lab automation Market

The global lab automation market is expected to reach US$ 8,483.27 million in 2030 from US$ 5,166.31 million in 2022. The market is estimated to grow with a CAGR of 6.4% from 2022 to 2030.

Key factors driving the lab automation market growth are rising applications and advantages offered by lab automation and the growing pharmaceutical industry.

Market Drivers of the Lab Automation Market

The expanding pharmaceutical industry will influence the demand for extensive research and laboratory automation. The US is the major shareholder in pharmaceutical production globally. According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), North America (US and Canada) remained the world's largest market with a 49.1% share, well ahead of Europe, China, and Japan. Additionally, as per EFPIA, North America accounted for 49.1% of global pharmaceutical sales in 2021, compared with 23.4% for Europe.

Similarly, according to the EFPIA, the Brazilian, Chinese, and Indian pharmaceutical industries grew by 11.7%, 6.7%, and 11.8% during the 2016-2021 period, respectively, compared to the top five European Union markets and the US market, which recorded an average market growth of 5.8% and 5.6%, respectively. Furthermore, as per the India Brand Equity Foundation (IBEF), India is a major and rising global pharmaceutical industry player. The country is the world's largest trader of generic medications, accounting for nearly 20% of the worldwide supply by volume. It supplies ~50% of the global vaccination demand. The domestic pharmaceutical industry includes a network of 3,000 drug companies and ~10,500 manufacturing units. Based on official figures from the Indian government, the pharmaceutical sector in India is valued at nearly US$ 50 billion, of which over US$ 25 billion is derived from exports. India accounts for ~20% of the world's generic medicine exports.

Further, Japan is one of the largest pharmaceutical markets in the world. According to the Ministry of Health, Labor and Welfare's (MHLW) Annual Pharmaceutical Production Statistics, the Japanese market for prescription and nonprescription pharmaceuticals in 2020 was US$ 107 billion. Therefore, as the industry continues to evolve and innovate, there is an increase in extensive research and development, which drives significant growth and investment in lab automation to reduce errors and improve efficiency. Thus, the growing pharmaceutical industry worldwide will provide lucrative growth for the global lab automation market in the coming years.

Restraint of the Lab Automation Market

Various companies, notably in the biotechnology and pharmaceutical industries, experience significant problems adopting laboratory automation due to high capital expenditure. While laboratory automation provides various benefits, such as higher efficiency, accuracy, and throughput, the initial cost of deploying automation systems can be unaffordable for certain businesses. Various factors contribute to the high capital investment required for laboratory automation, such as equipment costs, infrastructure requirements, integration and customization, maintenance and support, high expertise requirements, and risk of technology obsolescence. For instance, according to Retisoft Inc., the price range for a small automated robot system is between US$ 100,000 and US$ 300,000. However, more complicated and large lab automation systems can often cost over US$ 1 million. Thus, the high capital investment required for laboratory automation can hinder the adoption of lab automation by many biotechnology and pharmaceutical companies, especially smaller or emerging organizations with limited financial resources. Thus, the abovementioned factors are likely to hamper the growth of the global lab automation market.

Opportunities in the Lab Automation Market

Emerging countries such as India, China, Argentina, Brazil, UAE, and South Africa are expected to offer significant growth opportunities for lab automation market players due to rising disposable incomes, expanding patient population, increasing R&D activities, improving healthcare infrastructure, growing disease awareness, and relatively lenient guidelines compared to developed countries. According to the World Economic Forum, as of 2022, Russia, Brazil, China, India, and South Africa collectively accounted for a third of global health spending. As per the World Bank, health spending in India and China increased by 3.01% and 5.35%, respectively, from 2018 to 2019.

Furthermore, there has been an upsurge in vaccine research and development in emerging markets over the past decade, resulting in the expansion of biotechnology companies and increasing the demand for lab automation. For instance, according to the National Investment Promotion and Facilitation Agency of India, India is an important center for clinical trials and contract manufacturing, and it exports vaccines to more than 150 nations. Rising domestic and international demand is driving the growth of the biotechnology industry in India. Initiatives like Make in India and Aatmanirbhar Bharat drive the demand in India. India's globally competitive efficacy has resulted in a demand for its vaccines and biopharmaceuticals among global consumers. Thus, the emerging biotech industry in emerging nations will fuel the demand for lab automation to reduce time and labor costs while providing higher accuracy and quality outcomes.

Lab Automation Market: Segmental Overview

Based on product, the lab automation market is bifurcated into equipment and software. The equipment segment held a larger market share in 2022. However, the software segment is anticipated to register a higher CAGR during 2022-2030.

Based on equipment, the market is subsegmented into automated workstations, liquid handling systems, robotic systems, microplate readers, automated storage and retrieval systems (ASRS), and others.

Based on application, the lab automation is differentiated into clinical diagnostics, drug discovery, proteomics solutions, genomics solutions, and others. The drug discovery segment held the largest market share in 2022, and the clinical diagnostics segment is anticipated to register the highest CAGR from 2022 to 2030.

Based on end user, the market is segmented into pharmaceutical companies, hospitals and diagnostic centers, educational and research institutions, and contract research organizations. In 2022, the pharmaceutical companies segment held the largest market share, and the hospitals and diagnostic centers segment is anticipated to register the highest CAGR during 2022-2030.

Lab Automation Market: Geographical Overview

Asia Pacific is estimated to register the highest CAGR from 2022 to 2030. Countries in the Asia Pacific, such as India and China, hold significant potential for the growth of the lab automation market. Developing countries in the region with improving healthcare infrastructure, increasing healthcare expenditure, and a rising focus on adopting advanced medical technologies offer opportunities for market expansion.

In 2022, North America held the largest share of the global lab automation market size. The developments in medical infrastructure and the increasing expenditure on healthcare services across the US are driving the growth of the laboratory automation market in the country. The use of laboratory automation in clinical trials, drug development, and biomedical research has substantially impacted market growth. These systems can also run for long periods with little supervision and direction, allowing researchers to focus on their primary work and spend less time on repetitive activities. Additionally, the Centers for Medicare & Medicaid Services (CMS) in the United States has adopted standard standards associated with human laboratory research under the Clinical Laboratory Improvement Amendments (CLIA), which has favorably improved market growth.

A few of the major primary and secondary sources referred to while preparing the report on the lab automation market are the World Bank Data, National Health Service (NHS), FDA (Food and Drug Administration), EMA (European Medicines Agency), and WHO (World Health Organization).