The lab equipment market was valued at US$16.182 billion. Lab equipment refers to all those tools and equipment that are used by scientists or workers working in a laboratory. Various types of equipment are used in these laboratories which include mixers, furnaces, spectrometers, and conductivity meters among others. The primary factors that are significantly driving the market growth are the burgeoning adoption of technology for drug and vaccine development along with the rising investments in the R&D for the development of new drugs and medicines. Furthermore, the rising prevalence of chronic diseases such as cancer, diabetes, and asthma among others has led to rapid investments across the biopharmaceutical segment for the rapid advancement in the technology and the development of new drugs to combat the growing number of diseases is also estimated to increase the potential of the lab equipment market to grow in the coming years. Moreover, there has been a rapid increase in the demand for biologics, biologics refers to a kind of drug produced from living organisms or contain components of living organisms. Biologics are becoming increasingly popular around the globe to cater to some of the most prevalent diseases, and are thus actively being researched, thus providing an impetus for the market to surge in the next five years. Also, according to the World Health Organization’s International Clinical Registry Platform, out of all the trials in the pharmaceutical pipeline, spread across 50 different countries, in 2018, 40% of them were biologics. Thus, a significant rise in the demand for biologics is further projected to increase the R&D expenditure and thereby drive the market growth significantly.
The recent outbreak of COVID-19
The recent pandemic of the deadly COVID-19 is further anticipated to be one of the key factors for the rapid growth of the lab equipment market during the short run. The booming investments in the development of new vaccines along with a rapid increase in the number of sample tests have further led to an increased demand for lab equipment in various countries. In addition, the rising funding by the governments of various countries to boost the R&D for the development of vaccines and numerous medicines to meet the response of COVID is also anticipated to significantly drive the lab equipment market in the coming years. For instance, recently, in April 2020, the Department of Biotechnology, India announced that around 16 companies were granted funds to boost their R&D for the development of drugs and vaccines to speed up the process with an aim to tackle the disease.
Increasing investments by pharma companies in the R&D
The booming investments by the companies operating in the pharma sector with an aim to treat the various chronic diseases further widen up the opportunities for the market to grow in the near future. Also, the rising initiatives by the government of various countries have led to the formation of new schemes with an aim to accelerate the development of new innovative drugs is also considered a key factor expected to drive the market growth. For instance, In November 2018, the French National Agency for the Safety of Medicines and Health Products announced new plans for further fast-track schemes in clinical trials for innovative gene and cell therapy drugs. The scheme mainly focused to reduce the trial approval times by 25 or 30 days, thereby, enabling the companies to focus more on the development of new drugs.
Rising prevalence of chronic diseases
Chronic diseases are defined as the conditions or symptoms that last a year or more than a year, along with the requirement of regular medical attention. The growing prevalence of chronic diseases in the major countries is expected to augment the demand for new drugs. Chronic diseases include heart disease, cancer, chronic lung disease, stroke, Alzheimer's disease, diabetes, and chronic kidney disease. However, heart disease, diabetes, and cancer are the major chronic disease which are the leading causes of death and disability in the United States. Furthermore, a growing number of cancer cases will further boost the demand for efficient drugs during the forecast period. For instance, in the United States, more than 1.6 million people are diagnosed with cancer every year, and approximately around 6,00,000 deaths are caused by cancer, which makes cancer the second leading cause of death in the country (Source: U.S. Department of Health and Human Services). Moreover, approximately 30 million Americans suffer from diabetes which further drives the demand for the new and advanced drug as diabetes further increases the risk of heart disease, kidney failures, so in order to mitigate the risk of these diseases, the adoption of drug intake rises, which will further propel the demand during the next five years.
The lab equipment market has been segmented on the basis of type, end-user, and geography. By type, the market has been classified into with sample characteristic sensing and without sample characteristic sensing. By the end-user, the classification has been done on the basis of government, biopharmaceutical, industrial, and others. Geographically, the segmentation has been done on the basis of North America, South America, Europe, Middle East and Africa, and Asia Pacific.
North America to hold a significant share
North America is projected to hold a noteworthy market share in 2019 owing to the presence of sophisticated healthcare infrastructure in countries such as the U.S.A. the presence of key biopharma companies in the region further bolsters the market growth. The Asia Pacific region is anticipated to show robust growth opportunities during the coming years owing to the rising prevalence of chronic diseases and the growing investments in pharmaceutical research.
Prominent key market players in the lab equipment market include Eppendorf AG, F. Hoffmann-La Roche Ltd, Agilent Technologies, Inc., and Thermo Fisher Scientific Inc. among others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings.
Major players in the lab equipmentmarket have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.