The global laboratory equipment services market was valued at USD 15.00 billion in 2022 and is expected to reach USD 28.68 billion by 2028, growing at a CAGR of 11.41% during the forecast period. Laboratory equipment services are in demand for the proper functionality of lab equipment. In contrast, laboratory equipment services are in demand for increased functionality of laboratory equipment, reduced downtime, and streamlined laboratory activities. Worldwide, the rapidly growing development of laboratory equipment for clinical, research, academic, and other industrial purposes fuels the laboratory equipment services market growth. The increasing R&D activities in various industries such as clinical, pharma, biotech, life sciences, academic, and other industries are transforming laboratory equipment and making them more complex. Increasing complexity, price, sensitivity, and other additional features in laboratory equipment drive huge demand for lab equipment services.
MARKET TRENDS & OPPORTUNITIES
Rising Penetration of Multi-vendor Services
The growing number of laboratories & advanced products launched in the market drives the demand for lab equipment services. As the product is launched by vendors, for a further particular time, original equipment manufacturers (OEM) only deliver lab equipment services for this lab equipment due to the product being new into the market and developed by particular technologies. But the growing nature of multi-vendor lab equipment services is also known as Laboratory Asset Management (LAM) or Single Source Services. It is a privately managed laboratory equipment maintenance services solution for multiple vendors from a single provider. In contrast to contacting third parties for lab equipment services, this service model binds a group of laboratories to obtain many services.
Emerging Trend of Outsourcing Laboratory Equipment Services
The cost of lab equipment services is a major factor in the laboratory equipment services market. The biotech, pharmaceutical, and medical devices companies and healthcare settings such as hospitals and clinics consider maintaining laboratory equipment a vital factor in cost-saving initiatives. Concern over compliance, quality of results, and equipment uptime meant that using several maintenance contracts with several vendors remained normal before the COVID-19 pandemic. But in recent years, the pharmaceutical companies and healthcare settings running laboratories have become less risk-averse and majorly pursuing cost saving on lab equipment maintenance by closely working with outsourced maintenance providers.
Increasing Complexity in Laboratory Equipment
Globally, the growing laboratory industry with high-tech technology integrations and advancement in lab equipment led to increasing complexity. The complex parts of equipment or overall lab equipment demand high care. Several factors are increasing the demand for laboratory equipment services for complex lab equipment. In laboratory equipment, the rising integration of new technologies such as lab automation, lab equipment software, robotics, ILIMS, and others are complex and sensitive tools associated with lab equipment and significantly drive the demand for lab equipment services. Due to the complex and sensitive nature, self-lab technicians are in demand for external services where original equipment manufacturers or third-party lab equipment service providers play a vital role and driving the laboratory equipment services market growth.
INSIGHTS BY EQUIPMENT TYPE
The global laboratory equipment services market by equipment type is segmented into analytical, specialty, and general & support equipment. The analytical lab equipment segment held the largest segmental share in 2022 and is expected to continue its dominance over the forecast period. In laboratories, analytical equipment type encompasses a broad range of portfolios whose principal purpose is to analyze samples quantitatively & qualitatively. The wide range of available equipment allows for a broad range of testing methods continuously and their applications. The increasing automation features in analytical lab equipment improve effectiveness and efficiency and save time. In addition, data collection through cloud computing and the storage capacity of analytical instruments makes them complex for lab workers to maintain. These factors increase the demand for laboratory equipment services for analytical lab equipment.
INSIGHTS BY SERVICE TYPE
The global laboratory equipment services market by service type segments as repair & maintenance services, calibration, validation, and others. The repair & maintenance services segment accounted for the highest global market share, accounting for over 41% in 2022. Repair and maintenance services are both vital for equipment to function correctly. Repair are activities take to restore the appropriate functioning of lab equipment. On another side, maintenance services help to preserve lab equipment performance, functionality, and safety over its lifetime. The rising issue of lab equipment, such as mechanical failure, power issues, incompatible components, calibration errors, contamination, and software error issues, are accelerating the demand for lab repair and maintenance services.
INSIGHTS BY SERVICE PROVIDER
The original equipment manufacturers (OEMs) service provider segment accounted for the highest share of the global laboratory equipment services market in 2022. Original laboratory equipment manufacturers are in high demand for lab equipment services because they have the expertise to build the products and offer high-class and appropriate lab equipment services. The development of products and delivery of lab equipment services by OEMs are closely compiled with regularity and specialization. In addition, most bigger industries are looking for standard lab equipment services that do not compromise service quality and lab equipment. It led to the majority of lab equipment services demand by OEMs.
INSIGHTS BY CONTRACT TYPE
The standard service contracts held the largest global laboratory equipment services market in the contract type segment in 2022. The factors that drive demand for standard contract services are cost control, maximizing uptime and performance, meeting regulations and compliance requirements, and trusted providers. Standard service contracts commonly adopt in developed markets such as North America and Europe. Standard service contracts are expensive, which witnessed high demand in the US, Germany, Japan, and China. A standard laboratory equipment service contract is delivered within a specified time and an agreed-on price.
INSIGHTS BY END-USER
The global laboratory equipment services market by end-user segments into clinical & diagnostics labs, pharma, biotech, & medical device company labs, academic and research labs, and others. The clinical and diagnostics labs segment dominated the market in 2022. Clinical & diagnostics laboratories are health facilities offering a wide range of lab testing procedures that further help physicians diagnose diseases. The increasing number of healthcare settings and associated laboratories fuel the demand for lab equipment services.
North America dominated the global laboratory equipment services market share, accounting for over 37% in 2022. The region is leading due to many laboratories and the adoption of lab equipment. Technology advancement in labs across several industries accelerates the higher demand for lab equipment services. In addition, the economic growth in healthcare, pharmaceutical biotech, and other industries boosts the high demand for new lab equipment, resulting in high revenue generation in the region. Across North America, the U.S. is one of the leading markets, with around 93.80% market share. The market growth is majorly attributed to the rapidly growing healthcare, pharma, biotech, and other life sciences industries.
Europe is one of the prominent regions in the global laboratory equipment services market. The development in healthcare and life sciences industries delivers market growth opportunities. The pharma and biotech companies, clinical and diagnostic labs, and academic & research institutes have majorly driven the demand for laboratory equipment services. In Europe, European authorities' regulations and standards for lab and lab equipment are expected to increase demand for laboratory equipment services. Most European laboratories are advanced with infrastructure, workflow, adopting digital tools, and implementing different automated laboratory equipment.
The global laboratory equipment services market is highly competitive among market players. Globally, the presence of leading, rapidly growing, and emerging players impacts the market growth and landscape. Several players showed continuous dominance over the market, and some companies are trying to achieve more market share. Based on the huge competitive landscape, leading companies accepted and implemented several business strategies focusing on expanding market share and presence. Acquisitions, mergers, and collaborations are major business strategies implemented by several leading laboratory equipment services industry players. On another side, emerging and smaller players are looking for high-quality service delivery at affordable prices. After COVID-19, several mergers, acquisitions, collaborations, partnerships, product launches, and business expansion strategies have been majorly implemented by OEMs. Over 10 to 12 advanced laboratory equipment were launched from 2020 to 2023 in the global market. Currently, the companies leading in the global laboratory equipment services market with higher market share, penetration, and geographical presence are Perkin Elmer Inc, Avantor, Inc., Bionics Scientific Technologies, Danaher, Thermo Fisher Scientific, Agilent Technologies, Bio-Rad Laboratories, Bruker, Shimadzu Corporation, FUJIFILM Holdings Corporation, Waters Corporations, etc.