Laboratory Equipment Services Market Achieves Impressive 11.41% CAGR from 2022 to 2028, Fueled by Growing Penetration of Multi-vendor Services
DUBLIN, Oct. 11, 2023 /PRNewswire/ -- The "Global Laboratory Equipment Services Market - Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The global laboratory equipment services market is poised for significant expansion, with forecasts indicating that it will surge to an impressive $28.68 billion by 2028 from $15 billion in 2022, reflecting a substantial Compound Annual Growth Rate (CAGR) of 11.41% during the period spanning 2022-2028.
Market Trends & Opportunities
- Rising Penetration of Multi-vendor Services: The laboratory equipment services market is witnessing a surge in multi-vendor services, also known as Laboratory Asset Management (LAM) or Single Source Services. This trend involves the provision of laboratory equipment maintenance services for multiple vendors by a single provider. Multi-vendor services are gaining popularity, particularly with the growing number of laboratories and advanced products in the market. This service model offers a comprehensive solution for laboratories to access a wide range of services without the need to engage multiple third-party service providers.
- Emerging Trend of Outsourcing Laboratory Equipment Services: In a bid to control costs, pharmaceutical, biotech, medical device companies, and healthcare settings such as hospitals and clinics are increasingly outsourcing laboratory equipment services. These organizations consider equipment maintenance a critical factor in cost-saving initiatives. Outsourcing laboratory equipment services helps in achieving cost efficiency while ensuring compliance, quality of results, and equipment uptime. This trend has gained momentum in recent years, as companies in these sectors become less risk-averse and actively seek cost-saving opportunities in equipment maintenance through outsourced service providers.
- Increasing Complexity in Laboratory Equipment: The global laboratory industry is experiencing significant growth, driven by high-tech technology integrations and advancements in lab equipment. These advancements have led to increasing complexity in laboratory equipment. Equipment components and overall lab setups have become more intricate and require meticulous care. The integration of new technologies such as lab automation, lab equipment software, robotics, ILIMS (Integrated Laboratory Information Management System), and others has added complexity to laboratory equipment. As a result, the demand for laboratory equipment services for complex and sensitive lab equipment has surged. External service providers, including original equipment manufacturers (OEMs) and third-party service providers, play a vital role in maintaining and servicing these sophisticated instruments.
Insights by Equipment Type
The global laboratory equipment services market comprises three primary equipment types: analytical, specialty, and general and support equipment. The analytical equipment segment held the largest share in 2022 and is expected to maintain its dominance throughout the forecast period. Analytical equipment plays a pivotal role in laboratories, offering a wide range of capabilities for quantitative and qualitative sample analysis. These instruments often incorporate automation features that enhance efficiency and data collection through cloud computing. However, their complexity and sensitivity necessitate expert maintenance, driving the demand for laboratory equipment services.
Segmentation by Equipment Type
- Analytical Equipment
- Specialty Equipment
- General & Support Equipment
Insights by Service Type
The laboratory equipment services market encompasses various service types, including repair and maintenance services, calibration, validation, and others. Repair and maintenance services accounted for the largest market share in 2022, representing over 41% of the global market. These services are essential for ensuring that laboratory equipment functions correctly. While repairs are undertaken to restore equipment to proper working condition, maintenance services focus on preserving equipment performance, functionality, and safety over its operational lifespan. Issues such as mechanical failure, power problems, incompatible components, calibration errors, contamination, and software glitches are driving the demand for repair and maintenance services.
Segmentation by Service Type
- Repair & Maintenance Services
- Calibration
- Validation
- Others
Insights by Service Provider
Original equipment manufacturers (OEMs) emerged as the dominant service providers in the laboratory equipment services market in 2022. OEMs are highly sought after for their expertise in designing and manufacturing laboratory equipment, enabling them to offer high-quality and specialized equipment services. The development of products and the delivery of services by OEMs are closely aligned with regulatory requirements and industry standards. As a result, OEMs are the preferred choice for laboratory equipment services, particularly among larger industries that prioritize service quality and equipment performance.
Segmentation by Service Providers
- Original Equipment Manufacturers
- Third-party Service Providers
Insights by Contract Type
Standard service contracts held the largest share in the contract type segment in 2022. These contracts are preferred for cost control, maximizing equipment uptime and performance, ensuring compliance with regulations, and relying on trusted service providers. Standard service contracts are commonly adopted in developed markets, including North America and Europe. They are characterized by fixed timelines and agreed-upon pricing structures, offering predictability and convenience for organizations seeking equipment maintenance services.
Segmentation by Contract Type
- Standard Service Contracts
- Customized Service Contracts
Insights by End-User
The global laboratory equipment services market serves various end-user segments, including clinical and diagnostics labs, pharmaceutical, biotech, and medical device company labs, academic and research labs, and others. Clinical and diagnostics labs dominated the market in 2022, driven by the increasing number of healthcare settings and associated laboratories. These facilities offer a wide range of lab testing procedures, supporting physicians in disease diagnosis. The growing healthcare sector and the proliferation of laboratories contribute to the rising demand for laboratory equipment services.
Segmentation by End-Users
- Clinical & Diagnostics Labs
- Pharma, Biotech, and Medical Device Companies Labs
- Academic & Research Labs
- Other Labs
GEOGRAPHICAL ANALYSIS
North America assumed a leadership position in the global laboratory equipment services market, accounting for over 37% of the market share in 2022. The region's dominance is attributed to the presence of numerous laboratories and the widespread adoption of lab equipment. Technological advancements across various industries, including healthcare, pharmaceuticals, biotechnology, and life sciences, are driving demand for new lab equipment and, consequently, laboratory equipment services. In North America, the United States stands out as a major market, contributing to approximately 93.80% of the region's market share. The robust economic growth in these sectors fuels demand for new lab equipment, resulting in substantial revenue generation.
Segmentation by Geography
- North America
- Europe
- APAC (Asia-Pacific)
- Latin America
- Middle East & Africa
COMPETITIVE LANDSCAPE
The global laboratory equipment services market is highly competitive, characterized by the presence of established, rapidly growing, and emerging players. Several companies maintain a dominant position in the market, while others strive to increase their market share and presence. Leading players employ various business strategies to expand their market presence, including acquisitions, mergers, and collaborations. Emerging and smaller players focus on delivering high-quality services at competitive prices.
Key Company Profiles
- Agilent Technologies
- Danaher
- PerkinElmer, Inc.
- Thermo Fisher Scientific
Other Prominent Vendors
- Avantor
- AIC Lab Equipments
- BIOSONIC SCIENTIFIC TECHNOLOGIES
- BD
- bioMerieux
- C&M Scientific
- Cryostar Industries
- Eppendorf
- Full Spectrum Lab Services
- GenTech Scientific
- Gilson
- Hettich
- HiTec Zang
- Labochema
- Mindray Medical International Limited
- Nordic Service Group
- Pace Analytical Services
- Shimadzu Corporation
- Siemens Healthineers
- Sartorius
- Tecan
- Waters Corporation
- Transcat, Inc.
- Overbrook Scientific
- Bio-Rad Laboratories
KEY QUESTIONS ANSWERED
- How large is the laboratory equipment services market?
- What is the projected growth rate of the global laboratory equipment services market?
- What are the emerging trends in the laboratory equipment services industry?
- Which region holds the most significant global laboratory equipment services market share?
- Who are the key players in the global laboratory equipment services market?
Market Dynamics
Market Opportunities & Trends
- Penetration of multi-vendor services.
- Adoption of preventive maintenance programs.
- Trend of outsourcing laboratory equipment services.
Market Growth Enablers
- Complexities in laboratory equipment.
- High volume of research & diagnostic tests in laboratories.
- Stringent regulatory compliance requirements for labs & lab equipment.
Market Restraints
- Presence of in-house lab equipment service technicians.
- Prolonged lab equipment service delivery.
- Lack of standardization in lab equipment services.
For more information about this report visit https://www.researchandmarkets.com/r/c7bmuu
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