Biotechnology Instruments Market Size, Share & Trends Analysis Report By Product (Analytical Instruments, Cell Culture Instruments, Cell Separation Instruments), By End-User (Pharmaceutical and Biotechnology Companies, Hospitals and Diagnostic Laboratories, Academic and Research Institutes, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global biotechnology instruments market size was valued at USD 68.1 billion in 2022 and is projected to reach USD 146.6 billion by 2031, registering a CAGR of 8.9% during the forecast period (2023-2031). The growing use of precision medicine, increased knowledge of molecular biologics and genomics, and the rising need for spectroscopic techniques for drug development are some factors impacting the biotechnology instruments market share.

Biotechnology instruments are essential in biotechnological research, diagnosis, and production. This equipment is specifically engineered to examine, control, and handle biological samples and data.

The increased burden of chronic diseases and high demand for point-of-care (POC) tests/devices are contributing factors to the growth of the biotechnology instruments market. Furthermore, rising demand for biotechnology instruments and an aging population will likely drive market expansion. However, obstacles such as the high cost of biotechnology instruments and a scarcity of experienced personnel are projected to slow industry expansion.

Market Dynamics

Global biotechnology instruments market drivers:

Advancement in genomics research

A key driver has been the growing emphasis on genomics, which includes genome sequencing and analysis. Technological developments such as next-generation sequencing (NGS) have increased demand for tools linked to DNA sequencing. NGS technology enables quick and affordable DNA sequencing; genomic research has advanced tremendously. Prominent examples are the Ion Torrent sequencers from Thermo Fisher and the HiSeq and NovaSeq line of instruments from Illumina. For instance, in January 2022, Nashville Biosciences LLC, a wholly-owned subsidiary of Vanderbilt University Medical Center (VUMC), and Illumina Inc. inked a multi-year contract to expedite the creation of a premier clinical genomic resource through Illumina's next-generation sequencing (NGS) platforms and large-scale genomics. 

Similarly, CRISPR-Cas9 has transformed genomic editing by making precise DNA alteration possible. Businesses such as Editas Medicine and CRISPR Therapeutics use CRISPR for medicinal purposes. For example, in March 2021, the Japanese biotech start-up Setsuro Tech received a CRISPR-Cas9 patent from Dublin-based ERS Genomics. Based on this technique, Setsuro Tech is creating animal and cell models, which should boost the country's adoption of CRISPR-Cas9 technology and generate large revenue soon. The advances have influenced the market trend in genomic research, which has provided new insights into biology, medicine, and other scientific fields. These improvements have been primarily driven by technologies such as NGS and the demand for DNA sequencers.

Global biotechnology instruments market restraints:

High cost

Advanced sequencing and mass spectrometry are two examples of related technologies that can be costly upfront, as can biotechnology instruments. One of the best examples of sophisticated biotechnology tools that can be expensive is Next-Generation Sequencing (NGS) systems. For many research institutes, especially smaller ones or those in resource-constrained contexts, the initial investment in NGS instruments and the consumables accompanying them can be financially challenging. Next-generation sequencing (NGS) begins at Rs. 20,000 in India. Whether the test covers several genes or just one particular region of a gene determines how much it will cost. Purchasing NGS instruments, like those sold by Illumina, Thermo Fisher Scientific, and Oxford Nanopore Technologies, can come with a hefty initial cost.

Access to these technologies may be restricted by the high costs of NGS platforms, especially for smaller research labs, universities, or organizations with tighter resources. This could make it more difficult for researchers without access to large financial resources to get started. Global differences in genomic research skills are partly caused by the financial load since well-funded universities in affluent nations have greater access to state-of-the-art sequencing tools than institutions in underdeveloped nations.

Global biotechnology instruments market opportunity:

Technological advancement

Sophisticated biotechnology equipment has been developed due to technological breakthroughs; single-cell analysis is one prominent example. Single-cell analysis enables researchers to examine individual cells, offering a more thorough insight into cellular heterogeneity than traditional bulk analysis approaches, which only provide an average assessment of cell populations. Single-cell gene expression research is made possible by single-cell RNA sequencing (scRNA-seq), which can detect uncommon cell types and gain insights into cellular diversity. Advances in microfluidics and mass spectrometry enable single-cell protein analysis, leading to a better comprehension of biological processes and signaling networks. High-content screening and super-resolution microscopy are examples of advanced imaging technologies that allow for the detailed viewing of single-cell cellular dynamics and architecture. Applications for single-cell analysis technology can be found in several domains, such as immunology, neuroscience, developmental biology, and cancer research.

Furthermore, the International Agency for Research on Cancer (IARC) projects that by 2040, there will be 16.3 million cancer-related deaths and 27.5 million new cancer cases worldwide. Clinical interest in circulating tumor cells is also growing since it may make it possible to track disease development and modify treatment. The diagnostic and prognostic biomarkers have been identified using single-cell sequencing research. Therefore, the market will rise if single-cell analysis and related technologies remain innovative. This covers developments in multi-omics integration, spatial omics, and the creation of approachable platforms for broader uptake.

Regional Analysis

The global biotechnology instruments market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North america dominates the global market

North America is the most significant global biotechnology instruments market shareholder and is estimated to grow at a CAGR of 8.8% over the forecast period. North America accounted for 45% of the global market due to the strong demand for and affordability of biotechnology instruments. Increased R&D activities and expanding public-private research investments boost demand, contributing to market growth. For example, the U.S. Department of Health and Human Services' Administration for Strategic Preparedness and Response received nearly USD 1.4 billion in funding for Project NextGen in August 2023. This effort seeks to encourage the development of cutting-edge techniques and technologies that will give long-term protection against COVID-19. As a result, constant breakthroughs, increased government investments in biotechnology instruments, and inexpensive adoption of novel systems cement the United States as the world's most profitable market. 

Furthermore, key product launches, a high concentration of market players or manufacturers' presence, acquisitions and partnerships among major players, and product launches by key players in the US are some of the other factors driving the growth of the market in the U.S. For example, in November 2021, Thermo Fisher Scientific introduced the Applied Biosystems QuantStudio 7 Pro Dx Real-Time PCR, a new IVD system. This system is intended to help with IVD testing and assay menu building. Such continual product launches are expected to propel the country's market growth. 

Asia-Pacific is anticipated to exhibit a CAGR of 9.1% over the forecast period. The rapid growth of biotechnology sectors in emerging economies such as China and India is primarily responsible for this trend. These countries' strong government support for biotechnology drives market expansion. Continuous R&D investments fuel demand for biotechnology instruments even more.

For example, the Australian government announced a USD 400 million investment in March 2023 to assist medical research projects, including efforts to promote First Nation health. The Indian government announced the establishment of the Anusandhan National Research Foundation (ANRF) in August 2023, enabling the country's scientists to play a critical role in addressing global concerns. The government intends to allocate 500 billion (USD 6.05 billion) to the ANRF from 2023 to 2028. As a result, rising research expenditures and government investments are expected to drive market expansion in the Asia Pacific region.

The European market is likely to grow rapidly during the forecast period. The growing use of biotechnology-derived methodologies in the production of medicines, genetically modified crops, and advanced laser technologies for the treatment of malignancies and other neurological disorders is one of the key factors driving the growth of the biotechnology instruments market during the forecast period. Furthermore, growing government investment in biotechnology sector improvement and the presence of globally known health institutes are contributing to market progress in this region.

Segmental Analysis

The global biotechnology instruments market is segmented based on product, application, and region.

By Product, the market is further segmented into Analytical Instruments (Polymerase Chain Reaction, Spectroscopy, Microscopy, Chromatography, Flow Cytometry, Sequencing, Microarray), Cell Culture Instruments (Culture Systems, Incubators, Cryostorage Equipment, Biosafety Equipment, Pipetting Instruments), Cell Separation Instruments (Centrifuge, Filtration Systems, Magnetic-activated Cell Separator Systems), Immunoassay Instruments, Clinical Chemistry Analyzers.

Analytical Instruments account for the largest share of the market. Analytical instruments are classified as Polymerase Chain Reaction (PCR), Spectroscopy, Microscopy, Chromatography, Flow Cytometry, Sequencing, and Microarray. Spectroscopy also measures the interaction between matter and electromagnetic radiation. In 2022, the analytical instruments segment held the greatest market share of 60%. This equipment, which includes technologies like mass spectrometry, chromatography, and spectroscopy, is critical in enabling precise analysis and characterization of biological samples, supporting applications ranging from drug development to genetic research. Their broad use emphasizes their importance in driving breakthroughs in the biotechnology industry, greatly contributing to research, development, and innovation. 

The cell culture instruments segment is predicted to increase at the quickest CAGR over the forecast period. These devices, which include bioreactors, incubators, and culture media, aid in the growth and manipulation of cells for various purposes, including drug research, tissue engineering, and regenerative medicine. The expanding importance of cell-based therapeutics and the increasing need for customized medicine is driving the expansion of this sector, making cell culture tools a vital driver of innovation and progress in the biotechnology industry.

The market can be bifurcated by application into Pharma and Biotech Companies, Hospitals and Labs, and Academic and Research Institutes.

Pharma and biotech companies influenced the market growth. Pharmaceutical and biotechnology firms use biotechnology equipment in this category for various objectives, including drug research, development, and production. In 2022, pharmaceutical and biotechnology businesses held a 40% market revenue share. These businesses rely heavily on various instruments, such as gene sequencers, protein analyzers, and high-throughput screening systems, to drive drug discovery, development, and production processes. The constant pursuit of breakthrough medicines, precision medicine, and sophisticated research methods fuels the need for cutting-edge biotechnology equipment, cementing their critical position in influencing the trajectory of scientific and medical advancements.

Biotechnology instruments are used in academic institutions and research institutes for various scientific activities, including fundamental research, advanced studies, and teaching. The academic and research institutes category will develop at the quickest CAGR during the projection period. Many biotechnology tools, including DNA synthesizers, flow cytometers, and microarray systems, are rapidly being used in academic and research institutes and laboratories. Increased multidisciplinary research, collaborations, and the pursuit of ground-breaking discoveries in domains such as genomics, proteomics, and synthetic biology are driving this expansion. The emphasis on innovation in research activities and the development of fundamental information puts academic and research institutions as major contributors to the dynamic growth of biotechnology instrument technologies.

Recent Developments

• November 2023- Thermo Fisher Scientific and Flagship Pioneering expanded their ongoing strategic partnership to create new platform companies with best-in-class life sciences enabling technologies.
• December 2023- Innovative Water Immersion Technology enhanced the Agilent BioTek Cytation C10 Confocal Imaging Reader.