atomic spectroscopy · 2018-05-14 · atomic spectroscopy excerpted from: sdi global assessment...

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Market Analysis & Perspectives 2017-2022

Atomic SpectroscopyEXCERPTED FROM:

SDi Global Assessment Report 2018: The Laboratory Analytical & Life Science Instrumentation Industry

18-001 | Published February 2018

http://www.strategic-directions.com

INTRODUCTION

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Strategic Directions International, Inc. A division of...

Strategic Directions International (SDi) is the leading business intelligence firm in the highly specialized field of analytical and life science instruments. Its client list includes virtually every major analytical instrumentation company in the United States, Europe, and Japan. Founded in 1981, the Los Angeles-based company has published hundreds of market reports and provided proprietary consulting services for a multitude of clients.

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SECTION I

INTRODUCTION

I. INTRODUCTION



I. INTRODUCTION

This report is intended to provide valuable market information and insights for one technology segment of the analytical instrument industry. Specifically, it is an extract of our flagship MAP report, the SDi Global Assessment Report 2018. It is organized to provide a snapshot of current and future demand, which is segmented by product type, industry, application sector, function, and region. It also explores the current state of the competitive playing field for the covered technologies, including a list of the top vendors and their market share positions.

Although market segmentations are presented in a complete and mutually exclusive manner, and most of the categories are self-explanatory, the following definitions provide further clarifications on the segmentations used in this report.

Product TypesThe market for each technology is described in terms of various product-oriented segments. Market demand estimates for the techniques are presented for their total associated annual revenues from initial system sales, aftermarket purchases, and service. The following should clarify what is, and is not, included in each category.

n The initial system comprises the complete instrument, which can include software, data systems, autosamplers and different accessories bought as part of the original purchase. In addition, an initial sale can include spare parts, additional components, and an initial supply of consumables, especially standards and reagents, and perhaps a multi-year service contract.

n The aftermarket encompasses any components, including accessories and software, and consumables, including chemicals and supplies, that are sold after the original order. This includes data systems and autosamplers sold sepa rately from the initial-system purchase.

n Service includes all service contracts and replacement parts used in service, whether provided by the manufacturer of the origi nal instrument or through a third party. Other services like software support and validation service are also included in this section. However, the value of in-house service is excluded.

All market estimates are at end-user prices and therefore some instrument systems and most of the aftermarket include mark-ups or commissions from distributors and agents. However, since the vast majority of instruments are sold directly by instrument manufacturers, less than 5% of SDi’s worldwide figures are attributable to such distributor mark-ups.

Vendor SharesVendor share estimates for vendors are calculated based on total customer demand at end-user prices. Accordingly, the “other” category can include the revenues of agents and distributors, third-party service organizations, and many smaller suppliers located around the world.

About this report



I. INTRODUCTION

Industrial SegmentationsEnd-user markets or industry segments include a wide range of public and private sector customers. Academic labs include both private and government-run educational institutions. Government labs have been disaggregated to reflect the focus of the lab’s activities. Government research labs like the National Institutes of Health (NIH), Department of Energy (DOE) National Labs, etc. are focused on research applications. SDi also includes non-profit, privately funded research institutes like Scripps, Wellcome Trust, Howard Hughes, etc., as these labs are generally run in a similar fashion and have similar goals. Government testing labs include regulatory bodies like the EPA, FDA, etc., as well as city and state forensic labs. However, public (government owned) and private utilities (electric, gas, water, and water treatment) are all included in the Utilities category.

Not all industries have applications for particular instrumental techniques, or their use is minimal, so an “other” category is always included. In general, 90% to 95% of market demand is attributed to specific industry segments.

Application Sector SegmentationSDi has grouped industry segments into four general categories: the public sector, pharma/bio, applied, and industrial markets. The industry segments in each application sector are typically governed by the same set of trends and generally have similar purchasing patterns.

n The public sector includes academia and government, as well as non-profit research institutes.

n The pharma/bio sector characterizes applications in the private life science market.

n The applied sector consists of a space in private industries where research tools are applied more in routine laboratory applications than research.

n The industrial sector embodies applications in private materials testing (non-life science) companies.

Application Sector Industry

Public Academia

Government Research

Government Testing/Other

Utilities

Pharma/Bio Biotechnology

Contract Research Organizations

Pharmaceuticals

Applied Agriculture/Food & Beverage

General Testing/Environmental Labs

Hospitals/Medical Centers, Clinical

Industrial Aerospace/Automotive

Cement

Chemicals (Inorganic, Organic, Petro.)

Metals/Mining

Oil & Gas

Paints & Coatings

Polymers/Plastics (including Textiles)

Semiconductor, Electronics, Nanotech.

Other



I. INTRODUCTION

Laboratory FunctionIn the same way that companies are often divided into departments, laboratories can be segmented by their function. SDi identifies six laboratory functions, which basically describe how the instrument is used. The same type of instrument can be used for all types of lab functions, although as previously indicated, it is more typical for an instrument to be designed to perform a particular function.

n Applied R&D - Product development and/or improvement.

n Analytical Service - General testing or contract services.

n Basic R&D - Discovery of fundamental properties and scientific principles.

n Methods Development - SOP development and/or improvement.

n Quality Control/Assurance - Raw materials and production control.

n Other - Educational and other.

Regional SegmentationsSDi segments instrument markets into eight major geographies, listed below. Europe includes both Western and Eastern European countries from Iceland to Turkey. Russia as the whole is considered part of Europe as well. Other Asia Pacific includes a large number of island and peninsula nations such as Australia, Korea, Taiwan, and Thailand. The rest of the Indian subcontinent, the Middle East and all of Africa comprise the Rest-of-World grouping. Latin America includes all of South America, Central America, Mexico and the Caribbean nations.

n US & Canada

n Europe

n China

n Japan

n India

n Other Asia Pacific

n Latin America

n Rest-of-World



II. OVERVIEW

SECTION II

ATOMIC SPECTROSCOPY OVERVIEW



II. OVERVIEW

Atomic spectroscopy includes nine individual technologies that are primarily associated with the determination of the elemental composition of a sample. Among the techniques are general-purpose instruments as well as specialized tools for specific elements. This section covers x-ray fluorescence (XRF) and x-ray diffraction (XRD), atomic absorbance (AA), inductive coupled plasma spectroscopy (ICP), ICP combined with mass spectrometry (ICP-MS), arc/spark optical emission spectrometry, total organic carbon (TOC) and other sum parameters, as well as elemental analyzers for inorganic and organic elements.

Atomic Spectroscopy: Technology Overview

'

XRF

ED-XRF

WD-XRF

T-XRF

Thickness/ Microspot

Handheld

XRD

Powder

Single Crystal

Residual Stress

AA

Flame

Graphite Furnace

ICP

Simultaneous

Sequential

Glow Discharge

LIBS

ICP-MS

Single Quad

Triple Quad

Other

Arc/Spark

Stationary

Mobile/Portable

TOC & Other Sum Parameters

TOC/TN

Other

Inorganic Analyzers

Mercury

Metal Analyzers

Other

Organic Analyzers

CHN-Type

Protein/Nitrogen

ATOMIC SPECTROSCOPY



II. OVERVIEW

Atomic Spectroscopy: Product Segmentation

n The total market demand for atomic spectroscopy approached $4 billion in 2017. The two largest segments are both based on x-ray technology, but are fairly distinct. XRF provides elemental composition and can be used in a wide variety of materials science applications, while XRD is more focused on the crystal structure of materials and can be applied to both materials and metals, as well as protein crystallography. Both techniques are forecast to see mid-single digit growth over the forecast period.

n The next three technologies (AA, ICP, ICP-MS) are primarily used with liquid or aqueous samples, otherwise sample preparation is necessary to transform the sample into a liquid sample to be run on the instrument. This makes these techniques very convenient for water analysis, and environmental testing and wastewater testing are common applications. ICP-MS is the most sensitive technique, and is also seeing the strongest growth as both environmental standards and industrial regulations and practices become stricter.

ATOMIC SPECTROSCOPY DEMAND BY PRODUCT, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

XRF 27% 1,039 1,086 1,118 1,159 1,213 1,265 4.0%XRD 18% 689 730 746 771 805 839 4.0%Atomic Absorbance 12% 466 489 513 534 548 562 3.8%ICP-OES 13% 498 521 543 569 596 625 4.7%ICP-MS 12% 452 475 501 530 561 595 5.6%Arc Spark 7% 265 275 282 290 298 306 2.9%TOC & Other Sum Parameters 4% 141 148 155 164 173 182 5.3%Inorganic Elemental Analyzers 6% 223 229 234 239 245 250 2.3%Organic Elemental Analyzers 2% 75 76 76 77 77 77 0.5%Total 100% 3,848 4,028 4,169 4,333 4,516 4,701 4.1%



II. OVERVIEW

Initial Systems61%

Aftermarket22%

Service17%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

2017 2018 2019 2020 2021 2022

Mar

ket D

eman

d ($

Milli

ons)

Year

Atomic Spectroscopy: Product Segmentation

ATOMIC SPECTROSCOPY DEMAND BY PRODUCT TYPE, 2017 ATOMIC SPECTROSCOPY, 2017 - 2022

$3.8B

n The remaining techniques make up only single digit shares of the atomic spectroscopy market. Arc/spark optical emission spectroscopy is tied primarily to the metals industry, although there is an important minority application in the testing of oils. TOC has fairly good growth prospects, as pharmaceutical and other industrial users commonly employ the technique to validate the cleaning of their process equipment. It also has environmental applications. Inorganic and organic analyzers are generally more limited, since they are designed to detect a single element (or sometimes a small set of elements). They serve niche markets, and growth tends to be rather sluggish for these techniques.

CAGR = 4.1%



II. OVERVIEW

n Environmental and materials science applications tend to predominate for these technologies. The metals and mining industry makes up the largest individual segment, and makes use of them all along the process from evaluating ore, to quality control of finished products, and monitoring wastes to comply with environmental regulations. The semiconductor and electronics industry is the next largest segment, with similar broad applications from monitoring dopants in raw semiconductor wafers to testing for hazardous substances in finished electronic components and printed circuit boards.

n Environmental testing labs are the third largest source of demand, and the last with a double-digit share. Academic and government testing labs are the next largest, the latter being primarily related to the environment. Pharmaceutical companies make up 6% of the market, with strong demand for XRD and TOC. Power generation and water utilities, oil & gas, and the food industry round out the top originators of demand.

n With the strong industrial and environmental focus of these tools, quality control and analytical service labs each make up a third of the total market, with research functions being less prominent.

ATOMIC SPECTROSCOPY DEMAND BY INDUSTRY, 2017

Atomic Spectroscopy: Application Segmentation

Metals/ Mining15%

Electronics/ Semicon./Nanotech.

12%

Gen./Environ. Testing12%

Academia9%Gov. Testing

7%

Pharma6%

Utilities6%

Oil & Gas5%

Ag/Food5%

Gov.Research

4%

Other19%



II. OVERVIEW

n As noted, the industrial markets are particularly important for atomic spectroscopy techniques. In total, the industrial sector makes up almost half of total demand, and growth will be slightly ahead of the overall category average, at 4.5% through 2022. The public sector makes up another quarter of total demand, with utilities and government environmental testing labs making up the bulk of this sector, as opposed to basic research applications in academia and national laboratories.

n The applied sector is seeing the strongest growth. In addition to continued strength in the global environmental testing market, there is growth in the use of these techniques in food and even clinical applications for testing heavy metals. Pharma/bio applications are relatively minor, making up less than 10% of the market demand, but growth should be about as strong as for the industrial markets.

ATOMIC SPECTROSCOPY DEMAND BY APPLICATION SECTOR, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Pharma/Bio 8% 327 342 356 372 389 407 4.5%Public 26% 992 1,018 1,045 1,072 1,101 1,131 2.6%Applied 18% 691 723 757 793 833 875 4.8%Industrial 48% 1,838 1,945 2,011 2,096 2,193 2,289 4.5%Total 100.0% 3,848 4,028 4,169 4,333 4,516 4,701 4.1%

Atomic Spectroscopy: Application Segmentation



II. OVERVIEW

ATOMIC SPECTROSCOPY DEMAND BY REGION, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

US & Canada 30% 1,146 1,187 1,226 1,267 1,309 1,351 3.3%Europe 23% 869 900 926 954 983 1,012 3.1%China 12% 466 498 523 553 586 621 5.9%Japan 14% 558 585 600 621 646 671 3.8%India 4% 136 145 152 161 171 182 6.1%Other Asia Pacific 9% 340 363 378 397 420 443 5.4%Latin America 4% 136 142 148 155 163 171 4.8%Rest-of-World 5% 198 208 216 226 238 250 4.8%Total 100% 3,848 4,028 4,169 4,333 4,516 4,701 4.1%

n The US & Canada and Europe combine to form a bit more than half of the total demand for atomic spectroscopy. Japan and China each account for

more than 10% of the total market. Other Asia Pacific is relatively significant, making up 9% of the demand, with strong contributions from semiconductor and electronics companies. Smaller shares are occupied by India, Latin America, and the Rest-of-World segment. All three regions have important metals and mining activity, while the latter two also have significant oil & gas production that contributes to demand for these spectrometers.

n The market is relatively saturated in the developed nations of the world, so growth in US & Canada and Europe will be about a full percentage point slower than the global average.

n India will lead in terms of growth, driven by increasing development in the country for both industrial applications like mining and more life science-oriented activities like pharmaceutical production. Environmental testing is also on the rise in the country.

n For similar reasons, China and the Other Asia Pacific countries will also see strong growth, but here the semiconductor and electronics laboratories are a larger share of the mix. China is ramping up its semiconductor industry, while Taiwan, Korea, Vietnam, Singapore and other nations in Other Asia Pacific are already well-established and looking to retool. Rising commodities and oil prices will also lift sales in Latin America and ROW.

Atomic Spectroscopy: Demand by Region



II. OVERVIEW

n Thermo Fisher is the market share leader, and a top competitor in almost all of the markets in which it competes. PerkinElmer and Agilent Technologies hold the next two positions in the market; both companies are strong competitors in the AA, ICP, and ICP-MS markets, and PerkinElmer also has some offerings in elemental analyzers.

n Since XRF and XRF are the two largest product segments, many of the top vendors in the atomic spectroscopy market offer these products. Thermo Fisher is certainly an example, but many of the other top companies are more focused in these areas. PANalytical (Spectris) and Rigaku are prime examples of this. On the other hand, both Bruker and Spectro Analytical (AMETEK) have a broader portfolio in addition to their x-ray products. Agilent exited the XRD market some time ago, selling the former Oxford Diffraction business to Rigaku.

ATOMIC SPECTROSCOPY VENDOR SHARE, 2017

Atomic Spectroscopy: Competitive Situation

Thermo Fisher15%

PerkinElmer10%

Agilent8%

PANalytical (Spectris)

8%Bruker

7%Rigaku

7%

AMETEK6%

Shimadzu4%

Other36%



II. OVERVIEW

n Shimadzu is a broad-based supplier that offers a great many of the individual techniques, more akin to Thermo Fisher than some of the more specialized vendors. Oxford Instruments has exited some of these markets through the sale of its Materials Analysis business to Hitachi High Technologies in the middle of 2017.

n LECO, HORIBA and Analytik Jena (Endress + Hauser) are leading vendors in the elemental analyzers area, and they also compete in other particular segments in the atomic spectroscopy market. A number of other companies have strengths in one or two particular categories, such as GE in TOC, or Anton Paar in XRD (specifically the small angle x-ray scattering (SAXS) market).

ATOMIC SPECTROSCOPY VENDOR PARTICIPATION, 2017


X X X

Company XRF

XRD

AgilentAnalytik Jena (Endress+Hauser)Anton PaarBeijing Instrument Industry GroupBrukerEltraGE AnalyticalGE MeasurementHitachiHORIBAJEOLLECONIC (Rigaku)OlympusOxford InstrumentsPAC (Roper)PANalytical (Spectris)PerkinElmerRigakuShimadzuSkyraySpectro (AMETEK)Teledyne LeemanThermo Fisher

Major Moderate Minor X Discontinued or Divested

Atom

ic Ab

sorb

ance

ICP-

OES

ICP-

MS

Arc

Spar

kTO

CIn

org

Elem

enta

l Ana

lyze

rsO

rg E

lem

enta

l Ana

lyzer

s



II. OVERVIEW

ATOMIC SPECTROSCOPY VENDOR SHARE BY PRODUCT, 2017




II. OVERVIEW

ATOMIC SPECTROSCOPY VENDOR SHARE BY PRODUCT, 2017


'

'

'

'



III. X-RAY FLUORESCENCE SPECTROSCOPY (XRF)

SECTION III

X-RAY FLUORESCENCE SPECTROSCOPY (XRF)




XRF: Technology Overview

X-ray fluorescence spectroscopy (XRF) provides analysis of the atomic composition of samples for a wide variety of applications. The technique is particularly well-suited for analyzing the elemental range from sodium to uranium, which covers the majority of the metallic elements. The use of purge gases or vacuum systems can allow XRF to better detect lighter elements. Many samples can be effectively examined non-destructively, while other samples may require grinding, fusion, or some other form of sample preparation, in order to ensure that the measurement reflects the bulk properties of the sample rather than just the surface.

In XRF, a beam of x-rays is directed onto the sample. The high-energy x-rays eject electrons from the inner electron shells of the atoms in the sample. When electrons make a quantum transition from an outer shell to fill in the vacancy left by the ejected inner-shell electrons, energy is emitted in the form of x-rays, which are detected by the spectrometer portion of the instrument. The emitted energy or wavelength helps to determine which element it is. The strength of signal from each component reveals the relative concentration of each element in the sample.

Among the different products within XRF are wavelength-dispersive (WDXRF) spectrometers, which use diffraction on a crystal to separate photons for detection. WDXRF typically offers the best detection limits and resolution. Energy dispersive (EDXRF) systems are more general-purpose instruments and operate by determining the energy of the detected photon with a silicon detector. In total reflectance XRF (TXRF), grazing angle analysis of flat surfaces provides extreme sensitivity to surface layers, thin films, or particulate analysis. XRF thickness gauges and microspot XRF (aka X-ray microscopes and micro XRF) use tightly focused X-ray beams to probe small areas. Finally, handheld XRF offers analysis in a portable form for applications in product safety testing, principal material identification (PMI), recycling and other applications. Handheld systems are invariably EDXRF systems.

RIGAKU ZSX PRIMUS 400 WDXRF

OLYMPUS VANTA SERIES HANDHELD XRF




EDXRF39%

WDXRF21%

Thickness/ Microspot

18%

Handheld15%

TXRF7%

XRF: Key Market Dynamics

XRF DEMAND BY PRODUCT TYPE, 2017

$1,039M

n Total market demand for XRF amounted to just over $1 billion in 2017. EDXRF is the largest individual product segment, while TXRF (still something of a niche technique) remains the smallest.

n In recent years, the market for XRF struggled as some of the important industrial markets, metals and oil, suffered low commodities prices. But late in 2017, these markets improved considerably and growth has returned to all segments of the market.

n Although their analytical capabilities are inferior to their laboratory-based kindred, handheld XRF instruments continue to gain favor in many nontraditional markets, from scrap recycling to precious metals evaluation.

n Another broad class of applications is in product safety testing, searching for the presence of lead or other hazardous elements in items as diverse as toys and printed circuit boards. In the latter case, where individual components may be quite small, the use of microspot XRF allows analysts to determine the composition of these individual features.

n Semiconductors and electronics is the largest individual source of demand for XRF, with applications in quality and safety, including the analysis of wafers and thin films. While the near-term forecast for the semiconductor industry is strong, this segment is likely to weaken over the course of the forecast period.




XRF: Product Segmentation

n Total growth in the overall XRF market is estimated at 4.0% through 2022. Growth for 2018 should be strong, but the next two years are expected to feel the effects of a weaker semiconductor industry, followed by a return to strength at the end of the forecast period.

n Among the individual techniques, TXRF has the strongest growth prospects, as this relatively new technique continues to develop new applications. TXRF is excellent for trace elemental analysis, and has applications in testing process water and fluids in semiconductor and pharmaceutical settings. More broadly, it is also used for environmental testing, and even some life science applications for testing trace metals or other elements in samples from research subjects or clinical patients.

n While handheld sales continue to increase, average prices are falling somewhat, reducing growth in the total value of the market. Aftermarket and service sales are also strong, growing faster than the overall market. Combined aftermarket and service represent more than 30% of total demand.

XRF DEMAND BY PRODUCT TYPE, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Initial System EDXRF 23% 241 251 262 272 283 293 4.0% WDXRF 15% 157 160 166 171 177 184 3.2% Thickness/Microspot 11% 115 120 123 127 133 138 3.7% Handheld 13% 138 143 147 151 154 156 2.5% TXRF 6% 58 61 64 68 72 76 5.5% Total Initial Systems 68% 709 735 762 790 819 847 3.6%Aftermarket Components 11% 117 123 128 133 140 147 4.6% Consumables 4% 42 44 45 47 49 51 4.3% Total Aftermarket 15% 159 167 173 180 189 198 4.5%Service 16% 170 183 183 190 205 219 5.2%Total 100% 1,039 1,086 1,118 1,159 1,213 1,265 4.0%




n Handheld XRF units have lower average prices and are the most numerous product type by shipments, with over 5,000 sold in 2017. EDXRF is the next most common type with more than 4,000 placements. TXRF systems are the least common, amounting to a few hundred shipments.

XRF: Unit Shipments

XRF PRICES AND UNIT VOLUMES, 2017

Product Type Price Range

2017New Used Total

EDXRF $20K - $150K 3,600 575 4,175

WDXRF $50K - $500K 1,050 75 1,125

Thickness/Microspot $15K - $300K 1,275 200 1,475

Handheld $12K - $50K 4,600 600 5,200

TXRF $100K - $250K 375 <25 375

Total 10,900 1,450 12,350




n After semiconductors, metals and mining is the next largest end-user segment for XRF, where applications span the entire process from evaluating ore to the quality control of finished products, ensuring that the alloys are properly composed. Because of its better handling of lighter elements, WDXRF is often found in use with aluminum alloys, while EDXRF is the workhorse for most metals analysis. For similar reasons, WDXRF is also commonly used for the analysis of cement.

n Quality control applications predominate in the XRF market, making up nearly half of total demand. Analytical service labs for outsourced testing of environmental samples and other general testing, make up the next largest functional segment. Research applications are not unknown, but are rare.

XRF: Application Segmentation

XRF DEMAND BY INDUSTRY, 2017 XRF DEMAND BY FUNCTION, 2017

QA/QC46%

Analytical Service17%

Applied R&D16%

Basic R&D7%

Methods Development

6%

Other8%

Electronics/Semicon./Nanotech.

20%

Metals/Mining15%

Gen./Environ.Testing

9%Oil & Gas7%

Gov. Testing7%

Cement6%

Polymers/Plastics

6%

Paints &Coating

4%

Aerospace/Auto4%

Other22%




n More than two-thirds of market demand comes from industrial laboratories. This is also the strongest sector in terms of future growth. The major components are semiconductors and metals, but there will be significant expansion in the oil & gas segment, which has been depressed recently by low oil prices. XRF is commonly used to measure sulfur and other elements in oil samples and processes. Other materials, like plastics and cement, also contribute to the industrial demand.

n The public sector makes up one-sixth of demand and has components divided among research and regulatory testing applications. Soil analysis is readily achieved with XRF, and TXRF is helping to open up new applications in trace analysis from water samples and in research applications.

n The applied sector is mainly environmental in nature, while the small pharma/bio segment is largely focused on detecting trace contaminants in formulations and finished products.

XRF DEMAND BY APPLICATION SECTOR, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Pharma/Bio 4% 44 45 46 48 49 51 3.2%Public 16% 161 164 168 172 176 181 2.3%Applied 10% 105 108 112 116 120 125 3.6%Industrial 70% 729 769 792 824 867 908 4.5%Total 100% 1,039 1,086 1,118 1,159 1,213 1,265 4.0%

XRF: Application Segmentation




XRF DEMAND BY REGION, 2017

XRF DEMAND BY COUNTRY, 2017

n Given the breadth of applications on a wide variety of materials, the XRF market is reasonably distributed among the major world regions. Although the US is the largest single market by country, it makes up less than one-quarter of total demand. China is the next largest country and rivals all of Europe in size. In addition to its own domestic consumption for industrial production, hazardous substance testing for the export market makes up a significant source of demand, to ensure that products abide by safety regulations in the target markets.

n The importance of the semiconductor industry to XRF also means that several other Asian countries, like Japan, South Korea, and Taiwan, are also significant individual sources of demand.

n Latin America and the Rest-of-World combine to form about one tenth of the market demand, with strong contributions from natural resources: minerals, metals, and oil & gas.

XRF: Demand by Region

US & Canada27%

Europe17%

China17%

Japan14%

India3%

Other Asia Pacific13%

Latin America4%

Rest-of-World5% 23%

17%

14%

6%

5%

4%

4%

3%

3%

3%

0% 5% 10% 15% 20% 25%

United States

China

Japan

Germany

South Korea

Canada

Taiwan

United Kingdom

India

France




XRF DEMAND BY REGION, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

US & Canada 27% 281 291 297 305 315 324 2.8%Europe 17% 180 185 189 193 199 204 2.6%China 17% 173 184 191 200 212 224 5.2%Japan 14% 144 151 156 162 170 178 4.2%India 3% 33 36 38 40 44 47 7.2%Other Asia Pacific 13% 131 138 143 149 158 166 4.8%Latin America 4% 39 42 44 46 50 53 6.0%Rest-of-World 5% 56 59 61 63 66 70 4.4%Total 100% 1,039 1,086 1,118 1,159 1,213 1,265 4.0%

n While the US & Canada and Europe will achieve growth in demand for XRF, there are greater growth opportunities in the developing world. India,

though making up just 3% of the total global market, is forecast to have the highest growth potential, driven by local steel producers and other parts of the metals and mining industry. Indian industry is coming to rely more and more on advanced instrumentation like XRF for their processes.

n Latin American demand will also see stronger than average growth, with mining and rising oil prices helping to promote demand from those industries.

n China already represents a significant source of demand and it also continues to grow. In addition to well established industries and product safety testing applications, the country is heavily investing in semiconductor production and this surge in this industry will help to provide growth to this already sizable market.

n Similarly, semiconductor spending will help the Other Asia Pacific region achieve stronger growth over the coming years. In contrast, Japanese growth will be roughly on par with the overall average for the technology.

XRF: Demand by Region




n Thermo Fisher has a commanding lead in XRF vendor share, being responsible for about a fifth of the total market. The company competes in all of the individual market segments with a number of different product lines, but is particularly strong in WDXRF and handheld systems. The laboratory instruments come from the legacy Thermo ARL business, while the company holds a leading position in the handheld XRF market from its legacy Niton business.

n PANalytical (Spectris) is the next largest competitor with a share of 15%. The company is focused primarily on the larger EDXRF and WDXRF product segments, and continues to eschew the handheld format for XRF. At the beginning of 2017, PANalytical and Malvern Instruments were formally joined together within the Spectris Materials Analysis business.

XRF VENDOR SHARE, 2017

XRF: Competitive Situation

Thermo Fisher20%


15%

Spectro (AMETEK)

10%Bruker

8%Hitachi

5%Rigaku

5%

Olympus4%

Other33%




n Spectro Analytical (AMETEK) is the number three competitor, with a strong business in the microspot XRF segment, but also offering more general purpose EDXRF systems in both lab and handheld format.

n Like Thermo Fisher, Bruker’s x-ray business addresses all of the individual product segments. Bruker provides a number of high-performance systems with automation and specialized application packages for particular customer types. Bruker also continues to make acquisitions in the elemental analysis space, most recently with XGLab, a relatively small Italian academic spinoff company with expertise in x-ray and gamma ray instrumentation.

n Hitachi is the next largest vendor, recently adding to its existing XRF business by acquiring the Industrial Analysis business from Oxford Instruments in mid-2017. Both companies offered film thickness instrumentation for semiconductor applications and this consolidates that market considerably.

n Rigaku is an innovator in the TXRF space, but also offers other solutions for XRF, including a broad range of compact benchtop EDXRF systems. Olympus is almost exclusively involved in the handheld XRF segment. Other vendors in the top ten include Skyray, HORIBA, and Shimadzu.

XRF VENDOR PARTICIPATION, 2017

XRF: Competitive Situation

X X X

Company EDXR

FW

DXR

FTh

ickne

ss/M

icros

pot

Han

dhel

dTX

RF

BourevestnikBrukerCianfloneElvatechFischer TechnologyGNR srlHitachiHORIBAISP Co.JEOLOlympusOxford InstrumentsPANalytical (Spectris)Persee AnalyticsRigakuShimadzuSkyraySpectro (AMETEK)Techno XThermo FisherTorontechunisantisWuxi JinyiboXenemetrixXOS (Danaher)

Major Moderate Minor X Divested or Discontinued




XRF RECENT DEVELOPMENTS, 2016 - 2017

Date Company or Organization

Development

Mar-2016 Oxford Instruments Oxford Instruments launched a unique solution for reliable XRF analysis of hot samples, for use with its range of X-MET8000 series handheld XRF analyzers. The HERO heat resistant protective window allows hot samples of up to 400ºC to be directly analyzed for alloying elements including light elements such as silicon.

Jan-2017 PANalytical, Malvern(Spectris)

Effective 1 January 2017, Malvern Instruments and PANalytical merged their activities. Both are operating companies within the Materials Analysis segment of Spectris.

Feb-2017 Xenemetrix Xenemetrix introduced the P-Metrix portable analyzer, a compact EDXRF designed to produce lab quality results in the field or at-line.

Mar-2017 Shimadzu Shimadzu introduced a kit for small spot analysis for its EDX-7000 and 8000 products, allowing 1 mm spot size analysis, for composition or plating thickness.

Mar-2017 Thermo Fisher Thermo Fisher introduced the ARL QUANT’X EDXRD spectrometer, with four times the sensitivity of the previous product. The system can analyze light elements and offers a small spot size.

May-2017 Bruker Bruker launched its S8 TIGER Series 2, a next-generation WDXRF spectrometer for advanced quantitative elemental analysis in industrial and academic materials research, as well as in industrial quality control.

Jul-2017 Oxford Instruments, Hitachi Hitachi completed its acquisition of the Industrial Analysis business of Oxford Instruments. This business includes XRF, OES, and LIBS instrumentation.

Jul-2017 PANalytical (Spectris) PANalytical announced the introduction of a new Epsilon 1 XRF spectrometer. The new member of the Epsilon 1 family is designed for small spot analysis, and PANalytical characterizes it as the most powerful benchtop spectrometer in its class.

Jul-2017 Spectro (AMETEK) SPECTRO Analytical Instruments introduced the SPECTRO MIDEX MID05 spectrometer, its fifth-generation small-spot analyzer for precious metal testing.

Aug-2017 Rigaku Rigaku unveiled the newest version of its multi-channel simultaneous WDXRF spectrometer system, the Simultix 15.

Aug-2017 Rigaku Rigaku Corporation announced the introduction of the ZSX Primus 400 sequential WDXRF spectrometer. The new instrument is designed to handle very large and/or heavy samples.

Aug-2017 Bruker Bruker acquired XGLab, which develops XRF instruments, as well as advanced electronics for X-ray and gamma ray detection.

Oct-2017 Olympus Olympus introduced the Vanta VCA model handheld XRF for harsh environments. The models are IP65 rated for protection against dust and water and are drop tested (MIL-STD 810 G). Olympus offers them with a 3-year warranty.

XRF: Recent Developments




XRF: Recent Developments (continued)

XRF RECENT DEVELOPMENTS, 2016 - 2017


Development

Oct-2017 Bruker, DeWitt Systems DeWitt Systems released an automated vertical two-dimensional scanning system designed to support the Bruker TRACER 5i portable XRF spectrometer. The MPS-400E Mobile Scanner is designed for applications in art conservation for performing high resolution x-ray fluorescence scanning of art works.

Dec-2017 Hitachi Hitachi High-Tech launched the LAB-X5000 compact benchtop EDXRF analyzer, designed to deliver high sample throughput.



SECTION IV

IV. X-RAY DIFFRACTION (XRD)

X-RAY DIFFRACTION (XRD)




XRD: Technology Overview

X-ray Diffraction (XRD) is a non-destructive technique that probes properties of crystals, metallic solids and powders made of small-scale crystals. In XRD, a beam of x-rays is directed at the sample. Because x-ray wavelengths are of roughly the same size as the interatomic spacings of the crystals, diffraction of the waves occurs. Because of the regularities inherent in a crystal structure, x-rays are diffracted at various angles with different intensities. The overall pattern of these diffracted x-rays can be mathematically inverted to determine the crystal structure of the sample. The diffractogram can also be compared to a known library in order to identify the compound present in the crystal.

The XRD market is divided into three main categories. The first, and largest product segment is composed of traditional powder diffraction instruments. Powder diffraction can be performed on samples with relatively little sample preparation. Specialized XRD systems for small angle, grazing incidence, and wide-angle x-ray scattering (SAXS, GIXS, and WAXS) are included in the powder diffraction segment. Although some important life science applications exist, these techniques are commonly used with materials analysis.

In single crystal XRD, the sample is a single, well-formed crystal of the sample (often a protein or other macromolecule). Since single crystal XRD has a large uniform crystal to work from, the diffractogram is much more clearly defined than in powder diffraction and yields more information for determining the molecular structure of the compound.

Finally, residual stress XRD measures the deformation of the atomic spacing in metallic structures that have been subjected to stress. This serves to gauge the likelihood of failure.

BRUKER D2 PHASER BENCHTOP XRD

PANALYTICAL EMPYREAN XRD




Powder59%

Single Crystal35%

Residual Stress6%

XRD: Key Market Dynamics

XRD DEMAND BY PRODUCT TYPE, 2017

$689M

n Sales of XRD instrumentation resulted in 2017 revenues of $689 million. The majority of this demand comes from powder diffraction instrumentation. Residual stress instrumentation is by far the smallest market segment, making up just 6% of the total.

n Prospects for materials analysis have improved enormously and should provide strong growth in the near term. Powder diffraction (and SAXS and related techniques) have important applications throughout many different material samples ranging from cement to highly engineered nanomaterials. A return in industrial demand, combined with new research applications should provide health growth for XRD.

n In contrast, growth in the life science applications for XRD have slackened to some extent. There is increasing competition from electron microscopy (particularly cryoelectron microscopy) for the determination of molecular structures. Although XRD is somewhat complementary to this analysis, activity has definitely shifted away from XRD, retarding growth.

n Residual stress instrumentation is primarily used by government customers to assess metal fatigue in military vehicles and equipment and other kinds of infrastructure, like bridges and other metal structures. These maintenance applications are slow-growing, but stable.

n The academic market remains the largest single source of demand for XRD, but it is increasingly being put to use for more routine or quality control applications in many industries, from pharmaceuticals to thin films and semiconductors.




XRD: Product Segmentation

n Growth in the XRD market is estimated at 4.0% through 2022. Due to the stresses on life science applications from competing techniques, growth in the single crystal segment will lag behind that for powder XRD initial systems. Residual stress instrumentation will see the least growth in initial systems.

n Although initial system growth is forecast in the low single digits, the aftermarket will see much stronger growth. One notable feature of XRD is that the systems tend to be highly customizable, and it is easier to upgrade a system by adding a new x-ray source or detector than to purchase an entirely new instrument. Thus, the component market makes up a full fifth of total demand for XRD.

n Service revenues are also quite considerable, particularly for high-end research systems. While these still make up a large part of the market, there is an increasing movement toward simpler or benchtop XRD systems for more routine applications, and these tend not to have as intense a service regimen, so service growth is roughly on par with initial systems sales.

XRD DEMAND BY PRODUCT TYPE, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Initial System Powder 32% 220 235 232 240 252 264 3.7% Single Crystal 19% 131 136 141 145 149 153 3.1% Residual Stress 4% 28 29 29 30 30 31 2.4% Total Initial Systems 55% 379 400 402 415 432 448 3.4%Aftermarket Components 20% 138 150 154 162 172 183 5.8% Consumables 5% 31 33 34 35 36 38 4.1% Total Aftermarket 25% 169 183 188 197 209 221 5.5%Service 21% 141 148 155 160 165 170 3.8%Total 100% 689 730 746 771 805 839 4.0%




n In total, more than 2,000 XRD systems were shipped in 2017. There is a considerable range in prices for XRD systems, generally dependent on the power of the x-ray source and the nature of the x-ray detector, whether it is a point detector, a linear array, or an area detector, which can significantly reduce the time to make a complete diffractogram.

XRD: Unit Shipments

XRD PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Powder $40K - $500K 1,400 150 1,550

Single Crystal $150K - $600K 400 25 425

Residual Stress $50K - $250K 250 25 275

Total 2,050 200 2,250




n Academic laboratories are the largest individual source of demand, making up more than a quarter of the total market. Research applications run the gamut from materials to life science. Combined basic research makes up 39% of the total function demand. In addition to academic usage, this includes government research labs and basic research laboratories in industrial settings as well.

n Pharmaceutical laboratories are the next largest source of demand, making up about a tenth of the market. While applied R&D functions are common, pharmaceutical usage is moving more and more toward quality control applications. XRD can distinguish between various crystal forms of pharmaceutical ingredients and can test formulations not just for the correct content, but also quality and how products degrade over time.

n The semiconductor, electronics and nanotechnology segment is also quite significant, making up 8% of demand. XRD can analyze semiconductor materials and thin films. Specific applications in nanotechnology are also quite strong for XRD, since these methods are extremely sensitive to small changes in nanostructure. Other common materials applications for XRD include metals, finished metal components, polymers, and cement.

XRD: Application Segmentation

XRD DEMAND BY INDUSTRY, 2017 XRD DEMAND BY FUNCTION, 2017

Academia27%

Gov. Research11%

Pharma10%Electronics/

Semicon./ Nanotech.

8%

Metals/Mining8%

Aerospace/Auto6%

Biotech5%

Other25%

Basic R&D39%

Applied R&D21%

QA/QC19%


Methods Development

6%

Other1%




n With the strong research focus of the technology, the public sector is the largest application segment, but growth is forecast to be the slowest, with funding uncertainties and the development of competing technologies eroding the growth potential.

n In contrast, the industrial market is set to see the most growth over the next five years, driven by returning demand from the metals industry and growth in semiconductor and nanotechnology applications. By 2020, the industrial market will exceed the public sector in size.

n The pharma/bio sector will see growth just under that of the technique as a whole, as the emphasis shifts slightly away from research tools and more toward lower-cost quality control instrumentation.

n The applied sector is relatively insignificant, making up just 4% of total demand, composed primarily of general testing labs servicing various industries.

XRD DEMAND BY APPLICATION SECTOR, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Pharma/Bio 17% 119 126 129 133 139 144 3.8%Public 41% 279 289 296 302 310 317 2.6%Applied 4% 29 30 31 32 33 34 3.0%Industrial 38% 262 285 290 305 325 344 5.6%Total 100% 689 730 746 771 805 839 4.0%

XRD: Application Segmentation




XRD DEMAND BY REGION, 2017

XRD DEMAND BY COUNTRY, 2017

n As a fairly abstruse research technique, the demand for XRD is highly concentrated in the first world. The US & Canada, Europe and Japan combine to form about three-quarters of the total market. Japan has long been home to significant research activity in XRD, and the Japanese market is more prominent here than for many techniques, with the country representing one-fifth of total demand

n China makes up 8% of the market, with strong demand from both research laboratories and cement and other industrial labs. The Other Asia Pacific countries have strong applications in semiconductor quality control, and represent 7% of the market.

n Latin America is relatively insignificant, with a share of just 2%, and likewise the Rest-of-World market is quite small at 4%.

XRD: Demand by Region

China

US & Canada32%

Europe24%

8%

Japan20%

India3%


Latin America2%

Rest-of-World4%

30%

20%

8%

7%

4%

3%

3%

3%

3%

0% 5% 10% 15% 20% 25% 30% 35%

United States

Japan

China

Germany

United Kingdom

Switzerland

India

France

Canada




XRD DEMAND BY REGION, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

US & Canada 32% 223 232 241 250 260 270 3.9%Europe 24% 165 174 177 183 190 196 3.5%China 8% 55 60 62 65 69 73 5.8%Japan 20% 138 148 148 153 160 166 3.8%India 3% 21 22 22 23 23 24 3.1%Other Asia Pacific 7% 48 54 53 56 59 63 5.5%Latin America 2% 12 13 13 13 14 14 2.6%Rest-of-World 4% 26 28 28 29 31 32 4.2%Total 100% 689 730 746 771 805 839 4.0%

n The major markets in North America, Europe, and Japan will continue to achieve growth in the low- to mid-single digits. The most interesting trend is

the shift from research to more quality control applications.

n China will see the most growth over the forecast period, with an annual rate estimated at 5.8%. In addition to established industrial usage, China continues to expand its involvement in basic research. Academic and national laboratories in China are seeking to move beyond domestic Chinese XRD instrumentation and solicit bids from major global manufacturers.

n Other Asia Pacific laboratories will also see stronger than average growth; here semiconductor capital expenditures are the main driver of growth, at least for the short term. In other developing nations, demand for XRD comes predominantly from the public sector, and growth will not be particularly strong.

XRD: Demand by Region




n The XRD market is dominated by three players, Rigaku, Bruker, and PANalytical (a Spectris company). Rigaku offers a variety of XRD instruments from its renowned benchtop MiniFlex systems to powerful floor-standing models like the TTRAX III with an 18 kW rotating anode x-ray source. Rigaku also added to its single crystal business with the acquisition of the former Oxford Diffraction business from Agilent in 2015.

n Bruker has a similar, but perhaps an even broader, array of XRD instrumentation, including a strong portfolio of instruments for SAXS and related XRD applications with different geometries. Bruker also offers a flexible software suite for powder/crystalline analysis and materials research.

n PANalytical does not address the single crystal market, but is consequently a very strong competitor throughout the materials analysis space, with a variety of products and specialized software for particular applications in thin films, residual stress, nanomaterials, as well as general purpose powder diffraction.

XRD VENDOR SHARE, 2017

XRD: Competitive Situation

Rigaku30%

Bruker23%


21%

Anton Paar4%

Thermo Fisher3%

Shimadzu2%

GE Measurement

2%Other15%




n Anton Paar leads the next tier of competitors and is somewhat unusual in that the company focuses almost exclusively on the SAXS market. Anton Paar also offers a wide range of components for particular types of testing such as at high temperature.

n Some competitors, like Dectris and GE Measurement, only address the market through component sales. Dectris is primarily involved in advanced x-ray detectors, selling both directly and through partners, such as Bruker. GE Measurement offers a variety of x-ray tubes and sources.

n While most of the major companies also address the residual stress market, a few particular companies are solely or primarily involved in that business. These include Proto Manufacturing, TEC, Pulstec Industrial, and Stresstech.

XRD VENDOR PARTICIPATION, 2017

XRD: Competitive Situation

Company Pow

der

Res

idua

l Stre

ssSi

ngle

Cry

stal

Anton PaarBrukerDandong CrystalDectrisDianoDrawell ScientiificForvisGBC ScientificGE MeasurementGNROlympusPANalytical (Spectris)Persee AnalyticsProtoPulstec IndustrialRigakuShimadzuStoe & CieStresstechTECThermo FisherunisantisVeracity NetworkXenocs

Major Moderate Minor




XRD RECENT DEVELOPMENTS, 2016 - 2017


Development

Feb-2016 Rigaku Rigaku announced the launch of the NANOPIX SAXS/WAXS measurement system, a new X-ray scattering instrument designed for nanostructure analyses. The NANOPIX SAXS/WAXS measurement system can be used for both small angle scattering (SAXS) and wide-angle scattering (WAXS) measurements, which makes it possible to evaluate multiscale structures from sub-nanometer to nano-order (0.1 nm to 100 nm).

Feb-2016 Thermo Fisher, INEL Thermo Fisher Scientific announced that it acquired INEL, a provider of real-time X-ray diffraction (XRD) systems based in Artenay, France. The business will be integrated into Thermo Fisher’s Analytical Instruments Segment.

Jun-2016 Bruker, LRCS Bruker AXS and Laboratoire de Réactivité et de Chimie des Solides, Univer-sité de Picardie Jules Verne (LRCS) announced an agreement for the supply of the LRCS LeRiChe’S battery cell for Bruker AXS’ family of D8 X-ray diffractometers.

Jan-2017 Spectris Effective 1 January 2017, Malvern Instruments and PANalytical merged their activities. Both are operating companies within the Materials Analysis segment of Spectris.

Feb-2017 Spectris, Pixirad Spectris announced its acquisition of Pixirad, an Italian manufacturer of high-performance XRD detectors. The company will join Spectris’ PANalytical business.

Apr-2017 Rigaku Rigaku introduced the Rigaku SmartLab SE system, a highly versatile multipurpose XRD system with built-in intelligent guidance. The original SmartLab line was launched in 2006.

Jun-2017 Rigaku Rigaku released the 6th generation of its MiniFlex benchtop XRD system, designed for enhanced performance and flexibility.

Aug-2017 Bruker, Dectris At the 24th Congress and General Assembly of the International Union of Crystallography (IUCr) in Hyderabad, India, Bruker and Dectris announced the EIGER2 R 500K, the latest generation of Hybrid Photon Counting (HPC) pixel detectors developed by DECTRIS.

Sep-2017 Bruker Bruker announced the new D8 DISCOVER Plus XRD system at the Japan Analytical Scientific Instruments Show (JASIS). The system combines the high power of the new TXS-HE high-efficiency Turbo X-ray Source with the unrivaled reliability and accuracy of the new high endurance ATLAS goniometer.

Nov-2017 Rigaku Rigaku opened its new headquarters for Rigaku Europe SE (RESE) in Neu-Isenburg, Germany.

XRD: Recent Developments



SECTION V

V. ATOMIC ABSORBANCE

ATOMIC ABSORPTION SPECTROSCOPY (AA)




Atomic Absorption Spectroscopy: Technology Overview

Atomic absorption spectroscopy (AA or AAS) is an analytical technique for the quantitative assessment of chemical elements through the absorption of optical radiation by free atoms in the gaseous state. The technique had its start in the 19th century, but underwent significant development in the 1950s. The core method has gone largely unchanged since. AAS can be used to determine most of the naturally occurring elements in solution or solid samples in a variety of life science and materials applications.

In AAS, the sample is first volatized through the application of heat. This is achieved by either introducing the sample to an acetylene flame or placing the sample into an electrically heated graphite tube. After the sample has been volatized, a light is shown through the gas. Because the radiation required to excite an electron to a new transition state (orbital) is dependent upon the element in question, the wavelength at which the electrons are excited can be compared to a known list of standard wavelengths. This, in turn, allows for the identification of the sample.

There are two main types of AA, differentiated by the method through which the sample is volatized: flame and graphite furnace. The oldest and most commonly used atomizers are flames, being either air-acetylene at around 2300°C or the nitrous dioxide system (N2O)-acetylene flame at around 2700°C. Graphite tube atomizers typically yield better detection limits, but are slower to heat and less precise than flame. The latest generation of AAS tend to include both flame and graphite furnace, allowing the researcher to choose as best suits their needs. Systems that include furnaces have been included in the graphite furnace market segment for this report. There are also a few general-purpose atomic fluorescence spectrometers on the market. These are included in the flame segment. Specialized AA and AFS instruments for detecting single elements (e.g. mercury) are in the relevant sections on elemental analyzers.

PERKINELMER PINAACLE 900T

EWAI AA-7050




Flame-only53%

Graphite Furnace47%

Atomic Absorption Spectroscopy: Key Market Dynamics

ATOMIC ABSORPTION DEMAND BY PRODUCT TYPE, 2017

$466M

n The total market for atomic absorbance spectroscopy was $466 million in 2017. While the return of industrial markets is helping to boost demand in this market, overall the technique does not offer stellar opportunities for growth.

n Environmental applications are tied to regulation and government support for testing. While some areas in China and the rest of Asia are seeing strong growth in environmental applications, other regions are locked into a relatively static market – the regulations require the testing, so the market is stable, but there are few changes that might spur growth.

n With the continued promotion of instruments that provide both flame and graphite furnace analysis on a single system, the line between the two product segments has become somewhat blurred. Nevertheless, there remain distinctions between the techniques, inasmuch as only certain applications require the better levels of detection provided by graphite furnace.

n Other stresses on the market for AA include competition from competing techniques like ICP and XRF, or dedicated elemental analyzers for customers that only need to analyze a few particular elements of interest.




Atomic Absorption Spectroscopy: Product Segmentation

n Growth in the overall market is estimated at 3.8% through 2020. Two-thirds of the market is comprised of initial systems, which are set to grow at a below average rate.

n While the flame-only market continues to grow more slowly than the graphite furnace segment, the continued development of environmental testing regimes in the developing world has helped to support the flame AA market, providing some continued growth.

n While component sales are relatively modest, there is an active consumables market composed of various lamps, acetylene, graphite tubes, and other reagents for preparing solid samples. Aftermarket and service revenues are both growing significantly faster than the market for initial systems.

ATOMIC ABSORPTION DEMAND BY PRODUCT TYPE, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Initial System Flame-only 24% 110 113 117 121 121 122 2.2% Graphite Furnace 42% 196 206 216 224 228 231 3.4% Total Initial Systems 66% 305 319 334 345 349 353 3.0%Aftermarket Components 5% 21 22 23 24 26 27 5.1% Consumables 18% 84 90 96 102 108 114 6.4% Total Aftermarket 23% 105 112 119 127 134 141 6.1%Service 12% 56 58 61 62 65 68 3.9%Total 100% 466 489 513 534 548 562 3.8%




n Although market demand for initial systems of graphite furnace systems is greater than for flame-only, the lower average price for the latter system type results in a greater volume of shipments. In total, nearly 8,000 new AA systems shipped in 2017.

Atomic Absorption Spectroscopy: Unit Shipments

ATOMIC ABSORPTION SPECTROSCOPY PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Flame-only $8K - $45K 4,375 450 4,825

Graphite Furnace $25K - $75K 3,475 250 3,725

Total 7,850 700 8,550




n Given the general nature of AA, it can be used across numerous applications in different industries. However, environmental applications are quite common, with environmental testing labs forming the largest industrial segment. Other applications in food, water utilities, and other consumer products also have strong environmental rationale.

n Since much of this environmental testing is regulatory in nature, the analytical service function predominates in the AA market, representing just over half of total demand. Quality control is the next largest segment.

Atomic Absorption Spectroscopy: Application Segmentation

ATOMIC ABSORPTION SPECTROSCOPY DEMAND BY INDUSTRY, 2017

ATOMIC ABSORPTION SPECTROSCOPY DEMAND BY FUNCTION, 2017

Gen./Environ. Testing

16%

Ag/Food13%

Utilities12%

Gov. Testing10%

Academia9%

Metals/Mining7%

Pharma7%

Electronics/ Semicon./ Nanotech.

6%

Chemicals6% Other

14%

AnalyticalService

51%QA/QC

22%"

Basic R&D11%

Applied R&D9%

MethodsDevelopment

2%

Other5%




n The public sector makes up about a third of total demand, including not just academic and government labs, but also water and power generation utilities. Although this is the largest segment, the market is relatively flat in the industrialized world, with growth coming primarily from the developing nations.

n The applied and industrial markets each account for 30% of the total demand for AA. Although the industrial markets have been depressed recently, currently there is resurgence in demand from chemicals, mining, and even oil & gas, although this short burst of growth is forecast to moderate toward the end of the forecast period.

n Pharma/Bio makes up just 7% of demand for AA, but growth is relatively strong, driven by QC and related cleaning validation applications.

ATOMIC ABSORPTION SPECTROSCOPY DEMAND BY APPLICATION SECTOR, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


Atomic Absorption Spectroscopy: Application Segmentation




ATOMIC ABSORPTION SPECTROSCOPY DEMAND BY REGION, 2017

ATOMIC ABSORPTION SPECTROSCOPY DEMAND BY COUNTRY, 2017

n Since AA is a relatively basic technique, the developing world has a much stronger share of the market than for many more advanced technologies. In particular, the metals & mining industry helps to promote the market in India, Latin America, and the ROW segment.

n The US & Canada and Europe combined make up more than half of the market demand. Environmental applications make up much of the demand in the developed world, as many environmental methods are founded on the technique. However, the relatively low cost for AA helps to promote its use in many different industries and situations, from precious metals to university education.

Atomic Absorption Spectroscopy: Demand by Region

US & Canada29%

Europe25%

China15%

Japan9%

India4%


Latin America4%

Rest-of-World8%

25%

15%

10%

7%

4%

4%

4%

3%

2%

2%

0% 5% 10% 15% 20% 25% 30%

United States

China

Japan

Germany

United Kingdom

India

France

Canada

Italy

Russia




ATOMIC ABSORPTION SPECTROSCOPY DEMAND BY REGION, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


n The different geographic regions generally are forecast to achieve low to mid- single digit growth over the coming years. China, driven by renewed

emphasis on the environment, is the growth leader, and currently makes up 15% of the total market. The Chinese market for AA will approach $100 million by the end of the forecast period.

n Growth in the developed world will lag behind the overall average, but the release of pent-up demand will help the US & Canada and Europe achieve positive growth, unlike the rather flat market these regions have experienced over the past few years.

Atomic Absorption Spectroscopy: Demand by Region




n PerkinElmer retains its dominant position in this marketplace, with more than a quarter of the total market share. While the current models in the PinAAcle series of AAs are a few years old, the company offers a full range of both flame, graphite furnace, and combined systems. The company has long held dominance in atomic spectroscopy, and provides abundant components, consumables, and standards for these instruments.

n Agilent holds the second position in the marketplace. In addition to traditional flame and graphite furnace, Agilent has innovated a new microwave plasma system for exciting samples. Since this is most similar to AA, we include this product line in this section.

n Thermo Fisher is the next most significant vendor, with three models in its iCE line of AA instruments. The company also offers autosamplers options for its systems.

n Two Japanese competitors, Shimadzu and Hitachi, are roughly tied in the next position in the market. Shimadzu offers the AA-7000 line of spectrometers, while Hitachi offers a series that features high performance polarized Zeeman correction.

ATOMIC ABSORPTION SPECTROSCOPY VENDOR SHARE, 2017

Atomic Absorption Spectroscopy: Competitive Situation

PerkinElmer29%

Agilent21%

Thermo Fisher 16%

Shimadzu7%

Hitachi7%

Analytik Jena (Endress+Hauser)

5%

Beijing Instrument Industry Group

2%

Other13%




n Analytik Jena (now fully owned by Endress+Hauser) offers a broad variety of elemental analyzers (considered in those sections of the Global report), but also a more general-purpose AA system with a continuous emission source, rather than dedicated hollow cathode lamps that remain the most common illumination source for AA.

n Beijing Beifenruile, part of the Beijing Instrument Industry Group, is the largest Chinese vendor for AA. Several other Chinese vendors also participate in the market, such as Beijing Titan, East & West Analytical Instruments (EWAI), Shanghai Spectrum, and Skyray. While most of them sell primarily domestically, their products are slowly emerging onto the global market.

n Other suppliers include Buck Scientific, Elico, GBC Scientific, SAFAS, and Techcomp.

ATOMIC ABSORPTION SPECTROSCOPY VENDOR PARTICIPATION, 2017

Atomic Absorption Spectroscopy: Competitive Situation

Company Flam

e-on

lyG

raph

ite F

urna

ce

AgilentAnalytik Jena (Endress+Hauser)Aurora BiomedBeijing Instrument Industry GroupBeijing TitanBuck ScientificElicoEWAIGBC ScientificHCL SuppliersHitachiPerkinElmerPG InstrumentsPS AnalyticalSAFASShanghai SpectrumShimadzuSkyrayTechCompThermo Fisher





ATOMIC ABSORPTION SPECTROSCOPY RECENT DEVELOPMENTS, 2016 - 2017


Development

Apr-2016 Analytik Jena Swiss measurement and automation engineering specialist Endress+Hauser completed the takeover of German analytical instrumentation provider Analytik Jena. Endress+Hauser first gained control of Analytik Jena in 2013, acquiring the remaining 3.4% in April, 2016.

May-2016 GBC Scientific GBC Scientific announced the release of their latest AAS, the SavantAA Z enduro. The high-performance Zeeman graphite furnace analyzer improves upon previous model through enhanced automation and greater versatility.

May-2016 Analytik Jena Analytik Jena launched the contra 800 series, the next generation of the company’s novel continuous light source atomic absorption spectrometers. The more compact system provides fast multielement analysis, and can be configured for both flame and graphite furnace techniques, as well as hydride generation.

Jun-2016 Shimadzu Shimadzu launched the AA-6880F atomic absorption spectrophotometer aimed at users in emerging markets. It was developed by Shimadzu China, and features a newly designed 3-D optical system.

Sep-2016 Agilent Agilent launched the Agilent 4210 microwave plasma–atomic emission spectrometer, which runs on air rather than flammable gas, featuring new automation software for remote elemental analysis.

Atomic Absorption Spectroscopy: Recent Developments



VI. ICP-OES

INDUCTIVELY COUPLED PLASMA (ICP) & GLOW DISCHARGE SPECTROSCOPY

SECTION VI



VI. ICP-OES

ICP: Technology Overview

Inductively coupled plasma spectroscopy (ICP) is a technique for atomic analysis that relies on atomic emission. ICP is sometimes referred to as ICP-AES or ICP-OES (atomic/optical emission spectroscopy). When given enough energy to put in an excited state, atoms of a particular element emit a certain pattern of light frequencies that can be used to identify the element and its abundance in a sample. In ICP, the excitation energy comes from plasma generated by a plasma torch. A nebulizer sprays a portion of the aqueous sample into the plasma and detectors analyze the light emitted by the energized atoms. ICP’s primary advantage is that it can generally perform faster analyses of multiple elements than AA spectroscopy, making ICP a standard instrument of choice for many applications, particularly in environmental testing.

Within ICP, there are several product divisions. Currently, the most common instruments are simultaneous instruments that use a solid-state detector to analyze the entire spectrum at once. Other ‘simultaneous’ instruments with multiple photomultiplier tubes (PMT) have largely exited the marketplace, but are also included in this segment. Sequential instruments generally use a single PMT detector, and scan through the entire spectrum. This takes more time, but can potentially be more sensitive than simultaneous systems.

Two related product categories exist for (mainly) solid samples: glow discharge spectroscopy (GD), and laser-induced breakdown spectroscopy (LIBS). In GD spectroscopy, plasma sputters atoms off the sample, with the rest of the instrument behaving similarly to ICP. In LIBS, a high-power laser is used to ionize the sample. Of all these product categories, LIBS is the only one that has been miniaturized into handheld instruments.

SPECTRO ANALYTICAL (AMETEK) SPECTROBLUE ICP

SPECTRUMA GDA-ALPHA



VI. ICP-OES

Simultaneous77%

Sequential12%

Glow Discharge

6%

LIBS5%

ICP: Key Market Dynamics

ICP DEMAND BY PRODUCT TYPE, 2017

$498M

n In 2017, the total market demand for ICP reached nearly $500 million. Of that amount, more than three-quarters stems from simultaneous systems, which have become the workhorse for standard applications. The other product segments generally have more niche applications that continue to support sales.

n Sequential instruments typically appeal to two distinct customer types. At one end is the cost-conscious consumer, who can purchase a low-end sequential system for less than the cost of a simultaneous system, and has applications that don’t require the greater speed of such systems. At the other end are customers with more demanding applications that require the benefits of the longer optical paths and sensitivity of high-end sequential systems.

n Glow discharge and LIBS are generally restricted to materials analysis applications, where the lack of sample preparation is a definite advantage.

n One trend affecting ICP is the increasing cost of argon, which is almost universally used as the source of the plasma. Argon prices have been rising precipitately; despite modern ICP designs being more thrifty with argon, this consumable cost is rising.



VI. ICP-OES

ICP: Product Segmentation

n Growth in ICP is estimated at 4.7% through 2022, with increasing support of the applied markets (particularly environmental) and returning strength in the more industrial markets. Simultaneous ICP, which is by far the largest product segment, is applicable in most situations. This general-purpose nature of the technique helps to promote relatively strong growth in initial systems.

n In contrast, sequential ICP and glow discharge have relatively limited applications, and are expected to see slower growth in initial systems. Sequential ICP is also hampered by an influx of low-cost suppliers, pulling average prices down. Glow discharge is tied to the metals industry, an application area that has seen some resurgence after a dry spell due to low commodities prices.

n LIBS, although it has not developed a strong suite of applications, is relatively new as a commercial market (particularly in the handheld format) and consequently will have the strongest market growth for initial systems. It is forecast to surpass glow discharge in size by the end of the forecast period.

n As mentioned previously, the rising price of argon contributes to the greater than average growth rate for the consumables segment of the market. In total, consumables make up nearly a quarter of the market. Service is also relatively significant, making up 17% of the market, and seeing growth of about 4.4%.

ICP DEMAND BY PRODUCT TYPE, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Initial System Simultaneous 38% 189 196 203 211 219 228 3.8% Sequential 6% 27 28 29 29 30 31 2.7% Glow Discharge 4% 21 22 23 23 23 24 2.8% LIBS 4% 20 21 23 24 26 27 6.4% Total Initial Systems 52% 257 268 277 288 299 310 3.8%Aftermarket Components 7% 35 36 38 40 42 44 4.7% Consumables 24% 120 127 135 144 153 164 6.5% Total Aftermarket 31% 154 164 173 184 195 208 6.1%Service 17% 86 90 93 98 102 107 4.4%Total 100% 498 521 543 569 596 625 4.7%



VI. ICP-OES

n More than 3,000 ICP and related systems were shipped in 2017. The majority were simultaneous ICP systems. The other three product segments had unit shipments numbered in the hundreds. Glow discharge instruments have the highest average prices and consequently the smallest number of shipments.

ICP: Unit Shipments

ICP PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Simultaneous $40K - $100K 2,150 100 2,250

Sequential $30K - $100K 400 25 425

Glow Discharge $75K - $225K 150 <25 150

LIBS $25K - $120K 325 <25 325

Total 3,025 125 3,150



VI. ICP-OES

n Environmental testing is by far the most common application for ICP. Since ICP requires aqueous samples, it is extremely simple to run environmental water samples, and the technique offers speed advantages over atomic absorbance for general purpose environmental testing. This makes ICP very useful for contract environmental testing laboratories, which need to run large numbers of samples. The environmental testing industry makes up nearly a quarter of demand, and water utilities are the second largest specific segment with similar applications in water quality testing.

n Similarly, ICP can be used for testing wastewaters from industrial processes, or to guarantee water quality being used in sensitive industrial processes, such as in pharmaceuticals and semiconductor manufacturing.

n The oil & gas industry makes up 10% of demand and in addition to testing fuels and products, ICP can also be applied to engine oils, testing for the presence of wear metals that indicate whether there is a breakdown in lubrication in the engine.

n Research applications are relatively minor, although there is increasing interest in the technique for monitoring heavy metals and other hazardous substances in clinical samples. Analytical service and quality control are by far the dominant functions.

ICP: Application Segmentation

ICP DEMAND BY INDUSTRY, 2017 ICP DEMAND BY FUNCTION, 2017


Utilities11%

Pharma11%Oil & Gas

10%

Ag/Food9%

Gov. Testing9%


7%

Metals/ Mining6%

Other14%

Analytical Service55%QA/QC

25%

Applied R&D8%

Basic R&D5%

Methods Development3%

Other4%



VI. ICP-OES

n Although the pharma/bio segment is the smallest, making up just 12% of total revenues, growth should be particularly strong, with the growth of manufacturing facilities in the developing world that are producing pharmaceutical products for use in the first world (and must therefore adhere to more stringent good manufacturing practices).

n The strongest growth will come from industrial users. This will be more apparent in the short term as pent up demand from metals and oil & gas finally turns into delayed sales of ICP and glow discharge instruments.

n The applied market, including environmental testing, is the largest market and will also see solid mid-single digit growth. These tools are in constant use in the US and Europe, and growth areas in the developing world are supporting further growth.

n The situation for the public sector is less robust, since research applications are somewhat limited. However, the public sector also includes water utilities, which provide a stable market for these products.

ICP DEMAND BY APPLICATION SECTOR, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


ICP: Application Segmentation



VI. ICP-OES

ICP DEMAND BY REGION, 2017

ICP DEMAND BY COUNTRY, 2017

n The ICP market is well-established in the US & Canada, which is the largest regional segment, making up nearly one-third of total demand. These systems have the broadest possible usage here, from environmental testing to research to industrial monitoring of process water and waste water. Similarly, the European market is also sizable and mature, representing a further 30% of demand.

n The Japanese market is the next largest regional segment, but the Chinese market is coming on strong. By the end of the forecast period, these two countries will have roughly the same demand for ICP.

n Latin America and the Rest-of-World combine to form about one tenth of the market demand; in both regions, oil & gas and the metals and mining industry are prominent contributors to the demand, along with the academic market.

ICP: Demand by Region

US & Canada32%

Europe29%China

9%

Japan12%

India3%


Latin America4%

Rest-of-World6% 29%

12%

9%

9%

6%

5%

3%

3%

0% 5% 10% 15% 20% 25% 30% 35%

United States

Japan

China

Germany

United Kingdom

France

Canada

India



VI. ICP-OES

ICP DEMAND BY REGION, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


n Chinese growth will approach double digits over the next five years. In addition to strengthening environmental testing and growing manufacturing

capability in the semiconductor and pharmaceutical industries, the Chinese market is shifting away from the relatively low-cost domestic ICP suppliers and demanding the greater capabilities of market leading products.

n India and the Other Asia Pacific countries will also see stronger than average growth, for similar reasons involving environmental testing and industrial outsourcing of production.

n Rising oil prices will help the Rest-of-World segment achieve stronger growth as well. This trend will lift Latin America, but public spending in these countries will keep the overall growth more moderate.

n The US & Canada and Europe will continue to see growth, but only in the low single digits, reflecting the more mature state of the marketplace.

ICP: Demand by Region



VI. ICP-OES

n The top three suppliers are exclusively involved in the simultaneous ICP portion of the market. PerkinElmer continues to dominate, with a share of 26%. The company’s historical strength in optical systems and instrumentation continues to bear dividends, and the current product portfolio is accented by an innovative detector design. PerkinElmer’s segmented-array charge-coupled device (SCD) detector is designed with subarrays of pixels located specifically where the most prominent emission lines of particular elements will fall, helping to optimize the utility of the detector.

n Thermo Fisher’s iCAP series of compact ICP spectrometers has also been a very popular product, propelling the company into the number two position in the market.

n Agilent is the third vendor in the top tier of suppliers, and also adds its own technical wrinkles to its ICP line. While most systems need to be switched over from radial to axial view, the Agilent optical path combines both views to help speed analysis.

ICP VENDOR SHARE, 2017

ICP: Competitive Situation

Spectro

PerkinElmer26%

Thermo Fisher16%

Agilent14%

(AMETEK)7%

Industrial gas suppliers

7%

HORIBA6%

Shimadzu5%

Hitachi4%

LECO2%

Other13%



VI. ICP-OES

n Spectro Analytical (AMETEK) heads the next tier of competitors; in addition to simultaneous ICP, the company offers glow discharge instruments manufactured by its partner, Spectruma.

n Industrial gas suppliers represent about 7% of the total market, primarily from sales of argon to form the plasma in ICP.

n HORIBA offers one of the broadest product portfolios in this market, with both simultaneous and sequential ICP, along with glow discharge instrumentation as well. Two other Japanese suppliers, Hitachi and Shimadzu, round out the middle tier of vendors. Hitachi’s acquisition of Oxford Instruments’ Materials Analysis business adds LIBS to their portfolio.

n LIBS companies typically are quite focused on that technology and don’t also offer ICP. LIBS suppliers include Applied Photonics, Applied Spectra, B&W Tek, Bruker, Ocean Optics, Rigaku, SciAps, and TSI. Similarly, glow discharge suppliers like Spectruma and LECO participate only in that single product segment.

ICP VENDOR PARTICIPATION, 2017

ICP: Competitive Situation

X

Company Sim

ulta

neou

sSe

quen

tial

AgilentApplied PhotonicsApplied SpectraB&W TekDrawellGBC Scientific EquipmentGlass ExpansionHitachiHORIBALECOOcean Optics (Halma)Oxford InstrumentsPerkinElmerRigakuSciApsShimadzuSkyraySpectro (AMETEK)SpectrumaTeledyne TechnologiesThermo FisherTSIWuxi Jinyibo

Major Moderate Minor X Divested or Discontinued

Glo

w D

ischa

rge

LIBS



VI. ICP-OES

ICP RECENT DEVELOPMENTS, 2016 - 2017


Development

Apr-2016 Teledyne Technologies Teledyne Leeman Lab introduced the Prodigy Plus ICP-OES. The Prodigy Plus brings together the latest in solid-state detector technology and Lee-man Labs' advanced high dispersion Echelle spectrometer to provide the most powerful ICP available today.

May-2016 Agilent Agilent introduced a new addition to its lineup of ICP-OES spectrometers. The Agilent 5110 will enable scientists to perform faster, more precise ICP-OES analysis than ever before in food, environmental, and pharmaceutical testing, as well as for mining and industrial applications.

Jul-2016 PerkinElmer PerkinElmer introduced the compact Avio 200 ICP-OES for multi-elemental inorganic analysis, featuring a vertical plasma design, low argon consumption and fast start up.

Apr-2017 TSI TSI launched the ChemLite Plus Laser Metals Analyzer with new features for identification of more base metals including iron, copper, and nickel. The system can provide measurements in as little as 1 second.

Jul-2017 PerkinElmer PerkinElmer announced the launch of the Avio 500 ICP-OES, designed for analytical laboratories running high throughput multi-elemental inorganic analyses for a wide variety of sample matrices.


Nov-2017 Rigaku Rigaku Analytical Devices announced improvements to its previously released handheld LIBS metal analyzer.

Dec-2017 Leica (Danaher) Leica announced the availability of an integrated LIBS function on the new DM6 M LIBS microscope for materials analysis.

ICP: Recent Developments



VII. ICP-MS

SECTION VII

INDUCTIVELY COUPLED PLASMA MASS SPECTROMETRY (ICP-MS)



VII. ICP-MS

Inductively Coupled Plasma Spectrometry (ICP-MS): Technology Overview

Inductively coupled plasma spectroscopy (ICP) uses optical emission spectroscopy to determine the atomic composition of samples. However, the plasma torch can also be used with a mass spectrometer to make the identifications in an entirely different way. In ICP, the plasma torch provides the excitation energy required to stimulate emissions of photons from the sample. In ICP mass spectrometry (ICP-MS), the ionized sample created by the plasma is drawn into the intake for a mass spectrometer, forming the basis of ICP-MS technology, which generally requires liquid or dissolved samples. For solids, electrical discharge, glow discharge, or laser ablation can be used to produce ions. Glow discharge uses the ICP-MS plasma to sputter atoms off the sample, while laser ablation uses the concentrated energy of a laser to ionize the sample. Generally speaking, ICP-MS is the most sensitive atomic spectroscopy technique.

The three product divisions within ICP-MS relate to the type of mass spectrometer used as a mass analyzer for the ions. By far the most common type is the quadrupole mass spectrometer. Many quad systems use reaction cells to improve performance by eliminating mass interferences. Triple quadrupole analyzers have also entered the marketplace, enabling MS/MS capabilities. Thermo Fisher has recently joined Agilent in this product segment.

Other mass analyzers include magnetic sector and time-of-flight (TOF). Magnetic sector instruments are the most sensitive variety of ICP-MS. Sector instruments are also very good at measuring isotopic abundance, something impossible for more conventional atomic spectroscopy techniques. TOF-ICP-MS provides very rapid analysis of samples, and can even measure real-time transient signals. Also included in the Other category are glow discharge mass spectrometers.

THERMO FISHER ICAP TQ ICP-MS

PERKINELMER NEXION 2000



VII. ICP-MS

Single Quadrupole

86%

Triple Quadrupole

4%

Other10%

ICP-MS: Key Market Dynamics

ICP-MS DEMAND BY PRODUCT TYPE, 2017

$452M

n The total market for ICP-MS accounted for $452 million in 2017, with a projected growth of 5.6% over the next five years. The fact that ICP-MS instruments are used across fast growth industries marks an attractive future ahead.

n The growing population in developing countries is pushing the need for detection in a variety of industries such as pharmaceuticals, clinical research, environmental science, electronics, semiconductors, food and agriculture. Stricter regulations regarding toxic elements and contaminants in several industries will drive the growth of ICP-MS, with a particular emphasis in triple quadrupole capabilities.

n The semiconductors and electronics industries are the leading consumers of ICP-MS systems, with almost a quarter of total demand, but as pharmaceutical applications are growing, it is expected that the pharma/bio sector will gain significant market share in the future. The environmental testing industry will continue to drive robust demand for ICP-MS, for detection of trace contaminants.

n Although Agilent, Thermo Fisher and PerkinElmer are expected to continue being the market leaders, as the market expands, new entrants and more merger and acquisition deals can be anticipated as other mass spectrometry suppliers look to expand into this area.



VII. ICP-MS

ICP-MS: Product Segmentation

n The ICP-MS market is expected to nearly reach $600 million by 2022. Triple quadrupole initial systems are growing at twice the market average and are expected to continue in the lower double digits, as this relatively new entry to the market continues to gain ground. The benefits of triple quadrupole over single quadrupole are encouraging certain industries to invest in these systems. Triple quadrupole technology facilitates lower detection limits than other ICP-MS instruments and is ideal for complex applications such as Se analysis in soil samples or Ti determination in biological fluids. Triple quadrupole systems can also be operated as a single quadrupole, making them more attractive when deciding which platform to purchase.

n Single quadrupole systems are cheaper than triple quadrupole and are preferred by laboratories that do not need to perform difficult analyses. Analysis of elements in drinking water is generally performed by single quadrupole systems.

ICP-MS DEMAND BY PRODUCT TYPE, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Initial System Single Quadrupole 51% 231 243 257 273 289 307 5.9% Triple Quadrupole 3% 14 15 17 19 21 23 11.5% Other 6% 27 26 25 25 25 24 -2.2% Total Initial Systems 60% 271 285 299 317 335 355 5.5%Aftermarket Components 8% 36 38 39 41 43 45 4.5% Consumables 13% 59 62 66 70 74 79 6.1% Total Aftermarket 21% 95 100 105 111 117 124 5.5%Service 19% 86 91 96 103 109 116 6.2%Total 100% 452 475 501 530 561 595 5.6%



VII. ICP-MS

n Of the more than 1,400 units of ICP-MS sold in 2017, close to 10% were used systems. Due largely to the price difference, more units were sold of single quadrupole than of any other product segment. More than 11,000 ICP-MS are installed worldwide, primarily in electronics, semiconductors, nanotechnology, and general and environmental testing laboratories.

ICP-MS: Unit Shipments

ICP-MS PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Single Quadrupole $125K - $250K 1,150 150 1,300

Triple Quadrupole $250K - $350K 50 <25 50

Other $200K - $800K 50 <25 50

Total 1,250 150 1,400



VII. ICP-MS

n Almost a quarter of the market demand comes from electronics, semiconductors and nanotechnology laboratories. In the semiconductor industry, the detection of contaminants during integrated circuit production is of vital importance, as any amount of contaminant can be troublesome. Triple quadrupole instruments can successfully detect traces of elements in metals and metal alloy solutions.

n The general and environmental testing industry accounts for almost a fifth of the demand, driven by soil and water quality assays. Increasing regulations, particularly in Asian countries, are powering the need for accurate testing technologies such as ICP-MS, capable of detecting traces of a variety of elements in complex mixtures.

n Public concerns about soil, water, fuels, and air quality have produced tightened regulations, and half of the laboratories using ICP-MS focus on analytical services that support regulatory testing. A quarter of the demand comes from QA/QC activities in different industries such as environmental testing, pharmaceuticals, electronics, semiconductors, and nanotechnology.

ICP-MS: Application Segmentation

ICP-MS DEMAND BY INDUSTRY, 2017 ICP-MS DEMAND BY FUNCTION, 2017

Utilities


23%


Gov. Testing9%9%

Pharma8%

Hospital & Clinical7%

Academia6%

Other11%

Chemicals4%

Ag/Food5%


QA/QC25%

Basic R&D14%

Applied R&D8%


Other1%



VII. ICP-MS

n The applied sector will be the fastest growing one with a projected CAGR of 7.3% over the next five years, due to the increasing usage of ICP-MS for environmental testing and clinical applications. Physicians are starting to become frequent users of this technology as it allows them to conduct metal assays, determining whether a patient has been poisoned by heavy metals, or has metabolic disorders.

n The industrial sector, driven by the semiconductors industry, will grow at about the market average. ICP-MS is widely used in quality control analyses of process fluids and other materials used in semiconductors as well as in electronics and nanotechnology.

n In the pharma/bio sector, ICP-MS is used for detecting inorganic impurities in pharmaceuticals. Also, the quantification of proteins and biomolecules is becoming a popular application that can derive in clinical applications and fuel the demand from this sector.

n In the public sector, government research will drive market growth, as these instruments act as monitoring devices for regulatory compliance. For academic research laboratories, triple quadrupole systems bring flexibility and extended capabilities, widening their research applications. However, due to cost, many opt for a single quadrupole instead.

ICP-MS DEMAND BY APPLICATION SECTOR, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


ICP-MS: Application Segmentation



VII. ICP-MS

ICP-MS DEMAND BY REGION, 2017

ICP-MS DEMAND BY COUNTRY, 2017

n Close to two-thirds of sales occur in the US & Canada and Europe. These developed regions have the most extensive environmental regulations, including those with lower limits that drive environmental labs toward ICP/MS. In addition, private and public funding is available to make important investments such as the purchase of a ICP-MS instrument. The large pharma/bio sector in these regions is at the forefront of new applications, with ICP-MS being used to quantify proteins and biomolecules.

n Japan constitutes almost a fifth of the total market, fueled by its electronics, semiconductors, nanotechnology, and environmental testing industries. The need for contaminants analysis in these industries make ICP-MS a perfect fit for private and public laboratories seeking QA/QC.

ICP-MS: Demand by Region

US & Canada37%

Europe22%

China7%

Japan19%

India2%


Latin America2%

Rest-of-World2% 34%

19%

7%

7%

4%

4%

3%

3%

0% 5% 10% 15% 20% 25% 30% 35% 40%

United States

Japan

China

Germany

United Kingdom

France

Canada

Italy



VII. ICP-MS

ICP-MS DEMAND BY REGION, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


n Government testing is a large industry in developed regions such as Europe and the US & Canada, due to regulatory compliance activities performed

by government agencies, as well as the testing performed by private institutions to assure their own compliance with such laws. The pharma/bio sector will also contribute to grow the market demand as more ICP-MS applications are being developed, particularly in the pharmaceutical industry, which is well-established in the developed world.

n China and India will be the fastest growing countries, driven by environmental testing labs as well as semiconductors and pharmaceuticals. As the most populated countries in the world, concerns regarding soil, water and air quality have become an important issue. Strict regulations to test for the presence of contaminants and toxic elements will fuel the demand for ICP-MS in these countries. Other Asia Pacific countries will follow this trend with a growth above the market average.

n Although growing in the low single digits, the ICP-MS market in Japan will benefit from the country’s economic recovery, which will fuel the electronics and semiconductors industry.

ICP-MS: Demand by Region



VII. ICP-MS

n Three vendors dominate the ICP-MS market: Agilent, Thermo Fisher and PerkinElmer. Together they account for almost three-quarters of the total market. Agilent introduced the first triple quadrupole in the market in 2012, and today it sells both single and triple quadrupole. Its 7800 and 7900 single quadrupole and its 8800 and 8900 triple quadrupole systems are well established in the market. The company’s first triple quadrupole, the 8800, has been updated to 8900 in 2016, with improved features such as lower detection limits and controlled reaction chemistry.

n Thermo Fisher, with a quarter of the market, manufactures single quadrupole and other systems. Its most recent product introduction, the iCAP TQ ICP-MS system, allows users to switch between single and triple quadrupole modes in a single multi-element experiment so that laboratories can keep their existing workflow as well as add new capabilities over time.

n PerkinElmer manufactures only two single quadrupole systems, the NexION 1000 and the NexION 2000. The latter features the ability to detect high-and low-level elements in a single sample run, a speed of 100,000 points/sec data acquisition, cell with no cleaning or replacement required and user-friendly software.

ICP-MS VENDOR SHARE, 2017

ICP-MS: Competitive Situation

Agilent28%

Thermo Fisher26%

PerkinElmer20%

Shimadzu3%

Hitachi3%

Analytik Jena (Endress+Hauser)

3%

CAMECA (AMETEK)2%

Spectro (AMETEK)

2%

Other13%



VII. ICP-MS

n The next tier of companies is comprised of Shimadzu, Hitachi, and Analytik Jena with 3% of the market each. The three companies manufacture only single quadrupole systems. CAMECA, having acquired Nu Instruments in mid-2016, maintains a 2% market share and sells high end magnetic sector systems. As an example of the Nu Instruments brand capabilities, its Plasma 3 is a third generation Multi Collector ICP Mass Spectrometer (MC-ICP-MS), which finds applications in earth sciences, environmental testing, nuclear research, forensics, biochemistry and biotechnology.

n The remaining vendors constitute 15% of the market. These companies focus on only one technology within the ICP-MS market and tend to commercialize in niche areas, including other components for use with ICP and ICP-MS, such as laser ablation systems for sample introduction.

ICP-MS VENDOR PARTICIPATION, 2017

ICP-MS: Competitive Situation

Company Sing

le Q

uadr

upol

eTr

iple

Qua

drup

ole

Oth

er

AgilentAnalytik Jena (Endress+Hauser)CAMECA (AMETEK)ETPGBC ScientificHitachiPerkinElmerShimadzuSpectro (AMETEK)Thermo Fisher




VII. ICP-MS

ICP-MS RECENT DEVELOPMENTS, 2016 - 2017


Development

Aug-2016 AMETEK AMETEK acquired Nu Instruments for an undisclosed amount. Nu provides magnetic sector MS systems used for elemental and isotopic analysis, and its products and markets are highly complementary with AMETEK’s advanced elemental analysis business. Nu Instruments joined the Materials Analysis Division as part of CAMECA.

Jan-2017 Perkin Elmer PerkinElmer launched the NexION 2000 ICP-MS. This innovative new system is specifically designed to handle any sample matrix, address any interference, and detect any particle size.

Feb-2017 Analytik Jena Analytik Jena presented innovative applications for its Elite product range of ICP-MS and ICP-OES Instruments, PlasmaQuant MS Elite. For example, the characterization of nanoparticles to below 10 nm diameter and the precise determination of isotope ratios in various matrices.

Mar-2017 Thermo Fisher Thermo Fisher introduced the iCAP TQ ICP-MS system that allows users to switch between single and triple quadrupole modes in a single multi-element experiment so that laboratories can keep their existing workflow as well as add new capabilities over time.

ICP-MS: Recent Developments



ARC/SPARK OPTICAL EMISSION SPECTROSCOPY

VIII. ARC/SPARK OES

SECTION VIII



VIII. ARC/SPARK OES

Arc/Spark OES: Technology Overview

Optical emission spectroscopy (OES) is a general term for analytical methods that involve exciting the sample with energy so that the component atoms give off light radiation of particular frequencies that can be used to identify the composition of the sample. There are several different methods of OES, depending on the mode of excitation. Arc/Spark spectroscopy uses electrical discharges as the source of excitation energy. In reality, arc/spark OES are two closely related methods, but since most laboratory instruments can perform both types of analysis, it is convenient to treat them together. Arc excitation uses a continuous alternating current discharge between the electrodes. Spark involves brief, discrete DC discharges, with a higher current than arc. Each method provides particular benefits in terms of sample prep, sensitivity and precision, depending on the particular application.

Arc/Spark is overwhelmingly used with metal samples. One reason for this is the fact that metals are good conductors of electricity. In these instruments, the sample itself can be used as one of the electrodes, which simplifies the situation. For non-metallic solid samples and liquid samples, the sample can be placed in a small cavity in the electrode. Rotating disc electrodes are used for certain liquid samples, primarily oils used as lubricants.

The two main product divisions within arc/spark spectroscopy are between stationary laboratory instruments and mobile or portable instruments, where analysis is generally carried out via a handheld probe attached to a portable desktop system or a system mounted on a wheeled cart. Mobile units are usually not as sensitive as laboratory instruments, but they are invaluable for identifying large coils of steel and pieces of scrap metal that cannot easily be taken into a lab.

SPECTRO ANALYTICAL (AMETEK) SPECTROPORT MOBILE METAL ANALYZER

BELEC VARIO LAB



VIII. ARC/SPARK OES

Stationary77%

Mobile & Portable

23%

Arc/Spark OES: Key Market Dynamics

ARC/SPARK OES DEMAND BY PRODUCT TYPE, 2017

$265M

n The arc/spark spectroscopy market saw strong gains in 2017 with pent-up demand in the metals industry being released as commodity prices recovered. Total demand totaled $265 million for the year.

n The metals industry makes up the majority of demand for this technology, which is used throughout production and quality control. The gathering strength in the global economy is forecast to increase worldwide construction and infrastructure spending, which is beneficial to the steel market in particular, along with other metals. While there are concerns about overproduction in China, metals production is expected to increase, with particular strength in India, Brazil, South Korea, and other rising economies.

n Because of their common use in foundries and heavy manufacturing, instruments tend to be quite rugged, particularly the mobile units that are used throughout industrial settings.

n Beyond metals, another specialized use for arc/spark is in oil analysis. While this can be used in the oil & gas industry, it is more common for use with companies or governments maintaining fleets of vehicles, generators, or other heavy machinery.



VIII. ARC/SPARK OES

Arc/Spark OES: Product Segmentation

n Growth in the overall arc/spark market is estimated at 2.9% over the next five years. Although somewhat lackluster, this represents an improvement in the market, which has been fairly moribund of late, affected both by the global economic slowdown in the late 2000’s and low commodities prices more recently.

n Sales of initial systems are picking up as long pent up demand is being released. Systems tend to have a long life, but newer models with lower consumption of argon and other performance enhancements are driving replacement sales. New foundries and metalworking facilities in the developing world are opening new markets for this technology as well, as India, Brazil, Russia, and other countries expand their domestic industries for both home consumption and for the export market, competing with China, the US, Japan, and other established steel producers.

n Stationary systems are the larger product segment, and these higher cost, higher precision instruments are primarily intended for metal production facilities, where they can be used to test everything from samples of molten metal (once cooled and prepared) and finished metal products. Mobile units are found more broadly in the marketplace, with more use by industries, such as aerospace and automotive manufacturers, who need to test incoming materials for quality.

n Despite the lift in initial systems sales, aftermarket components and consumables, including gases, vacuum components or detectors, are seeing stronger growth. Together, aftermarket and service make up 43% of the total market.

ARC/SPARK OES DEMAND BY PRODUCT TYPE, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Initial System Stationary 43% 114 119 122 124 126 129 2.5% Mobile & Portable 15% 40 41 41 41 42 42 1.1% Total Initial Systems 58% 154 160 162 165 168 171 2.1%Aftermarket Components 5% 12 12 13 13 14 14 3.8% Consumables 17% 45 47 49 52 55 59 5.4% Total Aftermarket 22% 57 60 62 65 69 73 5.0%Service 21% 54 55 58 60 61 62 2.8%Total 100% 265 275 282 290 298 306 2.9%



VIII. ARC/SPARK OES

n Although the stationary system demand is much larger than that for mobile systems, the much higher price tag results in roughly equal numbers of units being shipped. While mobile systems are relatively limited in their analytical capability, high-end stationary lab models can have numerous photomultiplier tubes and complex vacuum or purge gas systems. In total, about 1,650 units were shipped in 2017.

Arc/Spark OES: Unit Shipments

ARC/SPARK OES PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Stationary $35K - $300K 800 50 850

Mobile & Portable $20K - $150K 775 25 800

Total 1,575 75 1,650



VIII. ARC/SPARK OES

n The primary use of these instruments is in the quality control of metals, typically ensuring that the composition of an alloy is correct, and that trace elements adhere to established limits, such as for low carbon steel. Consequently, the metals and mining industry and the quality control function dominate the applications segmentation for arc/spark OES.

n Each of the remaining industrial segments makes up less than 10% of the market, with government testing being the largest after metals. Government usage includes monitoring engine oils in military vehicles, as well as alloy verification. The relatively large ‘Other’ industrial segment includes metal recycling and vehicle fleet and heavy machinery maintenance.

Arc/Spark OES: Application Segmentation

ARC/SPARK OES DEMAND BY INDUSTRY, 2017

Other6%

Metals/ Mining58%

Gov. Testing8%

Oil & Gas5%

Aerospace/ Auto5%

Gen./Environ. Testing

5%

Utilities3%


3%

Academia3%

Polymers/ Plastics2% Other

8%

QA/QC65%


Applied R&D9%

Basic R&D4%

Methods Development

1%



VIII. ARC/SPARK OES

n For arc/spark spectroscopy, there are no real applications in the pharma/bio sector, and the vast majority of demand comes from industrial laboratories. In addition to metals and mining, arc/spark can be applied to many other types of industrial materials. The oil & gas industry can use the technique directly on oil samples, but also for verifying materials used in refineries and petrochemical facilities. Similarly, automotive and aerospace laboratories use the technique to verify the composition of components. There are other material applications in semiconductors, electronics, plastics and other materials.

n Applications in academia and government research are relatively minor, making up just 15% of demand. Growth here will also be slow, compared to the more active market in private industry.

ARC/SPARK OES DEMAND BY APPLICATION SECTOR, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Public 15% 39 39 40 40 40 41 0.8%Applied 5% 12 13 13 14 14 15 3.6%Industrial 81% 213 223 229 236 243 250 3.2%Total 100% 265 275 282 290 298 306 2.9%

Arc/Spark OES: Application Segmentation



VIII. ARC/SPARK OES

ARC/SPARK OES DEMAND BY REGION, 2017

ARC/SPARK OES DEMAND BY COUNTRY, 2017

n Although the US is the largest individual source of demand for arc/spark, it holds only a small advantage over China. China now dominates global steel production and arc/spark instrumentation is critical in steel foundries. Europe is also a significant source of metals production, and European demand for arc/spark is on par with that from the US & Canada and China.

n The developing world makes up a relatively large share of the total market for arc/spark. Increasing metals production in India, Brazil, Southeast Asia, Africa and Latin America is helping drive demand for related instrumentation like OES.

Arc/Spark OES: Demand by Region

US & Canada23%

Europe19%

China18%

Japan12%

India6%


Latin America6%

Rest-of-World6% 20%

18%

12%

6%

6%

3%

3%

3%

2%

2%

0% 5% 10% 15% 20% 25%

United States

China

Japan

India

Germany

United Kingdom

Canada

France

Mexico

Russia



VIII. ARC/SPARK OES

ARC/SPARK OES DEMAND BY REGION, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


n India is forecast to achieve the greatest growth over the forecast period, estimated at 5.7%. Already a significant metals producer, the country is

developing this industry rapidly and driving demand. Other Asia Pacific is the next fastest growing market, with growth coming from Korea, Vietnam, Indonesia, and Australia. Latin America, with a 6% share of the market, will also see better than average growth. China will also grow slightly faster than the overall global average for arc/spark, but the technique is well-established and the country is leery of adding new steel production, which is limiting opportunities for growth. Nevertheless, China is an important market due to its size.

n The US & Canada will see the least growth over the next five years, with domestic metals production continuing to suffer from competition from lower cost trading partners. The industry remains under strain, and there is less pressure to replace existing instrumentation.

.

Arc/Spark OES: Demand by Region



VIII. ARC/SPARK OES

n Two primary vendors vie for the top position in the arc/spark market. Currently, Spectro Analytical (AMETEK) holds the top spot, but is closely followed by Thermo Fisher. Both companies provide a broad portfolio of products. Spectro Analytical offers high-performance floor-standing models, a compact benchtop model, and several mobile carts on wheels. Spectro’s smallest offering, the iSort, is a portable unit where the handheld sample probe communicates with the ten-pound optical system through a fiber optic cable.

n Thermo’s arc/spark business is connected with the legacy ARL business and only participates in the stationary system product segment with some of the most sophisticated optical instruments on the market. In addition to floor-standing and benchtop instrumentation, Thermo Fisher offers various automation solutions to increase throughput. Thermo Fisher also offers specialized solutions, such as an instrument designed to analyze precious metals using OES rather than more traditional fire assay methods that require acids and other laboratory hazards.

ARC/SPARK OES VENDOR SHARE, 2017

Arc/Spark OES: Competitive Situation

Spectro Analytical

(AMETEK)27%

Thermo Fisher26%

Shimadzu12%

Bruker5%

Belec3%

Hitachi3%

Spectro Scientific3%

Other21%



VIII. ARC/SPARK OES

n Shimadzu heads up the next tier of suppliers, and, like Thermo Fisher, participates only in the stationary analyzer segment. Bruker also offers a full lineup of mobile to compact to full-size OES instruments. Belec is the largest specialized arc/spark manufacturer, with a share of about 5%.

n Hitachi recently entered the marketplace through its acquisition of the Industrial Analysis business of Oxford Instruments. Spectro Scientific specializes in oil analysis, and offers several arc/spark instruments for this application, along with other instruments based on other technologies, like infrared and particle analysis. Some of the company’s instruments provide multiple techniques on a single platform.

n There are a number of small Chinese suppliers that primarily serve that market, and Metal Power Analytical is headquartered in India.

ARC/SPARK OES VENDOR PARTICIPATION, 2017

Arc/Spark OES: Competitive Situation

X X

Company Stat

iona

ry S

yste

ms

Mob

ile &

Por

tabl

e

AngstromArun TechnologyBeijing Instrument Industry GroupBelecBrukerGNRHitachiLabco MSMetal Power AnalyticalNCS TestingOBLFOxford InstrumentsShimadzuSkyraySpectro Analytical (AMETEK)Spectro ScientificTeledyne LeemanThermo FisherUS Arc SparkWuxi Jiebo


X Divested or Discontinued



VIII. ARC/SPARK OES

ARC/SPARK OES RECENT DEVELOPMENTS, 2016 - 2017


Development

Mar-2016 Spectro Analytical (AMETEK) Spectro Analytical Instruments launched the seventh generation SPECTROMAXx Arc/Spark OES metal analyzer, featuring less gas consumption and faster measurement times.

Mar-2016 Thermo Fisher Thermo Fisher released the ARL Easyspark, an arc/spark instrument designed for benchtop use, intended to augment the existing product line of high-end floor standing spectrometers.

Apr-2016 Belec Belec released its latest compact metal analyzer model, the Belec OPTRON. The latest generation of analyzer includes multi-base operation, no start-up time, 10 second analysis cycles, maintenance free operation, reduced footprint and weight, with an extremely compact design.

Oct-2016 Metal Power Analytical Metal Power Analytical introduced its latest elemental analysis instrument, the Metavision 10008X. The instrument incorporates a multi-optics system with extended wavelength range (120-800 nm) and resolutions (6-13 pm) and is optimized for end-users in defense, railways, basic research and development or related industries.

Oct-2016 Belec Belec introduced an entirely redesigned version of its established Belec Vario Lab spectrometer. The new system reduces argon consumption and is extremely flexible for the size and shape of samples it can accommodate.

Jan-2017 Spectro Analytical (AMETEK) Spectro Analytical Instruments introduced the new SPECTROPORT portable Arc/Spark OES metals analyzer. The system provides many advantages of SPECTRO’s flagship mobile SPECTROTEST OES analyzer in a smaller, lighter unit with point-and-shoot ease-of-use.


Nov-2017 Hitachi Hitachi launched a new optical emission spectrometer for metals analysis in foundries and other metal applications, the FOUNDRY-MASTER Pro2. The system minimizes argon consumption and features an extended wavelength range.

Arc/Spark OES: Recent Developments



SECTION IX

IX. TOC & OTHER SUM PARAMETERS

TOTAL ORGANIC CARBON (TOC) & OTHER SUM PARAMETERS




TOC & Other Sum Parameters: Technology Overview

Carbon is found in both organic and inorganic forms. Organic carbon typically comes from naturally occurring urea, amines, and humic acid, or from synthetic sources such as pesticides, fertilizers, and detergents. It also occurs as a result of the metabolic processes of bacteria and mircoorganisms. Inorganic carbon can come from a wide variety of sources, such as carbonate, bicarbonate, and carbon dioxide. Measurements of organic carbon are important for assessing water quality for a variety of purposes. However, total organic carbon (TOC) analyzers generally determine the total carbon content of a sample and then separately account for the organic and inorganic carbon content of the sample. Since the inorganic and organic content must sum to the total content, any two measurements determine the third. For this reason, the instruments classified here are referred to generally as sum parameter instruments.

Total organic carbon (TOC) is the most prominent of these techniques and is most often used to measure biological content or contamination of water samples, both from water treatment facilities, pharmaceutical facilities, and drinking water. Through either direct or subtractive measurement involving total carbon, TOC quantifies the amount of organic material in liquid or solid samples. For TOC, several different methods are used to determine total organic carbon content, the most common of which are combustion and persulfate oxidation. Generally speaking, combustion methods are used where particulate content or carbon content is expected to be high, as in wastewater.

Other sum parameter measurements include total nitrogen or total bound nitrogen (TN, TbN), total adsorbable or extractable organic halogens (TOX, AOX, EOX), total sulfur (TS), and many others. For the purposes of this report, the market is divided into TOC and TOC/TN instruments and other sum parameter instruments, with the major components of that second category being total nitrogen-only instruments, followed by the various halogen analyzers.

TELEDYNE TEKMAR LOTIX COMBUSTION TOC ANALYZER

PAC (ROPER) ANTEK MULTITEK




TOC & TOC/TN

85%

Other Sum Parameters

15%

TOC & Other Sum Parameters: Key Market Dynamics

TOC & OTHER SUM PARAMETERS DEMAND BY PRODUCT TYPE, 2017

$141M

n Market demand for TOC and related sum parameter instruments reached $141 million in 2017. TOC has by far the widest applications and consequently dominates the marketplace, making up 85% of demand.

n Other sum parameter instruments are generally relegated to niche applications in particular markets, such as in oil & gas or semiconductors.

n Applications typically focus on measuring for trace amounts of these elements. In the case of carbon, it acts as a proxy for detecting the presence of microorganisms or other unwanted organic matter in a sample, making it suitable for testing water quality or effluents. Thus, much of the application space is environmentally focused or otherwise following regulatory standards.




TOC & Other Sum Parameters: Product Segmentation

n Total growth in the market is estimated at 5.3% through 2022. The broader application of TOC helps to make it the faster growing initial systems segment. This growth is also helped by the significant demand from the pharmaceutical industry for water quality testing. Pharmaceutical machinery needs to be tested for contamination and TOC is a common specific method for verifying cleanliness. Continued investment from the pharma industry supports growth.

n In contrast, the other sum parameters market is seeing slower growth in system sales. The narrower focus, combined with the relative weakness of some of the important markets, like oil and fuels, draws down the growth potential.

n Aftermarket sales remain brisk, with growth estimated at 7.1% in total. Increased testing throughput is driving the aftermarket growth, as companies become more efficient in their use of the instruments in the installed base.

n Service is relatively minor for these instruments, amounting to about 9% of the market, but it too is growing more rapidly than the market for initial systems.

TOC & OTHER SUM PARAMETERS BY PRODUCT TYPE, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Initial System TOC & TOC/TN 58% 82 86 89 94 99 105 5.1% Other Sum Parameters 12% 17 17 18 18 19 19 2.6% Total Initial Systems 70% 99 103 107 113 118 124 4.7%Aftermarket Components 9% 13 13 14 15 16 18 6.8% Consumables 12% 17 18 19 20 22 24 7.3% Total Aftermarket 21% 30 31 33 35 38 42 7.1%Service 9% 13 14 15 16 16 17 5.7%Total 100% 141 148 155 164 173 182 5.3%




n Since there is greater demand for TOC, prices stay somewhat higher on average for that product segment, but the much larger total revenue from the TOC segment results in significantly more unit sales, compared to other sum parameter instruments. In total, nearly 3,000 units were shipped and about 80% of them are TOC instruments.

TOC & Other Sum Parameters: Unit Shipments

TOC & OTHER SUM PARAMETERS PRICES AND UNIT VOLUMES, 2017


2017New Used Total

TOC & TOC/TN $20K - $100K 2,250 125 2,375

Other Sum Parameters $15K - $75K 550 25 575

Total 2,800 150 2,950




n Water utilities is the single largest specific end-user market for these instruments, primarily for TOC. The method is an established water quality measure for contamination of drinking supplies and therefore a must-have for the industry. Pharmaceutical customers are the next largest customer type, primarily for validating the cleaning of manufacturing equipment, or verifying the purity of process waters being used in manufacturing. This is very similar to the usage in the semiconductor industry, which is also a source of significant demand. Oil & gas and semiconductors are some of the stronger sources of demand for the other sum parameters segment.

n Analytical service is by far the largest functional segment for TOC, making up more than half of total demand. This encompasses contributions from many different customer types in drinking water, environmental testing, and the support labs for pharma and other industrial labs. Quality control is also a significant segment, but the other functional segments are relatively small in size.

TOC & Other Sum Parameters: Application Segmentation

TOC & OTHER SUM PARAMETERS DEMAND BY INDUSTRY, 2017

TOC & OTHER SUM PARAMETERS DEMAND BY FUNCTION, 2017

Utilities21%

Pharma16%


Ag/Food9%


8%

Gov. Testing7%

Oil & Gas6%

Academia6%

Biotech5%

Other13%

AnalyticalService

59%QA/QC

19%

Basic R&D7%

MethodsDevelopment

6%

Applied R&D5%

Other4%




n Given the large contribution from water utilities, the public sector is the largest individual segment, despite the fact that there is not a significant amount of demand from other portions of the public sector, namely academic and government laboratories. While, the public sector is a quite stable source of demand, growth here will be only in the low single digits.

n The fastest growth will come from the pharma/bio sector, which is currently the smallest segment, but not for long. Cleaning validation is a necessary part of pharmaceutical production and the migration of manufacturing standards to outsourced facilities in the developing world is leading to significant growth.

n Industrial demand from the semiconductor industry should push strong growth in the near term, while the return of oil prices will help the return of that industry to support stronger growth in the long term, pushing growth in the industrial segment higher than average.

TOC & OTHER SUM PARAMETERS DEMAND BY APPLICATION SECTOR, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


TOC & Other Sum Parameters: Application Segmentation




TOC & OTHER SUM PARAMETERS DEMAND BY REGION, 2017

TOC & OTHER SUM PARAMETERS DEMAND BY COUNTRY, 2017

n Although the US & Canada is the largest individual regional segment, it holds only a very small margin over the European market. Both regions are naturally sources of strong demand from both water utilities, environmental test labs, and industrial users.

n Japan is the next largest source of demand, and has similar usage as North America and Europe, with strong industrial users from pharmaceuticals and semiconductors, alongside water quality testing. Japan is also home to the market leader for laboratory TOC, Shimadzu.

n Due to the relative ubiquity of water quality standards around the world, the other regions of the world make up fairly significant sources of demand, but there is somewhat less usage in industry, although this is beginning to chance as India, China, and Latin America increase and modernize their pharmaceutical production capacities.

TOC & Other Sum Parameters: Demand by Region

US & Canada27%

Europe26%

China11%

Japan14%

India6%


Latin America4%

Rest-of-World4%

24%

14%

11%

8%

6%

5%

5%

2%

2%

2%

0% 5% 10% 15% 20% 25% 30%

United States

Japan

China

Germany

India

United Kingdom

France

Canada

Switzerland

Mexico




TOC & OTHER SUM PARAMETERS DEMAND BY REGION, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


n India is forecast to achieve the greatest growth over the forecast period, approaching double digits. Water quality has long been a critical part of

Indian security, and the government is increasing its measures for verifying water quality. TOC is a relatively inexpensive way to monitor the situation, and uptake is strong here. Similarly, the continued production of generic drugs, along with new processes for more complex pharmaceutical research and production in India, is driving growth from the industrial sector as well.

n Most of the other developing nations are also seeing strong growth, primarily tied to water quality applications, as the technique is attractive, even at modest budgets. The developed world will see positive growth, but generally more muted in the low single digits.

TOC & Other Sum Parameters: Demand by Region




n Shimadzu has the greatest share in the TOC market, with about one-quarter of total revenues. Although Shimadzu only addresses the TOC/TN portion of the market, it does so with a broad portfolio of instruments, autosamplers, and application specific models for cleaning validation or algae detection. Similarly, GE Analytical, the number two vendor, also only addresses the TOC/TN segment of the market with its renowned Sievers products.

n Analytik Jena (Endress + Hauser) provides systems in both product segments. In addition to a full line of TOC and TOC/TN instruments, the company has a broad line of other specialized analyzers, including the Multi X for halides, and MultiEA for applications that require not only carbon and nitrogen, but also sulfur or chlorine. The compEAct provides nitrogen and sulfur analysis.

TOC & OTHER SUM PARAMETERS VENDOR SHARE, 2017

TOC & Other Sum Parameters: Competitive Situation

Shimadzu25%

GE Analytical16%

Analytik Jena (Endress + Hauser)

10%OI Analytical

(Xylem)7%

Hach (Danaher)5%

PAC (Roper)6%

Teledyne Tekmar5%

Other26%




n Although Xylem is heavily focused on water analysis, the OI Analytical acquisition brought in a business with broader TOC applications for both liquid and solid analysis in a wider variety of industries, including food and petrochemicals. Similarly, although Hach (Danaher) is primarily known for water analysis, the company’s TOC line offers specialized systems for food & dairy, and power generation, in addition to water quality.

n PAC (Roper) is more heavily focused on oil & gas applications in the other sum parameter product segment, with the Antek brand of analyzers.

n Rounding out the top ten suppliers are Teledyne Tekmar, Mitsubishi Chemical, elementar, and scalar. Mettler-Toledo heads up the next tier of suppliers; although more known for process instruments (not considered here), the company does offer a portable TOC analyzer.

TOC & OTHER SUM PARAMETERS VENDOR PARTICIPATION, 2017

TOC & Other Sum Parameters: Competitive Situation

Company TOC

& T

OC

/TN

Oth

er S

um P

aram

eter

s

Analytik Jena (Endress + Hauser)Behr Labor-TechnikDrawellElementarEST AnalyticalEuro-TechGE AnalyticalHach (Danaher)MetashMettler ToledoMitsubishiOI Analytical (Xylem)PAC (Roper)ShimadzuSkalarTeledyne TekmarTOC SystemsUICYanaco





TOC & OTHER SUM PARAMETERS RECENT DEVELOPMENTS, 2016 - 2017


Development

Apr-2016 Teledyne Technologies Teledyne Tekmar (a Teledyne Technologies company) introduced the LSS Boat module for the Lotix TOC analyzers. It is intended for combustion of solid samples at temperatures up to 1,000°C.

Jun-2016 Elementar The soli TOC cube for TOC in solids was introduced at Analytica.

Mar-2017 Analytik Jena Analytik Jena (Endress+Hauser) introduced the compEAct series of combustion analyzers for total sulfur and total nitrogen.

Apr-2017 Teledyne Technologies Teledyne Tekmar introduced the TN Module for its Lotix TOC Combustion Analyzer. TOC and TN samples can be analyzed at the same time, using a chemiluminescence detector in connection with a nondispersive IR detector.

TOC & Other Sum Parameters: Recent Developments



X. INORGANIC ELEMENTAL ANALYZERS

SECTION X

INORGANIC ELEMENTAL ANALYZERS




Inorganic Elemental Analyzers: Technology Overview

SDi considers inorganic analyzers to include instruments that detect and measure elements that are not typically associated with organic chemistry, as well as organic elements that are detectable in inorganic materials (e.g. measuring carbon in steel). However, the breadth of the field and variety of analysis techniques poses some classification difficulties. For example, mercury can combine with other elements to form organic compounds which may act as environmental pollutants with greater toxicity than inorganic mercury compounds. While this is true, mercury is typically thought of as an elemental constituent of inorganic compounds and thus all mercury analyzers are considered in this section.

The metal analyzers instrument category measures predetermined elements in steel, aluminum, and other metal or alloys. Commonly measured elements are carbon, sulfur, hydrogen, and oxygen. On occasion, these analyzers may be used for non-metallic sample analysis, but their primary function is metal analysis.

The remaining inorganic analyzers are categorized as “other.” This includes analyzers for samples that are non-mercuric, non-metallic and non-biological in nature. Common instruments within this category include analyzers for arsenic, sulfur, boron, chlorine, and the cyanide ion. Although cyanide is not strictly an element, cyanide analyzers are included within this section. This category also includes elemental analyzers for water purity assessment, wherein commonly measured elements are fluorine, selenium, iron, cadmium, chlorine, lead, arsenic and related elements (excluding mercury).

LECO 928 SERIES CARBON/NITROGEN ANALYZER

TEKRAN 2700 METHYL MERCURY ANALYSIS SYSTEM




Mercury Analyzers

29%

Metal Analyzers56%

Other Inorganic

15%

Inorganic Elemental Analyzers: Key Market Dynamics

INORGANIC ELEMENTAL ANALYZERS DEMAND BY PRODUCT TYPE, 2017

$223M

n The total market for inorganic elemental analyzers in 2017 was $223M. Its future growth is expected to be mild, driven by demand in Asian countries that are investing heavily in infrastructure, thus propelling the growth of the metals/mining industry and environmental testing. While the metals industry has suffered from weak spending in the last couple years, the market is beginning to turn around.

n Although initial systems account for the majority of demand, consumables will grow above the market rate over the next five years. Increased testing volumes will require laboratories that are continuously supplied with tubes, absorption cells, pumps and other consumables.

n Quality control and analytical services are the main functions that will carry demand for initial systems and aftermarket products. Aside from analyses in the metals industry itself, environmental applications represent an alternative and far more stable source of demand, particularly as additional quality standards from Asia come into effect.




Inorganic Elemental Analyzers: Product Segmentation

n Propelled by increasing confidence in the metals/mining industry, the market for inorganic elemental analyzers will face mild growth, expected to reach $250 million by 2022. Metal analyzer instruments comprise about a third of the market. Common applications for these instruments include the determination of carbon and sulfur in steel and other alloys, and the measurement of oxygen, nitrogen, and hydrogen in metallic samples. Heavily influenced by metals/mining, sales growth will be flat, though still improved from that of the previous few years.

n Mercury analyzers are set to be the fastest growing technology. Demand for water and soil testing continues to grow since mercury contamination poses serious threats to both humans and other life forms. The market for other inorganic analyzers will also benefit from increasing demand from environmental testing labs.

n The aftermarket is expected to grow above the total market rate, driven by the consumables needed to run these analyzers. Consumables are primarily elemental and sample standards, such as bitumen-asphalt CHNOS or cast-iron standards. Components include various quartz and glassware items, crucibles, and components for select modular analyzers.

INORGANIC ELEMENTAL ANALYZERS DEMAND BY PRODUCT TYPE, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Initial System Mercury Analyzers 19% 41 42 43 44 45 46 2.4% Metal Analyzers 34% 76 77 78 79 80 81 1.3% Other Inorganic 13% 29 30 30 30 31 31 1.4% Total Initial Systems 66% 146 149 151 153 156 159 1.6%Aftermarket Components 5% 11 11 12 12 12 12 1.9% Consumables 18% 40 42 44 47 49 51 5.1% Total Aftermarket 23% 51 54 56 58 61 64 4.4%Service 12% 26 26 27 27 28 28 1.9%Total 100% 223 229 234 239 245 250 2.3%




n Out of the 30,000 inorganic elemental analyzers units that are currently active, approximately 3,700 were sold in 2017. Used instruments comprised about a tenth of the total volume sold.

Inorganic Elemental Analyzers: Unit Shipments

INORGANIC ELEMENTAL ANALYZERS PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Mercury Analyzers $15K - $65K 1,275 100 1,375

Metal Analyzers $35K - $105K 1,275 200 1,475

Other Inorganic $12K - $72K 775 75 850

Total 3,325 375 3,700




n The metals/mining industry accounts for more than half of the total demand for inorganic elemental analyzers. Like the metals industry, utility labs have different applications for each of the product lines, with metal analyzers being commonly employed for analysis of coal. The presence of mercury in coal has been an area of great concern and coal companies are increasingly held to strict compliance regulations. Meanwhile, water utilities depend more strongly on mercury analyzers and other inorganic analyzers, where water is tested for impurities such as fluorine, selenium, iron, cadmium, chlorine, lead, arsenic, and other harmful compounds.

n General testing laboratories are heavily involved in environmental testing for adulterants, such as mercury, a naturally occurring element that is pervasive in aquatic environments and can be toxic to wildlife and human populations. Government testing has also been primarily environmental in its scope.

n Regarding functional divisions, quality control and analytical service labs account for nearly 80% of the entire market. The quality control of oil, gas, steel, and related commodities continues to constitute a significant source of demand. Analytical services, while they also address these concerns, primarily employ inorganic analyzer technology for environmental testing, especially for detecting mercury in drinking water and food.

Inorganic Elemental Analyzers: Application Segmentation

INORGANIC ELEMENTAL ANALYZERS DEMAND BY INDUSTRY, 2017

INORGANIC ELEMENTAL ANALYZERS DEMAND BY FUNCTION, 2017

Gen./Environ. Testing 9%

Utilities9%

Oil & Gas7%

Ag/Food5%

Gov. Testing3%

Academia4%

Other12%

QA/QC42%


Applied R&D10%

Basic R&D5%


Other3%

Metals/ Mining51%




n The industrial sector accounts for two-thirds of all sales for inorganic elemental analyzers, and consists of significant revenues from aerospace and automobiles, chemicals, metals/mining, oil & gas, paints & coatings, polymers/plastics, and electronics. There is demand for mercury and metals testing in each of these industries, and although the market has been stagnant lately, pent-up demand is expected to provide some relief.

n The applied sector will perform much better, however, thanks to continued strength in environmental testing. Increasing enforcement of environmental regulations in China and other Asia Pacific countries are expected to drive growth in this space. In developing nations, reforms in health and clean water standards will also fuel growth.

n The public sector will see only low-single-digit gains. Even though some government agencies are involved in quality control and serve as regulatory bodies, uncertainty in US federal funding for these initiatives will undermine growth.

INORGANIC ELEMENTAL ANALYZERS DEMAND BY APPLICATION SECTOR, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


Inorganic Elemental Analyzers: Application Segmentation




INORGANIC ELEMENTAL ANALYZERS DEMAND BY REGION, 2017

INORGANIC ELEMENTAL ANALYZERS DEMAND BY COUNTRY, 2017

n US & Canada and Europe combine to account for more than half of the total regional market. As developed regions, the metals/mining industry and other sectors that rely heavily on inorganic elemental analyzers are already well-established.

n As the producer of nearly half the world’s steel tonnage, China exerts a huge influence on industries that depend on it. But where the slow deceleration of private investment in the country collides with boosted government spending on construction, there lies much uncertainty in how long its metals industry will remain prosperous. Fortunately for this market, inorganic elemental analyzers also rely heavily on environmental testing applications in China, which will continue to receive strong government support for the foreseeable future.

Inorganic Elemental Analyzers: Demand by Region

US & Canada27%

Europe25%

China9%

Japan12%

India5%


Latin America5%

Rest-of-World6% 25%

12%

9%

8%

5%

5%

4%

3%

0% 5% 10% 15% 20% 25% 30%

United States

Japan

China

Germany

India

United Kingdom

France

Italy




INORGANIC ELEMENTAL ANALYZERS DEMAND BY REGION, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


n India is projected to experience the fastest rate of growth, as the country’s government looks to more than double steel production capacity by 2030

in a massive infrastructure program designed to encompass its growing population and rapid urbanization. Other Asia Pacific and China will grow at a moderate pace, fueled by continued investment in infrastructure and environmental protection facilities, but offset by a slowdown in steel production.

n In most other regions, flat to mild growth of the industrial sector is expected to stagnate further market gains.

Inorganic Elemental Analyzers: Demand by Region




n LECO is the market leader for inorganic elemental analyzers, participating in all product categories with many subsidiaries worldwide. As the top seller of metal analyzers in 2017, the company recently introduced the 928 series for carbon/nitrogen analysis. It features rapid cycles, a 100-sample position autoloader, and a high-efficiency furnace with intelligent control.

n HORIBA controls 12% of the market, and although it sells all kinds of inorganic elemental analyzers, it has a preponderant participation in the other inorganic analyzers market. Its variety of UV fluorescence sulfur-in-oil analyzers are well-distributed among oil & gas industry participants.

INORGANIC ELEMENTAL ANALYZERS VENDOR SHARE, 2017

Inorganic Elemental Analyzers: Competitive Situation

LECO43%

HORIBA12%

Eltra7%

NIC (Rigaku)6%

PAC (Roper)4%

Teledyne Leeman

4%

Lumex3%

Milestone2%

PS Analytical2%

Other17%




n Germany-based Eltra manufactures only metal analyzers, especially for the steel, automotive, mining, and aerospace industries. Its latest instruments are ELEMENTRAC, a series of systems that have a number of advantages from previous systems, such as software supporting data and application export, a water-cooled sample port system for the effective removal of atmospheric gases, and the use of cost-efficient argon as a carrier gas.

n NIC (Rigaku) specializes in mercury analyzers. The company released its latest product in 2016, the RA-5, an extremely versatile and cost-effective system that requires only 5mL of sample.

INORGANIC ELEMENTAL ANALYZERS VENDOR PARTICIPATION, 2017

Inorganic Elemental Analyzers: Competitive Situation

Company Mer

cury

Ana

lyze

rsM

etal

Ana

lyzer

s

Analytik Jena (Endress+Hauser)BrukerBuck ScientificEltraHach (Danaher)HitachiHORIBALECOLumexMilestoneMitsubishiNIC (Rigaku)PAC (Roper)PerkinElmerPS AnalyticalTekranTeledyne Leeman


Oth

er In

orga

nic




INORGANIC ELEMENTAL ANALYZERS RECENT DEVELOPMENTS, 2016 - 2017


Development

Mar-2016 HORIBA HORIBA launched its latest elemental analyzers, the EMIA-Pro and Expert Carbon/Sulfur Analyzers. The new instruments offer non-dispersive infrared (NDIR) measurement capabilities and can be used for a variety of inorganic materials, such as steel, cokes, catalysts, and non-ferrous alloys like aluminum and lithium-ion battery materials.

May-2016 NIC (Rigaku) Nippon Instruments, specializing in mercury analyzer technology, released its new analyzer, the RA-5. The next generation analyzer includes a full-color LCD touch panel and the capability of upgrade to an automated CVAAS mercury analyzer.

Sep-2016 Eltra Eltra released its latest generation of inorganic analyzers, the ELEMENTRAC series and ONH-p. Replacing earlier models, such as the ONH-2000 model, the updated instruments expand upon previous capabilities.

May-2017 LECO LECO introduced the 928 Series for carbon/nitrogen analysis. It features a custom interface designed for touch-screen operation and is ideal for the analysis of heterogenous, difficult to prepare, or low analyte level samples.

Inorganic Elemental Analyzers: Recent Developments



SECTION XI

XI. ORGANIC ELEMENTAL ANALYZERS

ORGANIC ELEMENTAL ANALYZERS




Organic Elemental Analyzers: Technology Overview

SDi classifies elemental analyzers as instruments specifically designed for the measurement of one or a small number of elements. This excludes atomic spectroscopy instruments, which are discussed in a separate market brief. Organic elemental analyzers are specialized for the measurement of elements strongly associated with organic molecules, as well as samples typically studied within the life sciences. Given the breadth of instruments that meet these criteria, this report categorizes technology by the samples and/or elements that they are designed to measure. This report is not a comprehensive overview of the technology in this realm, but rather provides a basic description of the fundamental differences between these instruments.

The first category considered here consists of instruments that analyze multiple elements. The minimum requirement for this category is the analysis of carbon, hydrogen, and nitrogen, which will hereon be referred to as CHN-type. Many of the instruments that meet this criterion can by modified with a variety of optional detectors for the measurement of other organic elements, such as oxygen, sulfur, and phosphorus. Generally speaking, these instruments utilize combustion for analysis.

The second category of instruments considered in this section includes nitrogen/protein analyzers. The amino acid composition of protein, which is interlaced with nitrogen, allows the analysis of protein through the quantification of nitrogen. This, of course, is predicated upon the nitrogen content of the sample coming only from protein.

The second class of instruments are similar to total nitrogen analyzers, except that they are generally specialized for the analysis of protein in foodstuffs, rather than the analysis of water. Included within the protein/nitrogen section are Kjeldahl systems. The Kjeldahl method is commonly used in wet chemistry to determine protein content. Only automated Kjeldahl systems are considered here.

THERMO FISHER FLASHSMART

PERKINELMER 2400CHS/O SERIES II SYSTEM




CHN-type53%

Protein/ Nitrogen

47%

Organic Elemental Analyzers: Key Market Dynamics

ORGANIC ELEMENTAL ANALYZERS DEMAND BY PRODUCT TYPE, 2017

$75M

n The organic elemental analyzers market reached $75 million in 2017 and is expected to experience flat growth for the next five years. At present, positive market growth can be attributed to continued need in nascent economies. But eventually, these regions will follow the trend set by developed nations, and transition to more versatile and accurate technologies. In following this trend, there were no new organic elemental analysis products releases in 2017.

n The limited growth prospects that do exist for the market come from the ag/food and the general/environmental testing industries. CHN-type instruments are expected to grow above the market average, but protein/nitrogen equipment are expected to decline by 3.3% annually, over the next five years. China will lead in terms of growth, as food production increases to accommodate the growing population.

n LECO is the leading vendor, accounting for a fifth of the demand, followed by Thermo Fisher and FOSS. LECO is the frontrunner in CHN-type systems, while FOSS leads the protein/nitrogen market.




Organic Elemental Analyzers: Product Segmentation

n Initial systems account for more than 60% of the total market, but no growth is expected over the forecast period due to declining demand for protein/nitrogen instruments. Demand will be lost to competition from more selective instrument technologies such as chromatography and mass spectrometer systems, which are able to make increasingly accurate assessments of protein content through more direct means, rather than relying on total nitrogen content.

n Consumables, such as combustion tubes, O-rings, fuses and chemicals, constitute the largest portion of the aftermarket and will drive its growth. Aftermarket will grow at a rate above that of the overall technology, as many installed systems can be upgraded with components, such as optional detectors and analyzers, and consumables to continue running.

ORGANIC ELEMENTAL ANALYZERS DEMAND BY PRODUCT TYPE, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

Initial System CHN-type 35% 26 27 27 28 29 29 2.1% Protein/ Nitrogen 26% 20 19 19 18 17 16 -3.3% Total Initial Systems 61% 46 46 46 46 46 46 -0.1%Aftermarket Components 6% 5 5 5 5 5 5 0.7% Consumables 19% 14 15 15 16 15 16 1.8% Total Aftermarket 25% 19 20 20 20 20 20 1.5%Service 14% 11 10 10 11 11 11 1.3%Total 100% 75 76 76 77 77 77 0.5%




n Approximately 1,550 units of organic elemental analyzers were sold in 2017, which included 225 used instruments. The reasonable price of protein/nitrogen analyzers make them a good choice for food testing in developing countries, where more advanced selective systems such as mass spectrometers may be cost-prohibitive.

Organic Elemental Analyzers: Unit Shipments

ORGANIC ELEMENTAL ANALYZERS PRICES AND UNIT VOLUMES, 2017


2017New Used Total

CHN-type $25K - $80K 625 75 700

Protein/ Nitrogen $15K - $45K 700 150 850

Total 1,325 225 1,550




n The largest source of demand comes from the ag/food industry, where both CHN-type and protein/nitrogen systems are widely used. The growing global population, particularly in developing countries, demands greater food production and quality assurance testing ensures nutritional content. Regulations have tightened in the last couple of years, increasing the demand for continuous testing.

n General and environmental testing labs account for almost a tenth of the total demand for organic elemental analyzers. CHN-type analyzers are used in this industry to monitor soil, water and air quality. Demand for these systems is driven by countries such as China, where air and water quality are a concern. The oil & gas industry is also a significant buyer of this instruments, which utilizes them to analyze the quality of oil in different steps of the distillation and refining processes.

n As expected, analytical service and QA/QC functions are the largest ones, accounting together for more than three-quarters of the total demand. These are sometimes performed by government agencies that serve as regulation control units, or by private organizations to test their own product quality or to provide services to other entities.

Organic Elemental Analyzers: Application Segmentation

ORGANIC ELEMENTAL ANALYZERS DEMAND BY INDUSTRY, 2017

ORGANIC ELEMENTAL ANALYZERS DEMAND BY FUNCTION, 2017

Ag/Food42%

Gen./Environ. Testing 10%

Oil & Gas9%

Gov. Testing7%

Academia6%

Pharma6%

Chemicals6%

Other16%

AnalyticalService

58%QA/QC19%

Basic R&D9%

Applied R&D7%


Other4%




n The applied sector accounts for almost half of the total market demand, fueled by the burgeoning ag/food industry. Tight regulations in this industry will bolster growth of organic elemental analyzers. General and environmental analysis will also contribute to demand growth in this sector. Protein/nitrogen systems are almost exclusively used in applied markets, but strong competition from more accurate methods such as mass spectrometry, chromatography or NMR is lowering demand in developed countries.

n The oil & gas industry will fuel demand in the industrial sector. The detection of impurities in oil and gas is critical for its processing. CHN-type analyzers are employed to assess carbon and trace element concentration in coal, oil, and related fuels. The chemicals industry will also contribute to the mild growth of the sector, particularly as these systems are employed for the analysis of fine chemical, catalysts, organo-metallic compounds, and other specialty chemicals, which are utilized within numerous industrial settings.

ORGANIC ELEMENTAL ANALYZERS DEMAND BY APPLICATION SECTOR, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR


Organic Elemental Analyzers: Application Segmentation




ORGANIC ELEMENTAL ANALYZERS DEMAND BY REGION, 2017

ORGANIC ELEMENTAL ANALYZERS DEMAND BY COUNTRY, 2017

n The US & Canada and Europe combine to account for more than half of the total demand for organic elemental analyzers. As developed regions, industrial use is more established than in developing regions, since, historically, organic elemental analyzers were first introduced here and then expanded to the rest of the world. The large ag/food, oil & gas, and environmental industries in developed countries utilize both CHN-type and protein/nitrogen systems.

n China has surpassed Japan in recent years, as its growing population generates demand for organic elemental analyzers in various industries. Particularly, the ag/food industry is growing rapidly in China, and the government is imposing regulations for products testing.

Organic Elemental Analyzers: Demand by Region

US & Canada30%

Europe29%

China11%

Japan9%

India3%


Latin America5% Rest-of-World

7%

28%

11%

9%

9%

6%

5%

4%

2%

0% 5% 10% 15% 20% 25% 30%

United States

China

Germany

Japan

United Kingdom

France

Italy

Canada




ORGANIC ELEMENTAL ANALYZERS DEMAND BY REGION, 2017 - 2022

2017 2018 2019 2020 2021 2022 '17-'22Percent $ Mil CAGR

US & Canada 30% 23 22 22 22 22 22 -1.1%Europe 29% 22 22 22 22 22 22 -0.4%China 11% 8 9 9 10 10 10 4.0%Japan 9% 6 6 6 7 7 7 0.5%India 3% 2 3 3 3 3 3 3.1%Other Asia Pacific 7% 6 6 6 6 6 6 3.0%Latin America 4% 3 3 3 3 3 3 1.1%Rest-of-World 6% 5 5 5 5 5 5 1.3%Total 100% 75 76 76 77 77 77 0.5%

n Although US & Canada and Europe account for the majority of revenue, declining demand is expected in these regions as their industries transition

to more versatile and accurate systems. Protein/nitrogen instruments will become obsolete in these regions that not only demand more specialized systems, but also have the purchasing power to acquire them. Demand for organic elemental analyzer instruments will transition to developing nations, where regulations are being imposed, but government and private funding have not matched them.

n China, India and Other Asia Pacific will be the fastest growing regions. Demand will be driven by growing ag/food production and environmental testing. Latin America, as the world’s breadbasket, widely uses these instruments in the ag/food industry. As the economic conditions of the region improve, the funding for testing will increase.

Organic Elemental Analyzers: Demand by Region




n LECO is the market leader, representing a fifth of the total market. The company manufactures all types of organic elemental analyzers, but most of its revenues in this category stem from CHN-type analyzers. One of the company’s most popular systems is the 628 carbon/hydrogen/nitrogen, which can be purchased in three different configurations to use in organic matrices from foods to fuels.

n Thermo Fisher is the second largest vendor, accounting for 15% of the market share. With a strong presence in the CHN-type market and a smaller one in the protein/nitrogen analyzers market, the company sells its instruments around the world targeting a variety of industries. The company’s FlashSmart Elemental Analyzer is its flagship product, which is available in four different configurations. It provides simultaneous flash combustion of CHNS and pyrolysis of oxygen, automation, and flexibility to users.

n FOSS is the third largest vendor, and it specializes in protein/nitrogen systems. It offers the Dumatec 8000, Kjeltec Series 8400/8200/8100, and KT 200 Kjeltec. The Dumatec 8000 systems utilizes the Dumas method, while the others employ the Kjeldahl method. All systems are suitable for the food industry.

ORGANIC ELEMENTAL ANALYZERS VENDOR SHARE, 2017

Organic Elemental Analyzers: Competitive Situation

LECO20%

Thermo Fisher15%

FOSS13%PerkinElmer

12%

Elementar6%

Skalar5%

Büchi5%

Other24%




n PerkinElmer constitutes 12% of the total market. The company offers the 2400 Series II CHNS/O Elemental Analyzer, and a plethora of consumables to satisfy organic elemental analyzers consumers.

n The rest of the vendors in the market have single-digit market share. Remaining vendors include Elementar and Skalar, which manufacture both categories of instruments, and BÜCHI, which offers only protein/nitrogen systems.

ORGANIC ELEMENTAL ANALYZERS VENDOR PARTICIPATION, 2017

Organic Elemental Analyzers: Competitive Situation

Company CH

N-ty

pePr

otei

n/N

itrog

en

Behr Labor TechnikBüchiCE ElantechCostechElemental MicroanalysisElementarEuroVectorExeter AnalyticalFOSSHach (Danaher)HEKA techLECOPerkinElmerShimadzuSkalarThermo FisherVelp





ORGANIC ELEMENTAL ANALYZERS RECENT DEVELOPMENTS, 2016 - 2017


Development

May-2016 Thermo Fisher Thermo Fisher introduced the FlashSmart elemental analyzer. The instrument supports researchers working in the quantification of carbon, hydrogen, nitrogen, sulfur, and oxygen (CHNS/O) for a broad range of applications.

Organic Elemental Analyzers: Recent Developments

atomic spectroscopy · 2018-05-14 · atomic spectroscopy excerpted from: sdi global assessment...

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