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Cloud ELN service market insights shared in detailed report

IT Market Research

Electronic lab notebook (ELN) are computer applications which performs functions of laboratory notebooks digitally. With the help of ELN, data is captured and recorded with better accessibility and security.

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It helps to achieve better efficiency with lower costs. ELN services are been offered on premise and are preferred by many organizations because the data is kept within their own firewall and is been considered more secured mode for data storage.

Many ELN supplier are now providingELN services hosted as Software as a Service (SaaS) through cloud where the service is offered on a subscription model by the vendors and can be accessed by any device from any location by the user. The market is in its infancy stage but growing number of engineers, technicians and scientists have started using the application and is expected to attract more number of users because of its advantages over on premise ELN services where various functionalities are been managed by vendors such as performing periodic system backups, software up gradation, server support etc.

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Access to data is allowed to allotted user where the data can be encrypted by signatures and passwords so as to make portability of the service more convenient without compromising on the security of the data.

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Cloud ELN Market Segmentation

Segmentation of cloud ELN market on the basis of mode of deployment:

Public Cloud:Public cloud supports multiple users with single code basis and since many clients can be supported by the same systems, these services are cost effective because the overall costs are been distributed over larger set of users. Also since there is no requirement for hardware’s such as servers and networking devices, the service requires no investment.

Although public cloud hosted ELN services are suffered by certain drawbacks such as lack of customization for individual users, high risk on data security etc. but will be in demand from medium and small scale organizations, research firms, individual doctors, scientists, technicians etc.

Private or Hosted Cloud:

In private or hosted cloud, service providers hosts the application for limited number of users where the applications are been supported individually and no other user share the same code. The host manages other operations such as backup and data security.

Private clouds although suffer by performance issues because the same hardware supports all the clients on distributed systems, corporate organization are expected to choose private over public cloud because of customized applications and better data security.

Segmentation of cloud ELN market on the basis of usage in different industries:

  • Pharmaceuticals
  • Chemicals
  • Life Science
  • Research Labs
  • Academic Institutions
  • Others

On the basis of usage cloud ELN can be segment into corporate, academics & research, government and other sectors. Corporate, academic and research usages are expected to contribute maximum because these sectors are expected to use the technology in its nascent stage as they are been considered early adaptors compared to government sector who are expected to use cloud based ELN services at a later stage because this sector is more hesitant in using any new technology offered in the market and normally follows any technology only after it has been adopted by the corporate sector.

Regional Overview

On the basis of geography, global cloud ELN market can be segmented into four key markets namely North America, Europe, Asia and rest of the world. North America is expected to dominate market for cloud ELN among all the regions.

USA in particular is expected to account for largest share in cloud ELN market and is expected to grow at highest CAGR. Europe market for cloud ELN trails behind the North American market.

With increasing healthcare, research and IT developments, Asia-Pacific provides lucrative opportunities for the cloud ELN market.  In rest of the world, countries belonging to Latin America and East Asia are expected to contribute more because of increasing healthcare and IT industry.

Increasing adoption of cloud computing services in healthcare and research fields will motivate more users to move towards ELN and cloud ELN because of their latent advantages over paper based lab notebooks such as data security, portability, accuracy of the data, cost effectiveness etc. In today’s scenario where most of the records in the fields of healthcare and research are been stored on servers instead of traditional paper based storage systems, more and more users will be attracted towards benefits offered by cloud based ELN services.

ELN offered as public cloud is expected to attract more individual users because of its cost effectiveness which is expected to come down further with increasing number of users for the same shared service.

Acceptance of SaaS for keeping confidential data such as patent related information in the cloud can be challenging task for the users who will fear from data security issues and can be a major restrain for cloud based ELN services. Although the benefits far outweigh the drawbacks but data security is one such fear which will be difficult to overcome for the users.

Resistance to change can be a restrain for the market as users have been using paper lab notebooks from a long time and may show reluctance in using cloud ELN. Even on premise based ELN services can be a substitute for cloud ELN and will be preferred by corporate and government agencies who are quite critical about data security.

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Some of the major companies offering Cloud ELN services are PerkinElmer, Dassault Systèmes, Core Informatics, Arxspan and Biovia. Many a companies are offering on premise ELN as well as cloud supported ELN both so as to meet the demands of varying set of customers.

Cloud ELN being in its nascent stage is expected to drive the demand more after few years compared to on premise ELN.

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