Frost & Sullivan research and analysis shows that the analytical instruments market in India has witnessed decent growth in the recent past and is likely to witness a compound annual growth rate of about 5% in the next 5 years. Stringent government regulations, increased government spending on R&D, and growth of pharmaceutical and life sciences industry in India are the primary factors driving the analytical instruments market growth.
Government, life sciences, and pharmaceutical will continue the growth momentum
Indian government, academia, R&D institutes, life sciences and pharmaceutical are the biggest buyers of analytical instruments. The Indian pharmaceutical market is the third-largest market in Asia, after China and Japan. India is also the largest generics market in the world, with 70% of all generic medication being manufactured in India. The Indian biotechnology industry, comprising bio-services, biopharmaceuticals, bio-agriculture, bio-industry, and bioinformatics, is one of the key industries in India. There is a steady increase in the number of contract research organizations in India, especially in clinical research management. With further technological advancements in instrumentation and software platforms, the R&D sector will grow. With the GDP growth these sectors are expected to pick up, causing increased demand for analytical instruments. The Indian Government currently has a high focus on reducing pollution and the country signed the Paris Climate Accord in 2017. It is committed to reduce carbon emissions and increase the use of alternative renewable energy sources. Other industries such as food & beverage, agriculture, oil & gas, chemicals and petrochemicals, forensics, and explosive detection are increasingly contributing to the growth of the Indian analytical instruments market. Stringent food hygiene standards are pushing the food and beverage manufacturers to invest more on analytical instruments. Ever increasing security threats in the country are resulting into increased use of analytical instruments for explosive chemicals analysis and forensics by the police and law and enforcement departments.
Global multinationals are dominating the Indian analytical instrument space
Multinational companies such as Thermo Fisher Scientific, Shimadzu, Agilent, Waters, SCIEX, and PerkinElmer dominate the Indian analytical market scenario. Indian companies are still lagging in terms of technical expertise required for manufacturing these high end devices. Instrument manufacturers are continuously focusing on new product design and development that are compact, multi-disciplined, offer high accuracy, and are low cost. Market leaders depend heavily on their channel partners for the sales and distribution of their instruments. The instruments are manufactured out of India and imported to India; however, manufacturers are themselves involved in creating brand awareness and marketing their products through Indian operations. Indian equipment manufacturers provide cost effective products, but the quality and standards are not at par with the global market leaders operating in the Indian market. However, this trend is changing and with sufficient government push, R&D facilities, and infrastructure, the Indian companies can create a brand name and a niche in the market. Lack of skilled workforce is another challenge that Indian instrument manufacturers face.
World-class products catering to Indian market needs is the key for instrument manufacturers for a fast growth in the Indian market
Equipment manufacturers who focus on providing an analytical solution to their customers instead of selling only the equipment have been able to create a competitive edge over their peers in the market. Manufacturers not only need to keep in mind that their products need to be world-class but also need to cater to and address the Indian customers’ requirements and challenges. Such innovative product design and cutting-edge technology would allow instruments manufacturers to grow in the market that offers immense growth opportunities in the medium and long terms.
Frost & Sullivan’s analytical instrumentation program focuses on key product deliverables, including chromatography, spectroscopy, gas analyzers, liquid analyzers, material testing, surface science techniques, mass spectrometry, X-ray instrumentation, and informatics. Frost & Sullivan has also published several research services including:
- Emerging Opportunities in Global Analytical Instrumentation Services and Support Market
- Outlook of the Global Analytical Instrumentation Industry
- Analysis of the Global Mass Spectrometry Market
- Global Analysis of the Oil and Gas Analytical Instrumentation Market
- Analytical Instrumentation Market for Food Testing
- Global Laboratory Analytical Instrumentation Market
- BRICS Analytical Instrumentation Market
For any queries related to this article or our research, please contact Nandini Bhattacharya at NandiniB@Frost.com
