Bangladesh Clinical Laboratories Market Outlook to 2028

Market Overview:

A rapidly evolving market with immense growth potential Bangladesh Clinical Laboratories market is being driven by increase in number of hospitals & per capita healthcare expenditure along with improved technology. Bangladesh Clinical Laboratory Market remains highly fragmented with presence of over 10,000 diagnostic centers. Labaid and Popular Diagnostic Centre Ltd. being the top two players in the market perform 10,000+ tests in a day through their large network of diagnostic centers across the country.

The total addressable market for the Bangladesh Clinical Laboratories has been on a rise. Bangladesh Clinical Laboratory Market generated a revenue of $ 1,617.8 Mn in 2023 owing to Covid 19 Pandemic and increasing Non- Communicable Diseases. Bangladesh clinical labs market is highly fragmented with more than 10,000 players comprising chained and independent diagnostic centers and hospitals. In present scenario, focus has shifted towards patient centricity; industry has innovated service delivery model and is providing quality services.

Bangladesh Clinical Laboratory Market remains highly fragmented with presence of over 10,000 diagnostic centres and top 3 players (chained) accounting for ~7% of the overall revenue generated in the market in 2023. Multiple service delivery formats, establishment of more centers in underserved regions remain some common strategies adopted by top players in Bangladesh Clinical Labs Industry. Top chains in Bangladesh Clinical Laboratory Market have set up diagnostic centres in urban areas like Dhaka, meeting high healthcare demand and better infrastructure, followed by Chattogram and Rajshahi.

Bangladesh Clinical Laboratories Market Analysis

• Labaid and Popular Diagnostic Centre Ltd. being the top two players in the market perform 10,000+ tests in a day through their large network of diagnostic centers across the country.
• As of 2023, Bangladesh is home to 5,709 hospitals, all of which are owned and operated by private, public and nonprofit (public) organizations.
• Significant investments in construction, transportation, and manufacturing are driven by preparations for the FIFA World Cup 2023.
• Collection centers work as spokes and help expand network and transport samples collected to Regional / Satellite labs which have most of the Basic test capabilities.
• These are the laboratories which are owned by individuals or hospitals whose operations are outsourced to a third party – mostly a larger diagnostic player, who manages the day-to-day operations of the lab with a revenue share agreement.
• As of 2023, Bangladesh is home to more than 5,000 hospitals, all of which are owned and operated by private, public and nonprofit (public) organizations.
• Market in Bangladesh is dominated by unorganized services, with independent centers representing around 47% of the total centers, conducting over 80 Mn diagnostic tests in 2023.

Key Trends by Market Segment:

By Pathology: In the landscape of the Pathology Segment in 2023, Biochemistry emerged as the dominant force, securing a substantial market share. This ascendancy was primarily fueled by a heightened demand for a range of diagnostic tests, with notable emphasis on critical assessments like HbA1c and Lipid Profile. The Biochemistry segment played a pivotal role in meeting the diverse and essential diagnostic requirements, underscoring its significance in the broader field of pathology.

The comprehensive array of tests offered within Biochemistry not only addressed prevalent health concerns but also contributed significantly to the sector's overall revenue, highlighting its pivotal role in shaping the diagnostic landscape in 2023.

By Labs: In the dynamic landscape of the Bangladesh Clinical Lab Market in 2023, despite facing intensified competition from independent labs, chained laboratories are poised for superior revenue growth. This projection is rooted in several key factors, prominently among them being the expansive test portfolio offered by chained labs, encompassing a diverse range of diagnostic services. Additionally, the commitment to delivering an enhanced customer experience sets chained labs apart, with a focus on efficient service delivery, accuracy, and streamlined processes. Moreover, the deeper geographical reach of chained laboratories allows them to tap into a broader market, reaching both urban and rural areas.

By Geography: The central region played a significant role in contributing to the overall revenue, securing a substantial portion within the market share. Dhaka emerged as the primary revenue-generating division in this central region, followed closely by the Eastern region. This distribution underscores the pivotal role of the central area, particularly Dhaka, in shaping the financial performance and market dynamics, demonstrating its prominence in the broader revenue landscape.

Dhaka and Chattogram, as the primary divisions in the country, boast the highest number of hospitals and laboratories. Tests prices within these regions tend to be on the higher side. Yet, the intense competition posed by established diagnostic chains in these divisions creates significant barriers for new entrants.

Competitive Landscape:

Major Players in Bangladesh Clinical Laboratories Market

• Labaid and Popular Diagnostic Centre Ltd. being the top two players in the market perform 10,000+ tests in a day through their large network of diagnostic centers across the country.
• Multiple service delivery formats, establishment of more centers in underserved regions remain some common strategies adopted by top players in Bangladesh Clinical Labs Industry.
• Ibn Sina's heavy corporate marketing has secured agreements with 250+ organizations, fortifying its network for increased patient referrals.
• Labaids plans to expand the chain of diagnostic centers to 150 facilities throughout the country over the next five years and cater to 50,000 outpatients daily.
• Popular Diagnostic Centre Ltd is establishing a new referral lab in Dhanmondi in 2023, expanding their diagnostic capabilities and geographical reach.

Recent Developments:

• The evolution of the business model, marked by the establishment of collection centers and the provision of reports through digital channels, has resulted in significant benefits, including reduced travel distances, time, and costs. This transformation has also enhanced overall efficiency, leading to a substantial 45–55% reduction in turnaround time without impacting daily wages.
• Independent labs are estimated to have around 60% share in terms of revenue ; Private hospital will dominate with a massive revenue share owing to increasing investment on technology specially when it comes to specialized tests.
• Currently 70-80% specialized tests are outsourced to other countries from Bangladesh, however private hospitals are actively investing in expanding their service offerings, including specialized treatment options which will give them further leverage in future as well.

Future Outlook:

• Bangladesh Clinical Laboratory Market is estimated to grow at a CAGR of 6.9% during 2023-28 owing to increasing diabetic population, and non-communicable diseases.
• Local production plans for stents and potential for localization of cardiac devices, reducing dependence on imports might reduce the cost.
• Local production plans for stents and potential for localization of cardiac devices, reducing dependence on imports might reduce the cost.
• There is a shift in focus from curative to preventive medicine which gives impetus to the consolidation of primary health and wellness centers.
• In Bangladesh, NCDs contribute to 68% of mortality and 64% of the disease burden. This shift requires a change in the doctor-patient interaction from episodic to rhythmic care.