Tunable Diode Laser Analyzer Market

Market Overview

Tunable diode laser analyzers are extensively used to analyze and measure real-time process conditions and to assess several factors such as efficiency, output, quality, safety, and environmental amenability. These analyzers are also capable to operate in severe conditions such as high temperature, abrasive/corrosive situations, high pressure, higher dust concentration, and cold environment. These are generally used to maintain required compositions of toxic gases such as nitrogen oxides, carbon along with oxygen and water. Tunable diode laser analyzers are the preferred choice for due to as they are easy to maintain as it does not contain any moving parts and no sensor contact involved during the process.

The tunable diode laser analyzer market was valued at USD 565.62 million in 2019 and is expected to reach USD 892.98 million by 2026 with a CAGR of 6.75%.

Market Dynamics

Rapid Expansion of Chemical and Pharmaceutical Industries to Drive the Market Growth

The chemical and pharmaceutical industries have been recording substantial growth in the last few years. The top ten chemical-producing countries accounted for 86.7% of the global chemical sales in 2018. China alone accounted for USD 1,338,320 million, which was almost equivalent to both Europe and NAFTA's chemical sales of USD 1,223,260 million.

Safety remains a priority in these industries as they deal with chemicals and hazardous gases daily. Safety precautions in the chemical and pharmaceutical industries necessitate the use of tunable diode laser analyzers for the accurate measurement of gases to prevent mishaps. Thus, the tunable diode laser analyzer market is expected to grow in tandem with the chemical and pharmaceutical industries in the coming years.

The chemical industry is pivotal to the economic development of emerging economies such as India. India's chemical sector accounts for about 10.5% of its foreign trade. Although chemicals are vital, their implications on human health and the environment are immense. The chemical industry is expected to witness a gradual eastward shift towards Asia on account of the debouching trends and proclivities in the manufacturing sector, which will further spur the growth of Asia-Pacific's tunable diode laser analyzer market.

Several governments have imposed stringent regulations on chemical companies for the safety of the handlers and environment. In Europe, the regulations on chemical handling are highly stringent and austere, which presents significant growth potential for tunable diode laser analyzers as they help monitor the right amount of gas needed for facilities. REACH — Registration, Evaluation, Authorization, and Restriction of Chemicals — mandates companies engaged in chemical manufacturing to frequently review their portfolio and replace hazardous chemicals with less harmful substitutes.  

The burgeoning global pharmaceutical industry provides an impetus to the market growth as the industry uses a variety of gases to produce drugs and medicines, such as components, raw materials, and processing aids. Nitrogen is the most commonly used gas in the pharmaceutical sector, and oxygen, argon, and carbon dioxide are some of the other gases that find widespread applications. Tunable diode laser analyzers are used to monitor the concentration and measurement of the used gas. For instance, nitrogen and argon are used for the transportation and storage of pharmaceutical products. Such extensive use of gases in the pharmaceutical sector makes it imperative to monitor the volume of gas being used.

Today, India is one of the largest providers of generic drugs worldwide, and the expansion of the country's pharmaceutical sector is propelling the demand for tunable diode laser analyzers. In 2017, the Indian pharmaceutical industry observed 46 merger and acquisition deals worth USD 1.47 billion. In October 2018, the Uttar Pradesh state government in India announced plans to launch six pharma parks in the state with an investment of USD 712–855 million.

Volatility in Raw Material Prices to Restraint the Market Growth

Steel is one of the most used raw materials in any manufacturing process. However, the U.S.-China trade war has caused high volatility in raw material and finished goods prices. The U.S. has imposed around USD 550 billion tariffs on Chinese goods, prompting retaliation from China in terms of tariff on more than USD 185 billion worth of U.S. products. The recent truce between the economies in terms of tariff exemption on various goods is a positive step, which is likely to stabilize the volatility in the prices of raw materials and finished goods.

The recent coronavirus outbreak has disrupted the supply chain, casting uncertainties for all economic sectors. Raw material prices are being affected by discouraging demand and rising inventories, which is expected to hamper the market growth in the short term.

Segmental Analysis

Rising Demand for In-Situ Tunable Diode Laser Analyzer from Steel Industry to Support the Market Growth

The concentration of analyte molecules, such as H₂S, CO₂, NH₃, H₂O, and C₂H₂, and other parameters need to be monitored in gas streams across industries. In-situ tunable diode laser analyzers are employed to measure samples at the point source and find applications in the paper, steel, metal, and heat treatment industries. For instance, they are used to measure CO₂ levels in furnaces and analyze flue gases in boilers. Since the sensors are close to the source, the measurement speeds are high, which is an advantage when compared with extractive type analyzers.

The growing demand for steel is projected to fuel the demand for in-situ tunable diode laser analyzers, which are extensively used in the steel industry to measure the gas parameters for ensuring plant safety and improving plant efficiency. The total world’s production of steel grew to 1,816,611 tons from 2018 and 1,732,171 tons in 2017, as per the World Steel Association, which underscores growth prospects for the in-situ tunable diode laser analyzers segment.

Regional Analysis

Burgeoning Nominal GDP and Purchasing Power to Drive North America’s Market Growth 

North America is a pioneer in the field of technological development; today, the region is one of the key manufacturers and consumers of tunable diode laser analyzers. The tunable diode laser analyzer market is expected to reach a value of USD 305.63 million by 2026, up from USD 148.01 million in 2015, with a CAGR of 6.73% during the forecast period. As per the International Monetary Fund's World Economic Outlook, North America ranked first in the world in terms of nominal GDP and second in terms of purchasing power in 2018. Its nominal GDP accounted for USD 19.39 trillion in 2017 and is expected to reach USD 24.53 trillion by 2023.

The U.S. dominates the global oil supply, and the country's oil and gas industries are undergoing exceptional shifts. It is also a leading producer of shale gas, which is likely to position the country as the global leader in the market. As per the IEA, the U.S. is projected to export a higher volume of oil than Russia and match the exports of Saudi Arabia by 2024. As per the International Trade Administration (ITA), the U.S. Department of Commerce, the U.S. commenced LNG export for the first time in 2016, and by 2017, the country became a net natural gas exporter for the first time since 1957.

North America has been witnessing economic volatility over the past few years, primarily due to the U.S. policies, the implications of which can be seen at a macroeconomic level in the region. The trade war with China and the recent COVID-19 outbreak are projected to adversely impact the tunable diode laser analyzer market.

Tunable Diode Laser Analyzer Market Segmentation

By Type

• In-Situ
• Extractive

By Gas Type

• CO₂
• H₂O
• H2S
• NH3
• O₂
• CO

By Application

• Power Industry
• Oil and Gas
• Mining and Metal
• Chemical and Pharmaceutical
• Pulp and Paper
• Electronic and Semiconductor

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• Germany
• The U.K.
• France
• Italy
• The Rest of Europe

Asia-Pacific

• China
• Japan
• India
• South Korea
• Australia
• The Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Columbia
• The Rest of Latin America

The Middle East

• The UAE
• Saudi Arabia
• Qatar
• Oman
• Turkey
• The Rest of the Middle East

Africa

• South Africa
• Nigeria
• The Rest of Africa