With the growth of the pharmaceutical industry and the immense amount of R&D (research and development) activities in the field of bio technology, one industry that has expanded substantially is lab equipment services. A broad term used to define a wide range of laboratory-related services, in 2015, the lab equipment services market stood at approximately $13 million. According to analysts at Technavio, the market will record a CAGR of more than 10% by 2020.
Reasons behind the growth and demand of lab equipment services
The rising demand for lab equipment services is in fact a sign that countries – regardless of which economic bracket they fall into – are resorting to high quality pharmaceutical products. It is also a testament to how policy makers and governments around the globe are establishing stringent regulations in order to ensure that the quality of the pharma products isn’t compromised. This has further encouraged end-users to increase their investments in the laboratory testing process. Particularly in the case of the APAC (Asia-Pacific) countries, this trend is catching on at a rapid pace.
Turnaround time (TAT) is another major reason for the growth of the lab equipment service market. With the increasing demand for shorter TAT, several pharma companies are competing amongst themselves to create better products and thereby gain the continued loyalty of their customers. There are also cases wherein aggressive consolidation and M&A (mergers & acquisition) processes are taking place.
Another major driver behind the growing demand for lab equipment services is the high demand for customized and portable analytical instruments. Whether it’s in the context of the agriculture sector, food and beverages (F&B) industry, or drug delivery and pharmaceutical firms – customization has become today’s most key concept. With optimization of lab spaces, pharma companies can easily test and monitor large numbers of samples simultaneously.
Additionally, end-users are seeking the most cost-effective solutions. These solutions can only be made possible when there is no monopoly of one particular vendor in the lab equipment services market. This is why investors and governments are encouraging new vendors to establish their own high quality lab facilities, so as to create competition. As more players enter into the industry, the prices are sure to come down, with the end-users being the ultimate beneficiary of this trend.
Given that the number of patients with chronic diseases is increasing globally, researchers are looking for ways in which to address this issue in the best possible manner. Lab tests and accurate findings go a long way in being able to effectively diagnose patients and provide the proper treatments. Thus the growing market for lab equipment services is a boon for both researches and the general public alike. In the next five years, we are sure to see some major breakthroughs in medical research, which will ultimately benefit humanity as a whole.
Want to find which companies are the key vendors of lab equipment services?
View the 2016 Laboratory Equipment Services Procurement Market Intelligence Report
