intelligence-based support systems.

The industry is anticipated to rise owing to government efforts and investments from leading manufacturers. However, expansion may be hampered by regulatory issues and a lack of uniform norms. Demand for digital pathology is estimated to record a prosperous CAGR of 13.5% during the forecast period between 2024 and 2031.

Market Growth Drivers

Development of Educational Platforms for Healthcare Practices to Push Demand

Digital pathology education platforms are transforming the field of pathology by utilizing unique tools like AI, digital imaging, and data analytics. These platforms help enhance the skills of current pathologists and train the next generation, accelerating diagnoses and facilitating efficient learning.

• According to the studies, in 2024, the smart Medicare facilities in North America and Europe will be over 1,500 and 1,200, respectively.

Developments in medical technology include using AI to accurately detect tumor cells and digital slides for teaching. Such tools help improve professional skills and create a collaborative learning environment by allowing the sharing of training records and annotated cases.

Recent developments in AI, educational initiatives, and technology upgrades highlight a growing emphasis on technology-driven education and patient care in digital pathology. One such recent example is the Pannoramic 1000RX scanner.

Rising Prevalence of Chronic Diseases Drives Innovation in Healthcare

Chronic diseases, such as cancer and heart disease, account for a significant portion of healthcare costs in the U.S. The aging population, with a high prevalence of chronic diseases, is driving demand for accurate diagnostic tools in the digital pathology industry. For example,

• Big healthcare data has increased, and storage costs decreased by 98.98% between 2019 and 2023. It was owing to the integration of digital pathology systems in labs. It was made possible by novel hardware and software as well as mobile health services.

Product adoption is also being driven by the need for testing and rising cases of chronic illnesses. Hence, digital platforms such as predictive analysis are increasingly being utilized.

Market Restraining Factors

Exorbitant Upfront Costs of Device Installations to Restrain Growth

Pathology slide scanner systems are helpful in modern medicine, but they can be costly. Small and mid-sized pathology labs struggle to afford them due to high initial costs for technical support, digital slide storage, training, and licensing fees. Additionally, the prices of high-throughput scanners make it difficult for these labs to obtain complete slide images.

• The shortage of pathologists in the U.S. is significant, with a deficit of 5,000 to 6,000 pathologists, or 5,400 per 100,000 people, despite a predicted workforce growth rate of 8 to 10%. This gap is insufficient to meet the increasing demands of an aging population and diagnostic needs.

The cost and complexity of adopting new pathology tools also hinder the capacity to extend workforce training and adoption of new technologies.

Key Market Opportunities

Emergence of Remote Pathology Services and Telepathology to Foster Avenues

The demand for telepathology and remote pathology services is increasing due to chronic diseases, technological innovations, and the global pandemic. By allowing pathologists to view and analyze digital slides from a distance, telepathology facilitates prompt and precise diagnosis.

Access to pathology resources is improved by innovations such as the Regional Veteran Affairs Medical Center's Leica Biosystems Aperio. Due to social distancing measures, the COVID-19 pandemic has hastened the introduction of telepathology. The market expansion emphasizes how important telepathology is to contemporary healthcare.

Proliferation of Novel Technology and Increased Funding Create Opportunities

Unique technologies, especially artificial intelligence and machine learning, are increasingly being used in the healthcare sector and are revolutionizing the digital pathology market. Service providers can improve efficiency and expedite diagnostic procedures because of the digitalization trend in healthcare.

The pathology sector in 2024 has seen significant investment, driven by developments in AI and digital pathology technologies. For instance, in October 2024, Berlin-based Aignostics raised US$ 34 Mn in a Series B funding round, contributing to its total funding of over US$ 55 Mn.

The funds are being used for AI model development, product expansion, and collaborations with institutions like Mayo Clinic. Since 2021, global funding in digital pathology has surpassed US$ 860 Mn, highlighting the rising interest in digital transformation in healthcare. Such investments enable companies to innovate and improve service efficiency.

Competitive Landscape for the Digital Pathology Market

Computational pathology industry leaders invest in research and development to stay ahead of technological developments and ensure product competitiveness. They form strategic alliances with research organizations, healthcare institutions, and other stakeholders to integrate digital pathology solutions into existing healthcare infrastructures. These partnerships help strengthen the credibility and approval of their technologies within the medical community.

Industry leaders also customize their solutions to address specific challenges in different healthcare environments and geographical areas, ensuring wider market relevance. This adaptability is important while accommodating diverse healthcare infrastructures and regulatory environments.

Recent Industry Developments

• In November 2024, South Korea-based Lunit and the U.K.-based AstraZeneca collaborated to develop an AI-powered digital pathology tool, the Lunit SCOPE Genotype Predictor. It predicts the likelihood of NSCLC driver mutations in tumors, improving detection speed and accuracy.
• In November 2024, India-based Molbio Diagnostics invested US$ 30 Mn in OptraSCAN, a San Jose-based diagnostics company, to enhance digital pathology solutions. It aims to make novel diagnostics more accessible to underserved communities.
• In September 2024, Roche, based in Switzerland, partnered with eight new collaborators to integrate over 20 AI algorithms into its digital pathology environment. It aims to revolutionize cancer research, diagnosis, and treatment, ultimately improving patient outcomes.

Digital Pathology Market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Europe East Asia South Asia and Oceania The Middle East and Africa Latin America
Key Market Segments Covered	Product Type Application End User Region
Key Companies Profiled in the Report	Danaher Corporation F. Hoffmann-La Roche AG Huron Technologies International Inc. Koninklijke Philips N.V. Olympus Corporation Hamamatsu Photonics K.K. Carl Zeiss AG Nikon Corporation 3DHISTECH Ltd. Hologic Inc. PerkinElmer, Inc. Visiopharm OptraSCAN, Inc. Inspirata, Inc. Sectra AB
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Digital Pathology (HFO) Market Segmentation

By Product Type

• Digital Pathology Equipment
  • Whole Slide Scanners
    • Brightfield
    • Fluorescence
    • Combination
  • Clinical Microscope
  • Tissue Microarrays
• Digital Pathology Software
  • Image Viewing and Analysis Software
    • On-premise
    • Cloud-based
  • Digital Pathology Information Systems
    • On-premise
    • Cloud-based

• Digital Pathology Services
  • Installation and Integration Services
  • Consulting Services
  • Maintenance and Validation Services

By Application

• Clinical Pathology
• Molecular Diagnostics
• Basic and Applied Research
• Drug Development
• Others

By End User 

• Hospitals
• Diagnostic Laboratories
• Pharmaceutical and Biotechnology Companies
• Forensic Laboratories
• Research Institutes
• Contract Research Organizations (CROs)
• Clinics 

By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Latin America
• The Middle East and Africa

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