The general analytical techniques (GAT) section of the analytical instrument market is a collection of vary basic laboratory instruments: electrochemistry systems, laboratory balances, radioactivity instruments, dissolution testing equipment, and continuous flow and discrete analyzers. Although these technologies are fundamentally different from each other, they share similar market characteristics. These instruments are primarily low-end technologies, with revenues generated mainly from replacement sales. Due to the simplicity of these instruments, service revenue, in most cases, is negligible. In addition, the commodity nature of these products offers a very low barrier to market entry. However, many of these technologies are found in laboratories across the world and are an essential part of the instrumentation market.

The 2011 market for GAT exceeded $1.9 billion. While the market is still expected to grow at a moderate rate of nearly 4% in 2012, this is about three percentage points less than the 2011 growth rate. The majority of the previous growth in this market was due to lab expansion and replacement systems across the world, especially in India and China. However, as this growth begins to slow, the GAT segments are expected to return to moderate growth.

Due to the fundamental differences in GATs, the competitive situation is segmented. Coincidentally, the top two vendors in the GAT market are also the top two vendors in the laboratory balance market. Mettler-Toledo and Sartorius accounted for 22% and 13% of the GAT market in 2011, respectively. Combined, these vendors’ sales accounted for more than half of the demand for laboratory balances. Thermo Fisher Scientific, Metrohm and Danaher are the next three largest vendors in the GAT market with market shares of 9%, 6% and 5%, respectively. Metrohm and Danaher are almost exclusively involved in the electrochemistry business, but Thermo is dominant in several areas, including electrochemistry and discrete analyzers.

Electrochemistry, which includes a wide array of methods ranging from pH meters to titrators, accounted for $734 million in sales in 2011. The technology’s 2012 sales are expected to grow more than 4%, reaching $764 million by the end of this year. Metrohm and Thermo are the two leaders in this sector. Danaher’s Hach subsidiary and Xylem, a spinoff from ITT (see IBO 1/15/11), also have significant market shares in electrochemistry.

Laboratory balances have their place in nearly every laboratory across the world. In 2012, IBO estimated the laboratory balance market to be approximately $730 million. With sales growth of 3.8%, the market is expected to increase by $28 million and reach $758 million by the end of 2012. As mentioned before, Mettler-Toledo and Sartorius are the leaders in the laboratory balance market. Both companies are involved in all aspects of the laboratory balance business.

The market for radioactivity equipment is expected to be quite stagnant in 2012, with sales growth of only 1.8%. In fact, it is estimated that the total market in 2012 will reach $227 million, which is only $4 million more than 2011. The market for radioactivity-measuring instruments continues to be a replacement market, which contributes to its slow sales growth. PerkinElmer and Canberra, an Areva company, dominate the market. PerkinElmer’s dominance stems from its strong liquid scintillation product offerings. Canberra sells both multichannel and proportional analyzers and detectors.

Dissolution testing equipment is the second smallest GAT sector, with an estimated 2012 market size of $172 million. Sales growth of 5.5% is expected in 2012. Because this technology is exclusively used in pharmaceutical labs, sales growth is dependent on the expansion of pharmaceutical labs and sales of replacement systems. Agilent, which acquired Varian in 2010 (see IBO 7/31/09), and Sotax are the top two companies in this market.

 General Analytical Instrumentation 2011–2012

                   2011 Market Share       2012 Growth Rate

 Electrochemistry        38.5%                   4.1%

 Lab Balances            38.3%                   3.8%

 Radioactivity           11.7%                   1.8%

 Dissolution Testing      8.5%                   5.5%

 Discrete Analyzers, CFA  3.0%                   5.0%

 Total                  100.0%                   3.9%

 Pie Chart: 2011 General Analytical Instrumentation Market by Product Type

 Initial Systems    68%

 Aftermarket        22%

 Service            10%

 Pie Chart: 2011 General Analytical Instrumentation Suppliers’ Market Shares

 Mettler-Toledo   22%

 Sartorius        13%

 Thermo            9%

 Metrohm           6%

 Danaher           5%

 Other            45%

 General Analytical Instrumentation Market Leaders

 Electrochemistry          Metrohm, Thermo Fisher Scientific

 Lab Balances              Mettler-Toledo, Sartorius

 Radioactivity             PerkinElmer, Areva 

 Discrete Analyzers, CFA   Thermo Fisher Scientific, Porvair 

 Dissolution Testing       Agilent, Sotax

 Bar Graph: 2010–2013 Total General Analytical Instrumentation Market

              2010     2011     2012     2013

 $ Millions  1,785    1,908    1,981    2,048