The global analytical instrumentation market is projected to grow at a CAGR of 8.4% during the forecast period (2020 - 2025). Organizations across the globe are emphasizing on reducing production costs and optimizing productivity without compromising the quality of their offerings, this is driving the market for analytical instrumentation. Corporations worldwide are investing vast amounts on research & development and quality control, in order to strengthen their product portfolio to capture market share; this is boosting the demand for analytical instrumentations. These instruments also help keep an organization's offerings and processes in line with regulations and restrictions, however, the analytical instrumentation market itself is facing regulatory and technical challenges.
- The growing life sciences industry is expected to drive the demand for analytical instrumentation market. The life sciences industry is observing some of the major merger deals recently; for instance, Danaher announced to acquire the biopharma business of General Electric Life Science for approximately USD 214 billion and Bristol-Mayers Squibb and Celgene announced definitive merger agreement under which BMS will acquire Celgene for a value of approximately USD 74 billion.
- The global growth of the pharmaceutical industry is influencing the analytical instrumentation market positively, driving the demand for various lab equipment. According to IQVIA, the worldwide revenue of the pharmaceutical market during fiscal 2018 stood at USD 1,204.8 billion.
- Governments are increasingly spending on research and development in various fields, in turn increasing the demand for analytical instruments. According to the National Science Foundation, the US federal obligation for R&D during fiscal 2018 stood at USD 121.54 billion.
- The global demand for analytical instruments is going up owing to organizations' and governments' emphasis on building R&D capabilities in various fields; however, the regulations and technical challenges in the production of such instruments are hindering the growth of the analytical instrumentation market. The market growth in various sectors is riddled with a lack of skilled professionals which is another challenge faced by the market.
Scope of the Report
The analytical instrumentation market is driven by the global requirement of solutions that reduce cost and increase productivity strengthening product portfolio and other offerings. The market is segmented by type which includes instruments based on chromatography and spectrometry, however other types is expected to hold a significant share of the market owing to the presence of a number of other analytical instruments such as thermal analysis, pH meter & sensors, melting and dropping point instruments, etc. The end-user applications cover different industries, others include industries such as healthcare, production, and manufacturing, energy & chemicals, etc. Under geography, Americas is expected to hold a prominent share of the market owing to the presence of brazil, middle eastern countries, and African markets which hold significant share in food & agriculture, oil & gas, and material science industries.
Key Market Trends
The Growing Demand from Life Sciences and Pharma & Bio-pharma is Expected to Augment the Market
- The growing global pharmaceutical market is driving the demand for R&D efforts; various pharma processes and operations drive the demand for analytical instruments. According to IQVIA, global pharmaceutical sales during fiscal 2018 stood at USD 982 billion an increase of USD 42 billion compared to the previous year.
- The vitality of the Pharma industry's spending on R&D efforts and patents is paramount, owing to which the industry drives the demand for analytical instruments. According to EFPIA, the number of new chemicals or biological entities developed by the pharmaceutical industry between 1992 and 2018 stood at a total of 267, and pharmaceutical R&D expenditure's annual growth rate stood at 3.8% and 8.6% for Europe and the US respectively between 2014-2018.
- The growth of the life science industry across the globe is directly influencing the analytical instruments market; the industry is observing various investments in different regions depending on the market potential. For instance, according to the Office for Life Sciences UK, the life sciences foreign direct investment during fiscal 2018 stood at EUR 1.1 billion.
- Several organizations worldwide are spending on R&D to gain a competitive advantage in various fields; this is expected to influence the analytical instrumentation market positively. Roche Holdings and Merck & Co, which are life sciences companies spent USD 11.76 and 10.18 billion respectively on R&D during fiscal 2018.
Americas Holds Prominent Share of the Market
- Owing to the presence of the US, Canada, and Brazi; which are the countries that spend a significant amount on R&D and hold a prominent share in Oil & Gas, life sciences, pharma & biopharma industries, materials sciences. The region holds a lion share of the analytical instrument market. According to EFPIA, the US observed an annual growth of 8.6% between 2014 and 2018 in pharmaceutical R&D spending.
- The US is a prominent market and home to major pharmaceutical vendors, hence the US pharmaceutical industry is increasingly spending on R&D. According to PhRMA, the US pharmaceutical industry spent USD 17.4 and 62.22 billion on R&D at home and abroad respectively during fiscal 2018.
- Canada has a prominent oil & gas industry and holds a significant share on a global scale, owing to this the country is observing the demand for analytical instruments. According to British Petroleum, as of 2018, Canada holds 9.7% of the global oil reserves.
- The region holds a major share of the global pharmaceutical industry, owing to the demand and production of numerous pharma products and services; this is expected to positively influence the analytical instruments market. According to IQVIA, the North America region was home to 48.9% of the global pharmaceutical sales during fiscal 2018.
The global analytical instruments market is fragmented and is home to numerous major and smaller vendors depending on the location. The major vendors in the market garner deeper product portfolio catering to different requirements of the customers, whereas smaller vendors operate in niche segments providing customizations and customer-specific orders. Key players include Agilent Technologies, Inc, Bruker, PerkinElmer Inc., Thermo Fisher Scientific, Shimadzu Corporation, etc.
- September 2019 - Bruker announced the launch of the INVENIO X Fourier Transform Infrared (FTIR) system for research in molecular spectroscopy. This announcement is in line with the expansion of their next-generation INVENIO FTIR R&D platform.
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