Much of the focus for analytical instrument sales in Asia has been on China and India. However, other areas in Asia Pacific, particularly continental Southeast Asia, which is comprised of Cambodia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam, exhibit strong growth opportunities. Sales of analytical instrumentation (see box, page 8) in Asia Pacific grew more than 8% last year to over $1.6 billion, excluding China and India, according to Strategic Directions International’s report “Hidden Dragons of the Asia Pacific,” published in May 2012. Sales to continental Southeast Asia made up less than 20% of the market but are expected to grow in the high single digits on average annually between now and 2016.

Among the countries in continental Southeast Asia, only Singapore can be defined as developed. Growing industrialization and foreign investments as well as exports characterize Malaysia, Thailand and Vietnam’s economic momentum. In these developing nations, analytical instrument demand is primarily driven by agricultural, oil and mining exports. Also growing the market are increased foreign investment, new trade agreements and infrastructure spending. Singapore’s strength of demand lies with its electronics, pharmaceuticals and chemicals industries.

Of the 10 analytical instrument categories, materials characterization techniques have the largest share of sales in continental Southeast Asia due in part to the chemicals industry and testing of raw materials. Among Asia Pacific nations, excluding China and India, continental Southeast Asia accounted for over 20% of materials characterization instrument sales in 2011, with average annual growth of more than 8% expected over the next four years.

Molecular spectroscopy, which is also heavily used in quality control applications, is expected to post the fastest average annual sales growth rate among analytical instrument categories over the next four years in continental Southeast Asia. Average annual sales growth is expected to exceed 10%. Last year, continental Southeast Asia represented 13% of molecular spectroscopy sales in Asia Pacific countries, excluding China and India.

The largest market by value in continental Southeast Asia for analytical instruments in 2011 was life science instrumentation, with sales totaling over $40 million. Agricultural, food and drug research will drive average annual sales growth of nearly 10% to 2016 for this category.

 Bar Graph: Analytical and Life Science Instrument Sales, Continental Southeast Asia

 2011      2012      2013

  285       312       336

 Pie Chart: Analytical Instrument Sales in Continental Southeast Asia, 2011

 Separations      14%

 Life Sci. Instr. 20%

 MS                1%

 Mol. Spec         9%

 Atomic Spec      12%

 Surf Sci.        15%

 Mat. Charac.     12%

 Lab Auto.         5%

 Gen. Analytical   7%

 Lab Equip.        5%