Off-the-peg LIMS

The worldwide market for Laboratory Information Management Systems (LIMS) is expected to grow at a compounded annual growth rate (CAGR) of 4.8 per cent over the next five years as manufacturers recognise that home-grown systems are not cost-effective, according to a new study.

The market for these commercial-off-the-shelf (COTS) applications is projected at $290.3 million in 2003 and is forecasted to be $366 million in 2008, according to Arc Advisory Group​, which published the report.

"The perception that commercial LIMS solutions require extensive customisation is outdated,"​ according to senior analyst Paula Hollywood, the principal author of the report. Manufacturers are displaying an increased willingness to implement moderately customized, out-of-the-box solutions to decrease the cost of ownership of their LIMS, she added.

This study projection is for the commercial LIMS hardware, software, and services market. When home-grown LIMS solutions are included, ARC estimates the potential for this market to be $550 - $750 million.

This suggest that there is a huge upside opportunity in the conversion of these custom solutions - with their inherent high total cost of ownership - to out-of-the-box solutions. However, recognising the difficulty of convincing users to ditch their home grown systems for packaged software, Arc does not include these numbers in its forecasts.

Regulatory compliance drives growth​

Government regulated industries, including pharmaceuticals, are the leading consumers of LIMS, accounting for more than 50 per cent of the industry's revenues in 2003. However, government laboratories are also expected to contribute to growth in this sector as governments around the world seek to protect their citizenry from bio-terrorism and other public health threats through increased preparedness and better communication channels.

Lab throughput can be drastically improved with an effective LIMS solution, notes Arc. The ability of the systems to obtain test results directly from lab instruments or instrument-controlling PCs reduces keyboard data entry and translation errors.

Typically, linked instruments include high-performance liquid and gas chromatography, nuclear magnetic resonance, inductively-coupled and other forms of mass spectrometry, near-infrared spectroscopy, balances, pH meters, titrators, viscometers, densitometers and pour points.

"It is likely that linking LIMS to instruments will become more critical in the future for the pharmaceutical industry both in terms of instrument interfaces and protocols as the FDA more clearly defines its Process Analytical Technology (PAT) initiative,"​ according to the report.

Export market​

The developed regions of the world account for more than 80 per cent of the LIMS market, as North America and Europe have the most stringent regulatory requirements for traceability in the drug supply. While the developing nations of the world are currently trailing in the number of system implementations, this situation is expected to improve as their industrial bases solidify, noted Arc.

The export market is also a driver for developing regions who seek to export products to developed nations where traceability is a requirement, regardless of the point of manufacture.

For more information on the report, entitled Laboratory Information Management Systems (LIMS) Worldwide Outlook, is available from Arc​.