Market Trends of Analytical Instrumentation Industry
Life Sciences Segment Expected to Hold Significant Market Share
- Life sciences account for the largest analytical instrument industry share, representing a quarter of the entire industry. Life sciences comprise more than 13 individual technology segments, encompassing various applications using analytical tools such as spectrometry, atomic spectroscopy, and molecular spectroscopy, among others. It provides significant opportunities for the growth of both general instrument applications and niche research systems.
- Demand for Next Generation Sequencing (NGS) continues to flourish, impacting the sequencing segment and driving strong demand in the nucleic acid sample preparation segment. This growth was evident in the public and private sectors, as genomics technology went beyond basic research to reach the biomedical domain.
- Such tremendous growth is expected to create a significant demand for analytical instrumentation solutions, as it helps pharmaceutical companies comply with stringent regulations on drug safety.
- The market is witnessing several strategic developments, such as new product developments, mergers, and collaboration, that suggest an increase in the adoption of the analytical tool in the segment.
- Drug discovery and clinical research require various complex diagnostic instruments, analytical instruments, advanced medical devices, testing equipment, and many other specialized products. The COVID-19 pandemic resulted in significant demand in the market due to the growing need for accelerated research and public expectations of unprecedented progress from the scientific community.
- Hence, the demand for analytical instrumentation in the life sciences industry is expected to grow with increasing clinical research and drug discovery activities.
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Asia-Pacific Region Expected to Witness High Market Growth
- The demand for analytical instrumentation is growing significantly in the Asia-Pacific region. Specifically, the area utilized these products to address climate change, an aging population, food production, and newer energy sources. Analytical instrumentation vendors have also responded to the market demand via distribution by local companies and direct sales. Also, due to the trade tensions between the US and China, multiple companies have shifted some of their production and supply chains to countries outside China to circumvent disruption in business operations.
- One sector that received significant growth for analytical instruments from the Chinese government is life sciences. Within the 13th Five-Year Plan period, the life sciences industry in China registered medium-to-high-speed growth. China's government announced that it would further include a commitment to invest around USD 9 billion over the next 20 years in the precision medicine industry in its next five-year plan. Moreover, there is no specific antiviral treatment that is proven to be effective for COVID-19. Combinations of antivirals, different drugs, and traditional Chinese medicine are used in China. However, current treatment options are mainly based on previous experience showing clinical benefits in treating influenza and other viral infections.
- The region is home to several highly diverse countries ranging from advanced technological hubs to emerging economies. Countries like Singapore, South Korea, Taiwan, and Australia are already significant players on the world stage in industries like pharmaceuticals, biotechnology, semiconductors, and mining. The growth lifted in these countries due to substantial foreign investment and an ideal location to integrate into global supply chains. Many expect countries in the region to be competitive with China, Japan, and other international players shortly.
- Countries such as India have also been among the emerging markets in the analytical instrumentation industry owing to higher investment in testing and R&D activities. The growing awareness among the country's expanding end-user industries is also driving investment in the market studied. Therefore, the country's analytical instruments market witnessed exponential growth since the turn of the century. However, in the past 2-3 years, the pace of change slowed down to high single digits, and ever-thinning margins impacted the industry. Procurement pressures from government organizations and the private sector are taking a toll on the companies' bottom lines, though top lines are still growing.
- According to the Indian Analytical Instrument Association (IAIA), the country presently accounts for about 2-3% of the global analytical instrumentation market. However, India is at a very micro-scale in manufacturing, especially for high-end equipment, like liquid chromatography and mass spectrometry.
- Expressing concern over the declining margins and slow growth rate due to the lack of government support for the country's analytical instrument industry, IAIA suggested immediate intervention of the government organizations to support the much-needed boost to the analytical instrument manufacturing sector in the country.
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