Laboratory Supplies Market

Market Overview

The global laboratory supplies market was valued at USD 14.18 billion in 2022. It is estimated to reach USD 35.78 billion by 2031, growing at a CAGR of 10.83% during the forecast period (2023–2031). Growing advances in modern biotechnology, which primarily focus on developing medicines for rare and complex diseases and genetic tests to identify inherited diseases better, are boosting the demand for analytical testing services expanding the lab supplies market.

The phrase "laboratory equipment" describes a group of lab instruments for experimentation, research, and other activities meant to gather information and make measurements. Its components include incubators, microscopes, refractometers, pH meters, and other scientific tools. It is used to conduct an accurate analysis and offer experimental support for the under-consideration hypothesis. For the aim of conducting various types of research and scientific studies, it is widely used in a range of laboratories, including research labs, educational labs, clinical diagnostic labs, and microbiological labs. Research in medicine, healthcare, and pharmaceuticals is undertaken using laboratory equipment.

The requirement for some pieces of equipment, such as the number of pumps and valves needed to hold samples, is being eliminated by new technology. As a result, this equipment is becoming more compact and smaller. Recent advancements in fluidic contract types, which can combine many laboratory processes onto a single chip and require fewer samples, are an example of new technology. These chips can be used with other cutting-edge technologies to obtain more accurate findings. The government and commercial research businesses are taking initiatives in the research and development operations related to the diagnosis and treatment of different diseases worldwide, employing cutting-edge technologies such as specialized instruments.

Market Dynamics

Global Laboratory Supplies Market Drivers:

Technological Advancements in the Field of Laboratory Equipment

Laboratory technology has experienced rapid and dramatic changes, with advancements in equipment and techniques making testing more efficient and automated. Over 60% of patient care decisions are attributed to laboratory tests. Major technological developments in laboratories and their equipment have led to smaller equipment, saving shelf space and integrating multiple functions into a single chip. New technology has also reduced sample size, allowing the storage of smaller amounts of required samples. Cloud technology has revolutionized data transfer by minimizing the time it takes to order and receive test results.

Artificial intelligence software can be connected via mobile apps, alerting scientists or lab techs when something goes wrong. Companies like Thermos Fisher offer cloud computing software in their lab equipment, such as freezers, HVAC systems, and thermostats. Automation of lab equipment has also increased, eliminating time-consuming, repetitive experimental steps. Thermos Fisher's clinical centrifuge is fully automated with hybrid motors, interchangeable swings, and intuitive programming for routine protocols. Disposable lab supplies have also increased, ensuring patient safety and saving time by eliminating the need for sterilization. These factors are expected to boost market growth over the forecast period.

Rise in the Number of Testing Organizations, Along with the Growth of the Biotechnology and Pharmaceutical Industries

The demand for laboratory apparatus is increasing as biological and chemical research advances. Laboratories have emerged as multipurpose research facilities responsible for various testing mechanisms, research analogies, and novel developments. This has also increased the demand for laboratory supplies. This has led to additional laboratories in academic institutions, increasing the demand for laboratory supplies. The number of research studies and innovations is rising rapidly to satisfy the rising demand in industries such as life sciences, food and beverages, and chemicals. Research in these industries is concluded when the newest products undergo lab-scale testing and are then transferred to the manufacturing level.

R&D investments are increasing in these industries to satisfy the rising demand for products and enable companies to grow their market. The demand for laboratory supplies increases as life sciences research investigations and clinical laboratory tests increase. Growing advances in modern biotechnology, which primarily focus on developing medicines for rare and complex diseases and genetic tests to identify inherited diseases better, are boosting the demand for analytical testing services expanding the lab supplies market.

Global Laboratory Supplies Market Restraint:

High Cost of Technologically Advanced Laboratory Equipment

Due to technological advancements, the purchase price of sophisticated laboratory apparatus is always considered high. Constant technological advancements increase replacement costs. However, the cost of the instrument is frequently viewed as an investment in a new technique. For routine analysis, the price of an FTIR ranges from USD 15,000 to USD 20,000, and in FTIR analysis, a technique known as Attenuated Total Reflectance (ATR) is utilized, with accessories costing between USD 2,000 and USD 5,000 on average. Therefore, the equipment costs range from USD 17,000 to USD 25,000. Due to their complex design, rotors, and microprocessors, many technologically advanced lab apparatuses are expensive.

In addition, maintenance service costs are typically 10% to 15% of the instrument's purchase price per year, increasing the equipment's total cost. The cost of equipment includes the purchase price, the cost of accessories, the cost of training, the cost of service, and the cost of computers and software, all of which must be considered before purchase. Numerous advantages of technologically sophisticated laboratory instruments, such as faster sample turnaround time, improved quality results, environmental advantages, ease of laboratory integration, and decreased downtime costs, increase the equipment's price.

Global Laboratory Supplies Market Opportunities:

An Ever-Increasing Need for Research and Development

The primary factor propelling the market for laboratory supplies is the growing demand for R&D activities in various sectors, including academic institutions the pharmaceutical, biotech, and healthcare industries. The cost of laboratory supplies is increasing due to this demand. One of the main forces behind the industry's expansion is this desire. Utilizing laboratories that are well-equipped and stocked with specialized supplies is crucial for developing medical science, discovering novel medications, and introducing game-changing products. These numerous projects are linked and dependent on one another to function. As a result, a wide range of producers and service providers will now have the chance to market their products and offer their services to clients.

Regional Analysis

North America Dominates the Global Market

Based on region, the global laboratory supplies market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global laboratory supplies market shareholder and is estimated to exhibit a CAGR of 8.3% over the forecast period. The existence of a sizable number of recognized businesses involved in the fields of biotechnology, pharmaceuticals, and medical equipment is one of the characteristics that characterize North America the best. One of the continent's most distinctive characteristics is this. Additionally, it is projected that pharmaceutical and life sciences enterprises will raise their R&D expenditures, increasing the need for laboratory equipment in the area. The upcoming years are anticipated to see this increase in demand. According to the estimations, the funding for research activities that government agencies provide is also projected to aid in the industry's expansion, which is anticipated to increase the industry's rise. This is another element anticipated to aid in the company's expansion.

Europe is anticipated to exhibit a CAGR of 7.6% over the forecast period. Numerous European pharmaceutical and biotechnology businesses have invested significantly in research and development over the past year in response to the rising demand for more complex drugs. Many things, such as an aging population, the prevalence of chronic diseases, and the spread of infectious diseases, could be to blame for this. The availability of cutting-edge technology and infrastructure in Europe is expected to enhance the money spent on research and development initiatives there. Additionally, the European Union (EU) has taken the initiative to lead several different initiatives. It conducts research and development on various pharmaceuticals and vaccines, including biosimilars, within the nation. The economic fallout from Brexit is expected to hinder the market's growth and its repercussions on the pharmaceutical and biotechnology sectors.

Asia-Pacific would expand significantly during the forecast period. This is because firms in developed economies are investing more in healthcare development and because regulatory agencies have changed the requirements for clinical trial review to conform to international norms. To expand the provision of their services to more locations around the region, many stakeholders are also currently constructing new facilities and forging partnerships. Many American-based biopharmaceutical businesses are considering the prospect of producing pharmaceutical items abroad in Asia due to the escalating cost of research and development in their home country. Affordable manufacturing facilities and human resources are widely available in many Asian nations. The cost of production in Asian countries is thought to be between 30 and 60 percent lower than in Western countries.

Latin America is one of the most important locations for stimulating research and development activities and displaying a large growth potential for investments. It is anticipated that factors such as an increasing number of international players, a high disease burden, a significant number of research institutions, and clinical advancements, as well as growth in factors such as government spending, per capita healthcare spending, and initiatives undertaken by WHO and other organizations, will all contribute to the expansion of the market in Latin America. Nevertheless, this is expected to slow the expansion of the market. However, the expansion of the industry is expected to be constrained by several obstacles that Latin American countries must overcome.

Middle Eastern nations like the UAE and Saudi Arabia, for example, have highly developed healthcare infrastructures, substantial R&D budgets, and very high accessibility to healthcare services. Additionally, these nations have made it easier for private money to establish a robust research foundation. Many major pharmaceutical companies view the MEA countries as high-potential markets and intend to establish R&D facilities, which will drive the market. Several regional firms are partnering with other CROs and adopting international standards to increase their market share. For instance, Saham Group in North Africa and Hassan Labs in Egypt worked together to offer high medical knowledge throughout Africa.

Segmental Analysis

The global laboratory supplies market is bifurcated into products.

Based on the product, the global laboratory supplies market is bifurcated into equipment and disposable. 

The equipment segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 7.1% over the forecast period. Laboratory equipment held more than 60.0% of the market share, making it the most dominant category. This segment of the market includes not only microscopes but also other pieces of laboratory equipment such as incubators, centrifuges, laminar hoods, air filtration systems, and so on. Research on cell and tissue culture is essential to studying drug toxicology, oncology therapies, and personalized medicine, and each aspect plays an extremely vital role in conducting research.

Developing technological tendencies, such as implementing cloud-based technologies and intuitive monitoring, will propel the market's growth. The significant investment in R&D activities, followed by a boom in the pharmaceutical and biopharmaceutical industries, would further increase the need for laboratory equipment. This is because the two industries are closely related. The industry's rise will be fueled even further by advancements such as the introduction of bench-top laboratory equipment, huge data libraries, and better simplicity of use.

Recent Developments

• January 2023- Calibre Scientific Inc., a US-based developer, manufacturer, and distributor of consumable products in the life sciences and diagnostics markets, acquired Dynalab Corp. for an undisclosed amount. With this acquisition, Calibre Scientific broadens the range of products it already offers in the market for laboratory supplies and expands its global distribution network by adding a significant market.
• October 2022- Q2 Solutions, a US-based clinical trial laboratory services organization, launched the first self-collection safety lab panel for the US clinical trial participants. The new product is based on self-collection technology and enables participants in a clinical trial to provide blood specimens from the comfort of their homes.