Lab Automation Market

Lab Automation Market Outlook (2022-2032)

Demand for lab automation services experienced a Y-o-Y expansion rate of over 11% in 2022 compared to 2021, rising from US$ 1.8 Billion to US$ 2 Billion.

Going forward, the market is poised to flourish at a 7% value CAGR from 2022-2032, reaching a valuation of nearly US$ 4 Billion.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 1.8 Billion
Expected Market Value (2022)	US$ 2 Billion
Projected Forecast Value (2032)	US$ 3.93 Billion
Global Growth Rate (2022-2032)	7%
Expected Market CAGR for North America (2022-2032)	5.3%
Anticipated Growth Rate of Asia Pacific (2022-2032)	7.3%
Major lab automation Providers	Thermo Fisher Scientific Agilent Technologies PerkinElmer Hudson Robotics Qiagen NV F. Hoffmann-La Roche Ltd. Hamilton Robotics Siemens Healthineers Becton Dickinson and Company Bio-Rad Laboratories FORMULATRIX BioMerieux SA Danaher Corporation

2015-2021 Revenue Analysis of Lab Automation vs. Future Outlook 2022-2032

From 2015 to 2021, the global lab automation market expanded at a CAGR of 6.1%. The clinical lab automation segment accounts for the vast majority of the global lab automation market. Factors such as an aging population with rising healthcare costs, an increase in the prevalence of infectious diseases, an increase in the number of clinical studies, and advancements in lab automation technologies propelled the growth of the lab automation market during the historical period.

Amid the COVID-19 pandemic, testing volumes experienced a massive upsurge, prompting key healthcare providers to deploy highly precision-based diagnostic and treatment solutions, widening demand for laboratory automation solutions throughout 2020 and most of 2021. It is anticipated that the global pharmaceutical industry shall surpass US$ 1 Trillion by 2025. As manufacturers continue to rely on innovations with respect to therapeutic approaches, demand for automation is bound to aggrandize.

Demand for lab automation is likely to be fulfilled by rising government initiatives in the form of financial and technical aid to facilitate development of automated laboratories in key markets. According to market research and competitive intelligence provider Fact.MR, demand for lab automation is bound to expand nearly 2x during the forecast period ranging from 2022 to 2032.

Prominent Growth Drivers influencing Lab Automation Deployment

Expanding use of Lab Automation in Large Integrated Health Systems

Because of higher rates of growth in molecular-based diagnosis, quality improvements, an increasing number of partnerships, and healthcare modernization in these countries, emerging Asia Pacific countries such as China and India are the major countries for investment opportunities.

To increase revenue share, medical device manufacturing companies are focusing on the development of automated devices used for in-vitro diagnosis and research, with advanced facilities, which will indirectly drive growth in the lab automation market and boost revenue from software and services over the forecast period. Furthermore, an increase in the number of government initiatives to improve healthcare infrastructure in Saudi Arabia and the UAE is expected to drive demand for lab automation solutions.

End-user demand for high-end, advanced lab automation devices from pharmaceutical and biotechnology companies, hospitals and diagnostics centers, ambulatory surgical centers, educational institutes, and research organizations for improved output and performance will create opportunities for the market launch of novel lab automation techniques and services in the long run.

Growing Acceptance of Laboratory Automation is propelling Market Growth

Over the last decade, the use of lab automation services has skyrocketed. Lab automation services aid in increasing throughput at an astounding rate, while also ensuring precise motion and consistency in report generation. With the introduction of automation techniques, the growing number of diagnosis cases and real-time result analysis has resulted in a threefold increase in demand for automated devices, advanced software, and services.

Another factor that is expected to have a significant impact on market growth in the near future is an increase in demand for miniaturization. One of the primary reasons for the implementation of automated systems and workstations in clinical laboratories is to allow for the miniaturization of research processes in order to develop solutions for various complex lab automation tasks in applications such as biotechnology, microbiology, and clinical chemistry, among others. Furthermore, miniaturization of these processes allows for easy cell expansion, monitoring, and cultivation, resulting in faster turn-around times in point-of-care settings.

In order to gain maximum market share, several players in the lab automation market are focusing heavily on new automated device launches and services to reduce the costs of lab automation services. Acquisitions, mergers, strategic collaborations, and technological advancements all play important roles in the growth of the lab automation market.

Factors likely to Impede Market Growth of Lab Automation

Small and Medium-Sized Laboratories have been Slow to adopt Automation

Many small and medium-sized laboratories find it difficult to invest in automation due to financial constraints. The high maintenance and service costs associated with laboratory informatics solutions are also a significant impediment.

According to industry experts, the cost of maintaining IT solutions exceeds the cost of the software itself. Moreover, low risk-taking capability and lack of evidence on the cost-effectiveness of automation solutions for small and medium-sized laboratories are restraining the growth of the lab automation market.

Region-wise Analysis

How will the Lab Automation Industry Grow in the Asia Pacific?

From 2022 to 2032, the lab automation market is expected to grow at a rate of 7.3%. The growing geriatric population is fueling the growth of the lab automation market. Because of the attractiveness of the medical sector, Japan dominates the lab automation market due to growing research and development in the pharmaceutical industry. Additionally, government initiatives to reduce healthcare spending will drive the growth of the lab automation market during the forecast period.

Because of the growing demand for multiple vaccines around the world, India is expected to witness significant growth in the lab automation market. Furthermore, Indian drugs are exported to over 200 countries, with the United States serving as the primary distribution market. This increases demand for laboratory automation systems while also propelling the laboratory automation market forward in India.

How Will North America Provide Growth Opportunities for Lab Automation Providers?

The lab automation market is expected to grow during the forecast period of 2022 to 2032. Fact.MR forecasts the market to reach a value of US$ 3.87 Billion and grow at a CAGR of 5.3% during the forecast period. The lab automation market is being driven by a surge in the adoption of the miniaturization process, which results in low reagent costs and high productivity.

During the forecast period, North America is expected to lead the market. Because of the presence of large pharmaceutical companies, the market for drug discovery and genomics is seeing increased investment.

The US market for biopharmaceuticals is the largest, accounting for nearly one-third of the global market.

Furthermore, according to the Pharmaceutical Research and Manufacturers Association (PhRMA), US firms conduct 50% of global R&D in pharmaceuticals, amounting to US$ 75 Billion. Furthermore, the United States has one of the most supportive domestic environments in the world for pharmaceutical development and commercialization, with few market barriers.

Category wise Insights

Which is the Dominant Lab Automation Application Area?

Clinical Diagnostics to emerge as a prominent Revenue Engine

According to Fact.MR, the clinical diagnostics segment shall dominate the market, accounting for 27.1% of total revenue in 2022. This high share can be attributed to technological advancements, an increase in automated systems offered by market players, and an increase in the use of automated systems due to benefits such as the reduced risk of contamination and elimination of human error, among others.

The market is divided into end-use segments such as clinical chemistry analysis, photometry and fluorometry, immunoassay analysis, electrolyte analysis, and others.

Demand for Automated Workstations is growing rapidly

Automated workstations are expected to account for a sizable portion of lab automation market revenue, with integrated workflow solutions in particularly high demand. As clinical diagnostic studies become more sophisticated, the demand for advanced imaging, monitoring, and cell detection systems grows, providing an opportunity for key manufacturers to launch new solutions.

BioMerieux is a well-known name in the field of automated integrated workstations. WASPLab® integrated lab optimization and automation platforms are marketed by the company, which provides a flexible automated specimen processing and reading solution. It includes the PhenoMATRIXTM embedded AI and the ColibriTM colony selection module. These types of solutions greatly aid lab technicians in streamlining their workflows.

Lab Automation Market- Competitive Landscape

The majority of the aforementioned players' primary expansion strategy includes the introduction of new automation equipment and software that can be customized to meet industry-specific requirements. Furthermore, strategic partnerships, collaborations with academic and research institutes, as well as the government, and the acquisition of small-scale players are used.

• Thermo Fisher Scientific, Inc. launched the Rapid EZ DNA-Seq library preparation kit in February 2020, offering PCR-free generation of sequencing-ready libraries for NGS.
• Danaher Corporation (Beckman Coulter, Inc.) signed a marketing agreement with Clever Culture Systems (CCS), a leader in microbiology automation using AI, in July 2020, to promote the APAS Independence in their suite of lab automation solutions.
• Becton, Dickinson, and Company announced in February 2020 that the BD Kiestra ReadA has been approved by the US Food and Drug Administration (FDA). This stand-alone device increases operational efficiency in clinical microbiology laboratories by automating redundant plate management tasks while providing accuracy via standardized digital image acquisition.

Key Segments Covered in the Lab Automation Market Report

• by Product :

  • Lab Automation Equipment
    • Automated Workstations
    • Automated Liquid Handling
    • Automated Integrated Workstations
    • Pipetting Systems
    • Reagent Dispensers
    • Microplate Washers
  • Automated Microplate Readers
    • Multi-mode Microplate Readers
    • Single-mode Microplate Readers
  • Automated ELISA Systems
  • Automated Nucleic Acid Purification Systems
  • Lab Automation Software & Informatics
    • Workstation/Unit Automation Software
    • Laboratory Information Management Systems (LIMS)
    • Electronic Laboratory Notebook
    • Scientific Data Management System

• by Application :

  • Drug Discovery
  • Clinical Diagnostics
  • Genomics Solutions
  • Proteomics Solutions

• by End User :

  • Biotechnology & Pharmaceutical Industries
  • Research & Academic Institutes
  • Hospitals & Diagnostic Laboratories
  • Forensic Laboratories
  • Environmental Testing Labs
  • Food & Beverage Industry

• by Region :

  • North America 
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa