Laboratory automation equipment increases laboratory efficiency, especially in areas where processes depend on repetition and precision. It also increases productivity, throughput and lowers the cost per-sample analyzed. However, this segment of the instrument market was perhaps the most affected by the recession last year.

Demand for the overall lab automation market declined 6.5% in 2009 and accounted for $2.8 billion in revenues. The pharmaceutical and biotech industries, which account for much of the demand, have scaled down their investments in large automated systems and have had a slight spending freeze on capital equipment. As a result, the contract research organization and clinical research markets have become more important, particularly in Asia Pacific.

Sales of lab automation are expected to turn around in 2010, increasing 4.2% to $2.9 billion. Liquid handling, which consists of manual/handheld pipettes and automated workstations, accounts for 40% of the lab automation market. Manual pipettes, pipette tips and microplates are commodities, and thus offer modest growth opportunities. The market for automated liquid-handling workstations is the larger of the two segments. Overall, this market is expected to grow 3.5% in 2010, fueled by expansion in Asia Pacific, while showing modest growth in North America and Europe. Strong demand from the life sciences, particularly cell-analysis applications, will drive growth as well.

Microplate readers accounted for 26.0% of the lab automation market in 2009. Sales of microplate readers are forecast to increase 5.7% this year, driven by sales of multimode detection systems. In addition, applications involving fluorescence detection technologies, such as fluorescence polarization and time-resolved fluorescence, are fueling growth. Growth in the pharmaceutical and biotech industries is expected to be robust, particularly for applications involving cell-based assays. Aftermarket products, including kits, reagents, dyes and other consumables, account for a significant part of the market. PerkinElmer, Thermo Fisher Scientific and MDS Analytical Technologies lead the microplate reader market.

The laboratory automation market’s five technology categories include management informatics, which consists of Laboratory Information Management Systems (LIMS), Scientific Data Management Systems (SDMS) and Electronic Laboratory Notebooks (ELN). The evolution of management informatics software has dramatically improved during the last few years. With web-based or web-enabled technologies, LIMS have become extremely user friendly and easier to implement and deploy. Companies are also offering Software As a Service (SaaS) LIMS, which is broadening the market. Also, SDMS and ELN products are continuing to penetrate labs and are expected to drive growth. Overall, management informatics accounted for nearly 20% of the lab automation market in 2009. Growth is expected to be modest in 2010 due to the weakness in the pharmaceutical and biotechnology industries. However, growth has been relatively strong in Latin America. Overall, the market is expected to grow 4.0% in 2010.

The market for robotic systems accounted for about 9.9% of the lab automation market in 2009. Despite weakness in North America and Europe, these regions represented the majority of the market, led by the pharmaceutical and biotech industries. Industrial markets, such as chemicals, agriculture and food, have become more important. Nevertheless, most industries have been extremely cautious about their investments in robotic automation. Overall, sales of lab robotics are expected to grow 3.2% this year.

Dissolution testing accounted for nearly 5% of the lab automation demand in 2009, and sales are forecast to increase 4.7% this year. Growth is expected to be strong in Asia Pacific, particularly India, as the country continues to develop its pharmaceutical industry. Leading vendors for dissolution testing include Varian and Sotax.

Chart: 2008–2011 Total Lab Automation Market

2008 2009 2010 2011

Auto 3016 2820 2939 3088

Chart: 2009 Lab Automation Market by Product Type

2009

Initial Systems 1697

Aftermarket 763

Service 404

Chart: 2009 Lab Automation Suppliers Market Shares

Tecan 12%

PerkinElmer 10%

Thermo Fisher Scientific 9%

MDS 6%

Eppendorf 4%

Other 59%

Lab Automation 2009–2010

Market Share Growth Rate

Liquid Handling 40.0% 3.5%

Microplate Readers 26.0% 5.7%

LIMS, ELN, SDMS 19.6% 4.0%

Robotics 9.9% 3.2%

Dissolution Testing 4.6% 4.7%

Total 100.0% 4.2%

Lab Automation Market Leaders

Microplate Readers PerkinElmer, Thermo Fisher Scientific

Liquid Handling

Automatic Tecan, Beckman Coulter

Manual Eppendorf, Mettler-Toledo

Robotics Tecan, Symyx Technologies

LIMS, ELN, SDMS LabWare, Thermo Fisher Scientific

Dissolution Testing Varian, Sotax