The laboratory supplies market was valued at US$54.323 billion in 2020. According to the statistics derived by the UNESCO Institute of Statistics, the global expenditure on R&D has reached as high as US$1.7 trillion. About ten countries account for 80% of spending. As part of the Sustainable Development Goals (SDGs), countries have pledged to substantially increase public and private R&D spending as well as the number of researchers by 2030. Moreover, there have been continuous investments to fuel the expansion of R&D facilities, especially life sciences, across the globe. With rising healthcare expenditure and growing incidence of rare and orphan diseases, the life sciences industry is under tremendous pressure to increase the speed of drug discovery and development. This, in turn, is escalating the demand for laboratory supplies worldwide, thereby driving market growth.
Increasing investments by governments to improve the education sector to generate a great pool of talent is also supporting the expansion of research laboratories across the education sector, thus positively impacting the market growth of laboratory supplies. For example, in March 2019, the Canadian government provided funding of $763 million for the Canada Foundation for Innovation (CFI) over the next five years and $462 million per year starting in 2023-24. This investment will allow CFI to continue to support researchers by investing in advanced labs and research equipment in Canadian universities, colleges, and research hospitals while creating a new generation of researchers.
Laboratory supply market players continuously adopt various growth strategies to expand their global market share. In February 2018, Thomas Scientific partnered with Zageno, an online biotech marketplace, to feature its full spectrum of offerings on the Zageno platform such that research scientists can easily search and order Thomas’ portfolio of products while enabling them to focus more on performing experiments instead of gathering supplies. The laboratory supplies market growth is also being driven by rising investments into the digital supply chain both by players across it and by companies that seek to tap the growth potential this transformation holds. For instance, Quartzy, an online platform that facilitates laboratory supply management and placing orders for supplies, is working with IndieBio, which works towards accelerating the growth of biotechnology start-ups. As these investments continue to increase, sales of laboratory supplies will also witness impressive growth on account of the improved efficiency of the overall process.
The laboratory supplies market is segmented by offering, end-user, and geography. By offering, the global laboratory supplies market is segmented into chemicals and reagents, kits, and consumables. By end-user, the market is segmented into life science, industrial, government, and others.
North America is anticipated to hold a significant market share in the projected period.
Geographically, the laboratory supplies market is segmented as North America, South America, Europe, the Middle East and Africa (MEA), and Asia Pacific (APAC). North America accounted for a decent market share in 2019. Growing R&D spending across various sectors, especially pharmaceuticals and chemicals in the U.S., is significantly augmenting the demand for laboratory supplies across the region. According to the Pharmaceutical Research and Manufacturers of America (PhRMA), the U.S. pharmaceutical R&D expenditure has increased from $2 million in 1980 to more than $70 million in 2017. The rising expansion of research facilities in Mexico is also contributing to the market growth of laboratory supplies in North America. In August 2019, global cosmetic manufacturer Avon opened a new state-of-the-art research and development facility in Mexico to support its Celaya plant to ramp up the development of products targeting the Mexican market. Europe is also one of the leading regional markets for laboratory supplies vendors owing to the continuous rise in the number of R&D projects across the region. The growing funding to supplement the growth of the R&D segment is propelling the laboratory supplies market in the region. For instance, the research budget for the European Union has increased from €3.8 billion in 1984–1987 to €100 billion in 2021–2027.
Prominent key market players in the laboratory supplies market include Lab Connections, Th. Geyer GmbH & Co. KG., Thermo Fisher Scientific, Spectrum Chemical Manufacturing Corp., Ing. Petr Švec - PENTA s.r.o., and Becton, Dickinson and Company, 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 Laboratory Supplies market 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.
Key Developments in the Market:
The recent COVID-19 global pandemic outbreak has caused a sudden spike in demand for laboratory supplies across the globe, thus creating a dire shortage. Many affected countries are facing dwindling supplies of both chemical components and basic swabs needed to collect patient samples. To fill this demand-supply gap, companies are focusing on the possible capacity expansion and playing their role in battling this global pandemic. The Dutch diagnostic manufacturer Quiagen scaled up the production of its RNA test reagents that are being used to perform specific COVID-19 diagnostics to support over 10 million coronavirus tests per month. The company hoped to deliver the chemical reagent for more than 20 million monthly tests by the end of the year through its production sites in the Europe and United States. Likewise, Novacyt collaborated with GSK, AstraZeneca, and the University of Cambridge to establish a new testing laboratory as part of the UK government’s five-pillar plan regarding the testing of COVID-19. The lab was used for screening of coronavirus testing and the analysis of alternative chemical reagents used for test kits to mitigate supply shortages. Moreover, during the period, multiple governments also relaxed regulations and guidance to increase the number of patients being tested per day to prevent the further spread of this disease. For example, On February 28, the FDA (U.S. Food and Drug Administration) declared the EUA (emergency use authorization) process for high-complexity CLIA labs to meet the burgeoning demand for clinical testing. With commercial labs also involved in testing and pursuing emergency use under these guidelines, the demand for laboratory supplies continues to increase in the country.
|Market Size Value in 2020||US$54.323 billion|
|Growth Rate||CAGR of during the forecast period|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Offering, End-User, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Lab Connections, Th. Geyer GmbH & Co. KG., Thermo Fisher Scientific, Spectrum Chemical Manufacturing Corp., Ing. Petr Švec - PENTA s.r.o., Becton, Dickinson and Company, Cardinal Health, Inc., Illumina, Inc., Bio-Rad Laboratories, Inc., Waters Corporation|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What factors are anticipated to drive the laboratory supplies market growth?
A1. Increasing investments by governments to improve the education sector so as to generate a great pool of talent is also supporting the expansion of research laboratories across the education sector, thus positively impacting the market growth of laboratory supplies.
Q2. What is the size of the global laboratory supplies market?
A2. Laboratory Supplies Market was valued at US$54.323 billion in 2020.
Q3. How is the laboratory supplies market segmented?
A3. The laboratory supplies market is segmented by offering, end-user, and geography.
Q4. Which region holds the maximum market share of the laboratory supplies market?
A4. North America holds a significant share of the laboratory supplies market throughout the forecast period.
Q5. Who are the major players in the laboratory supplies market report?
A5. Prominent key market players in the Laboratory Supplies market include Lab Connections, Th. Geyer GmbH & Co. KG., Thermo Fisher Scientific, Spectrum Chemical Manufacturing Corp., Ing. Petr Švec - PENTA s.r.o., and Becton, Dickinson and Company, among others.
Th. Geyer GmbH & Co. KG.
Thermo Fisher Scientific
Spectrum Chemical Manufacturing Corp.
Ing. Petr Švec - PENTA s.r.o.
Becton, Dickinson and Company
Cardinal Health, Inc.
Bio-Rad Laboratories, Inc.
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