Pharma and Healthcare - Laboratory Equipment Services Market

Market Synopsis

The global laboratory equipment services market size was USD 12.1 Billion in 2022 and is expected to reach USD 28.53 Billion in 2032, and register a rapid revenue CAGR of 10% during the forecast period. Increasing Research & Development (R&D) activities in pharmaceutical and Biotechnology industries and rising demand for outsourcing laboratory equipment services are major factors driving market revenue growth.

Outsourcing of laboratory equipment services is a significant trend in the industry due to their ability to let businesses concentrate on their core skills while saving money on maintenance and repair of laboratory equipment. In addition, need for laboratory equipment services is increasing by rising number of R&D activities in pharmaceutical and biotechnology industries, as these sectors need specialized equipment for research.

Need for laboratory equipment services is also increasing due to rising requirement for routine maintenance and calibration of lab apparatus to assure accurate and trustworthy results. Regulations requiring laboratories to maintain and calibrate their equipment on a regular basis, such as Good Laboratory Practices (GLP), Good Manufacturing Practices (GMP), and ISO 17025, must be complied with.

Moreover, rising number of academic and research institutions around the world, is  in turn, rising demand for laboratory equipment services. These institutes need various laboratory tools for their research projects and outsourcing laboratory tool services allows them to cut costs and concentrate on their main tasks.

Furthermore, increasing use of refurbished lab equipment is also expected to drive market revenue growth. When compared to new equipment, refurbished equipment is less expensive, and outsourcing preventive maintenance and repair services ensures that the equipment is calibrated and maintained to produce correct results.

However, high cost of laboratory equipment services and lack of qualified specialists in the market are major factors, which could restrain market growth. In addition, availability of substitute goods such as disposable laboratory equipment, is another factor, which could restrain market revenue growth.

Government Regulations:

• The U.S. Food and Drug Administration (FDA) sets minimum standards for safety, efficacy, and performance of Medical Devices used in laboratories.
• The U.S. Occupational Safety and Health Administration (OSHA) sets standards for safe working conditions in labs, including ventilation, lighting, Personal Protective Equipment, and hazardous materials handling.
• The Department of Defense has established minimum safety requirements for laboratory personnel who work with potentially dangerous biological, chemical and radiological materials.
• The Centers for Disease Control and Prevention (CDC) sets minimum requirements for maintenance and operation of laboratory equipment used in clinical settings.
• The Environmental Protection Agency (EPA) regulates disposal of hazardous waste generated by laboratories, including chemicals, Solvents, and radioactive materials.

Key Takeaways

Service Type Outlook:

Based on the kind of service provided, the market for laboratory equipment services is divided into calibration, validation, repair, maintenance, and other segments. Due to the rising need for high precision equipment across a number of industries, including pharmaceuticals, Biotechnology, and food and beverage, calibration services held a sizable revenue share in the market in 2021. For the aim of research and development, calibration services make sure that lab equipment is operating within the required tolerances.

The largest revenue CAGR is anticipated for validation services over the forecast period. To make sure that laboratory equipment is operating in accordance with legal requirements and fulfilling quality standards, validation services are essential. The increased regulatory scrutiny of the pharmaceutical and biotechnology sectors, which demand adherence to strict norms for drug development and manufacture, is blamed for the rise in demand for validation services.

The growing complexity of laboratory equipment and the demand for specialized technical competence for repairs are likely to fuel significant market expansion for repair services. As laboratories need specialized equipment for research and development, the growing need for personalized medicine and precise diagnostics is also driving the demand for repair services.

As laboratories increasingly use preventative maintenance techniques to extend the life of their equipment and minimize downtime, the market for maintenance services is predicted to expand steadily. The demand for maintenance services is also being driven by the increased emphasis on operational efficiency and cost reduction in laboratories, which aim to extend the equipment's lifespan and reduce maintenance expenses.

During the projection period, growth is also anticipated in a number of other services, such as consulting, training, and equipment movement. The growing trend of laboratory consolidation and relocation has increased the demand for equipment moving services. To make sure that laboratory staff is taught to utilize equipment effectively and safely, training services are also in demand. To improve their procedures and boost productivity, laboratories look for consulting services.

Technology developments in laboratory equipment and the growing usage of automation and digitization in laboratories are other factors driving the global market for laboratory equipment services. The demand for specialized laboratory equipment, which needs routine maintenance, calibration, and validation, is also being driven by the rising demand for personalized medicine and precision diagnostics.

In addition, there are prospects for market growth due to the rising prevalence of chronic diseases, the ageing population, and the need for innovative drug development. Additionally, it is anticipated that in the upcoming years, demand for laboratory equipment services will increase due to rising investments in healthcare infrastructure and an increase in Medical Tourism in emerging nations.

In conclusion, the growing need for specialized laboratory equipment, technological developments, and the requirement for regulatory compliance are projected to propel the global market for laboratory equipment services to considerable growth during the forecast period. Due to the presence of several firms offering a variety of services to laboratories in various industries, the market is quite competitive.

End-use Outlook:

Based on end-use, the market for laboratory equipment services has been divided into pharmaceutical and biotechnology firms, academic and research institutions, contract research organizations, and others. In 2021, the segment of pharmaceutical and biotechnology companies contributed significantly to revenue. This is mostly due to the rise in demand for drug discovery and development, which calls for the use of a variety of laboratory tools, such as centrifuges, microscopes, and analytical instruments. The expanding practice of contract research organizations taking on research and development projects under contract is another factor driving up demand for laboratory equipment services in this market.

During the projection period, the academic and research institutes segment is anticipated to post the greatest revenue CAGR. This can be ascribed to the increased emphasis on research and development across a number of disciplines, including environmental sciences, life sciences, and material sciences. Additionally, the expansion of government financing for research operations at these institutes is anticipated to fuel this market's expansion. Academic and research facilities require a wide range of laboratory equipment services, such as the calibration, repair, and upkeep of tools including mass spectrometers, chromatography systems, and spectrophotometers.

During the projection period, the contract research organizations market is also anticipated to have considerable expansion. This is a result of the rising trend of contract research organizations with specialized expertise taking on clinical trial and drug development work. These organizations require a wide range of laboratory equipment services, such as incubator, shaker, and centrifuge maintenance, repair, and calibration.

Industries like food and beverage, environmental testing, and forensic laboratories are included in the others sector. The growing emphasis on quality control and assurance in these industries is the main factor driving the demand for laboratory equipment services in this market. Furthermore, the expansion of this market is anticipated to be aided by the growing demand for environmental testing and monitoring.

As a result, the demand for laboratory equipment services from a variety of end-use industries, including pharmaceutical and biotechnology companies, academic and research institutes, contract research organizations, and others, is expected to increase significantly during the forecast period. The market is anticipated to see a rise in the adoption of cutting-edge technologies, including cloud-based Laboratory Information Management Systems and automation in laboratory equipment services.

Regional Outlook:

In the upcoming years, the market for laboratory equipment services is anticipated to expand significantly. This expansion can be ascribed to a number of variables, including the rising need for R&D activities in the pharmaceutical and healthcare sectors, the rise in clinical trial activity, and the expanding significance of regulatory compliance in laboratory operations.

Due to the region's abundance of pharmaceutical and biotechnology firms, North America is anticipated to dominate the market for laboratory equipment services. Additionally, it is anticipated that the expansion of research efforts in the area will be aided by supportive government initiatives.

Due to the rising need for diagnostic testing and personalized medication, Europe is also anticipated to have considerable expansion in the market for laboratory equipment services. The existence of numerous top competitors in the area is also anticipated to support market expansion.

During the anticipated period, the laboratory equipment services market is anticipated to expand at the quickest rate in the Asia Pacific region. This expansion can be ascribed to the region's increased emphasis on R&D activities as well as the rising need for diagnostic testing in developing nations like China and India.

The type of service offered can be used to categories the market for laboratory equipment services. These consist of services for calibration, upkeep and repair, validation, and others. Due to its significance in providing accurate and trustworthy test results, calibration services are anticipated to dominate the market.

The sort of laboratory equipment that is maintained can also be used to segment the market. These comprise equipment for analysis, common equipment, and specialized equipment. Due to the strong demand for these instruments in research & development operations, the analytical instruments segment is anticipated to be the largest segment.

The market for laboratory equipment services is anticipated to increase as a result of the rising need for preventative maintenance services. The overall operating costs of laboratories are decreased as a result of preventive maintenance services that help to decrease downtime and lengthen the lifespan of laboratory equipment.

Additionally, it is anticipated that the growing emphasis on the creation of services that are specifically tailored to satisfy the demands of laboratories will further accelerate market expansion. Customized services aid in increasing the accuracy and efficiency of laboratory operations, which raises the standard of R&D activities.

In general, the market for laboratory equipment services is anticipated to expand significantly in the upcoming years due to factors like rising demand for R&D activities, increasing importance of regulatory compliance, and demand for tailored services to meet particular laboratory needs.

Competitive Landscape:

The global laboratory equipment services market is highly competitive, with a few major players dominating the market. These players are constantly adopting various growth strategies such as mergers and acquisitions, strategic agreements, and new product launches to maintain their position in the market. Some of the major companies operating in the laboratory equipment services market are:

• Agilent Technologies Inc.
• Danaher Corporation
• Thermo Fisher Scientific Inc.
• Bruker Corporation
• Waters Corporation
• PerkinElmer Inc.
• Becton, Dickinson and Company
• Shimadzu Corporation
• Abbott Laboratories
• Roche Holding AG

Strategic Developments:

• In 2021, Danaher Corporation acquired Aldevron, a biologics company specializing in the production of plasmid DNA, proteins, and mRNA for gene therapy and vaccine research. This acquisition will expand Danaher Corporation's life science capabilities and services.
• In 2021, Thermo Fisher Scientific Inc. acquired PPD, a leading provider of clinical research services, for $17.4 billion. This acquisition will strengthen Thermo Fisher's position in the healthcare industry and expand its offerings in the clinical research services market.
• In 2020, Agilent Technologies Inc. acquired Resolution Bioscience, a molecular diagnostics company that develops liquid biopsy tests for cancer. This acquisition will expand Agilent's product offerings in the molecular diagnostics market.
• In 2020, PerkinElmer Inc. acquired Oxford Immunotec Global PLC, a leading provider of T-cell diagnostic tests for tuberculosis, for $591 million. This acquisition will expand PerkinElmer's offerings in the Infectious Disease Diagnostics market.
• In 2020, Bruker Corporation acquired Canopy Biosciences, a company that develops multiplexed immunoassay and gene editing technologies. This acquisition will expand Bruker's capabilities in the life science research market.

New Product Launches:

• Thermo Fisher Scientific Inc.: In 2021, Thermo Fisher launched its new Precision Medicine Science Center. This center offers a range of services and solutions for precision medicine, including biomarker discovery, companion diagnostics, and clinical trial support.
• Danaher Corporation: In 2020, Danaher launched its new Beckman Coulter Life Sciences product line. This line includes a range of instruments and reagents for genomics, cell analysis, and protein research.
• Agilent Technologies Inc.: In 2020, Agilent launched its new Ultivo Triple Quadrupole LC/MS system. This system provides ultra-high sensitivity and low noise levels for small molecule quantitation in complex samples.
• Bruker Corporation: In 2020, Bruker launched its new INVENIO-X FTIR research system. This system features a range of advanced capabilities for chemical and materials research, including high-resolution imaging and mapping.
• Waters Corporation: In 2020, Waters launched its new ACQUITY RDa detector for mass spectrometry. This detector provides high-resolution mass spectrometry for fast and accurate analysis of small molecules in complex samples.

In conclusion, the laboratory equipment services market is driven by the increasing demand for life science research and clinical diagnostics. Key players in the market are focused on expanding their offerings and capabilities through strategic acquisitions and new product launches.

Segments Covered in the Report:

This report offers historical data and forecasts revenue growth at a global, regional, and country level, and provides analysis of market trends in each of segments and sub-segments from 2019 to 2032. For the purpose of this report, Reports and Data has segmented the global laboratory equipment services market based on service type, equipment type, end-use, and region: