China is one of the biggest markets for different industries globally such as pharmaceutical, manufacturing, and biotechnology, with a large number of foreign and domestic companies operating in different markets.
Growth of industries and rising consumer needs have put China in a leading industry position; however, non-regulation during the early growth phases have created several challenges for the country
The Chinese pharmaceutical market is set to be the second-largest pharmaceutical market in the world. The Chinese government’s healthcare reforms are an important step, and China offers tremendous opportunities for all foreign pharmaceutical companies. The Chinese government is working toward increasing its support for food safety and public health. This is creating a demand for high-quality analytical instruments in the environment and food testing industries as well as in the pharmaceutical industry.
China is set to surpass Japan as the largest spender on biomedical research and development (R&D). China’s Food and Drug Administration has issued stricter regulations on food and drug quality and begun cracking down on the non-compliant companies. These aggressive actions will drive analytical testing services in the country.
One of the biggest concerns for the country right now is the growing air pollution and pollution of major rivers owing to rapid industrialization. The government and industries are increasingly making investments to reduce air pollution, improve the sewage treatment, and monitor the hygiene levels of drinking water. With growing awareness on the threats of industrial pollution and food and drug safety issues, the Chinese government and various industrial bodies have framed laws and regulations toward maintaining a good environment, improving water quality and food standards, and creating an environment to promote international trade. Analytical instruments can prove to be useful as these will allow industries and government bodies to properly analyze the gases and water quality and take corrective measures.
Presence of an established analytical instrumentation market in the country
Although the analytical instrumentation market in China is newer compared to the US, Europe, and Japan, in recent years, China has become the most sought-after market globally as well as in the APAC region. This has led to the starting of operations, both in terms of manufacturing and sales, by all major analytical instrumentation manufacturers and also propelled the growth of domestic analytical instrumentation manufacturers. China is now the second-largest export market after the US for small- and medium-sized German instrument makers. The global analytical instrumentation manufacturers also face tough competition from the local manufacturers, who develop low-cost instruments with basic features.
High-performance liquid chromatography and gas chromatography are the largest markets in China, driven by the pharmaceutical industry, public sector, and food analysis. Mass spectrometry is also expected to record rapid growth.
Pharmaceutical laboratories are the biggest consumers of analytical instruments, followed by the academia. The academia is growing due to increased government expenditure in the sector. Increasing investments in sewage treatment and monitoring of drinking water quality have also boosted the growth of analytical instrumentation. Food, agriculture, and oil and gas are the other key industries. The Chinese manufacturing industry produces huge volumes of raw materials, which has increased the demand for analytical instruments significantly.
Analytical instrumentation manufacturers need to innovate in terms of products and solutions to sustain in the competitive market
Companies need to constantly evolve their product lines and invest in research and development. Changing customer behavior and needs should be addressed on time by offering advanced solutions that allow customers to improve their testing accuracy and work efficiency. Moreover, analytical instrument providers should package their products with solutions such as workflow solutions, training, aftersales services, repair, and also consumables and aftermarket services. Such comprehensive product packaging makes the solution more attractive and user-friendly.
Companies also need to develop innovative pricing strategies that are competitive and pocket-friendly.
Frost & Sullivan’s analytical instrumentation program focuses on key product deliverables, including chromatography, spectroscopy, gas analyzers, liquid analyzers, material testing, surface science techniques, mass spectrometry, X-ray instrumentation, and informatics. Frost & Sullivan has also published several research services including:
- Emerging Opportunities in Global Analytical Instrumentation Services and Support Market
- Outlook of the Global Analytical Instrumentation Industry
- Analysis of the Global Mass Spectrometry Market
- Global Analysis of the Oil and Gas Analytical Instrumentation Market
- Analytical Instrumentation Market for Food Testing
- Global Laboratory Analytical Instrumentation Market
- BRICS Analytical Instrumentation Market
For any queries related to this article or our research, please contact Nandini Bhattacharya at NandiniB@Frost.com