Biotechnology and pharmaceutical firms are directing substantial investments towards research and development (R&D) endeavors, responding to the expanding requirements of the healthcare sector. This heightened focus on R&D has consequently generated a surge in demand for laboratory automation systems and software. The integration of laboratory automation is proving instrumental in augmenting the workflow efficiency within clinical laboratories, leading to a notable enhancement in the Return on Investment (ROI) through cost reduction and increased throughput.
A case in point illustrating the scale of R&D investments is the financial commitment made by prominent entities such as Merck and Biogen. In 2020, Merck reported R&D costs amounting to $13.6 billion, marking a substantial increase of 37% compared to the figures from 2019. Similarly, Biogen witnessed a significant surge in its R&D budget, experiencing a rise of $1.7 billion or 75.0%, reaching nearly USD 4 billion in 2020. These financial allocations underscore the industry's recognition of the pivotal role that R&D plays in advancing healthcare solutions, driving innovation, and meeting the evolving demands of the medical landscape.
Laboratory automation, emerging as a critical component, is pivotal in applied research endeavors aimed at developing novel therapeutic interventions. This encompasses a spectrum of initiatives, including the exploration of cell-based therapies, advancements in pharmaceuticals, and the creation of tissue-engineered constructs for implantation. The role of laboratory automation becomes particularly pronounced in these scenarios, providing a distinct advantage over manual operators. Manual operations are inherently susceptible to factors like fatigue and errors, which can compromise accuracy and reproducibility. In contrast, laboratory automation serves as a solution to these challenges, contributing to heightened accuracy, improved reproducibility, and overall research efficiency.
The impact of increasing R&D investments by major players is reverberating in the global laboratory automation market. The drive to enhance efficiency, reduce costs, and boost throughput is steering the adoption of laboratory automation solutions across the biotechnology and pharmaceutical sectors. This technology-driven transformation is not merely a luxury but a necessity, especially when dealing with the intricate processes involved in R&D within these industries.
In conclusion, the paradigm shift in R&D investments within biotechnology and pharmaceutical domains is fueling the demand for laboratory automation systems worldwide. The financial commitments made by industry giants like Merck and Biogen reflect the sector's acknowledgment of the indispensable role played by R&D in shaping the future of healthcare. Laboratory automation, as a crucial enabler, is contributing to heightened efficiency and accuracy in the intricate landscape of applied research, ultimately steering the global laboratory automation market toward greater advancements and broader adoption.
Report Attribute/Metric | Details |
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Market Opportunities | Improving healthcare infrastructure across emerging countries |
Biotechnology and pharmaceutical companies are making significant investments in R&D to meet the growing needs of healthcare. Increasing investments in R&D activities have created a demand for laboratory automation systems and software. Laboratory automation helps increase the efficiency of the clinical laboratory's workflow, resulting in a higher return on investment (ROI) through reduced costs and increased throughput, which further has the potential to save lives. For instance, Merck & Co., Inc. (US) 2020 R&D costs were $13.6 billion, increasing by 37% over 2019, and Biogen (US) R&D budget jumped $1.7 billion, or 75.0%, to nearly USD 4 billion in 2020.
Moreover, laboratories are constantly adopting new technology, including new equipment and software. Laboratory automation involves utilizing software that automates equipment and robots to operate with minimal human supervision, which improves efficiency and the quality of results. Automation in the laboratory can help patients receive better treatment more quickly. According to a 2020 survey, 90% of large healthcare organizations across the globe stated they had an artificial intelligence (AI) and automation strategy, up from 53% in 2019. Therefore, growing investment in R&D and rising adoption in healthcare industry is propelling the market growth.
The Laboratory Automation Market segmentation, based on product type, includes automated workstations, robotic systems, software & informatics, and others. Automated workstation is segmented into automated liquid handling, microplate readers, automated Elisa systems, and automated nucleic acid purification systems. Software & informatics is segmented into electronic laboratory notebook, workstation/unit automation software, scientific data management system, and laboratory information management system.
The automated workstations segment held the majority share in 2021 due to the rising demand for automated laboratory equipment and technological advancements. For instance, in August 2020, Abbott Laboratories (US) received Emergency Use Authorization (EUA) from the US Food and Drug Administration (FDA) for its BinaxNOW COVID-19 Ag Card rapid test for detection of COVID-19 infection. BinaxNOW is incorporated with Abbott lateral flow technology, offering a reliable and familiar approach for frequent mass testing from a healthcare provider.
The Laboratory Automation Market data has been segmented, based on process, by continuous flow and discrete processing. Discrete processing is segmented into the method, components, and workflow. The method is further bifurcated into discrete centrifugal and random-access discrete processing.
The discrete processing segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022–2030. Discrete processing gives each sample a discrete space, which improves the sample analysis in this process. As a result, there is no waste of extra chemicals required for flow compared to continuous flow.
The Laboratory Automation Market data has been segmented, based on application, clinical diagnostics, genomics solutions, proteomics solutions, drug discovery, and others. The clinical diagnostics segment dominated the market in 2021, while the genomics solutions segment is projected to be the faster-growing segment during the forecast period, 2022–2030. Rising laboratory automation applications such as automated chemistry applications, synthetic biology, cell line development, and cellular assays are expected to boost the clinical diagnostic segment growth. Therefore, an increase in the number of clinical applications of automated instruments for laboratories is projected to increase laboratory automation adoption throughout the forecast period.
Figure 2: Laboratory Automation Market, by Application, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on end user, the Laboratory Automation Market is segmented into biotechnology & pharmaceutical companies, hospitals & diagnostic laboratories, and research & academic institutes.
Biotechnology & pharmaceutical companies held the largest segment share in 2021, owing to the growing adoption of robotics & laboratory automation in the biotechnology & pharmaceutical industries. Moreover, laboratory automation has shifted from supporting product manufacturing & quality control in laboratory applications to R&D within pharmaceutical organizations; this factor boosts the Laboratory Automation Market growth.
By Region, the study segments the market into North America, Europe, Asia-Pacific, and Rest of the World.
North America is attributed to the increasing investment in drug discovery, stringent FDA regulations, and the presence of large pharmaceutical companies, such as Johnson & Johnson (US), Pfizer Inc. (US), F. Hoffmann-La Roche AG (Switzerland), Merck & Co., Inc. (US), and others. Moreover, the region's well-established biotechnology and biopharmaceutical sector and the high adoption rate of technologically advanced equipment for discovering new and effective drugs in the region are expected to drive the regional market growth during the forecast period.
Further, the major countries studied are: The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Figure 3: LABORATORY AUTOMATION MARKET SHARE (%) BY REGION 2021
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Laboratory Automation Market accounts for the second-largest market share due to well-established healthcare infrastructure in countries such as Germany, France, the UK, and others, which has led to an increase in the adoption of robotics & laboratory automation systems in the region. Furthermore, the Germany laboratory automation market held the largest market share in 2021, and the UK laboratory automation market was the fastest growing market in the Europe region.
The Asia-Pacific laboratory automation market is expected to grow at a significant share from 2022 to 2030. This is due to the factors such as improving healthcare infrastructure, a rise in the number of pharmaceutical companies, and a surge in awareness about advanced laboratory automation systems supporting the market growth. Moreover, Japan laboratory automation market held the largest market share, and the India laboratory automation market was the fastest growing market in the Asia-Pacific region.
Laboratory Automation Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the laboratory automation market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the laboratory automation industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Beckman Coulter, Inc. (US) is a company that makes clinical diagnostic products that are utilized in advanced biomedical testing. Since 2011, the company has operated as a subsidiary of Danaher Corporation (US). It offers a centrifugation system, lab automation & liquid handling, particle counting & characterization, cell counting & analysis, and flow cytometry, which are used for tests related to sepsis diagnosis, cardiovascular disease, reproductive health, anemia, drug monitoring, and life sciences. In May 2021, Beckman Coulter has launched the DxA 5000 Fit, a workflow-automation system geared for medium-sized labs that perform fewer than 5,000 tests per day.
Additionally, QIAGEN N.V. (Germany) is a healthcare company specializing in sample and assay technologies for molecular diagnostics. The company operates through more than 35 offices spread over 25 countries and has a global distribution partner network in more than 60 countries. It serves more than 500,000 customers across the globe. Its product portfolio spans a full range of molecular testing applications. QIAGEN N.V.’s products are used to extract, purify, and stabilize DNA, RNA, and protein from various biological samples. In March 2021, QIAGEN N.V. launched the QIAcube Connect MDx platform for automated sample processing in diagnostic laboratories. It is a versatile platform for automated sample processing available to molecular diagnostic laboratories in the US and Canada, the European Union, and other global markets.
Key Companies in the Laboratory Automation Market includes.
Laboratory Automation Industry Developments
August 2020 PerkinElmer Inc. (US) launched Modular and Scalable Exploration Workstations for High-Throughput COVID-19 Detection. These modular and flexible workstations allow laboratories to ramp up SARS-CoV-2 testing capacity and provide findings swiftly.
May 2019 Beckman Coulter, Inc. (US) has launched the DxA 5000 total laboratory automation system. The product enables medical laboratories to progress beyond modular automation and into the future.
January 2019: QIAGEN N.V. (Germany) has acquired FORMULATRIX, Inc. (US) digital PCR technology, including the CONSTELLATION series of instruments.
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