Market Opportunity for Scientific and Laboratory Equipment
The U.S market for scientific and laboratory equipment is highly concentrated, with the largest 50 companies producing approximately 80% of revenue. Research and development is vital for manufacturers in this market due to the rapid pace of technological advancement, and typical investments for larger companies can exceed 15% of revenue.
U.S. companies face strong competition from foreign manufacturers including China, Germany, Japan, and Singapore, and more than half of domestic U.S. output is exported. A significant portion of scientific and laboratory equipment manufacturers are located in California and Massachusetts, as well as Pennsylvania, New Jersey, New York and Texas.
Industry sales are highly dependent upon the capital spending patterns of end-users, but the market is expected to grow at an impressive compound annual rate of 4% between 2018 and 2023.