The laboratory equipment market is expected to witness high growth due to technological advancements in analytical and biochemical instruments. Laboratory equipment comprises equipment, instruments and supplies used in research, medical, academic and industrial laboratories. The instruments find wide applications across life sciences industry for drug development, medical diagnostics, forensic testing and food and beverage analysis. Demand for equipment is increasing for analytical testing, quality control and scientific research purposes.
The global laboratory equipment market is estimated to be valued at US$ 50.27 billion in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period of 2023 to 2030.
Key Takeaways
Key players operating in the laboratory equipment market are Thermo Fisher Scientific, Danaher Corporation, Agilent Technologies, PerkinElmer, Merck KGaA, Bio-Rad Laboratories, Bruker Corporation, Waters Corporation, Shimadzu Corporation, and Labconco Corporation. These players are focusing on new product launches and expansion strategies to gain a competitive edge in the market.
The key opportunities in the market include growing biopharmaceutical industry and investments in R&D. The rising complexities in analytical instrumentation is driving demand for advanced laboratory equipment. growing demand for environmental testing is also opening new avenues for market players.
Technological advancements such as miniaturization, automation and robotics are propelling the laboratory equipment market growth. Adoption of internet of things sensors, artificial intelligence and 3D printing technologies are enhancing functionalities of laboratory instruments. Growing demand for laboratory automation solutions for increased throughput and high-precision analysis is fueling the market expansion.
Market drivers
Increasing global burden of diseases is propelling investments in biomedical research. Growing use of analytical instruments in genomics, proteomics and metabolomics is also driving the demand for advanced laboratory equipment. Rising collaborative agreements between leading market players and research institutes are further contributing to the market growth. Growing expenditure on pharmaceutical R&D is another key growth driver in the laboratory equipment market.
Current Challenges in Laboratory Equipment Market
The laboratory equipment market is facing challenges due to the growing demand for refurbished and used equipment among budget-constrained end users. Laboratory equipment has a relatively higher cost of procurement and maintenance. Therefore, end users, especially small and medium labs, prefer refurbished equipment to reduce capital expenditure. This acts as a restraint to the growth of new equipment sales. Furthermore, tight research budgets in developing countries also limit market expansion. However, the growing demand for diagnostics is expected to provide opportunities for new product development and innovations, which can help vendors overcome some of these challenges.
SWOT Analysis
Strength: Wide product portfolio and strong brand image of major players. Technological advancements have enhanced the capabilities of modern laboratory equipment.
Weakness: High maintenance and procurement cost of advanced equipment. Increased adoption of refurbished and used equipment.
Opportunity: Growing demand for customized lab equipment specific to applications. Emerging markets offer new growth prospects.
Threats: Intense competition among existing players. Risk of equipment becoming outdated quickly due to rapid technological changes.
Geographical Regions
North America dominates the laboratory equipment market currently in terms of value, due to presence of major players and availability of latest diagnostic technologies. Going forward, Asia Pacific is expected to be the fastest growing regional market during the forecast period. This can be attributed to rising investments by governments and emerging players to strengthen healthcare infrastructure and boost diagnostic capabilities across densely populated countries such as India and China.
Fastest Growing Geographical Region
Asia Pacific region is poised to witness the highest growth in the laboratory equipment market during 2023-2030. Rapid economic development, growing medical tourism, increasing affordability of diagnostics and surgeries, combined with large population base are driving massive investments to modernize healthcare facilities from rural to urban areas in developing countries of the region. These factors are creating significant demand for new as well as refurbished laboratory equipment from OEMs as well as third-party suppliers. Continuous expansion of pharma, biotech and contract research industries will further support the regional market growth over the forecast period.
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- Source: Coherent Market Insights, Public sources, Desk research
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