The general analytical techniques (GAT) segment is a collection of the most basic laboratory instruments, including electrochemistry instruments, laboratory balances, radioactivity measurement systems, dissolution testing equipment and continuous flow analyzers (CFAs)/discrete analyzers. While these technologies are fundamentally different from each other, they share similar market characteristics. These instruments are somewhat low-end technologies and have revenues generated primarily from replacement sales. Due to the simplicity of these instruments, the service segments, in most cases, are negligible. In addition, the commodity nature of these businesses offers a very low barrier to entry for newcomers. Nonetheless, most of these techniques are essential to most laboratories.

The market for general analytical techniques exceeded $1.9 billion in 2010 and is expected to total close to $2 billion in 2011 with a modest 2011 growth rate of 3.5%. Much of this growth will be driven by replacement systems, particularly in the US, Canada and Europe. Emerging areas like China and India will drive demand in life science applications, including generic pharmaceuticals and contract research organizations (CROs). Latin America offers some growth opportunities, mainly in the petroleum and metals industries.

The market for general analytical techniques is segmented because the technologies are fundamentally different from each other. Mettler-Toledo accounted for about 22% of the overall market in 2010. Sartorius trailed Mettler-Toledo with a 2010 market share of about 13%. Each of the other leading vendors accounted for less than 10% of the market. Thermo Fisher Scientific, with about 9% market share, is the only company that is majorly involved in two segments of the general analytical techniques market.

Electrochemistry, which covers a broad range of measurement techniques, is based on measurement of an electrical parameter. In 2010, electrochemistry accounted for nearly 40% of the general analytical technique market. At about 2.2%, 2011 sales growth for electrochemistry techniques will be significantly less than the overall general analytical techniques market. Metrohm and Thermo are the two leading vendors in the electrochemistry market. Danahar’s Hach subsidiary and ITT Analytics are not far behind.

Laboratory balances are used to determine the mass or weight of a particular substance. The market for laboratory balances will account for nearly 38% of the market for general analytical techniques in 2011 and will grow 4.4%. While the market for laboratory balances experienced a sharp decline during the recent economic recession, it has recovered nicely. The competitive landscape is led by Mettler-Toledo and Sartorius.

Accounting for 11.5% of the general analytical techniques market, radioactivity’s 2010 share of the market was nearly three times less than lab balance’s share. Among general analytical techniques, this technology will grow the slowest in 2011, posting growth of only 1.7%. The market for radioactivity-measuring instruments continues to be a replacement market. PerkinElmer and Canberra dominate the radioactivity market. PerkinElmer’s primary involvement is in the liquid scintillation market. Canberra sells both multichannel and proportional analyzers/detectors.

Dissolution testing equipment and CFAs/discrete analyzers are the smallest general analytical technique markets, with respective market shares of 7.8% and 2.8%. However, they are the fastest growing, with sales of dissolution testers expected to grow 7.5% in 2011 and CFA/discrete analyzers expected to grow 5.2%. Automated dissolution testers will contribute to the majority of this growth. Similarly, discrete analyzers are growing faster than CFAs. The dissolution testing market is led by Varian, while Thermo leads the CFA/discrete analyzers market.

 Column Graph: 2009–2012 Total General Analytical Instrumentation Market

  2009 2010 2011 2012

 $ Millions 1,848 1,927 1,993 2,052

 General Analytical Instrumentation 2010–2011

                                                 Market Share         Growth Rate

 Electrochemistry                                39.9%                2.2%

 Lab Balances                                    37.9%                4.4%

 Radioactivity                                   11.5%                1.4%

 Dissolution Testing                              7.8%                7.5%

 Discrete Analyzers/ Continuous Flow Analysis     2.8%                5.2%

 Pie Chart: 2010 General Analytical Instrumentation Suppliers Market Shares

 Mettler-Toledo                22%

 Sartorius                     13%

 Thermo Fisher Scientific       9%

 Metrohm                        6%

 Hach (Danaher)                 5%

 Other                         45%

 General Analytical Instrumentation Market Leaders

 Electrochemistry                                       Metrohm, Thermo Fisher Scientific

 Lab Balances                                           Mettler-Toledo, Sartorius

 Radioactivity                                          PerkinElmer, Canberra (Areva)

 Dissolution Testing                                    Agilent/Varian, Sotax

 Discrete Analyzers/ Continuous Flow Analysis           Thermo Fisher Scientific, Seal Analytical (Porvair)

 Pie Chart: 2010 General Analytical Instrumentation Market by Product Type

 Initial Systems               67%

 Aftermarket                   24%

 Service                        9%