Before discussing the state of laboratory analytical
instruments industry it would be worthwhile to understand what is an
analytical instrument. Analytical instruments are defined as lab equipment
for sample analysis and also for providing information on samples. The
laboratory analytical instruments industry is a thriving international
business. Here large innovative companies have an upper edge and tend to
dominate the market. To beat the competition, numerous small sized firms
form alliances or try to operate in the niche market segments. According to
a report released by Instrument Business Outlook (IBO) for the year 2006,
the global market for analytical and life science instrumentation along with
related aftermarket and service revenues was around $32.8 billion. For the
year 2007, the overall sales of the laboratory analytical instruments
industry registred a growth rate of 8.2% and this year it is predicted to
grow at a rate of 7%.
Characteristics
of Laboratory Analytical Instruments Market
The analytical instruments industry is typically characterized by sporadic
growth high profits, stress on advanced technology. Let us look at some of
the charectristic features of the laboratory analytical instruments
industry.
- Monopolistic Market : It is only a few industries which
control the market share in the laboratory analytical instruments
industry. New entrants are discouraged by high start-up costs along with
a rigid technological requirement.
- Increasing Competition : Stiff competition among the vendors
to get a pie of the market share has exacerbated the maturity of the
global laboratory analytical instrumentation markets. The market is
quite mature with growth opportunities which are difficult to attain.
With customers demanding more product characteristics and integration
within the existing instrument at lesser or prices, it is expected that
the prices will go down to meet this demand.
- Focus on Growth : In the laboratory analytical
instrumentation market, the focus on growth is to be led by offering of
more sensitive instruments. This is for catering to the pharmaceuticals
and biotechnology research industry.
- Spending on R & D : Manufactures of of laboratory
analytical instruments are increasing their Expenditure on research and
development (R&D) for devising new and improved instruments that
considerably reduces the technical expertise rneeded to operate such
instruments.
- Direct Selling : Companies typically try to sell their
instruments directly to the research laboratories in hospitals,
pharmaceutical firms, food manufacturuing units and other organizations
dealing with chemicals or analysis of substances.
