Data taken from Instrument Business Outlook (IBO) Analytical Instrument and Lab Product Industry Forecast.
Thank you to our friends at IBO for sharing their industry forecast in Volume 30: Issue 19 on January 18th this year. This is the second blog in our series that sums up the macroeconomic environment for the analytical instrumentation industry in 2022. It is based on data from IBO.
Looking back on 2021, we can see positive trends that give us reason to look forward to 2022. We hope that this blog will provide interesting insight on market segments, as well as geographic trends, using IBO’s recent report on the analytical instrumentation industry. The report also allows you to look at forecasts by product and technology type, which we explored in our earlier blog.
Overall, the lab instrumentation market is expected to rise significantly throughout 2022, when it will be valued at $79 billion, according to IBO.
Industry growth for analytical instruments is forecast to be unevenly distributed throughout 2022, according to IBO. Industrial markets are expected to increase the most (5.7%) due to a slower post-pandemic recovery period, which helped the market by resurging this year. Pharma and biotech are expected to continue to grow at a rate of more than 5%.
Life science market
The life science market, which accounts for the majority of the industry, saw remarkable growth in 2021. IBO predicts the continuation of steady growth at 6.8% this year.
- Healthcare has accelerated demand, with the pandemic being a key driver.
- Excitement around Cell and Gene Therapies (CGT) has driven technology advancements and funding interest.
Market Trends from 2021
Initial public offering (IPO) rush
- IBO reports that for the lab equipment market, this means an influx of new cash.
A busy year for private equity
- IBO reports that private equity investments also saw lots of innovation.
- Biopharma particularly benefitted from strong private equity buyouts, nearly doubling from 85 reported in 2019 up to 150 in 2021.
The merging of proteomics and genomics
- IBO illustrates that there is a growing awareness of the compatibility of proteomics and genomics as two separate fields of research that can be combined to enhance workflows.
Cell and Gene therapy (CGT) draws attention
- IBO reports that CGT is one of the fastest growing markets as biotherapeutics companies gear up for upcoming FDA approvals and reach manufacturing goals.
- As a result of strong CGT preclinical and clinical stage pipelines, investors in Europe are keen to participate.
- A sister publication of IBO has been launched to cover this market, called Cell & Gene Therapy Business Outlook.
Shifts for sequencing market
- IBO reports on activity in the sequencing market, signalling new strategies.
Looking ahead: the global outlook
Although Chinese growth is predicted to remain relatively strong, at 7.4%, this is lower than recent historical averages. China’s aggressive Covid-19 lockdown policies will affect overall demand in China.
In India, public and private investment remains strong, supporting growth on a par with other developing nations of the Asia-Pacific region. Indian demand will continue to benefit from vaccine production, pharma discovery and development.
In Japan, high vaccination rates and new political leadership should provide a boost to demand laboratory instrumentation, as the government is encouraging private industry to invest in R&D. These factors should combine to help Japan catch up with the rest of the industrialised world’s growth.
In the US, Canada and Europe, low single digit growth is expected. This is affected by the rollback of Covid-19 related revenues. Other areas of the instrument industry, however, are quite healthy. Due to their size, these regions continue to play a significant role.
A summary of 2022 forecasts…
The global economy is facing some disruption as we recover from the pandemic. Inflation, supply chain disruptions, as well as regional conflict in Ukraine and sanctions against Russia, energy price volatility are a few of the factors impacting market conditions.
While we cannot predict the future, looking back at the effectiveness of the scientific community’s response, it is reasonable to be optimistic. Therefore, in 2022, IBO has forecast that ‘overall industry revenues will increase by 4.4%, exceeding $79 billion'.
IBO is a twice monthly newsletter aimed at providing decision-makers with the latest most complete information available on the life science and analytical instrument industry.
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The Scott Partnership provides support to global businesses operating in the life science and analytical instrumentation markets and can help you to penetrate global and local markets, including China, via our international footprint. Please contact us for information or to discuss how we can help with your challenges.