Last year, for the first time, analytical and life science instrumentation sales in India exceeded $1 billion. Analytical and life science instrumentation sales in the country are expected to grow in the low double digits in 2012, led by sales of life science instrumentation—which have surpassed separation techniques as the fastest-growing category of analytical techniques in India (see IBO 7/15/08). Life science instrumentation (sequencers, PCR products, microarrays, high-content screening and cell imaging products, electrophysiology and patch clamp systems, in vivo animal imaging systems, electrophoresis systems, label-free detection systems and biosensors, flow cytometers, synthesizers, informatics, and nucleic acid purification products) currently accounts for about a fifth of the Indian analytical instrument market, and sales are expected to grow about 7% faster than the overall Indian life science instrumentation market in 2012.

In this article, IBO examines India’s life science instrumentation market based on information extracted from Strategic Directions International’s December 2011 report, “Roadmap to Nirvana: The Indian Market.”

The current value of the Indian life science instrumentation market is roughly $218 million. Sales are estimated to increase by nearly 20% this year. Life science instrumentation is the only segment of the Indian analytical instrument market in which sales are projected to more than double by 2016. In fact, India’s 2% global share of the life science instrumentation market is likely to increase, driven by the transition of the Indian pharmaceutical industry from generics production to more research-oriented areas.

Sales of three categories of life science instrumentation techniques—PCR products, microarrays and flow cytometers—together account for more than half of the Indian life science instrumentation market. The demand for initial PCR systems is expected to slow. However, the overall PCR market is expected to grow in the low double digits in 2012, driven by aftermarket sales.

High-content screening is the fastest-growing life science instrumentation market in India. Sales are slated to grow approximately 25% in 2012. Demand for in vivo animal imaging systems and informatics will also contribute to the growth of the life science instrumentation market this year. Despite these three techniques’ relatively small market share, their sales are expected to eventually surpass some of the more established techniques. Demand for in vivo animal imaging systems, which are fairly new products in India and generally associated with preclinical applications, is projected to grow in the mid- to high teens in 2012. Informatics sales are expected to increase by more than a fifth.

Indian sales of nucleic acid purification products are forecast to grow in the mid-teens in 2012. Sales of synthesizers, and electrophysiology and patch clamp instruments will grow in the low to mid-double digits in 2012. The only life science instrumentation techniques whose sales are expected to grow in the single digits in 2012 in India are sequencers, label-free detection systems and electrophoresis products. Electrophoresis products, however, accounted for the highest volume of life science instruments sold in India in 2011. This segment comprises just 9% of the market in terms of revenue, but more than 3,000 units, which are typically low cost and easy to replace, were shipped last year. As shared facilities become more popular in India, more sophisticated sequencing and label-free detection instruments, along with high-content screening instruments, are being employed.

Growth of life science instrumentation sales in India this year will be heavily impacted by aftermarket sales, which are set to increase by nearly a quarter in 2012. Life science instrumentation aftermarket sales reached $100 million in 2011 and are expected to surpass initial systems sales this year. Service revenues, which accounted for 8% of the Indian life science instrumentation market in 2011, are expected to increase by about 18% this year.

By industry, the largest end-markets for life science instrumentation in India are academia, pharmaceutical companies and biotechnology companies, which combined account for three-quarters of demand. The fastest-growing end-market is CROs, for which sales of life science instrumentation will likely grow 30% in 2012. The pharmaceutical and biotechnology industries will also increase life science instrument purchases in 2012 as regulatory reforms in India have resulted in higher drug development safety standards, which has led to global drug firms increasing their Indian operations. Demand from the pharmaceutical industry for life science instrumentation is expected to increase 21% this year. Demand from the biotechnology industry should grow by a third in 2012. Though not as robust, life science instrumentation sales to academia will also be fairly strong, increasing by 10% this year.

R&D labs are the largest end-users of life science instruments in India, accounting for three-quarters of the market. Analytical service labs, which are generally associated with CROs, as well as environmental and government testing labs, comprise about 14% of the end-user market.

 Bar Graph: 2010–2012 Total Indian Life Science Instrumentation Sales (Millions)

 2010           $190

 2011           $218

 2012           $260

 Pie Chart: 2011 Share of Indian Life Science Instrument Market

 PCR Prod.                        21%

 Microarrays                      17%

 Flow Cytom.                      16%

 Nuc. Acid Pur. Prod.             14%

 Sequencers                        9%

 Electro. Sys.                     9%

 Synthesizers                      5%

 In Vivo An. Im. Sys.              3%

 Informatics                       3%

 HCS & Cell Im. Prod.              1%

 Label-Free Det. & Biosensors      1%

 Electrophys. & Patch Clamp Sys.   1%