U.S. And Europe Digital Pathology Market (By End-use: Hospitals, Diagnostic Labs; By Product: Software, Device; By Application: Disease Diagnosis, Academic Research) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. and Europe digital pathology market size was estimated at around USD 609.05 million in 2023 and it is projected to hit around USD 1,225.24 million by 2033, growing at a CAGR of 7.24% from 2024 to 2033. 

Key Pointers

• By Product, the device segment accounted for the highest market share of 52% in 2023.
• By Application, the academic research segment registered the maximum market share of 46% in 2023.
• By Application, the disease diagnosis segment is expected to grow at the fastest CAGR of 7.65% from 2024 to 2033.
• By End-use, the hospital segment captured the maximum market share of 37% in 2023.

U.S. And Europe Digital Pathology Market Growth

The growth of the digital pathology market in the United States and Europe is underpinned by several key factors. Technological advancements in imaging have played a pivotal role, allowing for the digitization of pathology practices and the creation of high-resolution images for analysis. In both regions, the rising prevalence of chronic diseases has heightened the demand for precise and efficient diagnostic tools, propelling the adoption of digital pathology solutions. Moreover, a proactive approach to healthcare innovation in the U.S. and Europe has fostered an environment conducive to embracing transformative technologies. The commitment to improving diagnostic capabilities, streamlining pathology workflows, and addressing the evolving healthcare needs of an aging population has led to significant investments in digital pathology infrastructure. As a result, the convergence of advanced technology and a growing emphasis on healthcare excellence positions the U.S. and Europe as dynamic hubs for the sustained expansion of the digital pathology market.

Report Scope of the U.S. And Europe Digital Pathology Market

U.S. And Europe Digital Pathology Market Dynamics

Drivers

• Rising Prevalence of Chronic Diseases: The increasing incidence of chronic diseases, such as cancer and cardiovascular disorders, is a major driver for the adoption of digital pathology. The need for accurate and timely diagnostics to support effective treatment plans has spurred the integration of digital pathology solutions in healthcare settings.
• Demand for Efficient Diagnostic Solutions: A growing demand for efficient and streamlined diagnostic processes is a key driver. Digital pathology offers pathologists the ability to analyze pathology images remotely, facilitating collaboration, reducing turnaround times, and improving overall diagnostic efficiency.

Restraints

• Integration with Existing Workflows: Integrating digital pathology seamlessly into existing pathology workflows can be complex. Resistance to change, coupled with the need for comprehensive training for pathologists and laboratory staff, may slow down the adoption process and limit the realization of the full potential of digital pathology.
• Regulatory Compliance: Meeting regulatory standards and compliance requirements poses challenges for digital pathology. Navigating complex regulatory landscapes in both the U.S. and Europe requires careful adherence to guidelines, and any discrepancies may impede the approval and widespread adoption of digital pathology technologies.

Opportunities

• Advanced Analytics and AI Integration: The integration of advanced analytics and artificial intelligence (AI) presents a significant opportunity in the digital pathology market. Implementing machine learning algorithms can enhance diagnostic accuracy, automate routine tasks, and provide valuable insights from large datasets, revolutionizing pathology practices.
• Telepathology and Remote Consultations: The rise of telepathology offers the opportunity for remote consultations and collaborations among pathologists. This not only improves accessibility to expert opinions but also facilitates knowledge exchange and second opinions, ultimately enhancing the quality of pathology diagnostics.

Product Insights

The device segment accounted for the largest market share of 52% in 2023. Devices such as high-resolution scanners and imaging systems contribute to improved diagnostic accuracy by providing detailed images of tissue samples for pathologists to analyze. Also, the automation provided by devices like slide scanners and loaders streamlines the workflow in pathology laboratories, reducing manual handling and expediting the digitization process. Furthermore, devices with integrated AI capabilities, like automated image analysis, are in demand for their potential to assist pathologists in detecting abnormalities and patterns, thereby impelling market growth. The software segment is anticipated to witness the fastest growth over the forecast period. The software solutions help manage and store vast amounts of digital images efficiently, ensuring easy retrieval and archiving.

Solutions like telepathology software are in demand for their role in facilitating remote consultations, second opinions, and collaborations among pathologists. Also, these solutions seamlessly integrate with electronic health records (EHRs) and enable comprehensive patient data exchange and informed decision-making, thereby driving the segment growth. Furthermore, government initiatives to constantly encourage the adoption of advanced pathology software and recommend them as a standardized approach are factors expected to boost demand. For instance, in November 2018, the UK Government and Philips consortium co-invested in digital pathology to accelerate the development of novel artificial intelligence software to support cancer diagnostics, which will be led by Philips and the NHS.

Application Insights

The academic research segment accounted for the largest market share of 46% in 2023. due to the high adoption of digital pathology in various research studies, such as tumor morphological research. Numerous academic research institutions are joining forces with digital pathology providers to integrate this technology into their research endeavors. For instance, in November 2022, the University Medical Center Utrecht entered into a collaboration with Paige to integrate their application into clinical environments. This partnership also encompasses the undertaking of a clinical health economics study, designed to expedite the reimbursement process and promote the broad adoption of AI applications within the realm of pathology. The disease diagnosis segment is anticipated to grow at the fastest CAGR of 7.65% from 2023 to 2032.

A rise in the prevalence of chronic illnesses and the growing emphasis placed by manufacturers on the advancement of rapid & innovative diagnostic techniques, aimed at facilitating seamless exchange of information within and between departments, are propelling the segment growth. Embracing digital technologies in the medical field contributes to the enhancement and optimization of disease diagnosis procedures, consequently bolstering treatment effectiveness. For instance, in April 2022, PreciseDx partnered with The Michael J. Fox Foundation to introduce AI-integrated digital pathology technology, designed for the early diagnosis of Parkinson's disease even before pronounced symptoms manifest in patients. Furthermore, a rising number of initiatives led by both public and private entities, including the American Society for Clinical Pathology (ASCP) and the College of American Pathologists (CAP), aimed at augmenting the quality of cancer diagnosis, is expected to drive the segment growth.

End-use Insights

The hospital segment contributed the largest market share of 37% in 2023. Hospitals are increasingly adopting digital pathology solutions to enhance their pathology departments and provide more accurate and efficient disease diagnoses. Also, hospitals benefit from streamlined workflows as digital pathology eliminates the need for physical slide handling and automates processes like slide scanning. This reduces turnaround times and enhances efficiency. Furthermore, digital pathology promotes collaboration among hospital staff, enabling pathologists, clinicians, and other specialists to collectively review cases and make well-informed treatment decisions. Moreover, many hospitals are implementing digital scanning techniques to improve patient compliance and speed diagnosis.

For instance, in March 2023, Ibex Medical Analytics, known as Ibex, secured a PathLAKE contract that encompasses the provision of AI-enhanced solutions across 25 NHS facilities to bolster cancer diagnosis efforts. This development is anticipated to significantly influence the market's trajectory in the foreseeable future. The diagnostics lab segment is expected to grow at the fastest growth rate over the forecast period. This trajectory is attributed to the amplified emphasis on facets like drug development, preclinical GLP pathology, and oncology clinical trials. In addition, the rising incidence of cancer and the integration of digital pathology within diagnostics labs are key drivers propelling market expansion.

For instance, in January 2022, Inform Diagnostics introduced FullFocus, an AI-enabled digital pathology viewer devised by Paige, within its laboratory. This strategic integration of AI tools is expected to enhance operational efficiency, streamline logistics, and expedite the attainment of prompt outcomes. Moreover, digital pathology offers opportunities for error eradication as there is a reduction in error identification due to synchronization between images and LIS. In addition, the advantage of these diagnostic laboratories is the availability of funds for innovation. The process encourages further innovation by encouraging pathologists to become specialized, giving scientists access to better resources & knowledge, and exchanging practices with wider geographies.

U.S. And Europe Digital Pathology Market Key Companies

• Leica Biosystems Nussloch GmbH (Danaher)
• Hamamatsu Photonics, Inc.
• Koninklijke Philips N.V.
• Olympus Corporation
• F. Hoffmann-La Roche Ltd.
• Mikroscan Technologies, Inc.
• Inspirata, Inc.
• Epredia (3DHISTECH Ltd.)
• Visiopharm A/S
• Huron Technologies International Inc.
• ContextVision AB
• Owkin
• Lunit
• Tempus Labs
• DeepBio

U.S. And Europe Digital Pathology Market Report Segmentations:

By Product

• Software
• Device
• Storage System

By Application

• Drug Discovery & Development
• Academic Research
• Disease Diagnosis

By End-use

• Software
• Biotech & Pharma Companies
• Diagnostic Labs
• Academic & Research Institutes