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%.
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.
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.
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'.
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