Equipment manufacturers are not very active in the used, rental analytical equipment market. However,it is expected that equipment manufacturers will penetrate this market strongly in future. Focus is shifting to rental and leasing equipment market driven by CAPEX/OPEX oriented customers. Customers experiencing financial crisis are unable to fund for the capital equipment that are analytical instruments, even when customer has a strong requirement. Equipment manufacturers are customizing their business models to include flexible rental and leasing analytical equipment under their offering.
Used, Rental, and Leasing Offering – Advantages Offered to Modern Laboratories
Analytical instruments are capital equipment that can cost up to $1 million for single unit. Hence customers increasingly prefer manufacturers to rent and lease the equipment for different analytical services. Used, rental, and leasing offering improves customers’ productivity and offers the advantages of third-party analytical services. The used, rental, and leasing analytical equipment will allow the customer to analyze the industrial, environmental samples more quickly and at a fraction of cost than outsourcing it to a laboratory. Analytical instrument rental and leasing solution providers also support customers by providing training, method development, and technical support solution. This is likely to win more customers for used, rental, and leasing equipment.
Used, Rental, and Leasing Offering – Challenges
Used, rental, and leasing analytical solution providers have a limited collection of analytical equipment models in-house from a few brands. This leaves no choice for the customers. This market challenge provides an opportunity to manufacturers to offer competitive used, rental, and leasing solutions as compared to the third parties. Moreover, the third party rental and leasing solution providers do not cater to all the technologies of analytical equipment market. Key manufacturers who have a strong presence across the analytical equipment market can offer attractive used, rental and leasing solutions to capture customers.
Growth Opportunity – to Equipment Manufacturers
Very few equipment manufacturers are offering used, rental, and leasing equipment solution. Manufacturers will benefit from this offering as the equipment market is highly saturated due to fund scarcity among customers. In addition, when equipment manufacturers start providing used, rental, and leasing solutions, they can provide a lot of options to customers in terms of instrument configuration, related services, and consumables. Hence, a strong growth opportunity for manufacturer lies within the used, rental, and leasing solution.
Used, Rental, and Leasing Equipment – Key Competitive Factor
The key competitive factor of used, rental, and leasing solution provider is changing and expanding inventory comprising a breadth of analytical solution. This will allow the customer to rely on the vendor for their different set of requirements. Less interest, flexible leasing options, and trial rentals are the other value added benefits customers expect. The solution provider should also be flexible to provide different options as per customers’ need. Both emerging and developing countries can be focused for rental, leasing, and used analytical equipment as there is a strong requirement. Chromatography, mass spectrometry, analytical X-ray, and microscopes are the most commonly rented analytical equipment.
Used, rental, and leasing analytical equipment have strong potential for growth driven by customer’s financial pressures. Analytical instrument being the saturated market it is, manufacturers should offer attractive offerings to support customers financially. It will be expected that manufacturers will customize their business models to accommodate flexible rental and leasing solutions.