The molecular spectroscopy market is not completely immune from a slow growing economy. Accordingly, the market’s growth should drop from more than 7% in 2011 to less than 5% in 2012. All technology segments of the molecular spectroscopy market will see a decline in their growth, although some more than others. However, every technology segment is still expected to record at least modest growth in demand in the year ahead. The expansion and acceptance of handheld instruments in a number of segments of the market will continue to be one of the primary drivers of growth.

NMR is the largest segment of the molecular spectroscopy market and accounted for more than a quarter of the market’s $3.8 billion in demand in 2011. However, NMR sales will experience a fairly large decline in growth, from more than 9% in 2011 to the mid-single digits in 2012. Stimulus spending programs enacted in response to the recession had helped bolster demand for NMR systems in academic and government laboratories but have run their course. The stimulus effect on the NMR market trailed most other technology sectors due to the lead time, which is often as long as 18 months.

Major merger and acquisition activity in the molecular spectroscopy market was fairly sedate in 2011, with the most significant activity being the spin-off of ITT’s water business into Xylem (see IBO 1/15/11). The company’s water analysis business has been growing quite rapidly through acquisitions and is on the verge of becoming one of the top 10 competitors in the UV/Vis sector as a function of its significant involvement in photometry, test kits and spectrophotometers.

The color measurement, or colorimetry, market has experienced some changes over the last few years, including a steep decline in demand in 2009, followed by an even sharper rebound in 2010. For 2011, the roller-coaster ride appeared to be over, as demand softened. The market is expected to grow at its typical low single-digit rate in 2012.

The decline in the annual sales growth for the IR and NIR segments of the molecular spectroscopy market will be fairly minimal in 2012, while the Raman segment will continue to have the strongest performance of any technology segment. The run up in the value of petroleum once again leaves the oil industry with cash for investments. Combined with the growing focus on alternative fuels, this will drive strong sales growth to the chemical, oil and gas, and related industries, all of which contribute to demand for vibrational spectroscopy techniques. Regulation and the steady drive to increase food safety will also be a major contributor to maintaining near 5% sales growth for NIR demand in 2012.

Handheld molecular spectroscopy instruments have become a bigger part of the market over the past decade. Much of the demand for such instruments has been related to security and military applications, most of which is driven by government spending. Looming cutbacks in government spending at all levels may put a damper on demand. Nonetheless, handheld systems will show significantly stronger sales growth than the overall average growth for molecular spectroscopy in 2012, as their adoption spreads to other markets.

Sales of microvolume spectroscopy products, which are associated with biotech and clinical applications, will grow in double digits this year. However, such techniques account for less than 10% of the UV-Vis and fluorescence markets.

 Bar Graph: 2010–2013 Total Molecular Spectroscopy Market

                 2010      2011      2012      2013

 $ Millions     3,568     3,822     4,001     4,208

 Molecular Spectroscopy 2011–2012

                         Market Share 2011            Growth Rate 2012

 NMR, EPR                     26.6%                         5.7%

 UV-Vis                       22.1%                         3.8%

 IR                           18.3%                         4.6%

 Color Measurement             8.9%                         2.7%

 NIR                           7.4%                         4.8%

 Raman                         6.7%                         7.0%

 Fluorescence, Luminescence    4.9%                         4.8%

 Polarimetry, Refractometry    3.4%                         3.1%

 Ellipsometry                  1.7%                         4.3%

 Total                       100.0%                         4.7%

 Molecular Spectroscopy Market Leaders

 UV-Vis                         Thermo Fisher Scientific, Danaher

 NMR, EPR                       Bruker, Agilent

 NIR                            FOSS, Thermo Fisher Scientific

 Color Measurement              X-Rite, Konica Minolta

 IR                             Thermo, PerkinElmer

 Raman                          HORIBA, Thermo Fisher Scientific

 Fluorescence, Luminescence     HORIBA, PerkinElmer

 Polarimetry, Refractometry     ATAGO, AMETEK 

 Ellipsometry                   HORIBA, Sentech

 Pie Chart: 2011 Molecular Spectroscopy Market by Product Type

 Initial Systems     70%

 Aftermarket         17%

 Service             13%

 Pie Chart: 2011 Molecular Spectroscopy Suppliers’ Market Shares

 Bruker       17%

 Thermo       10%

 Agilent       8%

 PerkinElmer   6%

 FOSS          4%

 Other        55%