The market for analytical instruments used in the environmental testing sector is currently undergoing slower growth in reaction to global economic conditions. In coming years, the highest levels of sales growth are expected for techniques that make up only a small percentage of the market. In 2010, the environmental analysis instrument market is expected to grow in the mid-single digits to almost $4 billion. All data in this article are based on the “Environmental Analysis Market Forecast Report 2008–2013,” published by Strategic Directions International.

The environmental-analysis instrument market can be divided into seven categories of products: gas analyzers, laboratory and portable separation systems, lab atomic spectroscopy, lab molecular spectroscopy, lab electrochemistry, in-field/electrochemistry, and other in-field/industrial water analyzers. Near-term market growth will be fueled by rising sales of instruments and aftermarket products in the laboratory and portable separations, in-field/electrochemistry and other in-field/industrial water analyzers categories. Additionally, an increased level of industrialization in developing countries will galvanize sales of many environmental-analysis instrument techniques.

China, in particular, is expected to grow the market. Sales in China currently make up less than 10% of the instrument and aftermarket sales for environmental analysis, but will grow more than two times faster than any other region in 2010 to nearly $200 million. China’s increase in environmental spending is due to both rapid infrastructure development, such as wastewater plant development and electricity infrastructure improvements, and the rise in environmental regulation and enforcement.

Sales of laboratory and portable separations techniques, which account for nearly a quarter of the market for environmental-analysis instruments and aftermarket products, are expected to have the highest growth in sales in 2010, reaching nearly $1.5 billion. There are eight techniques classified as laboratory and portable separation systems: GC, GC/MS, LC/MS, HPLC, ion chromatography, ion mobility spectrometry, continuous flow/discrete analyzers, and portable MS. Please note that this category includes non-separation techniques that closely compete with separation techniques.

Among the techniques in this category, continuous flow/discrete analyzers and portable MS systems are expected to have the fastest short-term sales growth, increasing in the double digits. Recent innovations for both techniques has led to increases in new systems. Excluding continuous flow/discrete analyzers and portable MS systems, growth next year for laboratory-separations techniques will range from the low- to high-single digits. Current laboratory separations market leaders include Agilent, Thermo Fisher Scientific and Waters.

Aside from separations techniques, the fastest-growing categories make up the smallest percentage of the environmental-analysis instrument market. Industrial and fixed-site electrochemistry is one such category. It is expected to grow in the mid-single digits in 2010 to nearly $200 million. This market consists of: pH/oxidation reduction potential/conductivity devices, dissolved oxygen (DO) systems and ion selective electrodes (ISE). Industrial and fixed-site electrochemistry systems are used for the monitoring of water treatment, industrial effluent, and surface and ground water in the field. These systems are widely used because they allow water monitoring in real time. Among these techniques growth for DO systems will be the fastest. This growth can be attributed to the superior accuracy of on-site DO systems compared to laboratory DO systems. Danaher is the market leader for industrial and fixed-site electrochemistry.

Much like industrial and fixed-site electrochemistry techniques, demand for other industrial and fixed-site water-analysis systems makes up only a small portion of the total environmental-analysis instrument market, but will experience double-digit growth in 2010 to nearly $185 million. The industrial and fixed-site water analysis category consists of products for the photometric analysis of organic materials in water. These techniques are: process total organic carbon (TOC) systems, turbidity determination systems, discreet/colorimetric analyzers, and systems for organics detection and oil-in-water analysis. Process TOC systems are by far the fastest-growing segment among this category due to an increase in regulatory methods specifying the use of TOC. As with fixed-site electrochemistry, Danaher is the largest seller of industrial and fixed-site water analysis systems.

Although not expected to show the fastest growth in the near term, gas analyzers account for the largest share of environmental-analysis instrument sales. This category includes portable, fixed-site and in-field gas analyzers such as: auto emission analyzers, fixed-site ambient analyzers, continuous emissions monitoring systems (CEMS), mobile/handheld analyzers, process GC, ambient particulate analyzers and process MS. Instrumentation in these subcategories include non-dispersive infrared and Fourier-transform infrared spectrometers.

The two fastest-growing subcategories in this market are auto emission analyzers and CEMS. However, auto emission analyzers have been hit hard in 2009 by the downturn in the automobile industry. As such, sales are expected to decrease in double digits this year. Nevertheless, a rebound in sales in 2010 is expected to push gas analyzer sales back to 2008 levels of nearly $1.5 billion. Growth for CEMS, which are popular for monitoring stacks, are being fueled by a demand for replacement systems and increased CO2 regulation. Horiba is the current market leader for gas analyzers. Excluding auto emission analyzers, Rikken Keiki leads the gas analyzer market.

Chart: Gas Analyzers Market in Total Environmental Analytical Instrument Market

Gas Analyzers 27%

Total 73%

Chart: China’s Investment in the Environmental Analytical Instrument Market ($ Millions)

2008 $161

2009 $177

2010 $197

Chart: High-Growth Separations Techniques for Environmental Analysis ($ Millions)

2008 2009 2010

CFA/Discreet Analyzers $18.7 $20.2 $22.6

Portable MS $10.6 $11.5 $12.8