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The global laboratory supply wholesaling market size is estimated to grow by USD 14.76 billion at a CAGR of 4.15% between 2022 and 2027.
Pharmaceutical and biotechnology companies are increasing their R&D investments to discover new drugs owing to the rising occurrence of chronic diseases and the increasing demand for personalized medicine. As a result, the demand for laboratory products has increased, including instruments and others, which are required during the drug discovery process. To save time and effort in the drug approval process, countries have increased their R&D investments. The governments of several developed and developing countries have been supporting research for new drug discovery and development in the past few years. The quick progression of laboratory instruments has allowed pharmaceutical companies to mitigate formulation risks in drug formulation. Consequently, the demand for laboratory instruments and related consumables is expected to increase with the growing emphasis on R&D procedures and significant investments made in them. Such factors will boost the growth of the market during the forecast period.
Technavio has segmented the market into end-user, Product, and Geography
It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
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The market share growth by the pharmaceutical and biotech. companies segment will be significant during the forecast period. Pharmaceutical companies make substantial investments in drug development and these companies allocate a huge part of their profit toward research. Hence, they use laboratory equipment, instruments, and other laboratory products for drug discovery, gene therapy, and other biological and biopharmaceutical separation on a large scale.
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The Pharmaceutical and biotechnology companies segment was the largest and was valued at USD 20.54 billion in 2017 Pharmaceutical and biotechnology companies are expanding their R&D investments to find new drugs due to the growing prevalence of chronic diseases and the rising demand for personalized medicine. This has increased the demand for laboratory products. Countries have increased their R&D investments to save time and effort in the drug approval process. To mitigate formulation risks in drug formulation progression of laboratory products has enabled pharmaceutical companies. Therefore, with the growing emphasis on R&D procedures and substantial investments made by pharmaceutical companies, the demand for laboratory products is anticipated to increase, which in turn will drive the growth of the pharmaceutical and biotechnology segment and market during the forecast period.
Equipment and instruments
The equipment and instruments segment encompasses general laboratory equipment such as centrifuges, water baths, balances, circulators, calorimeters, pipette centrifuges, and glassware washers. The rising emphasis of companies on innovations, quality enhancements, and advances, which are desired for the sustainable and breakthrough performance of their equipment, is propelling the access of new products into the market. However, the demand for customizable laboratory equipment is increasing in the segment. In addition, the market has the presence of companies that deliver laboratory equipment focused on specific applications. Such initiatives are helping companies to gain brand trust among end-users operating in specific fields. Therefore, these factors will boost the growth of the segment and market during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have explained the regional trends and drivers that will shape the market during the forecast period. In North America, the laboratory supply wholesaling market is dominated by the US and Canada, because these countries have several laboratories, academic institutions, and well-established healthcare industries. The emerging sectors include precision medicine and regenerative medicine. Precision medicine includes treatment approaches considering individual variability in genes, environment, and lifestyle. Further, regenerative medicine includes evolving technologies such as cell and gene therapies and tissue-engineered biomaterials. Such technologies can remedy diseases instead of delaying their progression or managing symptoms, representing the next major innovation in healthcare.
However, the number of new products, such as drugs, vaccines, and medical disposables is increasing due to this significant growth of the US biopharmaceutical and medical device industries. The increased number of products fuels the demand for safety, efficacy, and acceptance of the product, driving the demand for clinical trials. Owing to the rising demand for clinical trials, the demand for laboratory supplies and, in turn, laboratory supply wholesaling will increase during the forecast period.
Due to the outbreak of COVID-19, in North America, research on cell-based therapies and the development of novel therapies for the treatment of COVID-19 increased in the region, contributing to the growth of the laboratory supply wholesaling market. However, the region entered a recovery phase owing to the advent of mass vaccination drives and ease of lockdown restrictions in 2021. Additionally, the growing demand for technologically advanced laboratory products such as centrifuges, microscopes, incubators, and others accelerated the growth of the laboratory supply wholesaling. Therefore, rising investment and emphasis on clinical research in the region will fuel the growth of the regional market during the forecast period.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Alibaba Group Holding Ltd. - The company offers laboratory supplies wholesaling equipment such as PPE kits, rapid tests, and environmental soil tester kits to hospitals and pharmacies.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
There are multiple factors influencing market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges.
The high prevalence of infectious diseases is notably driving the market growth. The rising occurrence of infectious diseases is anticipated to boost the demand for diagnosis. In preventing the spread of such infections, awareness campaigns about identifying signs and symptoms of infectious diseases and prevention methods play an important role. Also, due to malnutrition, poor sanitation, poor water quality, and lack of proper healthcare systems, the consequence of these infectious diseases varies globally from region to region, with Sub-Saharan Africa, Asia-Pacific, Latin America, and the Middle East getting impacted the most.
Consequently, to detect pathogenic organisms such as bacteria and viruses, medical professionals use laboratory products such as mass spectrometers, chromatographs, funnels, flasks, syringes, and needles. Therefore, the high prevalence of infectious diseases and the volume of testing will augment the demand for laboratory instruments and consumables, which will fuel the growth of the market during the forecast period.
Increasing incorporation of digital technologies by vendors is an emerging trend shaping the market growth. Across various end-user industries, including the pharmaceutical industry, the application of the IoT is growing significantly. The transportation and distribution of laboratory supplies may face several challenges, such as vehicle accidents, fluctuations in the temperatures desired for keeping the medical supplies while transportation, and conveyance losses. Such challenges could lead to severe operational and revenue losses. Hence, to monitor their processes in real-time, allowing for immediate actions and avoiding any delays pharmaceutical wholesalers and distributors are using IoT.
In addition, companies in the market are also inclined toward introducing digital solutions to improve their business operations and extend their reach to laboratories, thereby making their wholesale services easy. Initiatives by significant industry players for the adoption of cutting-edge technologies will subsequently supplement the growth of the market during the forecast period.
The high prevalence of quality issues is a significant challenge hindering market growth. In performing a successful research experiment, the selection of laboratory equipment and consumables based on quality is an important benchmark. The supplies can be easily replicated and do not have a distinct identification mark. Consequently, it is hard for the end-users to buy laboratory products effortlessly from wholesalers. It is difficult to identify the authentic players (wholesalers) as the market is fragmented. Unauthorized vendors can introduce products under private labels at low prices due to a lack of product differentiation. Since price is a significant aspect of product differentiation, low-priced products can attract price-sensitive customers, leading to low profit margins and slow growth of the overall market.
Therefore, laboratory products with low quality, including laboratory equipment, have become a lucrative business for unauthorized players, causing substantial damage to revenues and the reputation of companies as well as posing a significant risk to the end-users. Thus, the high prevalence of quality issues in the market will adversely influence the growth of the market during the forecast period.
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The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Laboratory Supply Wholesaling Market Customer Landscape
The laboratory supply wholesaling market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Laboratory Supply Wholesaling Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.15% |
Market growth 2023-2027 |
USD 14.76 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.47 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 42% |
Key countries |
US, Canada, Germany, UK, and China |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alibaba Group Holding Ltd., Astflick Group Ltd., CellPath Ltd., Chargen Life Sciences LLP, Cole Parmer Instrument Co. LLC, Dominique Dutscher SAS, Focus Technology Co. Ltd., LAT Labor und Analyse Technik GmbH, McKesson Corp., Mediq, MG Scientific Inc., Ningbo Scientz Biotechnology Co. Ltd., Nobuson, OxyMed Healthcare Laboratories and Scientific Supplies, Rogo S.L., Surgihouse, The Lab World Group, United Med Ltd., USA Lab, and W.W. Grainger Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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