Analytical Instrumentation Market

Market Overview

The global analytical instrumentation market was valued at USD 52.51 billion in 2022. It is projected to reach USD 69.78 billion by 2031, growing at a CAGR of 3.21% during the forecast period (2023-2031). The global analytical instrumentation market is expanding due to increased government restrictions, rising R&D expenditures, and growing consumer concerns about product quality (hereafter referred to as the market studied). Throughout the forecast period, the market's expansion is also anticipated to be aided by increasing consumer awareness, particularly in developing areas, and the demand for analytical instruments across numerous industries. Government initiatives for pollution control and environmental testing, particularly in developing nations, rising investments in pharmaceutical R&D globally, stricter regulations on drug safety, a growing emphasis on the quality of food products, an increase in the production of crude and shale gas, and technological advancements in mass spectrometers have all contributed to the market study's growth in recent years.

Market Dynamics

Global Analytical Instrumentation Market Drivers

Development of Individualized Medicine

The most promising method in the healthcare sector is precision medicine, also referred to as customized medicine. It uses population health, genetics, and BigData analytics. The transition to precision medicine is a focused strategy, where the choice is based on the person's particular clinical, molecular, and lifestyle data. Moreover, analytical chemistry is the foundation for human biology as a whole. For instance, a DNA analyzer, an analytical tool with sensitivity, repeatability, and dependability, is used to conduct genetic and genomic research.

One of the key factors boosting the market for laboratory analytical instruments is the development of individualized medicines and therapies thanks to the rise of precision medicine. Increasing access to precision medicine necessitates more involvement in clinical trials to speed up the release of new targeted treatments. This necessitates that the analytical tool executes various tasks during clinical trials. The genomic business is still in its early stages in industrialized nations like the United States, where it is anticipated to experience rapid growth over the next few years. 

Global Analytical Instrumentation Market Restraint

Large Starting Costs

The high cost of analytical equipment constraints the study market's expansion. Additionally, the cost of staffing, maintenance, and laboratory expenses are added to the price of instruments, which limits the market's expansion. Further, the cost of analytical instruments is rising due to new features and functionalities, technical developments, and inventive systems. For instance, high-performance liquid chromatography (HPLC) costs between USD 12,000 and USD 50,000. The 90-L column and packing station cost roughly SUD 200,000 in total. The medium needed for a 90-L column, or the chromatography apparatus, costs about USD 70,000. The median cost is approximately USD 1,400 for 50 cycles, making the total cost per cycle (equipment and media) about USD 1,600.

Global Analytical Instrumentation Market Opportunities

Adoption of Analytical Equipment in the Food and Beverage Sector 

The widespread use of analytical instrumentation in the food and beverage sector is expanding the market. Food producers are using a variety of analytical instruments and techniques, such as mass spectroscopy, to assure food safety as governments impose more strict rules. The effective identification of microbiological contamination is being increased by using analytical instrumentation, which also promotes the industry's expansion. Mass spectroscopy deployment is also accelerating due to increased research efforts to create quick techniques to identify potential food contamination, fueling the industry's expansion.

Regional Analysis

The global analytical instrumentation market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

North America Dominates the Global Market

North America is the primary significant revenue contributor and is expected to grow at a CAGR of 7.10% during the forecast period. Due to the robust infrastructure in the United States and Canada, the North American region has been spending much money on research and development (R&D) in a variety of sectors, and it dominates the oil and gas, life sciences, pharmaceutical, and biotechnology industries, as well as materials sciences. Because the US has been a significant market and is home to critical pharmaceutical vendors, the US pharmaceutical sector is investing more money in R&D. The Food and Drug Administration reports that in contrast to the 48 drugs that CDER approved in 2019, 53 novel drugs were approved by CDER in 2020. A sizable demand for analytical tools has been seen in the US for biotechnology and precision medicine applications.

Asia-Pacific is expected to grow at a CAGR of 9.10% during the forecast period. In the Asia-Pacific region, there has been a sharp increase in the need for analytical equipment. These items have specifically been used to address climate change, an aging population, food production, and newer forms of energy. Analytical instrument producers have also turned to direct sales and distribution via regional businesses to meet consumer demand. To avoid disruptions in business operations, some companies have moved portions of their manufacturing and supply chains to nations in the region outside of China as a result of the trade tensions between the US and China. The Chinese government has given the bio-sciences sector significant growth funding for analytical tools.

In the European region, the analytical instrumentation software and services market has developed well. Compared to other European nations, Germany has a substantial number of associations and groups that support research and development in the life sciences sector, which keeps the demand for analytical instruments high. The nation is renowned for its work in the life sciences diagnostic applications. According to MedTech Europe, Germany's medical technology market holds a sizable portion of the European market. According to the Office for Life Sciences, United Kingdom, Germany is the second-largest European nation with the most productive pharmaceutical manufacturing industries.

Latin America and the Middle East and Africa are included in the market study of the rest of the globe category. Many governments in Latin America are strengthening their R&D capacities, and funding programs for universities and incubators are expanding. Only a tiny portion of life science patent applications worldwide have been filed in the region under the International Patent Cooperation Treaty (PCT). The region's economy is primarily based on the manufacturing, metals, textiles, agriculture, pharmaceutical, and oil and gas sectors. The market for analytical instruments and life sciences in the area is expanding along with these businesses. The region has endured economic volatility over the last few years due to falling oil prices and tight funding.

Segmental Analysis

The global analytical instrumentation market is segmented by product type and end-user industry.

Based on product type, the global analytical instrumentation market is bifurcated into chromatography, molecular analysis spectroscopy, elemental analysis spectroscopy, mass spectroscopy, analytical microscopes, and other product types.

The analytical microscopes segment is the highest contributor to the market and is estimated to boost at a CAGR of 7.70% during the forecast period. Analytical microscopy is the name given to a group of spectroscopic methods that can reveal structural, chemical, and bonding details about samples probed by an electron beam, often inside a transmission electron microscope. In particular, the energy-dispersive X-ray spectroscopy, microanalysis, and electron energy-loss spectroscopy techniques are addressed for several analytical electron microscopy (AEM) approaches. A transmission electron microscope with analytical features like energy dispersive X-ray spectrometry (EDS) and electron energy loss spectrometry (EELS) is called an analytical electron microscope. 

Gas chromatography is rapidly used for sophisticated molecular analysis, quantitative environmental sample screening, and food safety testing. Thermo Scientific, a US-based company, and Evosep, a Danish company, joined forces to launch an automated ultra-high-throughput plasma protein profiling platform in March 2020. This platform used the strength of the brand-new Thermo Scientific Orbitrap Exploris 240 mass spectrometer and the Evosep One liquid chromatography solution. Thermo 1310 Gas Chromatography, an ISQ LT mass spectrometry system, was a new apparatus that Microtrace added to its lab in May 2020. The system receives liquid, headspace, and SPME arrow attachments from a PAL autosampler. 

The spectrum response of molecules interacting with different frequencies and energies is measured by molecular spectroscopy analysis. It explains how interactions between molecules and electromagnetic radiation are measured. Spectrums of ultraviolet (UV), visible light, and infrared (IR) radiation are used to study molecules. Various techniques are used to examine this field, including IR (infrared) spectroscopy, NMR (nuclear magnetic resonance) spectroscopy, and Raman spectroscopy. One effective method of atomic spectroscopy to assess a complex organic matrix is Molecular LIBS (Laser-Induced Breakdown Spectroscopy).

The wide range of equipment used in analytical labs serves the objective of analyzing samples both qualitatively and quantitatively, as well as their chemical composition and the relative amounts of each component. A wide variety of testing procedures and their corresponding applications are made possible by the wide range of readily available equipment. Molecular spectroscopy items are provided by market participants like Shimadzu Corporation and are used in various applications. FTIR is used in non-destructive measurement applications such as the identification of vehicles from paint remnants left at crime scenes, the detection of defects on IC chips and other small parts in the electrical, electronic, and semiconductor industries, the qualification of pharmaceuticals based on Pharmacopoeia, or the confirmation of starting materials on beads as a pre-synthesis study in combinatorial chemistry.

Based on the end-user industry, the global analytical instrumentation market is bifurcated into life sciences, chemical and petrochemical, material sciences, food testing, oil and gas, water and wastewater, and other end users.

The life sciences segment owns the highest market and is estimated to boost at a CAGR of 8.95% during the forecast period. A quarter of the whole analytical instrument market is devoted to the life sciences, which have the highest share. The life sciences include more than 13 distinct technological areas and use analytical technologies, including spectrometry, atomic spectroscopy, and molecular spectroscopy, among others, in various applications. This offers enormous prospects for the development of specialized research systems as well as general instrument applications. The demand for Next Generation Sequencing (NGS) is still rising, positively affecting the sequencing market and fueling fast growth in the nucleic acid sample processing market. This expansion was noticeable in the public and private sectors as genomics technology entered the biomedical field and moved beyond basic research.

For regulatory compliance, testing and analysis are essential components of the chemical and petrochemical business. It also aids in comprehending the nature and makeup of chemical elements and materials utilized in manufacturing, industrial processes, and product development. Chemical testing is successfully carried out in the industry using cutting-edge analytical tools and equipment. Additionally, the production of goods for daily use (base chemicals, plastics, colors, and coatings), food (fertilizers and pesticides), and health enhancement makes the chemical and petrochemical sector one of the largest worldwide enterprises (pharmaceuticals). 

Material science examines the connection between a material's atomic or molecular structure and its macroscopic qualities and the production, processing, design, attributes, and performance of a material. This industry employs analytical methods mainly to examine the materials' structural characteristics, chemical makeup, and functioning. Isolating the material based on its quality and composition is one of the principal applications of analytical techniques in materials science. The most used are tomographic imaging, scattering, spectroscopy, imaging, and other analytical instrumentation techniques. As a result, many market companies are offering creative solutions and making intelligent acquisitions to aid scientists and researchers in evaluating the quality of the materials.

For several reasons, including ensuring the shelf-life, authenticity, maintenance of food safety, and regulatory compliance, the food industry needs analytical instrumentation solutions. Globally, food manufacturing companies are implementing analytical instrumentation solutions in response to the emergence of new challenges and issues in food safety. The most popular analytical techniques in the food and beverage sector are primarily used for quality control, nutrition monitoring, and food safety testing. These tests look for chemical, microbiological, and physical pollutants to comply with local, national, and international requirements. The customer and brand reputation are severely harmed by food contamination.

Recent Developments

• February 2022- The chromatography section of Novasep was acquired, according to Sartorius AG. The portfolio includes cutting-edge equipment for continuous biologics manufacturing and chromatography systems primarily suitable for smaller biomolecules, including oligonucleotides, peptides, and insulin.
• November 2021- Agilent Technologies announced the launch of the NanoDisSystem for testing nanoparticle dissolving. The new NanoDisSystem offers a dedicated workflow that is automatable and auditable. It combines Agilent equipment and software to enable customers to comply with 21 CFR Part 11 and other requirements through its implementation.