The laboratory equipment market consists of a wide range of instruments, devices, machines, and other electrical equipment that are used in life science research, clinical or medical testing, industrial testing, and quality control testing applications. Instruments such as microscopes, analyzers, centrifuge, and many other equipment for analytical measurements find extensive usage in biomedical, pharmaceutical, chemicals, food and beverage, and environmental testing industries. The rising demand for biopharmaceuticals and the increasing adoption of quality and compliance requirements in drug development activities have driven the need for advanced analytical and testing equipment across the research value chain. The implementation of stringent regulations regarding drug safety and efficacy assessment and the establishment of advanced labs have also positively influenced the market growth.
The global laboratory equipment market is estimated to be valued at US$ 50.27 Bn in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period from 2023 to 2030.
Key Takeaways
Key players operating in the laboratory equipment are Thermo Fisher Scientific, Danaher Corporation, Agilent Technologies, PerkinElmer, Merck KGaA, Bio-Rad Laboratories, Bruker Corporation, Waters Corporation, Shimadzu Corporation, and Labconco Corporation.
The increasing investments in drug discovery and clinical diagnostics are driving the demand for analytical equipment. Advanced lab equipment facilitates faster analysis, higher throughput capacity, flexibility, and improved results. The growing R&D spending by pharmaceutical and biotechnology companies is a major factor bolstering the market growth.
Laboratory equipment manufacturers are expanding their global presence through acquisitions and mergers to meet the growing demand from emerging markets such as Asia Pacific and Latin America. Major players are also focusing on developing cost-effective and innovative equipment catering to high-volume requirements across various applications industries.
Market drivers
The rising pharmaceutical and biopharmaceutical R&D spending is a key driver propelling the laboratory equipment market. According to analysts, global spending on pharmaceutical R&D is expected to grow at a CAGR of around 6% during 2020-2024. Life sciences companies are increasingly investing in advanced analysis and testing to reduce costs and expedite new drug development. This is positively influencing the adoption of modern laboratory infrastructure and widening the buyer base of analytical equipment. Stringent regulatory guidelines mandating high-precision testing and analysis are also stimulating product demand from quality control and assurance laboratories.
Impact of Current Geopolitical Situations on Laboratory Equipment Market Growth
The global laboratory equipment market is expected to witness challenges in growth due to rising geopolitical tensions across several regions. Restrictions in trade and supply chain disruptions caused due to political unrest or international sanctions on certain countries hampers procurement of key components and raw materials needed to manufacture laboratory equipment. Similarly, conflicts also negatively impact sales and aftermarket service revenues in impacted countries or regions.
Manufacturers will need to closely monitor changes in trade policies and diversify their supply networks to mitigate risks from trade barriers. They must also explore opportunities in relatively more stable markets to offset slower growth or revenue losses from vulnerable regions. Going forward, establishing local manufacturing capabilities especially in emerging markets will help boost market access while also improving customer service levels through quicker turnarounds.
Concentration of Laboratory Equipment Market Value across Geographical Regions
Currently, North America accounts for the largest share of the global laboratory equipment market value-wise, estimated at over 35% in 2023. This is attributed to strong funding for life sciences and biomedical research along with presence of many pharmaceutical and biotech companies driving equipment procurement. Growing research expenditures to develop diagnostics, therapeutics and vaccines also drive the Asian market, particularly China and India. Europe is another major regional market benefiting from R&D investments by governments and private organizations.
Fastest Growing Regional Market for Laboratory Equipment
Among all regions, the Asia Pacific region excluding Japan is poised to register the highest growth in the laboratory equipment market during the forecast period. This growth can be attributed to rising healthcare expenditure, increasing investments by regional governments to strengthen research infrastructure, expansion of international pharma companies and growing outsourcing of clinical research to countries like China and India. In addition, strong economic growth rates enable higher budget allocation for advanced laboratory technologies required by emerging sectors such as biologics. Countries like China, South Korea and India will remain hotspots of laboratory equipment demand in the coming years.
