Nigeria Clinical Laboratory Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

During the time frame of the forecast, the Nigerian clinical laboratory services market is expected to grow at a CAGR of almost 4.7%.

The COVID-19 pandemic affected the clinical laboratory market.However, the COVID diagnostic services positively impacted the market due to the upsurge of COVID-19 cases and the high demand for COVID diagnostic services in Nigeria. According to an article published in the International Journal of Infectious Diseases, in 2021, the incidence rate of COVID-19 infection was high in Nigeria. The Government of Nigeria has continuously focused on remote diagnostics, case management, and expanding telemedicine solutions, which may fulfil unmet needs during the pandemic. However, currently, the market is growing at a stable pace owing to the resumption of all laboratory services and diagnosis procedures, and it is expected to witness a similar trend over the coming years.

The Nigerian clinical laboratory market is driven by the rise of chronic diseases, the growing need for accurate disease diagnosis, and the government's focus on public-private partnerships.Malaria, lower respiratory infections, HIV/AIDS, diarrheal diseases, cancer, meningitis, stroke, and tuberculosis are the leading causes of death in Nigeria, according to the Global Health Data Exchange 2020.The number of malaria cases was around 58,143,458; additionally, according to the World Health Organization Report 2021, in Nigeria, the number of tuberculosis cases was 2,888,258; and the number of cases for diarrheal diseases was around 244,501,556. Thus, the prevalence of infectious diseases is rising in the country, augmenting the demand for diagnostic services for the better management of diseases.

Also, the Nigerian government, donor agencies, and non-governmental organizations (NGOs) are working together to make people more aware. 54 Gene announced the launch of its diagnostic arm, 7RiverLabs, in December 2021. The diagnostic hubs are fitted with state-of-the-art technology that will offer healthcare providers and patients access to world-class, cost-effective, speedy, reliable, and advanced molecular diagnostics. However, the lack of medical laboratories, advanced diagnostic equipment, and inadequately trained laboratory staff restrain the market’s growth.

Key Market Trends

Microbiology Testing is Expected to Hold the Significant Market Share

Microbiology testing is expected to have a large share of the market over the next few years.Microbiology testing is used to find out if a disease is caused by a microorganism, like a virus or bacteria.Nigeria has a lot of infectious diseases, and people are becoming more aware of and able to get microbiology testing. This is likely to drive growth in the segment in Nigeria.

Nigeria had the second-largest HIV epidemic in the world and one of the highest rates of new infections in sub-Saharan Africa.According to the Joint United Nations Programme on HIV and AIDS (UNAIDS), there were around 1,900,000 adults and children living with HIV in Nigeria in 2021.

Similarly, the rate of infectious diseases like Lassa fever, yellow fever, monkeypox, cholera, and new strains of existing pathogens like Neisseria meningitidis serogroup C in Nigeria has increased. According to the article published in BMC Infectious Diseases in 2021 by Terna Nomhwange, yellow fever outbreaks in Nigeria occurred in four epidemic blocks, resulting in 7894 suspected cases and 287 laboratory-confirmed cases.

Also, because of the COVID-19 pandemic, there was more demand for microbiology testing services in the country. Hence, the laboratories have focused on expanding the testing capacity. For instance, in April 2021, 54 Gene increased Nigeria's laboratory testing capacity for COVID-19 with a mobile laboratory in Ogun. Thus, the microbiology testing market will likely show growth over the forecast period in Nigeria.

Hematology Testing Segment is Expected to Grow with Healthy CAGR Over the Forecast Period

Hematology is a branch of medicine that deals with blood and blood-related disorders. Hematology tests include various tests on the blood, blood proteins, and blood-producing organs to evaluate a variety of blood conditions, including infection, anemia, inflammation, hemophilia, blood-clotting disorders, leukemia, and the body’s response to chemotherapy treatments. A hematological analysis is more affordable and widely available than several more precise procedures. The growing burden of blood-related disorders, which drives the demand for hematology tests, and advancements in technology for the development of hematology testing with advanced features are the major drivers for the growth of the studied segment.

According to the study published in Public Health in Practice in June 2022, in Nigeria, 68.1% of children aged 6-59 months had anemia. The state with the highest prevalence was Zamfara, with 84.0%. Thus, the significant burden of blood disorders in Nigeria is expected to boost market growth over the forecast period.

Players in the market are doing things like launching new products, forming partnerships, merging with other companies, and buying other companies. These are all strategic moves that should help the market grow.For example, the Delta Plus Diagnostics facility that will open in Ogunu in April 2022 will have a fully equipped molecular laboratory that will test COVID-19 and blood for hospitals, health management organizations (HMOs), corporations, and individuals.

Thus, all the aforementioned factors are expected to boost the segment over the forecast period.

Competitive Landscape

The market concentration of the Nigerian clinical laboratory services market is high, and some major players are currently dominating the market. These major players include Mecure Healthcare Limited, Union Diagnostic and Clinical Services PLC, Echo-Scan Services Limited, and Synlab Bondco PLC. However, some mid-sized companies are focusing on market penetration, and they are expected to hold a substantial share in the market during the forecast period.

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