Market Overview:
The laboratory equipment service market is projected to reach USD 17.7 billion by 2024 from USD 9.5 million in 2019, at a CAGR of 13.4% between 2019 and 2024. Growth in the laboratory equipment service market is driven mainly by an increasing number of research activities in pharmaceutical and biotechnology industries, growing need for the effective and timely diagnosis of diseases, and the rising investments and government research funding to support biomedical research activities. However, the shift from lab-based diagnosis to home-based/POC testing and the high cost of service contracts are the major factors restraining the growth of this market.
Recent Developments
- In 2018, Agilent opened its new logistics hub in Shanghai to enable faster delivery of parts, supplies, and consumables to laboratories in China.
- In 2018, Thermo Fisher Scientific announced to open multiple Global Customer Solution Centers. These centers will focus on meeting the demands of scientists in food, beverage, pharmaceutical, and biotech laboratories by developing critical workflows and integrated solutions.
- In 2017, Agilent opened its Agilent Customer and Technology Center at the Agilent campus in Waldbronn. This center will strengthen the company’s presence in Germany.
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Geographic Analysis:
In 2018, North America dominated the laboratory equipment services market, followed by Asia Pacific. The high and growing number of clinical trials, high life science R&D expenditure, the strong presence of major pharmaceutical and biotechnology companies, and the presence of a large number of research institutions and academic organizations in the region are the factors propelling the growth of the market in the region.
The Asia Pacific region is projected to register the highest growth rate in the global laboratory equipment services market during the forecast period. This is attributed primarily to the rising prevalence of chronic and acute diseases such as HIV, cancer, and diabetes and the increasing focus of big pharmaceutical companies towards outsourcing their research to Asian CROs.
Key Market Leaders:
- Thermo Fisher Scientific was the leading player in the laboratory equipment services market in 2018. The leading position of the company can be attributed to its strong brand recognition and extensive service portfolio in this market. The company majorly offers single-vendor services and standard service contracts to its customers. The company focuses on leveraging scale in high growth and emerging markets, such as China, India, and the Middle East. Thermo Fisher has a strong presence in high growth and emerging markets, which is represented by 21% of its total revenue in 2018. For instance, in the Middle East, the company is collaborating with academic and government customers to broaden the use of its advanced technologies as well as services for life science research.
- Agilent Technologies was another leading player in the laboratory equipment services market. The company’s leading position can be attributed to its strong geographical presence and robust services portfolio. The company focuses on adopting organic growth strategies to expand its presence in the laboratory equipment services market. For instance, in 2018, the company acquired Young In Scientific Co. Ltd. (“YI Scientific”) (South Korea), a long-time distributor of Agilent instruments & lab equipment services. This acquisition strengthened Agilents presence in the South Korean market.
