Laboratory Supplies Market Size to Be Worth $68.8 Billion By 2030
The laboratory supplies market is predicted to grow at a compound annual growth rate (CAGR) of 6.1% by 2030. According to the report, bioanalytical and lab chemistry services currently dominate the global market, while stand-alone laboratories are expected to grow at the fastest rate. However, the lack of efficient and experienced research professionals is a major hindrance to the growth of the market.
Bioanalytical and lab chemistry services dominate the market
The biopharmaceutical industry in the U.S. accounts for the largest share of the global market in bioanalytical services. The rising demand for novel therapeutics and the development of large molecule therapies has fueled this growth. The Asia Pacific region is expected to experience the highest growth rate over the next several years. As a result, several CROs have established new laboratories in this region to meet the growing demand for bioanalytical services. For instance, PPD Inc. recently opened a laboratory in Suzhou, China. This facility offers services for small molecules, cell therapies, and biologics.
The global bioanalytical testing services market is projected to reach USD 6.0 billion by 2027, growing at a 15.6% CAGR. The largest share of the global market is projected to be attained by North America and Europe. This is due to several factors, including the presence of major service providers and an established pharmaceutical industry. The region also has a large number of clinical trials ongoing, which in turn contributes to the market growth. In addition, pharmaceutical and biopharmaceutical companies increasingly outsource clinical testing and early-phase development services.
Hospital-based laboratories dominate the market for clinical laboratory services
Hospital-based laboratories dominate the market for clinical testing and diagnostic laboratory services. However, they face significant pricing pressure from both healthcare payers and providers. A significant part of the cost of these services is attributed to the high cost of sophisticated test methods. In addition, the reimbursement rate for these services is dwindling.
Hospital-based laboratories are the largest segment of the clinical laboratory services market, and will hold the majority of market share through 2020. The market for these services is growing because of increasing number of patient visits and increasing prevalence of various diseases. However, these services are very costly, which is a major constraint. This is why standalone laboratories are expected to grow at a rapid rate during the forecast period.
However, the market is changing and changes in the health care system pose significant challenges for PHLs. Consolidation, intense cost pressures, and the rise of managed care are affecting the competitive landscape in the clinical laboratory services market. As a result, many state PHLs have begun taking proactive steps to reinvent their business models and adapt to changing health care environment.
Stand-alone laboratories are anticipated to be the fastest-growing segment
The growth of the global laboratory supplies market is mainly attributed to the increase in the number of healthcare facilities. During the historical period, hospitals dominated the market and accounted for the largest share. During the forecast period, stand-alone laboratories are expected to lead the market, owing to their increasing use and improving patient outcomes.
This growth can be attributed to the rising number of laboratories and research organizations in the world, particularly in Asia Pacific. There are several high-profile research institutions and manufacturers of laboratory products in the region. China is one of the largest suppliers of laboratory supplies and equipment in the region. Rising investments in research and development are expected to boost the growth of this market in the coming years.
The laboratory supplies market in China is moderately fragmented with several local companies competing for market share. Companies adopt various strategies to gain market share and maintain competitive pricing. For instance, Agilent opened a new logistic hub in Shanghai in April 2018. This will help it provide quick delivery of laboratory equipment and consumables to research organizations in the region.