The preclinical market for life science and analytical instruments is slated to grow in the mid-single digits this year and next year, according to “Transforming Preclinical Research: New Approaches in Translational Science,” a Strategic Directions International report published in May. The report defines preclinical research as the stage of the drug development process after generating compounds as potential drugs and before clinical studies. Segment growth rates include system and aftermarket sales.

Life science instrumentation is the largest segment of the preclinical instrument market, with a share of nearly a quarter. The life science instrumentation segment consists of in vivo animal imaging, high-content analysis and flow cytometry products. The life science instrumentation market was the fastest growing preclinical instrumentation market segment in the 2007–2012 period, increasing at a compound annual growth rate of about 8%, and is expected to have the second-fastest growing compound annual growth rate for the 2013–2017 period, after the MS market, with about 7% growth. The healthy growth is associated largely with pharmaceutical companies shifting toward the analysis of whole living cells and animals as opposed to derived samples. Using intact cells and animals allows researchers to better model how diseases and treatments will act in the human body.

In vivo animal imaging systems are defined as systems that obtain three-dimensional images of living animal subjects. The category includes established techniques such as computed tomography (CT), PET, MRI, ultrasound and optical technologies, as well as combinations of these techniques. The market for preclinical in vivo animal imaging is slated to grow approximately 3% this year and 8% next year. Despite the predicted growth, PerkinElmer and Bruker both cited weaker-than-expected first quarter in vivo animal imaging sales (see IBO 5/31/13), although the firms have announced that sales recovered in the second quarter.

High-content analysis, the next largest market segment, refers to a high-throughput cell imaging technique utilizing 96- and 384-well microplates to analyze cells. Systems are based on either CCD cameras or confocal microscopes and also include laser scanning cytometers. The preclinical high-content analysis market is expected to increase by about 6% this year and 9% next year, driven in particular by sales to biotechnology labs.

Flow cytometry is the smallest of the three market segments. Flow cytometry products consist of cell sorters, benchtop analyzers and compact analyzers. A relatively small portion of the flow cytometry market is for preclinical applications. Preclinical flow cytometry market growth is expected to be flat this year and to increase by about 4% next year.

More than half of demand for preclinical life science instrumentation currently comes from North America. The region is predicted to post growth of about 4% and 6% in 2013 and 2014, respectively. Europe accounts for the second-largest market share at about a quarter, although growth is expected to slow to 2% this year. European demand is predicted to increase 5% in 2014. The fastest growth will be in India and China, where pharmaceutical companies are investing in research facilities. Demand for preclinical life science instruments in these countries is expected to grow 20%–25% both this year and next.

By end-market, the pharmaceutical industry accounts for the most demand for preclinical life science instrumentation, comprising more than one-third of the market. This end-market is expected to increase approximately 6% this year and 8% next year. Within the pharmaceutical market, the majority of demand is for in vivo animal imaging systems, which were previously found more in academic and government labs and are now migrating to preclinical research in pharmaceutical labs. The fastest growing demand, however, is from CROs. Although CROs account for only about a sixth of preclinical life science instrument sales, demand is expected to grow more than 10% through 2014.

Biotech is the second-largest and fastest growing end-market for preclinical life science instrumentation. Growth of about 8% is expected both this year and next for this end-market, which accounts for about a fifth of market demand. However, sales to academia and government will be weak. Academic demand is expected to fall 3% in 2013, followed by a 2% increase in 2014. Government sales are slated to decline 3% this year and resume growth of 3% next year.

Many companies in the preclinical life science instrument market offer just one technique. Exceptions include Danaher, whose Molecular Devices business offers high-content analysis products and whose Beckman Coulter business provides flow cytometry products. GE Healthcare and PerkinElmer both offer in vivo animal imaging and high-content analysis products. Becton Dickinson’s BD Bioscience division also offers high-content analysis products in addition to its flow cytometry products. The five-largest vendors comprise more than half of the preclinical life instrumentation market. BD Biosciences accounts for about one sixth of the market. Rounding out the top five companies are PerkinElmer, GE Healthcare, Danaher and Siemens, which manufactures in vivo animal imaging systems.

The remaining companies involved in the preclinical life science market are mostly comprised of in vivo animal imaging system providers. Two other major participants in in vivo animal imaging are VisualSonics and Bruker. VisualSonics was purchased by Sonosite in 2010 (see IBO 5/31/10), which was later acquired by Fujifilm Holdings (see IBO 1/31/12). Bruker used to solely offer MRI systems, but last year expanded its offerings with its acquisitions of Skyscan’s microCT product line (see IBO 4/15/12) and PET/CT provider Carestream (see IBO 9/30/12). Other companies that manufacture in vivo animal imaging systems include Gamma Medica, Philips and Shimadzu. To a lesser extent, other firms, including Berthold Technologies, Hitachi High-Technologies and Photometrics, are also involved in this market. High-content analysis market participants include Thermo Fisher Scientific. Sony and Partec are other flow cytometry systems providers. Recently, BD Biosciences added to its flow cytometry business with its purchase of Sirigen, which manufactures polymer dyes (see IBO 8/31/12). Beckman Coulter also recently added to its flow cytometry product lines with the acquisitions of ReaMetrix India this month (see IBO 8/15/13) and Blue Ocean Biomedical last year (see IBO 3/31/12).