In a year with modest economic growth, it was consolidations, divestments and growing technology bases that were some of the factors that altered rankings among IBO’s list of the top 30 analytical and life science instrument and aftermarket companies for 2012. Among the list’s most notable changes was Illumina’s entry into the top 10 due to strong demand for its MiSeq system and sequencing consumables. Becton, Dickinson and Company fell two spots to number 13 following the sale of its slower growing Discovery Labware business (see IBO 4/15/12). Finally, Sartorius entered the top 30 list at number 28 as a result of the acquisition of Biohit’s Liquid Handing business (see IBO 10/31/11).

Despite a declining macroeconomic environment, including lower capital spending and reduced lab budgets from US and European government and academic markets, total 2012 analytical and life science instrument and aftermarket sales for the top 30 companies grew roughly 4% to $33.1 billion to account for approximately 75% of the total industry (see IBO 1/15/13).

IBO’s calculations of the top 30 companies and their rankings are based on the companies’ analytical and life science instrument and aftermarket sales (including lab equipment) that fall into one of 10 technology categories, as defined by IBO’s annual forecast issue (see IBO 1/15/13). Sales growth rates for non-US companies are based on constant exchange rates when converted to 2012 US dollars.

The top four companies, which are mostly broad-based vendors with over $2 billion in sales each, continued to widen their revenue gap between the rest of the top 30 in 2012 and increase their market share of total industry revenues. Driven by acquisitions and strong sales growth, sales for the top four companies have increased nearly 30% over a three-year period from 2010 to 2012 to account for roughly 29% of total industry sales in 2012.

Thermo Fisher Scientific, which has maintained the dominant position for three consecutive years, continues to extend its lead, with more than $4 billion sales in 2012. The purchase of Dionex in May 2011 (see IBO 12/15/10) contributed to Thermo’s 2012 revenue growth, along with new GC, IC and MS products. Thermo’s leading position could double its closest rival following the pending acquisition of Life Technologies (see page 1).

Life declined one spot to the number 4 position, with roughly $2.5 billion in sales. Despite strong sales for Ion Torrent products, 2012 revenues were hampered by lower demand for capillary electrophoresis instrumentation and a decline in US sales.

Similar to Thermo, number 3 Danaher expanded its market share and revenue growth via acquisitions. The company surpassed $3 billion in industry sales last year after recording a full year of Beckman Coulter sales (see IBO 2/15/11). Following several acquisitions, Danaher’s sales growth over the last three years has been unrivalled, climbing more than 60%.

Another major LC/MS vendor, Agilent Technologies, retained its respective position on the top 30 list at number 2, with 2012 sales of $3.3 billion. The company has expanded its market share and sales growth over the last several years due to acquisitions and new products. Introductions of GC/MS, Q-TOF MS and triple-quadrupole LC/MS instrumentation increased 2012 sales, but were partially offset by lower demand from academic and government customers.

Despite the disparity in analytical and life science instrument and aftermarket revenues when compared with the top four companies, seven additional companies in the top 30 recorded sales of $1 billion or more. At number 5 with $1.8 billion in 2012 sales, Waters was unable to close the significant sales gap between Life Technologies due to currency headwinds and slower sales of LC and MS systems. Conversely, Bruker, which remained at the number 6 spot with $1.7 billion in sales, continued to narrow the revenue gap between Waters. In 2012, Bruker recorded organic sales growth of more than 10% due to new triple-quadrupole LC/MS systems and higher X-ray spectroscopy products. At number 7, Shimadzu also reported high MS sales, which was partially offset by weak European demand.

Other companies with high single-digit organic sales growth and more than $1 billion in sales in 2012 were the companies ranked 8, 9 and 10, PerkinElmer, Merck KGaA and Illumina. PerkinElmer benefited from a full year of Caliper Life Sciences sales (see IBO 9/15/11) to move within striking distance to the number 7 spot. GE, which slipped to the number 11 spot, was the only other company in the top 30 with more than $1 billion in sales.

Several smaller, focused instrument companies have also made sizeable strides over the last three years. FEI has increased sales by more than 50% from 2010 to 2012 due to acquisitions and higher demand for scanning electron microscopes. For 2012, the company rose one spot to number 24.

For the 10 European companies on the top 30 list, total 2012 industry sales grew 6% in local currency. For the five German companies on the list, total revenues grew 7% to account for 13% of the top 30 companies’ sales. For the six Asian companies in the top 30, all of which are Japanese, total 2012 industry sales declined 2% in local currency. Excluding Shimadzu, the other Japanese companies each recorded lower revenue growth due to reduced capital expenditures by customers in Japan and the US.

Recalculations and updated financial information for several of the top 30 companies resulted in revenue and ranking changes when compared with last year’s list. The exclusion of certain bioproduction, cell culture, sample preparation, process and chemical products lowered revenues and rankings for Life Technologies, Mettler-Toledo, JEOL, Eppendorf and Roche. Carl Zeiss jumped several positions due to the inclusion of certain electron microscopy products, which were moved to its Microscopy business. IBO also included sales of additional microscopy products for Danaher’s Leica business.