MARKET OUTLOOK
The global laboratory equipment and consumables market was valued at USD 99.75 billion in 2022 and is expected to reach USD 139.90 billion by 2028, growing at a CAGR of 5.80% during the forecast period. Introducing new lab solutions in the market is among the major business strategies opening revenue-generation opportunities for vendors. The market has witnessed several new equipment and consumables products launched by leading and emerging industry players. Developing products with new technologies is one of the leading factors that increase the adoption of new lab equipment and consumables. New technologies help to streamline workflow and reduce errors in equipment and laboratory activities.
Worldwide, the demand for laboratory tests reached an all-time high during the COVID-19 pandemic. Laboratories across the world performed millions of tests daily during the COVID-19 pandemic. Also, the laboratories witnessed rapid technological advancements and changes in clinical and research activities to combat the COVID-19 pandemic. Such factors have fueled the growth of the global laboratory equipment and consumables market. The increasing number of research and development activities in various industries positively transforms market growth. Furthermore, the increasing investment from pharma, biotech, medical devices, life sciences, and other chemical and food industries significantly transform the lab equipment and consumables adoption and application. In addition, the COVID-19 pandemic delivered lucrative opportunities from 2020 to 2023 and positively transformed the huge laboratory equipment and consumables market growth.
MARKET OPPORTUNITIES & TRENDS
Vendors' growing business expansion strategies include mergers & acquisitions, collaborations, partnerships, and company or company units’ expansion. The laboratories and associated businesses are rapidly growing as several research and development industries are growing. With the increasing demand for lab equipment and associated consumables or disposables, the laboratory equipment and consumables market players are looking for various business strategies that make them stand out in a hugely competitive market landscape. Some industry players focus on mergers and acquisitions, collaborations, partnerships, launched products, and many more business activities.
The future of laboratories with digital science, such as laboratory equipment and consumables, is transforming remarkably, leveraging connectivity, digital technologies, smart solutions, and sustainable practices to redefine how laboratories operate. Digitalization streamlines laboratory procedures, enhances data management, and enables advanced lab analytics. Integrating cloud systems, AI, Intelligence Laboratory Information Management Systems, and modernization in laboratories are transforming the future of labs.
Globally, over 75% of clinical decisions are based on disease diagnosis, where clinical and diagnostic laboratories are vital in offering early and accurate disease diagnosis procedures. Clinical and diagnostic labs are major contributors to the laboratory equipment and consumables market growth, running billion medical tests. Over 7 billion clinical laboratory tests are performed in the U.S. yearly. The accurate and early diagnosis of diseases is essential to prevent wasting patients' valuable time on the wrong course of treatments.
Increasing R&D by biotech, pharma, medical devices, and life sciences companies is one of the leading factors driving the laboratory equipment and consumables market. The growing burden of various communicable and non-communicable diseases greatly burdens the pharmaceutical and biotech industries for R&D, drug development, and research & analysis. R&D by the life sciences & bio-pharmaceutical industries gives a high potential for various studies and increases the demand for laboratory solutions in daily tasks to overcome the cost of research and clinical activities.
The preference for smaller lab equipment and lab automation factors has fuelled the growth of the laboratory equipment and consumables market in recent years. The laboratories are becoming more advanced with next-generation lab instruments and best-in-class infrastructure. Currently, two major factors, such as introducing small lab equipment and automation, are the two leading factors that drive the industry's growth. In addition, the focus of lab instrument manufacturers is to reduce cost and time in lab procedures; smaller lab equipment and lab automation are becoming more popular in the last few years.
INDUSTRY RESTRAINTS
Despite several factors that deliver the industry growth opportunities and drivers, some factors hamper the laboratory equipment and consumables market growth. Factors that hamper the growth are the high cost of laboratory solutions, lack of skilled workforce, and consumables pose the risk of biological and chemical contamination.
SEGMENTATION INSIGHTS
INSIGHTS BY PRODUCT
The consumables & lab apparatus product segment accounted for the largest global laboratory equipment and consumables market share in 2022. Consumables are commonly used for laboratory procedures/activities where lab equipment (IVD equipment, core & general lab equipment) are prominently used. The consumables are highly used compared to lab equipment due to lab equipment demand for one-time investment for longer periods and can perform several lab activities year-on-year. On another side, consumables are used multiple times and discarded. It indicates that the application rate of consumables is higher compared to equipment. After the consumables and lab apparatus segment, the IVD equipment segment accounted for a second higher market share. Globally, the increasing patient population with infectious diseases, chronic diseases, and other health conditions, are most commonly go through laboratory testing, where IVD equipment plays a vital role in disease diagnosis and gives a further way to deliver care for patients.
INSIGHTS BY LABORATORY TYPE
The global laboratory equipment and consumables market by laboratory type segments as clinical and diagnostic labs, pharma, biotech, & medical devices labs, academic and research labs, and others. The clinical and diagnostics labs segment had the largest industry share in 2022. Clinical laboratories are health facilities offering a wide range of lab procedures that further help physicians diagnose diseases. Worldwide, the growing prevalence of various diseases among the overall age group requires clinical laboratory testing for further care delivery services. Physicians are accelerating the demand for laboratory testing before delivering treatments, where general hospital-associated labs, pathology labs, clinical labs, and public and private health laboratories are driving the huge demand for advanced lab equipment and consumables and segmental growth. On another side, pharma, biotech, and medical devices companies are highly investing in R&D activities where associated laboratories constantly demand advanced lab equipment and consumables. The growing R&D, clinical research, product development, clinical trials, associated studies, patient population sample collection, processing, and other activities drive the growth of the laboratory equipment and consumables market.
GEOGRAPHICAL ANALYSIS
North America dominated the global laboratory equipment and consumables market, accounting for over 35% in 2022. North America accounted for many R&D activities, stronger healthcare settings network, advanced lab equipment adoption, higher patient population, and high expenditure. In North America, the US accounts for a higher market share as the country performs more clinical laboratory tests than other countries. Also, the preference for early and accurate diagnosis test in health management boost regional growth.
The APAC and Middle East are the two regions that offer lucrative growth opportunities in the global laboratory equipment and consumables market and are expected to grow with a healthy CAGR during the forecast period. In APAC, a huge patient population in China and India, significant development and advancement in laboratory infrastructure in Japan, and rising health expenditure in South Korea contribute to regional growth. Further, medical laboratories are becoming an essential part of healthcare delivery and registered undergone major changes as well as the introduction of new diagnostics technologies and tests in the Middle East. In MEA, integrating clinical data and laboratory information is becoming more necessary due to the complexity of advanced health systems, and access to a broad range of laboratory tests boosts the laboratory equipment and consumables market.
COMPETITIVE LANDSCAPE
The global laboratory equipment and consumables market is witnessing a highly competitive rivalry among market players. Globally, several rapidly growing and emerging players impact the market landscape. Several players showed continuous dominance over the industry, and some companies are trying to achieve more industry share. Based on the huge competitive landscape, leading companies accepted and implemented several business strategies to expand laboratory equipment and consumables market share and presence. Currently, the companies lead in the industry with higher market share & penetration and geographical presence are Danaher, Thermo Fisher Scientific, Agilent Technologies, Bio-Rad Laboratories, Bruker, Shimadzu Corporation, FUJIFILM Holdings Corporation, Perkin Elmer Inc, Waters Corporations, etc.