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Four industries provide notable instrument demand.

Although the four main end-user markets--pharmaceuticals, academia, biotechnology and government-account for more than half of the worldwide demand for analytical and life science instrumentation (see IBO 11/30/03), sales to numerous other end-user markets have a significant impact on the instrument market. The next four largest end-user markets are independent testing, the agriculture and food industries and the organic chemicals industry, as detailed in Strategic Directions International's Global Assessment Report, 8th Edition. Market size reflects a percentage of sales, not actual sales numbers.

The independent testing segment accounts for 10% of analytical instrument demand, making it the only end-user market, outside of the four largest markets, to constitute a double-digit percentage of instrumentation sales. As defined here, the market includes contract research organizations (CROs), independent clinical laboratories, environmental laboratories and traditional independent testing companies.

Driven by governmental regulations, growth in developing nations and increased instrument capabilities, environmental testing labs are an important end-user segment among independent testing laboratories for several analytical techniques. Independent testing makes up more than a third of demand for both ion chromatography (IC) and continuous flow analysis (CFA) techniques. Sales for these mature technologies in the independent testing market mainly come from environmental testing labs, which utilize IC for pollution control and monitoring and CFA for wastewater and drinking water analyses.

Independent testing also accounts for a quarter of demand for Liquid Liquid Extraction/Soxhlet (LLE). LLE is employed in the analysis of soils, sediment, sludge and biota. However, LLE is being replaced by more rapid and efficient solvent extraction techniques, such as pressurized solvent extraction (PSE) and supercritical fluid extraction (SFE). As a result, independent testing also accounts for 25% of sales for solvent extraction techniques. Environmental labs drive the demand for these techniques, but traditional independent laboratories' willingness to utilize a variety of solvent extraction methods also contributes to sales.

Independent testing also represents 22% of sales for atomic absorbance spectroscopy (AA). The Environmental Protection Agency designates AA as an approved method for testing lead and mercury levels in wastewater and heavy metal levels in drinking water. Traditional independent testing labs provide a variety of atomic spectroscopy techniques including inductively coupled plasma spectroscopy (ICP) and ICP-glow discharge mass spectrometry (ICP-MS).

The independent testing segment's dependency on providing customers with a variety of techniques as well as rapid and efficient testing capabilities also impacts its demand in the lab automation market, where it represents one-fifth of sales. Independent testing labs, largely the clinical and CRO segments, make up over 20% of demand for microplate readers as well as automated liquid handling systems. In addition, independent testing labs account for over one-tenth of sales for robotics, laboratory information management systems (LIMS) and dissolution testing systems each.

After independent testing the agriculture and food industries is the next largest end-user market for analytical instrumentation, accounting for 5% of total instrument sales. It is second only to independent testing in demand for several techniques. Two such techniques are LLE and solvent extraction, where it accounts for 32% and 23% of sales, respectively. Food and beverage companies utilize LLE for fat determination, while the agriculture segment depends on the technique for solubility analysis of crops, feed and fertilizers. The agriculture and food industries rely on solvent extraction, particularly SFE, for fat determination as well as flavor and fragrance applications.

In addition, the agriculture and food industries constitute 38% of demand for chemical sensors, making it the primary end-user market for the technique. Employed extensively in quality control, chemical sensors determine spoilage, shelf life, lot-to-lot consistency and tainted packaging.

The agriculture and food industries also account for 38% of sales for near infrared (NIR) techniques, which is used for both R&D and quality control. NIR can measure moisture, fat, protein and fiber.

Like the agriculture and food industries, the organic chemicals end-user market also accounts for 5% of analytical instrumentation sales. Its demand is dispersed throughout several instrumentation segments and as a result does not represent a majority of sales for any one technique.

The industry makes up 15% of infrared spectroscopy (IR) sales, utilizing IR methods to detect low-level contaminates in chemical compounds. The organic chemicals market also represents 12% of Raman spectroscopy sales. A complimentary technique to IR, Raman is utilized in the analysis of chemical structures. The organic chemical industry's 15% share of nuclear magnetic resonance sales makes it the third largest market for the technique, which is utilized in organic compound analysis.

Organic chemicals industry is a primary end-user market for viscometry and rheometry instrumentation, where it represents 15% of sales. The techniques characterize organic materials in paint, powder and deformable solids.
Analytical Instrumentation
Demand by Industry

Ind. Testing 10%
Ag./Food 5%

Org. Chem. 5%
Other 80%

Note: Table made from pie chart.
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Publication:Instrument Business Outlook
Geographic Code:1USA
Date:Mar 31, 2005
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