Molecular Spectroscopy - d394wypgd0ijak.cloudfront.net€¦ · ©2018 Strategic Directions International Inc. Maret Analysis erspecties 2017-2022 Molecular Spectroscopy EXCERPTED

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Market Analysis & Perspectives 2017-2022

Molecular SpectroscopyEXCERPTED FROM:

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

18-001 | Published February 2018

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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

I. INTRODUCTION

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

OVERVIEW



II. OVERVIEW

Molecular spectroscopy encompasses nine technologies that analyze molecular species and their interaction with electromagnetic radiation. Included in this section are nuclear magnetic resonance (NMR), UV/Vis spectroscopy, infrared (IR) spectroscopy, near-infrared (NIR) spectroscopy, Raman spectroscopy, fluorescence & luminescence spectroscopy, color measurement, polarimetry & refractometry, and ellipsometry. These systems can be found across many industries and come in a wide variety of platforms, ranging from handheld Raman instruments to NMR systems that require their own separate room.

Molecular Spectroscopy: Technology Overview

NMR

High Field NMR

Time Domain NMR

Low Field Spectroscopy

NMR

Imaging NMR

Hyphenated NMR

EPR

UV/Vis

Photometers

Vis Only

Single Beam UV/Vis

Double Beam UV/Vis

Microvolume UV/Vis

UV/Vis Multichannel

UV/Vis/NIR

IR

Benchtop

Microscope

Portable

Hyphenated

Terahertz

NIR

Scanning & Diode Array

FT-NIR

Portable/ Handheld

Filter

Raman

Microscopes

Portable

Dispersive

FT-Raman

Fluorescence & Luminescence

Spectrofluoro-meters

Lifetime Fluorescence

Filter Fluorometers

Luminometers

Color Measurement

Color Spectrophoto-

meters

Densitometers

Colorimeters

Other

Polarimetry & Refractometry

Refractometers

Polarimeters

Density Meters

Ellipsometers

Spectroscopic Ellipsometers

Laser Ellipsometers

Reflectometers

MOLECULAR SPECTROSCOPY

NMR

High Field NMR

Time Domain NMR


NMR

Imaging NMR

Hyphenated NMR

EPR

UV/Vis

Photometers

Vis Only

Single Beam UV/Vis

Double Beam UV/Vis

Microvolume UV/Vis

UV/Vis Multichannel

UV/Vis/NIR

IR

Benchtop

Microscope

Portable

Hyphenated

Terahertz

NIR


FT-NIR

Portable/ Handheld

Filter

Raman

Microscopes

Portable

Dispersive

FT-Raman

Fluorescence & Luminescence

Spectrofluoro-meters


Filter Fluorometers

Luminometers

Color Measurement

Color Spectrophoto-

meters

Densitometers

Colorimeters

Other

Polarimetry & Refractometry

Refractometers

Polarimeters

Density Meters

Ellipsometers


Laser Ellipsometers

Reflectometers



II. OVERVIEW

Molecular Spectroscopy: Product Segmentation

n The total market for molecular spectroscopy is expected to surpass $5 billion by 2022. The growth for most technologies in this segment will be moderate, with Raman, IR, and NIR seeing growth above the average due in part to the popularity and versatility of portable/handheld systems. In addition to handheld systems and quality analysis applications, IR spectroscopy will be driven by increased academic and pharmaceutical research interest in terahertz spectroscopy systems.

n Growth from UV/Vis, color measurement, and ellipsometry is expected to be moderate. UV/Vis, despite having the largest share of the market alongside IR, is a well-established technology with a mature market, with most of the growth driven by newer microvolume UV/Vis systems. Color measurement and ellipsometry are used in comparatively niche applications, but should see growth driven by strong sales from the semiconductor/electronics industry and other consumer goods.

MOLECULAR SPECTROSCOPY DEMAND BY PRODUCT, 2017 - 2022

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

NMR 20% 835 862 890 917 944 970 3.0%UV/Vis 21% 894 927 961 994 1,028 1,064 3.5%Infrared 21% 869 926 982 1,049 1,113 1,183 6.4%Near-Infrared 8% 352 371 391 411 432 454 5.2%Raman 9% 380 412 445 482 522 566 8.3%Fluorescence & Luminescence 4% 175 180 186 190 195 200 2.7%Color Measurement 10% 407 422 436 451 467 484 3.5%Polarimetry and Refractometry 4% 162 167 171 175 180 184 2.6%Ellipsometry 2% 88 91 94 97 100 104 3.3%Total 100% 4,162 4,358 4,556 4,767 4,981 5,208 4.6%



II. OVERVIEW

Total Initial Systems68%

Total Aftermarket

19%

Service13%

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2017 2018 2019 2020 2021 2022M

arke

t Dem

and

($M

illion

s)Year

Molecular Spectroscopy: Product Segmentation

MOLECULAR SPECTROSCOPY DEMAND BY PRODUCT TYPE, 2017

MOLECULAR SPECTROSCOPY, 2017 - 2022

$4.2B

n NMR is one of the larger technology segments under molecular spectroscopy, but growth will remain slow. Growth for high field systems will be constrained by their cost of purchase and operation; instead, the majority of the growth for NMR will come from time domain and low field spectroscopy systems, driven by their use as quality assurance instruments and as teaching tools.

n Polarimetry & refractometry and fluorescence systems will see the slowest growth over the forecast period. Growth for these technologies is limited by the popularity of other systems like Raman or IR, but despite this, research utilizing fluorescence models and circular dichroism polarimeters to study nanomaterials or life science molecules will help sustain demand.

CAGR = 4.6%



II. OVERVIEW

n The largest portion of the market is occupied by the pharmaceutical industry, which utilizes quality analyzers such as UV/Vis or IR for QA/QC, and applies NMR to elucidate molecular structure for drug discovery. The whole pharma/bio sector makes up the largest source of demand for molecular spectroscopy.

n Research, both public and private, is the largest functional usage of molecular spectroscopy, with basic & applied R&D representing just over one-third of the market combined. Molecular spectroscopy is ideal for determining molecular structure, with government research and academia occupying nearly one-fifth of the market combined, though these instruments are also common teaching tools in academia.

n Molecular spectroscopy instruments are commonly used in the food & agriculture industry to quickly determine quality and composition, usually in the form of NIR instruments or portable refractometers, with the applied sector making up the smallest portion of demand. Industrial applications of molecular spectroscopy include the analysis of polymers or petrochemicals.

MOLECULAR SPECTROSCOPY DEMAND BY INDUSTRY, 2017

Molecular Spectroscopy: Application Segmentation

Pharma14%

Academia12%

Ag/Food10%

Biotech9%

Gov. Research6%

Gov. Testing6%

Polymers/ Plastics6%

Hospital & Clinical5%

Chemicals5%

Other27%



II. OVERVIEW

n The largest portion of demand and the fastest growth will come from the pharma/bio sector. This sector is expected to continue to perform well over the forecast period, with expanding drug manufacturing and increasing R&D spending helping to drive the growth of molecular spectroscopy in this sector, benefiting both routine analyzers and research-intensive instruments.

n The applied and industrial sectors are expected to see growth on par with the total market. Demand will come from growing consumer concerns over environmental and food quality and from the production and development of more advanced polymers. Other industries like automobiles, solar panels, and semiconductors will also contribute to growing demand.

n The public sector will see the slowest growth. While the majority of technologies covered under molecular spectroscopy are important research tools, slowing of public funding in the US and UK is expected to negatively impact growth in this sector. Growing research opportunities through academic or other publicly funded institutions in the rest of the European Union and China will help to offset this decline.

MOLECULAR SPECTROSCOPY DEMAND BY APPLICATION SECTOR, 2017 - 2022

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

Pharma/Bio 28% 1,159 1,230 1,304 1,384 1,467 1,556 6.1%Public 27% 1,131 1,168 1,204 1,242 1,279 1,318 3.1%Applied 19% 780 816 853 890 929 970 4.4%Industrial 26% 1,091 1,144 1,196 1,250 1,306 1,364 4.6%Total 100.0% 4,162 4,358 4,556 4,767 4,981 5,208 4.6%

Molecular Spectroscopy: Application Segmentation



II. OVERVIEW

MOLECULAR SPECTROSCOPY DEMAND BY REGION, 2017 - 2022

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

US & Canada 35% 1,444 1,517 1,589 1,665 1,742 1,823 4.8%Europe 30% 1,255 1,301 1,347 1,396 1,445 1,496 3.6%China 9% 370 400 431 466 502 542 7.9%Japan 9% 394 406 418 430 442 455 2.9%India 3% 128 136 143 151 159 168 5.6%Other Asia Pacific 6% 230 244 258 273 290 307 6.0%Latin America 3% 133 137 142 149 155 160 3.9%Rest-of-World 5% 209 218 227 236 246 256 4.1%Total 100% 4,162 4,358 4,556 4,767 4,981 5,208 4.6%

n The majority of demand is generated by the US & Canada and Europe, with some of the largest companies in the pharmaceutical, chemical, and

agriculture & food industries located in these two regions. Compared to more established markets, demand from research applications in emerging regions are less prominent than that of the industrial and applied sectors, driven largely by agriculture, oil & gas, and metals/mining. This trend is apparent in India, Latin America, and Rest-of-World, especially for more costly instruments like NMR or terahertz spectroscopy, where there is a high barrier to adoption.

n Growth in Japan is expected to be slow compared to other regions. Despite a recovering economy and strong automotive and electronics industries, other markets like South Korea and China are gaining on Japan in many key areas, such as semiconductors and pharmaceuticals. An aging population is also expected to negatively affect Japan’s academic institutions.

n It is expected that China will surpass Japan over the forecast period, due to strong foreign and government investment in the pharma/biotech sector and an expected expansion of environmental and food regulations helping to drive demand. Chinese growth across several industries has allowed China to catch up with demand from more established countries like Japan and Germany; a trend which should continue as government policies seek to make China globally competitive both in industrial and scientific output.

n Other Asia Pacific and India will also perform well over the next five years. Countries like South Korea and Taiwan are expected to expand their polymer and electronics/semiconductor industries to compete with China and the US. Government incentives and foreign investment are expected to boost the pharma/biotech sector in India, in addition to growing demand from the oil & gas and mining & minerals industries. Most other regions are expected to grow at close to market average, largely driven by expanding pharmaceutical spending, increased environmental testing, and growing food & agricultural output.

Molecular Spectroscopy: Demand by Region



II. OVERVIEW

n Molecular Spectroscopy is a highly fragmented market, with only Bruker and Thermo Fisher holding double-digit shares of the market. Bruker’s large market share is owed mostly to being the largest vendor of NMR systems, but it also has smaller shares of several other product segments, offering both handheld and benchtop systems for IR, NIR, and Raman. Thermo Fisher is the second-largest vendor in this market. It offers a product base across more segments than Bruker, with major footholds in the UV/Vis, IR, and Raman product segments.

n Other major vendors include PerkinElmer, FOSS, X-Rite, and Shimadzu. PerkinElmer is a market leader in IR spectroscopy, though they have products across several other segments. FOSS is well known in the ag/food industry as a major vendor of NIR systems. X-Rite participates exclusively in color measurement and is the largest vendor in that segment. Shimadzu is more broad-based as a moderate supplier of UV/Vis, IR, and fluorescence systems.

MOLECULAR SPECTROSCOPY VENDOR SHARE, 2017

Molecular Spectroscopy: Competitive Situation

Bruker14%

Thermo Fisher12%

PerkinElmer6%

FOSS4%

X-Rite (Danaher)4%

Shimadzu4%

Agilent3%

JASCO3%

Other48%



II. OVERVIEW

n Numerous vendors compete in the molecular spectroscopy market, though no one vendor competes across all technology segments. Some vendors are more focused on particular segments, like Hach, Oxford Instruments or Renishaw, while others have more broad offerings like Agilent, JASCO, and Ocean Optics.

n High field NMR is dominated by Bruker and JEOL, though many vendors offer more modest NMR systems. UV/Vis is both the largest and most crowded market in molecular spectroscopy, a situation which only benefits the consumer. Color measurement, NMR, IR and NIR are the only segments where the market leader has a double-digit lead over the second-largest vendor. NIR is a more focused market, but IR is expected to grow with more vendors entering the terahertz spectroscopy space. Color measurement is unique in that many of the vendors in that segment do not compete in other molecular spectroscopy segments.

MOLECULAR SPECTROSCOPY VENDOR PARTICIPATION, 2017


Company NM

RU

V-Vi

s

ABBAgilentATAGOBrukerBYK (ALTANA)DatacolorFOSSHach (Danaher)Hanna InstrumentsHitachiHORIBAJASCOJEOLKonica MinoltaOcean Optics (Halma)Oxford InstrumentsPalintest (Halma)PerkinElmerRenishawShimadzuSmiths DetectionThermo FisherTintometerX-Rite (Danaher)

Major Moderate Minor

IR NIR

Ram

anFl

uore

scen

ce &

Lum

ines

cenc

eC

olor

Man

agem

ent

Pola

rimet

ry a

nd R

efra

ctom

etry

Elip

som

etry



II. OVERVIEW

MOLECULAR SPECTROSCOPY VENDOR SHARE BY PRODUCT, 2017




II. OVERVIEW

MOLECULAR SPECTROSCOPY VENDOR SHARE BY PRODUCT, 2017




III. NMR

SECTION III

NUCLEAR MAGNETIC RESONANCE (NMR)



III. NMR

NMR: Technology Overview

Nuclear magnetic resonance (NMR) is a technique that provides information about the structure of organic molecules. Unlike other forms of spectroscopy that probe the electron or bond structure of a sample, NMR focuses on the magnetic properties of the nuclei. The sample is placed in a magnetic field that causes all the atomic nuclei to align. The sample is then subjected to electromagnetic radiation, usually in the radio frequency (RF) spectrum, at the frequency at which the nuclear magnetic moments undergo transitions from being aligned with the field to against the field. When such transitions occur, some of the RF energy is absorbed and a signal is obtained. High resolution NMR is sensitive to the combination of the field produced by adjacent atomic nuclei. Thus, NMR spectra provide information about molecular structure. Most NMR spectrometers use Fourier transform (FT) pulsed techniques, where the RF modulation is not applied continuously, but rather in a series of precisely timed pulses, which induce specific transitions of the nuclear magnetic spins. These pulsed systems are both more sensitive and faster than continuous wave systems, and have largely replaced them in common analytical usage.

High field NMR is defined as systems with magnet strengths corresponding to hydrogen resonance frequencies of 300 MHz or higher. Low field instruments are all others with magnet powers of fewer than 300 MHz and fixed magnets. In this edition, time-domain NMR (TD-NMR) is a separate product segment from other low field NMR instruments. TD-NMR systems have low field, fixed magnets and are distinct in that data is interpreted in the time-domain and not frequency-domain like typical NMR spectroscopy. Imaging NMR (or NMR microscopy) systems perform both spectroscopic analysis and provide the associated images. Hyphenated NMR consists primarily of LC-NMR, but also includes LC-NMR-MS and LC-SPE-NMR. Electron paramagnetic resonance (EPR), which is also known as electron spin resonance (ESR), works similarly to NMR, but studies samples that contain unpaired electrons which are found in free radicals and transition metal ions. Magnetic resonance imaging (MRI) for human clinical analysis relies on the same principle as NMR, but uses much lower power magnets, and does not provide chemical information. MRI for animal studies is considered in the section on in vivo animal imaging.

JEOL JNM-ECZA ROUTINE NMR SPECTROMETER

BRUKER MINISPEC MQ-ONE TD-NMR SYSTEM



III. NMR

High Field NMR65%

Time Domain NMR14%


NMR6%

Imaging NMR7%

Hyphenated NMR5%

EPR3%

NMR: Key Market Dynamics

NMR DEMAND BY PRODUCT TYPE, 2017

$835M

n With a CAGR of just over 3%, the NMR market is expected to reach nearly $1 billion by 2022. Demand is largely driven by NMR’s research applications and its use in the pharma/bio, food, and chemicals industries. Demand should follow as these industries expand in Asia Pacific markets.

n Bruker and JEOL continue to dominate the market as the two vendors of high field NMR instruments. Since Agilent’s departure from this product segment, both companies have slowly taken a larger share of the market. Given the sophistication of the high field systems, there is no significant pressure on these top tier vendors from other competitors.

n Nearly half a decade ago, Agilent cited poor profitability as one of the reasons it was exiting the technology. While the market is still slow to grow, it is certainly doing better. This recovery is projected to continue, but with some reservations. Public funding is a major contributor to the market and funding uncertainties keep this important source of demand in a state of flux, so this slow growth may not continue forever.

n Growth in this technology will largely be driven by benchtop NMR systems. TD-NMR is increasingly being used in QA/QC laboratories for its quickness and ease of use. Other low field NMR systems also will help drive the market with their significantly lower price compared to high field NMR. Other NMR product segments are largely confined to niche applications.



III. NMR

NMR: Product Segmentation

n The majority of the market is made up of high field NMR systems. Determining molecular structure makes high field NMR a valuable tool in research, particularly in academia and the pharmaceutical industry, but the significant cost of these systems hinders growth. It is expected that demand for high field NMR systems will be relegated to large companies and institutions with the funds available for these systems.

n TD-NMR commands the second largest portion of the market, and is expected to see moderate growth. These instruments offer quick analysis and are finding increased usage across a number of industries, from food and fuel to fine chemicals. Low field NMR systems, usually found as benchtop models, are an attractive alternative to high field systems given their cost and size. While less powerful, these instruments should continue to improve and see strong growth.

n Imaging NMR is closely tied with research applications, and is expected to have slightly below-average growth as public funding slows. Hyphenated NMR systems are powerful tools in analyzing complex mixtures by combining chromatography and NMR. EPR systems study materials with unpaired electrons. With these niche applications, these product segments are expected to see below-average growth.

n Aftermarket and service sales are expected to grow as the technique necessitates significant expenditures on consumables and components, including magnets, liquid helium, and NMR tubes. NMR is an extremely specialized and sophisticated technique, making service an important part in keeping this technology running.

.

NMR DEMAND BY PRODUCT TYPE, 2017 - 2022

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

Initial System High Field NMR 38% 317 326 335 343 351 359 2.5% Time Domain NMR 5% 42 43 45 46 48 49 3.5% Low Field Spectroscopy NMR 3% 25 26 27 28 29 30 3.7% Imaging NMR 5% 42 43 44 45 45 46 2.0% Hyphenated NMR 3% 26 27 27 28 28 29 2.1% EPR 1% 12 12 12 12 13 13 1.8% Total Initial Systems 56% 463 476 489 502 514 526 2.6%Aftermarket Components 15% 126 131 135 140 144 149 3.3% Consumables 10% 84 87 90 93 97 100 3.6% Total Aftermarket 25% 210 217 225 233 241 248 3.5%Service 19% 162 169 175 182 189 195 3.8%Total 100% 835 862 890 917 944 970 3.0%



III. NMR

n Time domain NMR made the most shipments in the last year, with more than high field and low field systems combined. This is owed to their growing demand and much lower price floor compared to other product segments in this market. Imaging NMR, hyphenated NMR, and EPR all shipped about 100 units combined. Their niche applications, combined with the high cost of these systems, restrict the number of units sold and may make other technologies a cheaper alternative.

NMR: Unit Shipments

NMR PRICES AND UNIT VOLUMES, 2017

Product Type Price Range

2017New Used Total

High Field NMR $150K - $15M 300 25 325

Time Domain NMR $10K - $100K 600 75 675

Low Field Spectroscopy NMR $15K - $2M 300 25 325

Imaging NMR $30K - $3M 50 <25 50

Hyphenated NMR $300K - $5M 25 <25 25

EPR $20K - $1M 25 <25 25

Total 1,300 125 1,425



III. NMR

Academia25%

Gov. Research21%

Pharma14%

Biotech8%

CROs7%


Ag/Food6%

Other13%

Basic R&D40%

Applied R&D25%

Analytical Service15%

QA/QC9%

Methods Development

7%

Other4%

n Publicly funded research makes up the largest segment of market demand. Outside of academia and government research, the pharmaceutical and biotech industries make up the next largest portion of demand. NMR plays a crucial role in research to determine molecular structure, but each product segment contributes across scientific disciplines. For example, imaging NMR can be used to study battery degradation or macromolecule structure, and hyphenated NMR systems can separate and identify complex mixtures such as polymers or biofluids.

n Outside of academia and other government-funded research, many industries use NMR. In the food & agriculture industry, solid fat content or seed oil can be quickly analyzed by TD-NMR in quality labs, and hospital & clinical laboratories can use NMR to perform analysis of biofluids or patient drugs. The oil industry also utilizes NMR for petroleum and natural gas exploration.

n Analytical services also make up a substantial portion of the market. Given the cost and specialized training required to operate NMR systems, many services are available to utilize NMR without the need to own one. This function can be found across industries, from foods to polymers.

NMR: Application Segmentation NMR DEMAND BY INDUSTRY, 2017 NMR DEMAND BY FUNCTION, 2017



III. NMR

n The pharma/bio sector is set to be the fastest growing. As consumer spending on drugs continues to grow, so should industries in this sector follow with research and development of new products. NMR remains a crucial tool in research and should continue to see strong demand from this sector. Strong growth in Asia Pacific markets for this sector will also help grow demand.

n The public sector is set to grow the slowest. Despite its role in research, public funding of research can be fickle, which does not bode well for the cost of high field NMR systems. The applied and industrial sectors are set to see about average growth. The applications for NMR in the food industry will give the applied sector a slight push to grow above average. In the industrial sector, applications for NMR are more niche, but demand should continue to grow as these industries expand in Asia Pacific markets.

NMR DEMAND BY APPLICATION SECTOR, 2017 - 2022

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

Pharma/Bio 30% 247 258 270 282 293 304 4.2%Public 45% 376 384 393 401 410 417 2.1%Applied 12% 100 104 107 111 115 118 3.3%Industrial 13% 112 116 119 123 127 130 3.0%Total 100% 835 862 890 917 944 970 3.0%

NMR: Application Segmentation



III. NMR

NMR DEMAND BY REGION, 2017

NMR DEMAND BY COUNTRY, 2017

n Given the large pharmaceutical industry and relatively large public funding levels in the US, the US & Canada region holds the largest share of the market at just over one-third of demand. Europe holds a similar portion of the market, with Germany being the largest contributor with its large chemical and pharmaceutical industries.

n In Asia, China and Japan have equal shares of the market at 10%. Demand from India has also increased in recent years. With a majority of the world’s population, testing and research of food and drugs for these populations, combined with foreign investment, help drive demand in this region. The cost of these systems both initially and to operate remains a barrier for other developing countries and keeps demand low in the rest of the world.

NMR: Demand by Region

US & Canada35%

Europe32%

China10%

Japan10%

India5%

Other Asia Pacific5%

Latin America2% Rest-of-World

5% 32%

11%

10%

10%

6%

4%

4%

3%

3%

2%

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

United States

Germany

Japan

China

United Kingdom

France

India

Switzerland

Canada

Russia



III. NMR

NMR DEMAND BY REGION, 2017 - 2022

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

US & Canada 35% 288 298 308 318 328 337 3.2%Europe 32% 268 275 283 290 298 304 2.6%China 10% 84 88 93 97 102 107 5.0%Japan 10% 84 85 87 89 90 92 2.0%India 4% 29 30 32 33 34 35 3.9%Other Asia Pacific 4% 29 30 32 33 34 35 3.6%Latin America 2% 13 13 13 13 14 14 2.0%Rest-of-World 5% 41 42 43 44 45 45 2.1%Total 100% 835 862 890 917 944 970 3.0%

n The regions that should see above-average growth are China, India, and other Asia Pacific countries. China’s and India’s growth in recent years should

continue into the future. Demand in China is set to overtake Japan by 2018, driven by increasing regulations in the food and agricultural industries and a growing pharmaceutical industry. Similar growth in these industries should drive demand in India and other Asia Pacific countries.

n In the US & Canada, growth will be average as uncertainty in public funding should be offset by a strong pharma/bio sector. Growth in Japan and Europe should also be mild as factors like market maturity will be balanced against increased food and drug research and testing. In Latin America and the Rest-of-World, growth will also be slow as recent economic fluctuations stabilize.

NMR: Demand by Region



III. NMR

n The market is currently dominated by Bruker. With over half of the market, Bruker is well diversified in the technology from high field NMR systems to benchtop systems. With such a large share of the market, Bruker is a major supplier of every product segment it participates in. The hyphenated and imaging NMR segments are wholly owned by Bruker. As only one of the two producers of high field NMR systems, this situation should not change as the systems are difficult to develop and the barrier to market entry is consequently high.

n With nearly a tenth of the market, JEOL is another major competitor in the market. Based out of Japan, it shares the high field NMR market with Bruker, but it is also a major supplier of EPR systems. JEOL and Bruker have taken over Agilent’s former market share of high field systems and should continue to do well as competition from other companies remains to be seen.

NMR VENDOR SHARE, 2017

NMR: Competitive Situation

Bruker57%

JEOL9%

Oxford Instruments

5%

CEM2%

Magritek2%

Other25%



III. NMR

n About one-third of the market is made up of companies that typically focus on a particular product segment in this technology. Oxford Instruments holds 5% of the market. Though it is invested in other technologies, its benchtop time-domain and low field NMR systems make them a major supplier of the products. CEM and Magritek hold a similar share of the market, and both provide benchtop NMR solutions. CEM’s products are more aimed at the food industry while Magritek’s NMR systems are focused more generally towards research or analysis. Holding small shares of the market, Niumag, Thermo Fisher, Nanalysis and Aspect Imaging each make its own low field NMR systems and command about 1% of sales each. Other companies in this market provide spectrometers or magnets, like Tecmag or JASTEC.

NMR VENDOR PARTICIPATION, 2017

NMR: Competitive Situation

Company Hig

h Fi

eld

NM

RTi

me

Dom

ain

NM

RLo

w F

ield

Spe

ctro

scop

y N

MR

Imag

ing

NM

RH

yphe

nate

d N

MR

EPR

ADANIAmerican MagneticsAnasazi InstrumentsAspect Imaging (Roll)BrukerCEMCosa XentaurJASTEC (Kobe Steel)JEOLMagnettech (Freiberg Instruments)MagritekMR ResourcesNanalysisNiumagOxford InstrumentsProtasisResonance SystemsRS2DSpinlockStelarTecmagThermo FisherXigo Nanotools




III. NMR

NMR RECENT DEVELOPMENTS, 2016 - 2017

Date Company or Organization

Development

Jan-2016 Magritek Magritek released new solutions that enable straightforward reaction monitoring on the Spinsolve benchtop NMR spectrometer. This was complemented with a series of applications notes illustrating the multiple uses for the Spinsolve benchtop NMR spectrometer. Magritek also expanded the range of its Spinsolve Benchtop NMR spectrometers with the Spinsolve Phosphorus, for which key applications include routine purity assessment and reaction monitoring.

Mar-2016 Magritek Magritek announced a new 60 MHz capability for its family of benchtop NMR spectrometers. Magritek launched new Spinsolve 60 proton, fluorine and carbon systems at the ACS National Meeting in San Diego.

Apr-2016 Bruker At the 57th Experimental Nuclear Magnetic Resonance Conference, Bruker announced new GHz-class NMR magnet and probe technologies to enable expanding frontiers in structural biology, membrane protein and intrinsically disordered protein (IDP) research.

Aug-2016 Oxford Instruments Oxford Instruments and Green Imaging Technologies introduced the GeoSpec12, the latest evolution of the renowned GeoSpec range of NMR core analyzers. GeoSpec12 addresses the problem of achieving adequate sensitivity when taking measurements from low porosity rocks.

Oct-2016 Bruker Bruker announced the release of the updated and enhanced version 3.1 Wine-Profiling module of the successful NMR FoodScreener platform. The new 3.1 release fulfills market needs for improved coverage of white wines in the three most recent vintages and for better coverage of certain regions, appellations and grape varieties.

Oct-2016 CEM CEM Corporation introduced the ORACLE Fat Analyzer based on a very recent breakthrough in NMR technology. ORACLE was a rapid fat analyzer that requires no method development and can analyze fat in any unknown food sample with reference chemistry accuracy and exceptional repeatability.

Mar-2017 JEOL JEOL introduced the ROYAL HFX probe for NMR spectroscopy, specially designed for flexibility for NMR analysis of fluorinated compounds.

Mar-2017 Bruker At the 58th Experimental Nuclear Magnetic Resonance Conference Bruker announced several new products. TopSin4 and TopSolids are new generations of NMR software. Geared more towards biotech and pharma were PotencyMR and NMR Fragment-based Screening built into TopSpin software. Bruker also introduced its iProbe platform and expanded the InsightMR portfolio to include the InsightXpress and InsightCell. The AVANCE NEO NMR Research Platform also was introduced at the conference.

Mar-2017 Magritek Magritek launched the Spinsolve ULTRA Benchtop NMR system. The Spinsolve ULTRA featured the field homogeneity of a superconducting NMR magnet (50% 0.2 Hz) in a compact and robust benchtop unit. When combined with solvent suppression it can resolve compounds dissolved at sub-millimolar concentrations in protonated solvents, such as water.

NMR: Recent Developments



III. NMR

NMR: Recent Developments (continued)

NMR RECENT DEVELOPMENTS, 2016 - 2017


Development

May-2017 Magritek Magritek launched the 80 MHz Spinsolve 80 as a high performance, high powered benchtop NMR spectrometer. Magritek highlighted the Spinsolve 80’s higher resolving power and sensitivity combined with stability and usability.

Jun-2017 Oxford Instruments Oxford Instruments launched the MQC+ benchtop NMR analyzer. The MQC+ came in three different models with different specifications, and highlighted the quick and easy analysis for quality assurance.

Jun-2017 Bruker Bruker announced the addition of its B.I.Quant-UR module to its Avance IVDr 600 MHz NMR platform at the Metabolomics Society Meeting 2017. This module allows automated analysis of up to 150 metabolites in urine.



IV. UV/VIS

SECTION IV

UV/VIS SPECTROSCOPY



IV. UV/VIS

UV/Vis Spectroscopy: Technology Overview

UV and visible spectrophotometry works by passing beams of light of various wavelengths of the visible and UV spectrum transmitted through a sample, or reflected off a sample, and analyzing the absorption. Visible-only instruments operate in the visible region of the light spectrum, which ranges between about 400 and 800 nanometers. The UV spectrum ranges from about 200 to 400 nanometers. Also included in this section are UV-Vis-NIR spectrophotometers, which analyze from the UV into the near infrared spectrum.

Conventional UV/Vis spectrophotometers are configured as either single-beam or dual-beam systems. In single-beam instruments there is only one light path, which passes through the sample, and therefore requires manually switching a reference cuvette with the sample cuvette for calibration. Dual-beam spectrophotometers incorporate a secondary light path and sample holder in which the reference tube is almost simultaneously analyzed with the analysis sample. Split-beam instruments use other methods to divert or split the beam into two paths, and are included with dual-beam instruments. Most UV/Vis instruments use sensitive single channel detectors, and scan through the spectrum, but others use diode arrays or other multichannel detectors to simultaneously measure spectra. Visible only spectrophotometers are grouped together for this report.

Microvolume UV/Vis systems are those that can analyze samples of 5 μL or less. Photometry systems make use of a single wavelength, or several selected wavelengths. Often referred to as colorimeters, they are typically dedicated to the detection of only one or a handful of compounds, and are commonly sold as the heart of test kits. Lab turbidimeters are also included within the photometers segment. Ellipsometry, circular dichroism, polarimetry and refractometers are included in separate sections of this report. Spectrometers sold primarily as components, rather than instruments, are not considered.

THERMO FISHER NANODROP ONE

AGILENT CARY 60



IV. UV/VIS

Photometers23%

Vis Only4%

Single Beam UV/Vis

14%

Double Beam UV/Vis

30%

Microvolume UV/Vis

13%

UV-Vis Multichannel

7%

UV-Vis-NIR9%

UV/Vis Spectroscopy: Key Market Dynamics

UV/VIS SPECTROSCOPY DEMAND BY PRODUCT TYPE, 2017

$894M

n The total UV/Vis market will grow to over $1 billion by the end of the forecast period, with UV-Vis-NIR and microvolume systems leading the market growth. UV-Vis-NIR systems combine the capabilities of separate technologies into a single system, owing to their versatility. Microvolume systems are seeing increased demand in the life sciences fields.

n Photometers represent the least expensive instruments in this technology, typically in the range of a few hundred dollars, and make up the majority of unit shipments. Photometers come in a variety of configurations, and are commonly used for testing water quality. These instruments represent a significant portion of the market, surpassed only by double beam systems.

n Growth for these instruments is relatively mild, with substantial growth coming from quickly expanding markets in China and India. Government regulations and growing investment in life science and biotech industries will drive demand for UV/Vis instruments in the region.



IV. UV/VIS

UV/Vis Spectroscopy: Product Segmentation

n Double beam instruments have the largest share of the market. Measurements from double beam systems typically are faster and more straightforward, but these advantages are offset by a higher price. Single beam instruments are less expensive, but will have slower growth due to advancements in double beam instruments.

n Photometers make up the second largest share of the market. These systems are usually used for water testing or as portable/handheld systems in the food & agriculture industry. These instruments are well-established in the market, but consumer demand for clean water in developing countries will sustain demand.

n Microvolume and UV-Vis-NIR systems will see the fastest growth in this market, driven by the biotech and electronics industries. Microvolume instruments are relatively new, and have applications in elemental analysis or in life science fields to analyze nucleic acids or proteins. UV-Vis-NIR systems expand on the capabilities of traditional UV/Vis systems.

n Multichannel and Vis Only systems have small shares of the market, but will see mild growth over the forecast period from their QA/QC applications. Multichannel systems are very fast in routine analysis while Vis Only systems are limited in their range of wavelengths.

UV/VIS SPECTROSCOPY DEMAND BY PRODUCT TYPE, 2017 - 2022

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

Initial System Photometers 12% 107 111 115 119 123 127 3.5% Vis Only 4% 36 37 38 38 39 40 2.3% Single Beam UV/Vis 10% 89 91 92 93 94 96 1.3% Double Beam UV/Vis 22% 197 203 210 216 222 228 3.0% Microvolume UV/Vis 9% 80 86 91 96 101 107 5.9% UV-Vis Multichannel 6% 54 56 57 59 61 63 3.2% UV-Vis-NIR 6% 54 57 59 62 65 68 4.9% Total Initial Systems 69% 617 639 661 683 706 730 3.4%Aftermarket Components 4% 36 37 39 41 42 44 4.3% Consumables 18% 161 168 175 182 189 196 4.1% Total Aftermarket 22% 197 205 214 222 231 241 4.1%Service 9% 80 83 86 88 91 94 3.1%Total 100% 894 927 961 994 1,028 1,064 3.5%



IV. UV/VIS

n About three-fourths of total unit shipments came from photometers, owing to their lower price of a few hundred dollars compared to a few thousand of other product segments. Single and double beam instruments made up the second largest number of unit shipments, with demand for these instruments supported across several industries. UV-Vis-NIR instruments are the most expensive instruments in this market, contributing to the relatively small number of unit shipments in 2017.

UV/Vis Spectroscopy: Unit Shipments

UV/VIS SPECTROSCOPY PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Photometers $200 - $2.5K 187,250 14,175 201,425

Vis Only $1K - $7K 11,850 900 12,750

Single Beam UV/Vis $2K - $8K 17,875 1,350 19,225

Double Beam UV/Vis $3K - $20K 17,175 1,300 18,475

Microvolume UV/Vis $5K - $15K 8,300 625 8,925

UV-Vis Multichannel $2K - $20K 8,175 625 8,800

UV-Vis-NIR $10K - $85K 1,125 75 1,200

Total 251,750 19,050 270,800



IV. UV/VIS

Academia14%

Gen./Environ. Testing13%

Biotech13%

Pharma11%

Utilities10%


Ag/Food7%

Electronics/ Semicon./ Nanotech.

6%

Other19%


Applied R&D25%

QA/QC24%

Basic R&D5%

Methods Development2%

Other9%

n Demand for UV/Vis is spread across several applications, with academia and general/environmental laboratories sharing the largest portions of demand. In academia, UV/Vis is common in laboratories both as teaching tools and as research instruments, while general/environmental laboratories utilize UV/Vis to test water quality.

n The biotech and pharmaceutical industries make up a substantial portion of demand. Whether in research or in QA/QC during drug production, UV/Vis excels in analyzing active ingredients or detecting drug impurities. Microvolume UV/Vis systems are seeing increased demand from the biotech industry for its use in quantification of proteins or nucleic acids.

n Other major contributors of demand include food & agriculture and the electronics industry. Food and beverages can be analyzed for parameters like sugar or carbohydrate content. UV/Vis is popular among electronics manufacturers for offering quick analysis of electronic screens, solar panels, and other semiconductor materials.

UV/Vis Spectroscopy: Application Segmentation UV/VIS SPECTROSCOPY

DEMAND BY INDUSTRY, 2017UV/VIS SPECTROSCOPY

DEMAND BY FUNCTION, 2017



IV. UV/VIS

n The pharma/bio sector will see the fastest growth over the forecast period. Microvolume instruments have been gaining popularity in recent years, justified by their simple sample prep and fast measurement time. This trend is expected to continue into the future with further development of research involving microextractions and microvolume samples.

n Growth in the applied sector is also expected to be above market average. Demand will remain strong from the food industry and hospitals, but the majority of this sector’s growth will be from environmental testing, particularly water quality testing, in developing countries.

n In the industrial sector, growth will largely come from industries like semiconductors and solar panels. UV/Vis applications in these industries are relatively small compared to other technologies, so growth will be mild. In the public sector, these instruments will see continued use in both teaching and research capacities, but public-funded research is expected to see a slight decline.

UV/VIS SPECTROSCOPY DEMAND BY APPLICATION SECTOR, 2017 - 2022

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

Pharma/Bio 30% 270 281 293 305 317 330 4.1%Public 31% 276 284 293 301 309 318 2.8%Applied 27% 242 252 262 272 283 293 3.9%Industrial 12% 105 109 113 116 120 123 3.2%Total 100% 894 927 961 994 1,028 1,064 3.5%

UV/Vis Spectroscopy: Application Segmentation



IV. UV/VIS

UV/VIS SPECTROSCOPY DEMAND BY REGION, 2017

UV/VIS SPECTROSCOPY DEMAND BY COUNTRY, 2017

n Europe and the United States have similar shares of the market, with demand supported by a strong pharma/biotech industry and numerous academic institutions. Rest-of-World is also particularly prominent in this market, owing to the concern of water quality and other environmental testing worldwide, including these developing nations.

n In Asia, China has equalized its market share with Japan, owing to the large investment in several key industries like production of pharmaceuticals and electronics/semiconductors. Similar to China, Other Asia Pacific countries like Taiwan and South Korea have seen increased electronic/semiconductor production in recent years.

n Latin America and India currently have similar market shares, but a noticeable gap is expected to form over the forecast period. India has seen growth across several key industries helping to increase demand. In Latin America, demand is sustained by the agriculture & food industry, with smaller portions of demand coming from petrochemicals and drug production.

UV/Vis Spectroscopy: Demand by Region

US & Canada29%

Europe29%

China10%

Japan10%

India4%


Latin America4%

Rest-of-World8% 27%

10%

10%

7%

5%

4%

3%

3%

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

United States

Japan

China

Germany

United Kingdom

India

Switzerland

Canada



IV. UV/VIS

UV/VIS SPECTROSCOPY DEMAND BY REGION, 2017 - 2022

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

US & Canada 29% 263 273 284 293 304 314 3.6%Europe 29% 255 262 270 277 285 293 2.8%China 10% 86 92 97 104 110 117 6.4%Japan 10% 89 91 93 95 97 99 2.1%India 4% 37 39 41 42 45 47 5.0%Other Asia Pacific 6% 57 60 62 65 68 70 4.3%Latin America 4% 38 39 40 42 43 44 2.5%Rest-of-World 8% 69 71 73 75 78 80 3.0%Total 100% 894 927 961 994 1,028 1,064 3.5%

n Recent growth in China is expected to remain strong as production of semiconductors and solar panels continues to grow. Biotech and pharmaceuticals

are seeing increased investment in China, which should also help to drive growth, both in routine analysis and in research applications of UV/Vis. As a result of a growing economy, a concern for consumer safety will add to the demand for UV/Vis as testing of food and water quality increases. Similar trends for economic growth and government regulation are expected to follow in India.

n Growth in Latin American and Rest-of-World will largely be supported by a growing food & agriculture industry and environmental testing. Latin America, and Brazil in particular, is seeing a growing pharmaceutical market. Latin America demand will grow as drug production plants are starting to move into this region.

n The US & Canada are expected to see growth above the market average thanks to strong pharma/bio industries, which are projected to expand over the forecast period. While Europe also has large companies in the pharma/bio sector, growth from this sector will be offset by slow growth in other industries and economic effects of Brexit and other political concerns.

UV/Vis Spectroscopy: Demand by Region



IV. UV/VIS

n Thermo Fisher, Hach, Shimadzu, and Agilent combine to make up over half of the UV/Vis market, each competing in different product segments. Thermo Fisher has the largest share of the market with a wide array of products, especially in microvolume systems. Hach, notable for its range of handheld photometers, occupies the second largest share of the market. Shimadzu is a major supplier of each of its product segments, and one of the largest vendors of UV-Vis-NIR systems. Agilent rounds out the top four vendors with their lineup of benchtop UV/Vis instruments, notably the largest vendor of multichannel UV/Vis instruments.

UV/VIS SPECTROSCOPY VENDOR SHARE, 2017

UV/Vis Spectroscopy: Competitive Situation

Thermo Fisher15%

Hach (Danaher)14%

Shimadzu12%

Agilent10%

PerkinElmer6%

Hanna Instruments5%

Other38%



IV. UV/VIS

n Outside of the four largest vendors, given the size of the market and variability of the products, it is no surprise that the UV/Vis market is highly fragmented. Some vendors, like Hanna Instruments or PerkinElmer, focus on one or two particular product segments, while others are more diversified in their product offerings, like Jenway or Biochrom. Given the cost and the nature of this technology, many smaller vendors are able to compete in the market, giving the consumer a broad choice of instruments.

UV/VIS SPECTROSCOPY VENDOR PARTICIPATION, 2017

UV/Vis Spectroscopy: Competitive Situation

Company Phot

omet

ers

Vis

Onl

y

AgilentAnalytik Jena (Endress+Hauser)Beijing Beifen-Ruili (BRAIC)Biochrom (Harvard Bioscience)ElicoEppendorfHach (Danaher)Hanna InstrumentsHitachiJASCOJenway (Cole Parmer)LaMotteMachery NagelMerckMettler ToledoOcean Optics (Halma)Palintest (Halma)PerkinElmerPerseePG InstrumentsShimadzuTechcompThermo FisherTintometerXylem


Sing

le B

eam

UV/

Vis

Dou

ble

Beam

UV/

Vis

Micr

ovol

ume

UV/

Vis

UV/

Vis

Mul

ticha

nnel

UV/

Vis-

NIR



IV. UV/VIS

UV/VIS SPECTROSCOPY RECENT DEVELOPMENTS, 2016 - 2017


Development

Sep-2016 DeNovix The DS-11 FX Series of Spectrophotometers / Fluorometers from DeNovix has been granted patent US 9,442,009 for its engineered solutions for improving the accuracy of microvolume UV-Vis spectrophotometry.

Jan-2017 DeNovix DeNovix introduced the DS-C Cuvette Spectrophotometer for UV-Vis analysis. The DS-C is a standalone benchtop instrument for analysis across a wide range of applications and industries.

Mar-2017 Jenway Jenway launched the 7205 UV/Visible Spectrophotometer. The 7205 has been designed for use in analytical chemistry, routine analysis, and education laboratories. It is suitable for a variety of applications in fields as diverse as quality control, life sciences, and food testing.

May-2017 Mettler Toledo Mettler Toledo launched the CuveT as a single cuvette peltier-based thermostat to control temperature in UV/Vis spectroscopy applications.

Aug-2017 Jenway Jenway launched the Genova Bio Life Science Spectrophotometer. The Genova Bio was designed for use in life science applications, and is ideal for molecular biology laboratories, biotechnology, biochemistry, and cell biology applications.

Aug-2017 Unchained Labs Unchained Labs launched the Lunatic, a microvolume UV/Vis system allowing for the batch quantification of protein, DNA, and RNA.

UV/Vis Spectroscopy: Recent Developments



V. INFRARED

SECTION V

INFRARED SPECTROSCOPY (IR)



V. INFRARED

Infrared Spectroscopy: Technology Overview

Infrared (IR) spectrometers are used to analyze the infrared range of the electromagnetic spectrum, where wavelengths are between 2,500 to 50,000 nanometers (nm). In IR spectrometry, a beam of infrared radiation intersects with and is absorbed by an unknown sample. The absorption rates are highly unique to the properties of the chemical group being analyzed. Once the spectrometer plots the result, given as transmittance or absorption as a function of frequency or wavelength, the results can be compared to a library of known IR spectra. Identifying functional groups allows one to begin to build an accurate model of the unknown sample.

Fourier Transform IR (FT-IR) spectrometers simultaneously collect high spectral resolution data over a broad spectral range. FT-IR is more efficient than traditional dispersive spectrometers, contributing to its nearly universal adoption; however, there still remain a few dispersive and filter IR models on the market. FT-IR microscopy has become a well-established technique for chemical identification or visualization of complex samples. These instruments connect or integrate an FT-IR spectrometer with an optical microscope. FT-IR imaging systems are also included in this market brief.

Hyphenated FT-IR systems integrate additional analysis techniques, providing highly detailed information. The most common hyphenated techniques combine IR analysis with GC, TGA, or mass spectrometry. Normally, an interface will connect stand-alone FT-IR systems with other analytical modes, but there are integrated hyphenated systems available as well.

This report also includes portable and handheld infrared spectrometers, and terahertz spectroscopy (THz), an emerging technique that uses wavelengths between a few hundred gigahertz to several terahertz.

This market brief does not include open path systems, which have no laboratory application. Also excluded are near-IR (NIR) spectrometers, which utilize the 700 to 2,500 nm range, as these are discussed in the NIR spectroscopy market brief.

THERMO FISHER NICOLET IS50 FT-IR SPECTROMETER

AGILENT 4300 HANDHELD FT-IR



V. INFRARED

Benchtop52%

Microscope24%

Portable13%

Hyphenated6%

Terahertz5%

Infrared Spectroscopy: Key Market Dynamics

INFRARED SPECTROSCOPY DEMAND BY PRODUCT TYPE, 2017

$870M

n The total infrared spectroscopy market is forecast to surpass one billion dollars by 2020. Infrared spectroscopy is a well-established technology and is extremely versatile. Industries across all sectors rely on IR for analysis in a wide range of applications, including raw materials, synthesized drugs, metal ores, and forensics. The ubiquity of IR is one of the technology’s strong points, and contributes to its strong growth across industries.

n Terahertz systems will see extremely fast growth, as research utilizing the technique continues to expand. Some areas of basic research employ molecular dynamics and terahertz microscopy, but their use is also expanding in applied applications, like forensics and security detection, and medical applications, such as diagnostics or drug analysis. While the technique may require several more years to mature, terahertz spectroscopy provides a new avenue of market growth.

n The largest source of demand comes from the pharmaceutical industry. While research applications are expected to grow, the technology is most frequently used by the pharmaceutical industry for quality and analytical applications. As drug production expands worldwide, demand for IR instruments in quality laboratories should follow.



V. INFRARED

Infrared Spectroscopy: Product Segmentation

n The largest portion of initial systems sales comes from benchtop IR instruments. These instruments are popular for analysis across several industries, ranging from academia to semiconductors. Demand is expected to remain steady, as benchtop IR units are key instruments in quality applications.

n IR microscopes make up a significant portion of initial system sales, and are a useful tool for identifying particles, examining coatings, or compositions of mixtures. Aside from terahertz systems, IR microscopes are the most expensive IR-based instruments, and are mostly used in research. These instruments should see moderate growth, with FT-IR microscopes being a popular variation of the technique.

n Hyphenated systems and terahertz spectroscopy systems currently represent an equal portion of revenues from initial systems, but a noticeable gap will form between their sales over the forecast period. Hyphenated systems, like GC-IR or TGA-IR, are often used for analysis of complex mixtures such as polymers or environmental samples. Terahertz spectroscopy is a relatively new technique and, as research involving the technique continues to grow, is expected to see increased demand.

n Portable systems are also expected to see strong growth over the forecast period. In general, portable systems are popular across most technologies for their versatility and usability out in the field. The popularity of portable systems extends to IR, and growth is expected to remain strong throughout the forecast period.

INFRARED SPECTROSCOPY DEMAND BY PRODUCT TYPE, 2017 - 2022

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

Initial System Benchtop 37% 322 335 349 363 376 390 4.0% Microscope 17% 148 155 161 169 177 184 4.5% Portable 9% 78 85 91 99 107 115 8.0% Hyphenated 4% 35 37 39 41 43 45 5.3% Terahertz 4% 35 41 47 55 63 72 15.7% Total Initial Systems 71% 617 652 687 727 765 806 5.5%Aftermarket Components 14% 122 130 138 148 158 168 6.7% Consumables 3% 26 28 29 31 33 35 6.4% Total Aftermarket 17% 148 158 168 180 191 204 6.6%Service 12% 104 116 128 142 157 173 10.6%Total 100% 869 926 982 1,049 1,113 1,183 6.4%



V. INFRARED

n Nearly fifteen thousand units were shipped in 2017. As a well-established and key component of quality or research laboratories, benchtop systems represented the majority of units shipped. In contrast, terahertz systems shipped the least number of units, as these instruments represent a significant investment of both time and money into a new technique. However, this is expected to change as more novel applications are developed.

Infrared Spectroscopy: Unit Shipments

INFRARED SPECTROSCOPY PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Benchtop $10K - $100K 8,400 1,175 9,575

Microscope $40K - $135K 1,725 150 1,875

Portable $15K - $65K 2,100 225 2,325

Hyphenated $18K - $100K 775 75 850

Terahertz $50K - $400K 325 25 350

Total 13,325 1,650 14,975



V. INFRARED

Pharma19%


Academia10%

Biotech9%Chemicals

9%

Ag/Food8%

CROs8%

Gov. Testing7%

Other20%

QA/QC32%

Applied R&D23%Analytical

Service18%

Basic R&D9%

Methods Development

8%

Other10%

n The application that generates the highest demand is quality control. In QA/QC laboratory settings, time and accuracy are crucial parameters, and IR spectroscopy offers both to the end-user. These products are used throughout the manufacturing pipeline, with testing ranging from raw materials to finished products. The pharmaceutical industry produces the greatest demand for QA/QC, but other industries like chemicals and food & agriculture also rely on IR instruments for quality monitoring.

n Research also represents a significant portion of demand by application. IR spectroscopy aids in molecular characterization, and is often considered complimentary to mass spectrometry. IR microscopes and hyphenated systems are powerful tools for research, though benchtop systems still represent a large portion of systems used in research. Academia, pharmaceuticals, and polymers are notable areas where research utilizes IR spectroscopy.

Infrared Spectroscopy: Application Segmentation INFRARED SPECTROSCOPY

DEMAND BY INDUSTRY, 2017INFRARED SPECTROSCOPY




V. INFRARED

n IR spectroscopy is widely used across multiple sectors. The pharma/bio sector represents over one-third of demand, with research and quality representing the majority of demand. In the industrial sector, applications include surface analysis by IR microscopes, or analysis of mixtures like paints or polymers. IR spectroscopy is used in a variety of manners in this sector, and represents the second largest portion of overall demand.

n The public sector represents over one-fifth of demand, where IR is used in research. In particular, the fast-growing terahertz spectroscopy technique is seeing expanded research applications in academia and other publicly-funded research institutions. The applied sector should also grow quickly as the food & agriculture industry expands in regions like China.

INFRARED SPECTROSCOPY DEMAND BY APPLICATION SECTOR, 2017 - 2022

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

Pharma/Bio 36% 315 340 365 395 424 456 7.6%Public 22% 187 197 206 217 228 239 5.1%Applied 11% 97 105 113 122 131 141 7.6%Industrial 31% 269 284 298 315 331 347 5.2%Total 100% 869 926 982 1,049 1,113 1,183 6.4%

Infrared Spectroscopy: Application Segmentation



V. INFRARED

INFRARED SPECTROSCOPY DEMAND BY REGION, 2017

INFRARED SPECTROSCOPY DEMAND BY COUNTRY, 2017

n Over one-third of global demand is generated by the United States. The pharmaceutical industry, where drug production and development heavily relies on IR systems, is a major industry in the United States. Germany holds the most significant share of European demand with its strong automotive and chemicals industries. Numerous growing industries in China and slow growth in Japan have given both countries an equal share of the market, with China having caught up.

n Other regions hold smaller portions of demand. Electronics manufacturing in India and Other Asia Pacific drive demand in these regions, while demand in Latin America and Rest-of-World is driven largely by agriculture & food and petrochemicals.

Infrared Spectroscopy: Demand by Region

US & Canada37%

Europe33%

China8%

Japan8%

India2%


Latin America3%

Rest-of-World5% 35%

9%

8%

8%

5%

5%

4%

3%

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

United States

Germany

Japan

China

United Kingdom

France

Switzerland

Italy



V. INFRARED

INFRARED SPECTROSCOPY DEMAND BY REGION, 2017 - 2022

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

US & Canada 37% 319 343 366 393 420 448 7.0%Europe 33% 289 303 316 330 345 360 4.5%China 8% 66 74 82 92 102 114 11.4%Japan 8% 68 71 74 77 81 84 4.5%India 3% 22 23 25 26 28 30 6.4%Other Asia Pacific 4% 36 39 42 45 49 53 8.3%Latin America 3% 25 27 28 30 32 34 6.1%Rest-of-World 5% 44 47 50 53 57 60 6.4%Total 100% 869 926 982 1,049 1,113 1,183 6.4%

n Growth in the current market leader, the US & Canada, will be strong, but the fastest growth will be seen in the China and Other Asia Pacific regions.

Electronics manufacturing is a key portion of the economies of countries like Korea and Taiwan, but China will see increased demand from pharma/biotech as the sector expands both in research and in manufacturing.

n Growth in Rest-of-World is strongly tied to the oil & gas industry, but with the influx of green energy investment, growth should be about average. A similar rate of growth will be seen in India, as industries like metals/mining and food/agriculture expand. Growth in Europe and Japan is expected to be below the market average. Slow overall economic growth in Japan and Europe will be offset by strong growth in pharmaceuticals and chemicals.

Infrared Spectroscopy: Demand by Region



V. INFRARED

n Only two vendors have double-digit shares of the IR spectroscopy market. Thermo Fisher is the largest market competitor with over a quarter of the market. With their Nicolet line and portable Gemini system, Thermo Fisher offers systems in all IR technique categories, except for terahertz systems. PerkinElmer has the second largest share of the market, and is the only other vendor with double-digit market share. Like Thermo Fisher, PerkinElmer offers systems in multiple IR categories, with the exception of portable and terahertz systems.

n JASCO, Bruker, and FOSS are the next three largest companies in the IR market. JASCO is a moderate supplier of benchtop and microscope systems, but also offers portable systems. Bruker is established across all product segments. FOSS, in contrast, only offers benchtop systems focused on the food & agriculture industry.

INFRARED SPECTROSCOPY VENDOR SHARE, 2017

Infrared Spectroscopy: Competitive Situation

Thermo Fisher27%

PerkinElmer17%

JASCO8%

Bruker7%

FOSS7%

Shimadzu5%

Other29%



V. INFRARED

n The ubiquity of IR spectroscopy in research and industry and the relatively low cost of the systems offers a strong competitive space among vendors. Dozens of vendors occupy the IR spectroscopy market, ranging from specialty vendors focusing on particular applications like Smiths Detection, or more varied companies like Agilent or Shimadzu, who offers products across several segments. Terahertz systems are new to the market, and few vendors exist. These systems are highly specialized and often more expensive, but this competitive situation could change and expand in the future.

INFRARED SPECTROSCOPY VENDOR PARTICIPATION, 2017

Infrared Spectroscopy: Competitive Situation

X

Company Benc

htop

Micr

osco

pe

ABBAdvantestAgilentAIT (Applied Instrument Technologies)AMETEKAnasys InstrumentsBakman TechnologiesBeijing Beifen-Ruili (BRAIC)BrukerDaylight SolutionsEralyticsFOSSHORIBAJASCOLumex InstrumentsMenlo SystemsMettler ToledoPerkinElmerPicometrix (Luna)ShimadzuSmiths DetectionSpectro ScientificTeraViewThermo FisherTianjin Gangdong Sci. and Tech.

Major Moderate Minor X Divested or Discontinued

Porta

ble

Hyp

hena

ted

Tera

hertz



V. INFRARED

INFRARED SPECTROSCOPY RECENT DEVELOPMENTS, 2016 - 2017


Development

May-2016 Shimadzu Shimadzu announced the release of the AIM-9000 Infrared Microscope. The instruments boast an array of automated features, including the ability to automatically recognize up to 20 target measurement locations, with magnification ranges from x1-x330.

Jun-2016 Shimadzu Shimadzu Scientific Instruments announced the release of the LabSolutions IR thermal-damaged plastics library. The unique library contained infrared (IR) spectra data of 13 types of plastics, both unheated and damaged thermally at 200 to 400 degrees C.

Jan-2017 Spectro Scientific Spectro Scientific introduced Version 5 of its FluidScan portable infrared oil analyzer technology. FluidScan oil chemistry analysis enables users to determine when oil is no longer fit for use due to liquid contamination or other degradation.

Mar-2017 Thermo Fisher Thermo Fisher debuted the Nicolet iN5 FTIR microscope. It is designed as a solution for particulate identification in the lab. The robust iN5 FTIR microscope features an optical setup that allows users to simultaneously examine a sample and collect chemical information.

Mar-2017 Daylight Solutions, Leonardo DRS

Leonardo, through the US subsidiary Leonardo DRS, acquired Daylight Solutions, Inc., a leading developer and supplier of quantum cascade laser products and technology.

Oct-2017 Shimadzu Shimadzu announced the release of its IRSpirit series of Fourier transform infrared (FTIR) spectrophotometers. The two models, the IRSpirit-T and IRSpirit-L, are equipped with a dedicated IR Pilot program and offer expandable systems with their compact size.

Infrared Spectroscopy: Recent Developments



VI. NEAR-INFRARED

SECTION VI

NEAR-INFRARED SPECTROSCOPY (NIR)



VI. NEAR-INFRARED

NIR Spectroscopy: Technology Overview

Near-infrared (NIR) spectroscopy is a technique that measures the absorption in the electromagnetic spectrum that ranges from 780 to 2500 nanometers. The energy absorbed from light in this region allows certain molecules to transition from a ground state (lowest energy) to an excited state (higher energy). These absorptions produce overtone or combination bands when NIR radiation vibrates at the same frequency as a molecular bond in the sample. Bonds that are particularly susceptible include C-H (found in hydrocarbons, fats, oils), O-H (water, alcohols) and N-H (proteins, amines). With the ability to quantitatively measure components with the aforementioned bonds, NIR is a prevalent technique for monitoring components in foods, pharmaceuticals, cosmetics, chemicals, and plastics. Common applications include the determination of moisture, fats, proteins, fibers, and starch in raw materials and manufactured products. The technique has the advantage of being relatively inexpensive, rapid, and able to provide analysis with limited sample preparation.

Scanning NIR makes use of a monochromator to scan the full NIR spectrum sequentially. Although diode array systems don’t scan, they measure the entire spectrum simultaneously, making them similar to scanning NIR. In contrast, NIR systems that use individual filters allow only a single NIR wavelength – chosen for its suitability for a specific application – to pass through at a time. This includes fixed single filter systems, which tend to be portable handheld devices, and multi-filter systems that can rapidly switch between filters of differing wavelengths. FT-NIR spectrometers use an interferometer instead of a monochromator, where all of the wavelengths in the spectrum are analyzed simultaneously. This greatly reduces the analysis time when compared to dispersive NIR systems. Portable and handheld NIR instruments are based on various optical configurations and have expanded into new markets where traditional lab instruments cannot reach.

FOSS INFRATEC 1241 GRAIN ANALYZER

THERMO FISHER MICROPHAZIR



VI. NEAR-INFRARED


43%

FT-NIR38%

Portable/ Handheld

14%

Filter5%

NIR Spectroscopy: Key Market Dynamics

NIR SPECTROSCOPY DEMAND BY PRODUCT TYPE, 2017

$352M

n The total market for NIR spectroscopy was $352 million in 2017, with the largest source of demand coming from the food & agriculture industry. Since NIR is practically a staple instrument of quality control testing in the food industry, its sales will continue to grow at a solid rate while the importance of food safety continues to be stressed and expanded around the world.

n Portable systems are the main drivers of growth in the NIR market. In general, portable systems are popular for their lower price compared with benchtop systems and for their versatility in the lab and field. With little to no sample prep, these systems can be used in a variety of analyses, ranging from basic raw materials to proteins.

n Growth for NIR technologies will largely come from China. Expanding government regulations and consumer safety concerns will help drive its growth in a variety of industries, but primarily in food and pharma markets.



VI. NEAR-INFRARED

NIR Spectroscopy: Product Segmentation

n The largest portion of initial system sales in 2017 was made up of scanning & diode array NIR systems. Demand for these instruments is expected to grow at a moderate rate, driven by increasing demand for quality control measures for food & agriculture products, such as grains or dairy. These systems are expected to retain the largest share of the market, though sales for this technology will soon approach equilibrium with FT-NIR.

n Portable/handheld and FT-NIR systems are expected to see the fastest growth in initial system sales. The usability and versatility of portable systems makes them an attractive alternative to benchtop systems. FT-NIR systems are extremely fast and are usually used for quality applications. While demand from the food & agriculture industry is strong, these instruments also find use in the pharmaceutical and chemicals industry to analyze raw materials, drug tablets, or polymers.

n Filter NIR systems are expected to see a slight decline during the forecast period. These systems are typically precise and allow for changeable filters for different materials. The primary reason for the decline of these systems is the rise in portable units, which many end-users prefer for their versatility or ease of use.

NIR SPECTROSCOPY DEMAND BY PRODUCT TYPE, 2017 - 2022

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

Initial System Scanning & Diode Array 32% 113 117 122 127 132 137 4.0% FT-NIR 30% 106 112 119 126 133 141 6.0% Portable/ Handheld 11% 39 41 44 47 50 53 6.7% Filter 4% 12 12 12 12 12 12 -1.1% Total Initial Systems 77% 269 283 298 312 327 343 5.0%Aftermarket Components 10% 35 37 39 42 44 47 5.7% Consumables 1% 4 4 4 4 4 4 4.7% Total Aftermarket 11% 39 41 43 46 48 51 5.7%Service 13% 44 47 50 53 56 60 6.3%Total 100% 352 371 391 411 432 454 5.2%



VI. NEAR-INFRARED

n Ten thousand units were shipped in 2017, with scanning & diode array NIR systems making up over one-third of this total. About one-quarter of units were FT-NIR systems, which are expected to see increased demand from quality applications despite their higher average price point. Portable and filter NIR systems shipped a similar number of units, but the gap between the two should widen as portable systems gain more use and filter systems see a slight decline.

NIR Spectroscopy: Unit Shipments

NIR SPECTROSCOPY PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Scanning & Diode Array $5K - $55K 3,500 300 3,800

FT-NIR $12K - $80K 2,450 150 2,600

Portable/ Handheld $2K - $35K 1,800 100 1,900

Filter $2K - $25K 1,650 50 1,700

Total 9,400 600 10,000



VI. NEAR-INFRARED

Ag/Food33%

Pharma16%

Polymers/Plastics7%

Oil & Gas7%

Biotech6%

Metals/ Mining5%

Gov. Testing5%

Other19%

QA/QC41%


Applied R&D15%

Methods Development

10%

Basic R&D6%

Other5%

n The largest source of demand comes from the ag/food industry, where NIR systems are typically specialized for specific products, whether it be grain, flour, dairy, or meat. But FT-NIR and portable systems are marketed more generally. Regardless of the food type, NIR is particularly well-suited for the assessment of fats, oils, protein, and moisture. Outside of food testing, another major NIR application in the applied sector is the testing of counterfeit drugs.

n Pharmaceuticals comprise the second largest portion of demand. Often in QA/QC roles, these instruments are important parts of drug production. One advantage of NIR is that no sample preparation is required, allowing analysis through packaging materials or easy analysis of raw materials. Research involving characterization of materials or medical diagnostics are also common applications in this industry.

n Other applications of NIR in industry include the analysis of polymers, oil & gas, and geologic minerals. The industrial sector makes up the second largest portion of demand, and, while NIR is popular as a process technology, it also has solid demand in quality control or analytical testing labs.

NIR Spectroscopy: Application Segmentation NIR SPECTROSCOPY DEMAND BY INDUSTRY, 2017 NIR SPECTROSCOPY DEMAND BY FUNCTION, 2017



VI. NEAR-INFRARED

n The applied sector is expected to see the highest growth during the forecast period, driven by increasing regulations in ag/food. The pharma/bio sector is also expected to experience above-average growth. As important tools in drug production, demand for NIR instruments should grow as pharmaceutical manufacturing expands.

n Both the public and industrial sectors are expected to see below-average market growth in the near future. The public sector has the smallest market share, where NIR has applications in research and the analytical testing of drugs or explosives. NIR in the industrial sector is spread across many industries including metals/mining and chemicals. Some industries should see a slight boom from growth in China and other high growth markets, but this growth will be offset by increases in the prices of commodities.

NIR SPECTROSCOPY DEMAND BY APPLICATION SECTOR, 2017 - 2022

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


NIR Spectroscopy: Application Segmentation



VI. NEAR-INFRARED

NIR SPECTROSCOPY DEMAND BY REGION, 2017

NIR SPECTROSCOPY DEMAND BY COUNTRY, 2017

n As a leading producer in many key NIR industries, the United States holds the largest portion of the market. Europe holds a similar share, owing in part to several large chemical and pharmaceutical companies located throughout the region, along with strong agricultural production, particularly in Russia and Germany.

n China occupies the third largest portion of the market, having surpassed Japan in recent years. Many industries have contributed to demand for NIR instruments in China including ag/food, pharmaceuticals, and metals/mining. With a similar market share as China, Japanese demand is sustained by the pharma/bio sector, with smaller portions of demand coming from the country’s chemical and automotive industries.

n Much of the demand in Latin America and India should come from ag/food, while the Rest-of-World segment, depending on regional industries, will see demand coming also from petrochemicals and metals/mining.

NIR Spectroscopy: Demand by Region

US &Canada37%

Europe32%

China10%

Japan9%

India3%


Latin America4%

Rest-of-World3% 33%

10%"

9%

9%

6%

5%

4%

4%

3%

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

United States

China

Germany

Japan

France

United Kingdom

Canada

Russia

Italy



VI. NEAR-INFRARED

NIR SPECTROSCOPY DEMAND BY REGION, 2017 - 2022

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


n The current regional market leaders, the US & Canada and Europe, are expected to see strong growth during the forecast period. Large industries in

these regions, including chemicals, pharmaceuticals, and foods, should continue to expand to meet global demand and keep NIR an essential tool in the production process.

n The fastest growth will be seen from China and India. As the two most populous countries in the world, food and drug production are major industries. As consumer buying power in these regions continues to grow, demand for high quality products from these industries will drive the use of NIR and keep revenues healthy.

n Growth in Japan is expected to remain slow as a strong pharma/bio sector is offset by slow growth in other industries like oil & gas. Other Asia Pacific should also see increased growth in the future as a result of its growing chemical and biotech/pharma companies. In Latin America, growth will largely be from increased food production and biofuels as economic recessions begin to wear off.

NIR Spectroscopy: Demand by Region



VI. NEAR-INFRARED

n The NIR market leader is FOSS, with nearly one-third of the market. FOSS offers products mainly for the food & agriculture industry, including many instruments specialized for meat, grain, or dairy. FOSS is the leading supplier of scanning NIR instruments and does not compete in other product segments.

n Thermo Fisher is the second largest company in the market, a leader in both FT-NIR and handheld NIR systems. PerkinElmer, which includes Perten Instruments, holds the third largest share of the market and is diversified across all product segments. The next two largest shares are owned by Bruker and ABB, both of which focus exclusively on FT-NIR.

NIR SPECTROSCOPY VENDOR SHARE, 2017

NIR Spectroscopy: Competitive Situation

Bruker

FOSS32%

Thermo Fisher13%

PerkinElmer12%

7%

ABB5%

Spectris4%

Other27%



VI. NEAR-INFRARED

n Outside the top four companies, the NIR market is highly fragmented among numerous companies, with about one-third of the market occupied by companies with single-digit shares of the market. For portable systems, Spectris and Axsun are notable suppliers, and BÜCHI is a notable supplier of FT-NIR systems. The market for filter NIR systems is small, but Kett is a major supplier. Other suppliers in this market make NIR spectrometers instead of whole systems, and include companies like Ocean Optics and StellarNet.

NIR SPECTROSCOPY VENDOR PARTICIPATION, 2017

NIR Spectroscopy: Competitive Situation

Company Scan

ning

& D

iode

Arra

yFT

-NIR

ABBAITARCoptixAxsunB&W TekBrukerBÜCHIFOSSGalaxy ScientificKettLT IndustriesLumex InstrumentsMetrohm NIRSystemsOcean Optics (Halma)PerkinElmerQ-InterlineSentronicSpectral EvolutionSpectrisThermo FisherUnity ScientificViavi SolutionsZeissZeltexZeutec


Porta

ble/

Han

dhel

dFi

lter



VI. NEAR-INFRARED

NIR SPECTROSCOPY RECENT DEVELOPMENTS, 2016 - 2017


Development

Feb-2016 Ocean Optics Ocean Optics expanded its Flame spectrometer family. With a cost about one-fourth that of a traditional NIR system, Flame-NIR pairs a high performance uncooled InGaAs array detector with a small optical bench for spectral response from 1000-1650 nm. The spectrometer is ideal for OEM integration as well as lab, industrial and field use in food integrity, biomedical sciences and pharmaceutical applications.

Mar-2016 Viavi Solutions Viavi Solutions introduced the MicroNIR OnSite and MicroNIR PAT, both designed to shift process monitoring and material analysis out of the post-production lab and into real-time analysis at the point of use and in the field.

May-2016 Unity Scientific Unity Scientific introduced the SpectraStar XT series of NIR spectrometers. The SpectraStar XT analyzers represent a generational change in the Unity Scientific NIR model line.

May-2016 FOSS FOSS introduced the DairyScan NIR system for testing the fat and moisture content of cheese during production and at final product release.

Mar-2017 Metrohm Metrohm launched Vision Air 2.0, a universal software solution for Vis-NIR spectroscopy. Vision Air caters to the needs of routine users and laboratory managers alike with specific interfaces, simplifying routine measurement, method development, and both data and instrument management.

Mar-2017 Ocean Optics Ocean Optics introduced its miniature spectrometer, the Ocean FX, which offers high-sensitivity CMOS detector performance, acquisition speed up to 3,000 scans per second, and onboard spectral buffering to ensure data integrity during reaction monitoring.

Jul-2017 Viavi Solutions Viavi Solutions introduced the MicroNIR Transmission Fixture, a compact fixture used for the transmission analysis of liquids and/or thin filters and films. The MicroNIR Transmission Fixture was one of several new fit-for-purpose sampling accessories for the MicroNIR spectrometer, offering real-time analysis and more advanced NIR applications in the field.

Aug-2017 PerkinElmer PerkinElmer launched the Spectrum Two N FT-NIR system. This instrument was designed for laboratory technicians and staff conducting molecular spectroscopy analysis on a wide range of pharmaceutical, food and industrial samples.

Aug-2017 Viavi Solutions Viavi Solutions announced the availability of the MicroNIR Tablet Probe, a handheld probe attachment for the analysis of pharmaceutical tablets & pills, small volume samples, or single grain kernels.

NIR Spectroscopy: Recent Developments



VII. RAMAN

SECTION VII

RAMAN SPECTROSCOPY



VII. RAMAN

Raman Spectroscopy: Technology Overview

Raman spectroscopy uses a strong monochromatic light source (usually a laser) to irradiate a sample. The resultant scattering of light can be analyzed to provide a ‘fingerprint,’ by which the sample can be identified. Raman spectroscopy is especially sensitive to non-polar bonds, making it complimentary to Fourier-transform infrared spectroscopy (FT-IR) which is more sensitive to polar molecules. This technique is often employed for the identification of both organic and inorganic compounds and their functional groups. Raman can be applied to a range of material types, requires minimal sample preparation, and, in some cases, can analyze through packaging. One limitation, however, is the sensitivity of Raman to fluorescence, which can easily overwhelm the comparatively weak Raman signal. Fortunately, recent advancements in the technology have significantly mitigated the effects of interference.

Dispersive Raman spectrometers utilize monochromators and charge-coupled detectors (CCD). Fourier Transform (FT) Raman employs an inferometer and a diode array detector, which can simultaneously analyze the entire light spectrum. However, the optical construction and 1064 nm laser of FT-Raman devices limit the spatial resolution and sensitivity that can be achieved, which is why the technique is generally used in routine measurements only. Raman spectrometers normally operate within the infrared region, but some may use the near infrared, visible, and UV radiation regions as well.

Raman systems are typically configured as benchtop, microscope/imaging, and add-on units. Because of its superior resolution and sensitivity, dispersive Raman is most often used for microscope systems and benchtop units. FT-Raman systems are usually offered as add-on systems for infrared spectrometers, though some are still designed as standalone microscopes. Portable Raman, including handheld devices, are battery operated, simple to operate, and may be specialized for a specific task, such as toxin or narcotic identification.

THERMO FISHER TRUSCAN GP

HORIBA XPLORA INV



VII. RAMAN

Microscopes46%

Portable40%

Dispersive10%

FT-Raman4%

Raman Spectroscopy: Key Market Dynamics

RAMAN SPECTROSCOPY DEMAND BY PRODUCT TYPE, 2017

$380M

n The total Raman spectroscopy market was $380 million in 2017 and is expected to reach over half a billion dollars by 2022. While the technology will experience fast growth, the portable Raman market is projected to be the main driver, and is expected to eclipse Raman microscope systems in the near future. While not as precise as benchtop microscope systems, the ease-of-use and lower price point make them an attractive option for analysis.

n The fast growth of Raman spectroscopy can be attributed to its use in a variety of fields. Art pieces, proteins, and nanoparticles can all be analyzed with Raman spectroscopy. The number of applications only increases with hybrid Raman systems, which combine AFM with Raman microscopes.

n The Raman market continues to be highly fragmented. While Thermo Fisher is the market leader, only one other company holds more than 10% of the market. Despite several recent acquisitions and mergers, this market will continue to be fragmented, to the benefit of the consumer.



VII. RAMAN

Raman Spectroscopy: Product Segmentation

n The majority of the Raman market is made up of initial system sales, with Raman microscopes holding the largest portion of demand. These instruments offer sensitivity that cannot be matched by portable systems, but they also cost significantly more. While they will continue to be important instruments in research and industry, their share of the market is soon expected to be matched by portable Raman systems.

n Portable Raman systems have made significant gains in recent years. While fluorescence interference remains a greater issue in portable systems than benchtop Raman microscopes, improvements in shielding and precision should lead to increased use of portable Raman instruments in the future. The lower cost floor has created a larger user base compared to microscope systems.

n Dispersive and FT-Raman are each expected to see growth lower than that of the total market over the forecast period. Both categories have relatively small shares of the market compared to portable Raman systems and Raman microscopes, but are expected to continue to see demand as Raman remains a popular form of analysis. Dispersive Raman spectrometers are an attractive option given their price over Raman microscopes, while FT-Raman systems are often used in conjunction with FT-IR.

RAMAN SPECTROSCOPY DEMAND BY PRODUCT TYPE, 2017 - 2022

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

Initial System Microscopes 34% 129 139 148 159 170 182 7.1% Portable 29% 110 121 133 146 161 177 9.9% Dispersive 7% 27 28 29 30 31 32 3.8% FT-Raman 3% 11 12 13 13 14 15 5.2% Total Initial Systems 73% 277 299 322 348 375 405 7.9%Aftermarket Components 10% 38 42 46 50 55 61 9.9% Consumables 2% 8 8 9 9 10 10 6.2% Total Aftermarket 12% 46 50 54 60 65 71 9.4%Service 15% 57 62 68 75 82 89 9.4%Total 100% 380 412 445 482 522 566 8.3%



VII. RAMAN

n Portable Raman systems made up the majority of unit shipments in 2017. The order of magnitude difference in the number of units can be attributed to the much lower cost of portable systems compared with the other product segments. While Dispersive Raman and FT-Raman systems also cost less than Raman microscopes, demand for these systems was much less. Raman microscopes shipped about as much as Dispersive Raman and FT-Raman systems combined.

Raman Spectroscopy: Unit Shipments

RAMAN SPECTROSCOPY PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Microscopes $70K - $250K 775 100 875

Portable $12K - $50K 4,225 250 4,475

Dispersive $6K - $150K 500 50 550

FT-Raman $30K - $120K 175 <25 175

Total 5,675 400 6,075



VII. RAMAN

Gov. Testing32%

Pharma17%

Polymers/Plastics10%

Academia6%

Biotech5%

Gov. Research5%

CROs5%

Chemicals5%

Other15%

QA/QC23%

Applied R&D21%

Analytical Service 12%

Basic R&D11%

Methods Development

4%

Other29%

n The largest source of demand for Raman comes from law enforcement, military, and other government agencies using the technology to test for narcotics or explosives. Portable Raman systems help drive demand in these industries by giving precise analysis of materials either from a safe distance or up close with handheld systems. The public sector in general makes up nearly half of all demand. Public-funded research also represents a significant portion of demand, as Raman spectroscopy is used in research across many fields including polymers, nanomaterials, or life sciences.

n The next largest source of demand is the pharmaceutical industry. Raman is used throughout all stages of drug development, from molecular characterization to quality control. Other life science applications in the biotech industry and CROs make Raman a valuable tool in research. Some applications include cellular imaging or in vivo skin analysis.

n Other industries make up smaller portions of demand. Polymers and nanotechnology are seeing increased interest in Raman spectroscopy for characterizing materials by analyzing stress/strain. Semiconductors and batteries can also be analyzed using the technology. Smaller sources of demand include agriculture & food, oil & gas, and metals. While these industries make up small portions of demand, the combined industrial and applied sectors make up nearly one-third of demand.

Raman Spectroscopy: Application Segmentation RAMAN SPECTROSCOPY DEMAND BY INDUSTRY, 2017 RAMAN SPECTROSCOPY DEMAND BY FUNCTION, 2017



VII. RAMAN

n The fastest growing sector will be pharma/bio. Pharmaceutical research should continue to follow the continued growth in pharmaceutical sales. Other areas of interest in this sector include the noninvasive study of biological tissue and development of better drug delivery systems. Cancer monitoring and other diagnostic techniques are also being developed around Raman spectroscopy, which could greatly benefit patients.

n The industrial sector is also expected to grow favorably. Nanowires can be Raman active under stress, allowing for the noninvasive analysis of nanostructures. Nanotechnology is expected to continue improving, paving the way for greater use of Raman. Semiconductors, another booming industry, will be another source of growth. Polymer characterization using Raman spectroscopy should also help to drive sales.

n The applied and public sectors are expected to see below-average growth. While the public sector commands the largest portion of the market, demand for Raman systems from law enforcement and similar institutions is expected to be slow, but sustained by security concerns worldwide. Raman spectroscopy offers niche applications in the applied sector, where most of the demand comes from hospitals and environmental testing. This could change with the development of medical diagnostic Raman techniques, but growth will remain below-average until adoption occurs.

RAMAN SPECTROSCOPY DEMAND BY APPLICATION SECTOR, 2017 - 2022

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


Raman Spectroscopy: Application Segmentation



VII. RAMAN

RAMAN SPECTROSCOPY DEMAND BY REGION, 2017

RAMAN SPECTROSCOPY DEMAND BY COUNTRY, 2017

n The largest portion of demand comes from the United States. Security applications play a strong role in this region, with common usage by the military and law enforcement. Other key industries, like pharma/bio and semiconductors, have strong footholds in the US and will further drive demand. A quarter of overall demand comes from Europe, with Germany having the largest share. Like the US, several key industries such as chemicals and biotech help to drive growth. Unlike the US, however, security applications make up a smaller portion of demand, with notable differences in military spending.

n In the Asia Pacific region, Japan and China have large shares of the market. Japanese demand is expected to be sustained largely by pharmaceutical development and a strong semiconductor industry. Raman spectroscopy has made strong gains in China in recent years. Several industries and research applications help to drive demand, including pharmaceuticals, agriculture & food, and materials research.

Raman Spectroscopy: Demand by Region

US & Canada43%

Europe26%

China8%

Japan9%

India2%



4% 41%

9%

8%

8%

5%

4%

2%

2%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

United States

Japan

China

Germany

United Kingdom

France

India

Switzerland



VII. RAMAN

RAMAN SPECTROSCOPY DEMAND BY REGION, 2017 - 2022

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


n Most regions are expected to see above-average growth. Portable Raman systems help to drive this growth, though other Raman systems also

contribute in specific research applications. China will see the largest growth rate out of all other regions, with demand expected to pass Japan by 2020. Similar above-average growth is expected for India, Other Asia Pacific, Latin America, and Rest-of-World. Analysis of explosives and illicit drugs should drive growth, as security remains a global issue. Other applications like raw material analysis, soil analysis, and pharmaceutical quality control will also drive growth in these regions.

n The United States & Canada, Europe, and Japan are expected to see below-average growth rates in the forecast period. While security and pharma/bio research applications are expected to be the main drivers of growth, the slowing of sales following strong initial purchases of portable Raman and the slowing support of public-funded research will stifle demand.

Raman Spectroscopy: Demand by Region



VII. RAMAN

n The Raman market is fragmented among several companies. The market leader is Thermo Fisher. With offerings across all product segments, it is a major supplier of portable Raman instruments. Raman microscopes make up its second largest product line, but the company also offers an FT-Raman module.

n HORIBA and Bruker have the largest portions of the market after Thermo Fisher. Both companies offer Raman microscopes, and Bruker also offers portable Raman and FT-Raman. HORIBA also produces some dispersive systems in addition to modular Raman systems.

RAMAN SPECTROSCOPY VENDOR SHARE, 2017

Raman Spectroscopy: Competitive Situation

Thermo Fisher19%

HORIBA12%

Bruker9%

Renishaw8%

Smiths Detection

5%JASCO

5%

WiTec3%

Rigaku Raman Systems

3%

Other36%



VII. RAMAN

n Aside from the top three companies, Raman systems are offered by a myriad of smaller vendors. Some, like Renishaw and WiTec, focus on Raman microscopes. Others, like Smiths Detection and Rigaku, focus on portable Raman systems. Dispersive Raman systems are split among many companies, including Anton Paar, Princeton Instruments, and Kaiser Optical. The FT-Raman market is particularly small, with most companies combining FT-Raman capabilities with FT-IR instruments.

RAMAN SPECTROSCOPY VENDOR PARTICIPATION, 2017

Raman Spectroscopy: Competitive Situation

Company Mic

rosc

opes

Porta

ble

AgilentAnton PaarB&W TekBayspecBiotoolsBrukerChemImageCoda DevicesFLIR SystemsHORIBAJASCOKaiser Optical (Endress + Hauser)Metrohm RamanNanophotonOcean Optics (Halma)PerkinElmerPrinceton Instruments (Roper)Raman Systems (Agiltron)RenishawRigaku Raman SystemsSciApsSmiths DetectionThermo FisherTSIWiTec


Disp

ersiv

eFT

-Ram

an



VII. RAMAN

RAMAN SPECTROSCOPY RECENT DEVELOPMENTS, 2016 - 2017


Development

Feb-2016 Wasatch, Photonics Wasatch Photonics, a leading provider of gratings, spectrometers and optical coherence tomography instrumentation, acquired all assets of the Process Raman Spectroscopy technology for chemical and pharmaceutical industries from Mustard Tree Instruments.

Mar-2016 Thermo Fisher Thermo Fisher Scientific, the market leader for analytical and life science instrumentation, released the DXR2 line of Raman microscopes. These systems, ideal for advanced materials, pharmaceutical, polymer and life science research, provide both spectrographic and spatial imaging for regulated environments.

Mar-2016 B&W Tek B&W Tek, an advanced instrumentation company that delivers lab-quality Raman spectroscopy solutions, released a new addition to their i-Raman product line: the i-Raman Pro. This improved device is powered by a high quantum efficiency CCD array detector with ultra-deep cooling (-25o C), features a tablet interface, and is compact for easy transport.

Mar-2016 Metrohm Metrohm announced the acquisition of the majority of Snowy Range Instruments. Metrohm benefited from the know-how and resources of a technology leader in applied Raman spectroscopy, consolidating the company’s strategic move to extend the Metrohm solution portfolio to next-generation handheld Raman spectrometers.

May-2016 WiTec WiTec launched the alpha300 access micro-Raman system in conjunction with a thorough revision of the long-established alpha300 series. The alpha300 access microscope is an entry-level system for micro-Raman single-spot analysis and Raman mapping at a lower price-point.

Jun-2016 HORIBA Horiba Scientific launched the RamanAcademy website, a free educational tool for new and experienced Raman users.

Jul-2016 HORIBA Horiba Scientific announced new silver-coated AFM-TERS probes to provide highest resolution for their NanoRaman systems. The previously available Au coated AFM-TERS probes limited the resolution of the device, preventing it from becoming a routine technique. The recent modification increased the Raman amplification by 10 times.

Dec-2016 BaySpec, Anton Paar, SciAps Instrument provider Anton Paar, through its Anton Paar OptoTec subsidiary, acquired the benchtop Raman spectroscopy instrument products of BaySpec for an undisclosed amount. Anton Paar has also acquired a license to handheld Raman technology from SciAps. Financial details were not disclosed. The company stated that the purchases expand its portfolio of technologies for its pharmaceutical industry and chemical industry customers.

Dec-2016 Nanophoton Nanophoton introduced a brand-new Raman microscope RAMANforce, with highly improved spatial resolution and sensitivity.

Dec-2016 HORIBA HORIBA Scientific, announced the launch of its new enhanced Raman ParticleFinder module for the LabSpec 6 spectroscopy Suite.

Raman Spectroscopy: Recent Developments



VII. RAMAN

RAMAN SPECTROSCOPY RECENT DEVELOPMENTS, 2016 - 2017

Raman Spectroscopy: Recent Developments (continued)


Development

Feb-2017 Metrohm Metrohm released the new Mira M-3 handheld Raman spectrometer. Barely larger than a smartphone, the Mira M-3 enables true single-handed operation.

Feb-2017 B&W Tek B&W Tek introduced the i-Raman Pro ST high throughput portable Raman spectrometer. This system is capable of measuring through a variety of materials, including clear or semi-transparent containers, white and red plastics, pill coatings, yellow and manila colored paper, white packaging envelopes and glass.

Mar-2017 Thermo Fisher Thermo Fisher introduced the iXR Raman spectrometer, designed for rapid, accurate chemical and structural analysis.

Apr-2017 Morpho Detection, Smiths Detection

Smiths Group announced the completion of its acquisition of Morpho Detection. Morpho Detection’s business was combined with Smiths Detection.

Apr-2017 Princeton Instruments Princeton Instruments introduced its SpectraPro HRS-300, engineered to deliver both the outstanding spectral resolution and the astigmatism correction needed for advanced microspectroscopy and multichannel fiber applications.

Jul-2017 Agilent, Cobalt Light Systems

Agilent announced its acquisition of Oxfordshire, U.K.-based Cobalt Light Systems, a provider of highly differentiated Raman spectroscopic instruments for the pharmaceutical industry, applied markets and public safety.

Nov-2017 Metrohm Metrohm announced the acquisition of Diagnostic anSERS inc, expanding the capabilities of their Mira Raman analyzers to include surface-enhanced Raman spectroscopy.



VIII. FLUORESCENCE AND LUMINESCENCE

SECTION VIII

FLUORESCENCE AND LUMINESCENCE




Fluorescence and Luminescence: Technology Overview

In contrast to absorption-based techniques, like UV and visible spectrometry, where only one wavelength is involved, fluorescent-based techniques, including fluorescence spectrophotometry or spectrofluorometry, deal with two separate wavelengths: the excitation wavelength and the emission wavelength. Here, the energy of a sample is first elevated using a light source with a particular excitation wavelength, and then the partial emission of that energy from the sample, fluorescence, is measured at a specific emission wavelength.

Fluorescence measurement provides a wealth of information about the atomic and molecular characteristics of a sample and its interactions. Moreover, due to the isotropic nature of the fluorescent phenomenon, the emitted light can be captured orthogonally to the excitation light, resulting in a more flexible dynamic range for detectors, and augmented sensitivity. Furthermore, since this technology uses two wavelengths, it is extremely specific. In fact, the exact combinations of complex molecules with only slight differences in their molecular structures can be detected by fluorescence spectroscopy.

Fluorometers are broadly classified into three types: spectrofluorometers, filter fluorometers, and fluorescent lifetime. Spectrofluorometers are built using monochromators, and thus, are capable of measuring and scanning a range of wavelengths. On the other hand, filter fluorometers use individual fixed filters, covering only narrow wavelength bands. While spectrofluorometers are designed for speed and general use, filter fluorometers are designed for precision and analysis of specific compounds. Another category of fluorometers are lifetime fluorescence systems. Rather than measuring the wavelength and intensity of the fluorescing energy, these instruments measure the average time a molecule stays in an excited state before emitting a photon and returning to its ground state.

HORIBA DELTAFLEX LIFETIME FLUORESCENCE SYSTEM

THERMO FISHER NANODROP 3300 SPECTROFLUOROMETER




Fluorescence and Luminescence: Technology Overview (continued)

Luminescence, which is also included in this section, involves the measurement of chemiluminescence and bioluminescence. Chemiluminescence is the light that is emitted from a chemical reaction, while bioluminescence stems from biological reactions, usually enzyme-catalyzed activity. This section excludes dedicated luminometers labeled as ATP hygiene instruments.

The market data shown here only includes standalone laboratory instruments and does not contain fluorescence microscopes or microplate readers that make use of fluorescence. Although life science and biopharma applications are strong sources of demand for fluorescence, much of it comes in these other formats. The instruments considered here certainly have biopharma applications, but relatively speaking are used more broadly for general applications.

PROMEGA QUANTUS FLUOROMETER




Spectrofluorometers64%


19%

Filter Fluorometers

11%

Luminometers6%

Fluorescence and Luminescence: Key Market Dynamics

FLUORESCENCE AND LUMINESCENCE DEMAND BY PRODUCT TYPE, 2017

$175M

n The total fluorescence and luminescence market was $175 million in 2017. The products in this technology are well-established and growth should be mild, with the exception of lifetime fluorescence systems due to research applications. This expectation of mild growth extends to most regions, while China and India will see above-average growth. Innovation in this technology should remain slow due to maturity, but autosamplers and other automated systems could drive new growth in the future.

n This technology can serve a variety of applications, but growth will be largely driven by the pharma/bio sector where various avenues of research involving fluorescence have seen increased interest. With the pharmaceutical industry projected to continue performing well in the future, R&D spending should remain strong and drive demand for these instruments.

n Filter fluorometers and luminometers are expected to see limited growth in the future. The market for these instruments is relatively small, and with a lack of new products, the market size is not expected to see any development. These technologies appeal to niche applications, and are often overlooked in favor of other technologies with greater versatility.




Fluorescence and Luminescence: Product Segmentation

n The total market for this technology is expected to reach $200 million by 2022, with soft growth driven primarily by lifetime fluorescence systems. The largest segment of the market is made of spectroflurorometers. These instruments are well-established and can be used for a variety of applications, including analysis of wines, water quality, and flat panel displays.

n Lifetime fluorescence systems should see the highest growth in the market. These instruments are expected to see increased demand from the pharmaceutical and biotech industries, where research applications are the main driver. Research involving these instruments can include the study of proteins, gene expression, vitamins or drug delivery systems.

n Filter fluorometers and luminometers each have a relatively small share of the market. Filter fluorometers focus on a particular wavelength and are best suited to study specific compounds, and these filters can be changed for different samples. Luminometers are commonly used for life science assays or to study water samples for toxicity. Both are not as versatile as lifetime fluorescence systems or spectrofluorometers, and are expected to see limited growth.

n Aftermarket and service make up nearly a quarter of the market. Often, it is possible to replace individual light sources or monochromators without replacing whole systems, keeping demand for these market segments high. Consumables include sample containers such as cuvettes or test tubes.

.

FLUORESCENCE AND LUMINESCENCE DEMAND BY PRODUCT TYPE, 2017 - 2022

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

Initial System Spectrofluorometers 40% 70 72 74 76 78 80 2.8% Lifetime Fluorescence 12% 21 22 23 23 24 25 3.6% Filter Fluorometers 8% 14 14 14 15 15 15 1.4% Luminometers 4% 7 7 7 7 7 7 1.1% Total Initial Systems 64% 112 115 119 122 125 128 2.7%Aftermarket Components 10% 18 18 19 19 20 20 2.9% Consumables 14% 25 25 26 27 28 29 3.2% Total Aftermarket 24% 42 43 45 46 48 49 3.1%Service 12% 21 21 22 22 23 23 1.8%Total 100% 175 180 186 190 195 200 2.7%




n In 2017, lifetime fluorescence had shipped the least number of units. Despite their solid demand in research labs, this can be attributed to the technology’s higher average price compared to other instruments in the market. Filter fluorometers and luminometers are cheaper on average than the other two product segments, and the number of shipments reflect this price. The highest number of installations came from spectrofluorometers, due in part to their broad usage across multiple industries.

Fluorescence and Luminescence: Unit Shipments

FLUORESCENCE AND LUMINESCENCE PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Spectrofluorometers $10K - $50K 3,325 350 3,675

Lifetime Fluorescence $10K - $90K 500 50 550

Filter Fluorometers $2K - $15K 2,775 300 3,075

Luminometers $2K - $20K 1,075 125 1,200

Total 7,675 825 8,500




Biotech27%

Hospital & Clinical

16%

Academia10%

Ag/Food9%

Chemicals5%

Gov. Research5%

Other16%


Applied R&D25%QA/QC

20%

Basic R&D15%

Methods Development

7%

Other5%

Pharma13%

n The largest demand for this technology comes from the biotech and pharmaceutical industries. A variety of applications are available for these instruments, with research as the main focus. Applications can range from studying protein folding/unfolding with spectrofluorometers to reporter gene assays with luminometers. Filter fluorometers can be used for DNA and RNA quantification and lifetime fluorescence systems can be used to study enzymes or proteins. Fluorescent nanoparticles and nanomaterials are another interesting avenue of research for lifetime fluorescence systems.

n Hospitals & clinics make up the second largest portion of the total demand. The instruments can be used in this space for enzyme/substrate assays, and to test for steroids or vitamins. Pharmaceutical drugs and narcotics can also be analyzed by fluorescence. Clinical diagnostics for viruses or cancer involving fluorescence is another application that is seeing increased demand.

n Other industries use this technology for a variety of applications. Academia comprises a significant portion of demand, either as teaching tools or in academic research involving assay development or cell-based studies. The food & agriculture industry uses fluorescence for pesticide tracing in crops and also for plant genetics studies. Water contamination, determination of algae chlorophyll, and metals analysis are other applications for this technology in industries with smaller portions of demand, including chemicals and public utilities.

Fluorescence and Luminescence: Application Segmentation FLUORESCENCE AND LUMINESCENCE

DEMAND BY INDUSTRY, 2017FLUORESCENCE AND LUMINESCENCE





n For its role in research, fluorescence and luminescence technology is expected to see the highest growth rate from the pharma/bio sector. This sector utilizes each product segment for different research applications, and with the growing pharmaceutical industry worldwide, demand from research and development in this sector should follow.

n The public sector is expected to see the lowest growth rate. Instruments in academia typically have prolonged lifespans and given the maturity of this technology, most demand will come from replacement sales. The slow demand for newer systems combined with public funding uncertainties will keep growth low compared to other sectors.

n The applied and industrial sectors should see below average growth for the market. In the applied sector, growth will be driven by hospitals & clinics and the agriculture & food industry. Growth in the industrial sector will come from the chemicals industry, utilities, and other niche applications like polymers or solar cells. Testing for drugs, food, and water quality should drive demand in these sectors as government regulations begin to catch up to expanding Asia Pacific and other regions.

FLUORESCENCE AND LUMINESCENCE DEMAND BY APPLICATION SECTOR, 2017 - 2022

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


Fluorescence and Luminescence: Application Segmentation




FLUORESCENCE AND LUMINESCENCE DEMAND BY REGION, 2017

FLUORESCENCE AND LUMINESCENCE DEMAND BY COUNTRY, 2017

n The US makes up the largest portion of demand due to its leadership in many industries that make use of fluorescence and luminescence systems, including biotech, pharmaceuticals, and food & agriculture. In Europe, the same industries help to drive demand, with Germany, France, the UK, and Switzerland commanding the majority of sales.

n Besides the United States, Japan and China are the leading sources of demand for this technology. As Chinese demand has expanded steadily in recent years, it is now almost equal to demand in Japan. Meanwhile, demand from India has also been firmly increasing.

Fluorescence and Luminescence: Demand by Region

US & Canada32%

Europe29%

China11%"

Japan12%

India4%


Latin America4%

Rest-of-World5% 31%

12%

11%

7%

5%

5%

4%

4%

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

United States

Japan

China

Germany

France

United Kingdom

Switzerland

India




FLUORESCENCE AND LUMINESCENCE DEMAND BY REGION, 2017 - 2022

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


n Growth will be most evident in China and India. Both of these countries are seeing substantial investment in their pharma/bio sectors, which should

grow demand for this technology at a faster rate than in other regions. New government regulations in these geographies should also boost demand in other key industries for this technology, such as foods and environmental testing labs. Other Asia Pacific countries are expected to follow a similar growth path.

n The United States and Europe are major sources of demand and are expected to see mild growth during the forecast period. While strong performance from the biotech and pharmaceutical industries are expected to grow demand for this technology, this will be offset by slower growth from academia and industrial applications.

n The combination of a mature market and softness in key industries will keep growth in Japan at a relatively slow rate. Growth in Latin America will also be quite mild, due in part to economic stagnation in the region, offset by growing demand from pharmaceuticals and foods in Brazil.

Fluorescence and Luminescence: Demand by Region




n The fluorescence and luminescence market is split among several specialized companies. Many companies focus on spectrofluorometers as they comprise the largest portion of the market. Japan-based HORIBA controls the largest share with about one-fifth of the market. It is a major supplier of spectrofluorometers and lifetime fluorescence systems, with a diverse line of products in both segments.

n Headquartered in the United States, Thermo Fisher maintains the second largest share of the market as a major supplier of filter fluorometers and a moderate supplier of spectrofluorometers. PerkinElmer is the only other company with a double-digit share and focuses solely on spectrofluorometers. Hitachi, Shimadzu, and JASCO each have a similar share, as moderate suppliers of spectrofluorometers.

FLUORESCENCE AND LUMINESCENCE VENDOR SHARE, 2017

Fluorescence and Luminescence: Competitive Situation

HORIBA21%

Thermo Fisher12%

PerkinElmer10%

Hitachi8%

Shimadzu8%

JASCO6%

Edinburgh Instruments (Techcomp)

5%

Other30%




n Other companies hold smaller shares of the market. Edinburgh Instruments and ISS hold similar size shares, and both produce spectrofluorometers and lifetime fluorescence systems. Agilent is well diversified across technologies, but only focuses on spectrofluorometers. Promega is another major supplier, focusing on filter fluorometers and luminometers. Other companies in this market are more focused. Some offer whole systems like Berthold Technologies and PicoQuant, or just spectrometers like Ocean Optics or StellarNet.

FLUORESCENCE AND LUMINESCENCE VENDOR PARTICIPATION, 2017

Fluorescence and Luminescence: Competitive Situation

Company Spec

troflu

orom

eter

sLi

fetim

e Fl

uore

scen

ce

AgilentBerthold TechnologiesDeNovixEdinburgh Instruments (Techcomp)Hach-Lange (Danaher)HitachiHORIBAISSJASCOJenway (Cole Parmer)Lumex InstrumentsMGM InstrumentsOcean Optics (Halma)OlisPerkinElmerPicoQuant GmbHPromegaSAFAS MonacoShimadzuStellarNet IncThermo FisherTianjin Gangdong Sci. and Tech.Turner DesignsUltrafast Systems


Filte

r Fllu

orom

eter

sLu

min

omet

ers




FLUORESCENCE AND LUMINESCENCE RECENT DEVELOPMENTS, 2016 - 2017


Development

Jun-2016 HORIBA HORIBA announced its newest addition to the PTI QuantaMasterSeries: The PTI QuantaMaster 8000 spectrofluorometer. The new PTI QuantaMaster 8000 series offers the highest guaranteed sensitivity on the market.

Oct-2016 PicoQuant PicoQuant released a new fiber coupling sample holder for its modular time-resolved spectrometer FluoTime 300. This holder makes it possible to com-bine fluorescence spectroscopy and microscopy.

Nov-2017 Edinburgh Instruments Edinburgh Instruments released the stopped flow accessory for the FLS1000 Fluorescence Spectrometer which enables reaction kinetics to be recorded with microsecond time resolution.

Dec-2017 PicoQuant PicoQuant announced the FluoTime 300 fluorescence lifetime spectrometer was available with double monochromators in excitation and emission.

Dec-2017 HORIBA HORIBA introduced the automatic sipper accessory for its Auqalog A-TEEM spectrometer. The new Sipper accessory handles sampling from a single source, in addition to rinsing solutions, detergent and reverse-flow drainage. The sample changer unit connects to the main sipper unit to allow for sampling of up to 4 sources with a simple connection to the sample inlet of the main sample unit.

Fluorescence and Luminescence: Recent Developments



IX. COLOR MEASUREMENT

SECTION IX

COLOR MEASUREMENT




Color Measurement: Technology Overview

Color measurement technology comprises closely related instruments and photometric techniques that analyze the properties of a sample in terms of color, brightness and other visual characteristics. The most common application for these instruments is the analysis of solid and printed materials; however, suitable devices may also be used to analyze liquids, slurries, powder, etc. This report differentiates between color measurement devices and filter photometers. The primary difference between these techniques is the method and results; filter photometers measure concentration in liquid samples contained in cuvettes, while colorimeters included herein are specifically used for the analysis of the color of the sample itself. Such measurements are based upon color standards developed to model color as perceived by the human eye.

Color spectrophotometers use photometers to measure the intensity of the transmittance and/or reflectance of a light beam as a function of its wavelength. Most devices fracture the visible spectrum into discreet bands and compare the transmittance and/or reflectance of each band as it interacts with the sample and a standard. The intensity of the distinct beams from sample and standard are analyzed to generate linear transmission, absorbance, or concentration values. Spectroradiometers, which do not include an integrated light source, are also included under spectrophotometers. Colorimeters (filter or tri-stimulus) use fixed filters to collect the intensity of the three-color spaces.

Densitometers detect the strength of transmitted light, thus measuring the total optical density of a sample. These devices are commonly used for examining films, such as medical X-rays. Densitometers are distinct from devices that directly measure mass density of a sample. Color measurement includes additional specialized tools for analyzing gloss, texture, and other surface/visual qualities.

X-RITE EXACT DENSITOMETER/SPECTROPHOTOMETER

KONICA MINOLTA CM-5 SPECTROPHOTOMETER




Color Spectrophotometers

74%

Densitometers12%

Colorimeters6%

Other8%

Color Measurement: Key Market Dynamics

COLOR MEASUREMENT DEMAND BY PRODUCT TYPE, 2017

$407M

n The total color measurement market will be nearly half a billion dollars by the end of the forecast period. Color measurement is closely tied to consumer products spread across many industries with the majority of demand coming from print, paints, and plastics. As consumer buying power expands in developing regions, color measurement will see increased demand from QA/QC applications.

n Colorimeters will see a decline in demand as they are replaced by color spectrophotometers. Colorimeters can be affected by metamerism, an issue that occurs when two colors match in a certain light, but look different in a different light. Color spectrophotometers are more sophisticated and not affected by this issue, allowing for greater accuracy and versatility.

n The color measurement market has relatively few vendors, but X-Rite is the clear leader among them. With over 40% of the market, X-Rite has a strong command over most product segments. The only other vendors with double-digit shares of the market are Konica Minolta, Datacolor, and BYK.




Color Measurement: Product Segmentation

n The market for color measurement instruments was just above $400 million in 2017. Only densitometers and color spectrophotometers have double-digit shares of the market, with color spectrophotometers occupying over half of initial system sales. Growth for both segments will be close to the market rate, as demand is driven by the print & graphics industry and an adoption of hybrid systems which combine spectrophotometers, densitometers, or gloss meters.

n Colorimeters are set to see a slight decline as users and vendors move towards more sophisticated and versatile color spectrophotometers. Despite this decline, the lower price of colorimeters should help to slightly offset this decline. While initial sales will drop, a substantial used market is expected to crop up.

n Other instruments will see substantial growth over the forecast period. The majority of systems in this product segment are gloss/haze meters which analyze the appearance of surfaces. Other interesting products in this segment, though having niche applications, are systems which use smartphone apps or cameras. The overall growth will largely be driven by handheld and hybrid multiparameter systems.

COLOR MEASUREMENT DEMAND BY PRODUCT TYPE, 2017 - 2022

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

Initial System Color Spectrophotometers 54% 220 228 235 243 251 260 3.4% Densitometers 10% 41 42 43 44 46 47 3.0% Colorimeters 3% 12 12 12 11 11 11 -2.5% Other 7% 28 30 31 33 35 36 5.1% Total Initial Systems 74% 301 312 322 331 343 354 3.3%Aftermarket Components 13% 53 55 57 59 61 64 3.9% Consumables 3% 12 13 13 14 14 15 4.2% Total Aftermarket 16% 65 68 70 73 76 79 3.9%Service 10% 41 43 44 46 48 51 4.5%Total 100% 407 422 436 451 467 484 3.5%




n Despite being the most expensive product segment, color spectrophotometers made up nearly half of total unit shipments in 2017, reflective of the shift of users towards these systems. Colorimeters shipped the fewest units, but the used market for these instruments is expected to grow due as users move from using colorimeters to color spectrophotometers. Densitometers and other color measurement instruments had nearly equal shipments, with portable systems making up the majority of new units in these categories.

Color Measurement: Unit Shipments

COLOR MEASUREMENT PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Color Spectrophotometers $3K - $20K 29,400 2,900 32,300

Densitometers $100 - $10K 12,075 1,175 13,250

Colorimeters $100 - $3K 8,275 1,650 9,925

Other $200 - $8K 10,200 1,175 11,375

Total 59,950 6,900 66,850




Ag/Food

Paints & Coatings16%

Printing/Graphics12%

Aerospace/ Auto12%

Textiles10%


9%

Pharma8%

Paper & Pulp7%

Other16%

QA/QC68%


Applied R&D10%

Methods Development

2%

Basic R&D2%

Other7%

n Demand for color measurement is well divided among industries with most applications related to QA/QC. The paints & coatings industry is the largest individual source of demand, closely followed by the automotive and print/graphics industries. Color quality and accuracy are key parameters in these industries. Similar use lies in plastics, paper, and textiles industries, with the overall industrial sector having three-fourths of market demand.

n In the applied sector, demand from the food industry comes from quality testing of food and beverages to ensure the correct color of products. Hospitals & clinics, another important area of demand, use densitometers to analyze the optical density of X-ray films.

Color Measurement: Application Segmentation COLOR MEASUREMENT DEMAND BY INDUSTRY, 2017 COLOR MEASUREMENT DEMAND BY FUNCTION, 2017




n The industrial sector should see the highest growth rate in the market, only adding to its majority share of the market. Color measurement is closely tied to consumer spending in areas like automobiles and plastic consumer goods. With a growing middle class in regions like China and India, growth for these instruments will remain strong.

n Outside of the industrial sector, applications for color measurement are limited. The color of food and drugs can subtly affect the consumer, making color measurement an important tool in production for both industries, helping to drive growth of the technology. Public research and teaching utilizing color measurement is expected to remain a niche application.

COLOR MEASUREMENT DEMAND BY APPLICATION SECTOR, 2017 - 2022

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


Color Measurement: Application Segmentation




COLOR MEASUREMENT DEMAND BY REGION, 2017

COLOR MEASUREMENT DEMAND BY COUNTRY, 2017

n The largest portion of demand comes from the US & Canada and Europe where consumer goods and print/graphics are the main sources of demand for color measurement. Advertisements and other print media are major industries in these regions, making accurate color production crucial.

n In Asia, China and Other Asia Pacific have rapidly growing shares of the market due in part to the substantial growth in their middle class in recent years and the years to come. Economic growth has given citizens in this region increased buying power for consumer goods like cars or clothes, two industries where color measurement is an important part of production. In Japan, a strong automotive industry helps to sustain demand for the technology.

n Latin America is one of the main sources of wood pulp used for paper, one of the key industries for color measurement. Other sources of demand include automobile manufacturing and food production. Demand from Rest-of-World and India is also tied to consumer goods, in particular textiles.

Color Measurement: Demand by Region

US & Canada36%

Europe29%

China7%

Japan10%

India2%


Latin America5%

Rest-of-World3% 34%

9%

8%

7%

5%

4%

3%

2%

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

United States

Japan

Germany

China

United Kingdom

France

Russia

Italy




COLOR MEASUREMENT DEMAND BY REGION, 2017 - 2022

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


n Growth in China is set to outpace all other regions, due in part to their ever-growing middle class and availability of consumer goods. Color measurement

will remain an important part of QA/QC as production of plastics, foods, and drugs continues to expand in China. Similar trends in growth are expected in Other Asia Pacific. In Japan, growth will be mild, but could change as government policies seek to revitalize the economy and, in turn, increase consumer spending.

n In the United States, recent declines in consumer product sales have negatively affected the growth of color measurement, though other areas of growth like pharmaceuticals and automobiles offset this decline. European demand is expected to be slow as consumer spending is reduced by economic uncertainty over concerns about Brexit.

n Growth in Latin America is slow, but as economic effects play a big role in this technology, recovery from recent recessions will influence the growth of color measurement in various industries. In India, growth will largely come from the textile industry and a growing pharmaceutical market. Like India, growth from Rest-of-World will be largely from textiles, but offset by recent declines in the petrochemical industry.

Color Measurement: Demand by Region




n Four vendors have double-digit shares of the market with X-Rite (a Danaher company) as the market leader. X-Rite dominates the color measurement market with benchtop and portable models across all product segments except colorimeters. With no other vendor with significant market share, this competitive situation with X-Rite at the top is unlikely to change.

n The next three largest vendors combined, Konica Minolta, Datacolor, and BYK, only come close to X-Rite’s share of the market. Konica Minolta’s measuring instruments segment is a relatively small portion of the company, and has a presence in all product segments. It is the market leader in colorimeters, as other vendors focus on other segments. Datacolor has the third largest share of the market with its line of spectrophotometers and colorimeters. BYK has a strong chemical additive business, but also has a significant color measurement segment with spectrophotometers and gloss meters.

COLOR MEASUREMENT VENDOR SHARE, 2017

Color Measurement: Competitive Situation

X-Rite (Danaher)

41%

Konica Minolta14%

Datacolor13%

BYK (ALTANA)

10%

HunterLab4%

Tintometer3%

Other15%




n Outside of the top four vendors, competition among vendors is strong with diverse product lines across product segments. Nearly every vendor offers color spectrophotometers with a small share of the market, with the exception of HunterLab, which occupies a moderate share of the market and focuses its product line in that segment. Despite their decline, a substantial number of colorimeters remain on the market from vendors like Topcon Technohouse and Tintometer. Densitometers are manufactured by a number of smaller vendors, such as Techkon and Shenzhen 3nh Technology, while the Other product segment has a larger array of vendors offering gloss meters and other specialized tools.

COLOR MEASUREMENT VENDOR PARTICIPATION, 2017

Color Measurement: Competitive Situation

Company Col

or S

pect

roph

otom

eter

sD

ensit

omet

ers

BARBIERIBYK (ALTANA)DatacolorHORIBAHunterLabKonica MinoltaPhoto ResearchPleiades InstrumentsRadiant Vision Systems (Konica Minolta)Shenzhen 3nh TechnologyTechkonTintometerTopcon TechnohouseX-Rite (Danaher)


Col

orim

eter

sO

ther




COLOR MEASUREMENT RECENT DEVELOPMENTS, 2016 - 2017


Development

Feb-2016 Datacolor Datacolor announced the availability of the Datacolor 850 and 550 spectrophotometers. These benchtop systems are ideal for the paint, plastics, and textile industries, and offer transmission and reflectance measurement.

Apr-2016 Datacolor Datacolor announced the launch of the Datacolor 200 spectrophotometer. Designed especially for retailers and hardware stores, this compact device is ideal for paint and coating applications.

May-2016 HunterLab HunterLabs announced its latest device, Vista, a visible transmission color and haze spectrophotometer. This benchtop device, is well suited to a lab environment, and offers simultaneous color and haze analysis.

May-2016 X-Rite X-Rite, announced the IntelliTrax2, the latest generation of its non-contact, automated color measurement solutions. Ideal for sheet-fed printers and folding carton converters, IntelliTrax2 adds support for M1 measurement illumination conditions to help measure optically brightened substrates.

Mar-2017 Techkon Techkon announced the release of the SpectroDENS4, a handheld scanning instrument combining the capabilities of a spectrophotometer and densitometer.

Sep-2016 Konica Minolta Konica Minolta announced the release of two spectrophotometer models tailored for automotive exterior and interior parts: the CM25cG, designed for interior parts color control, and the CM-M6, a multi-angle device for exterior parts.

Sep-2017 BYK BYK introduced the newest edition to its micro-gloss series of gloss meters, the micro-gloss 60° XS. It can be used for a wide range of surfaces and products, and comes in a compact form factor.

Oct-2017 Barbieri Barbieri announced its Spectro LFP qb, a new color spectrophotometer platform, a multi-component system designed for the print and graphics field.

Color Measurement: Recent Developments



X. POLARIMETRY AND REFRACTOMETRY

SECTION X

POLARIMETRY AND REFRACTOMETRY




Polarimetry and Refractometry: Technology Overview

While spectroscopy typically examines the interactions of different wavelengths of light with a sample in order to identify it, there are other kinds of interactions that samples can have with light. Light can have a linear or circular polarization, and optically active compounds may change the polarization of light as it passes through. Polarimeters measure this effect. The bending of light when it passes from one medium into another is refraction, and the amount of bending is related to the index of refraction of the material. Refractometers measure the angular bending of light in a sample, typically in comparison to air.

Polarimeters pass polarized light through a given optical path of the sample to determine the rotation of the plane of polarization. The key purpose is in analyzing chiral molecules, those that have both ‘lefthanded’ and ‘righthanded’ forms. Usually, the left and right forms of a chiral molecule rotate the plane of polarization in different directions. Thus, polarization measurements can determine the mixture or purity of chiral molecules. Sugars often display this property, and saccharimeters are a specialized form of polarimeter for sugar analysis. Polarimetry also includes circular dichroism (CD), which measures the differential absorption of left and right circularly polarized light.

Although the index of refraction of a sample does not uniquely identify its composition, in certain standard solutions it can and is used quite successfully to determine concentrations. The most common example is in the measurement of the concentration of sugar in a solution, as in fruit juices or wine. The sugar content, or Brix, of a solution can be of great importance in assessing product quality and suitability in the food industry. Some refractometers also include a measurement of density, which allows an independent means of measuring Brix. There are also standalone density meters for measuring the mass density of a solution, some of which can be combined with a refractometer. Although they are not based on light measurements, they are included here because of their strong association with refractometers

ATAGO REPO-1 PORTABLE REFRACTOMETER-POLARIMETER

RUDOLPH RESEARCH ANALYTICAL DDM 2911 DENSITY METER




Refractometers56%

Polarimeters26%

Density Meters18%

Polarimetry and Refractometry: Key Market Dynamics

POLARIMETRY AND REFRACTOMETRY DEMAND BY PRODUCT TYPE, 2017

$162M

n The total market for refractometers, polarimeters, and density meters was $162 million in 2017. The ag/food industry is not only its biggest market, but its biggest driver. Refractometers can be used to analyze a variety of products in this industry including wine, honey, and juices. Sugar content can also be measured by density meters. Despite the healthy growth of this industry around the world, however, overall growth for these technologies will be slow.

n Most of these technologies lack moving parts and therefore have a long shelf life. The majority of sales are done to replace older systems, and the maturity of the technology makes innovation somewhat rare. Some areas of innovation do exist though. Circular dichroism (CD), a form of polarimetry, is finding use in the pharmaceutical industry to study organic molecules. In addition, automated multiparameter systems which combine the technologies in this market are slowly being introduced and could drive growth in the future.

n Most of the growth for this market will be seen in the Asia-Pacific region, as many of its growing industries will make use of this particular technology. As government regulations catch up with the overall market in this region, testing of many food and agricultural products will require the use of refractometers and density meters. The drug market in Asia-Pacific will also benefit from the use of CD polarimetry.




Polarimetry and Refractometry: Product Segmentation

n The overall market is expected to grow slowly, reaching $184 million by the end of the forecast period. As essential tools in the QC laboratories of foods and pharmaceuticals, sales will be driven mainly by high growth markets in Asia, as well as replacement sales in developed regions.

n Most of the market is comprised of sales from refractometers. Currently, compact and portable models produced for analysis are driving demand. However, benchtop versions are preferred for analyses that require greater accuracy.

n Polarimeters, like refractometers, are very versatile in their applications and used across different industries. Applications include the study of biological molecules like proteins or drug molecules, and the quality analysis of chemicals and other liquids. Growth for this product segment will remain moderate, driven mainly by the pharmaceutical industry.

n Density meters will see below average growth since quality labs seek mainly to replace these systems as they approach the end of their lifespan. Even though portable systems are still driving demand, density meters are being combined in new multiparameter systems.

n Aftermarket and service revenues make up less than one-fifth of total sales. Many of the instruments in this market have little to no moving parts, so they seldom need consumables or a change in components, keeping growth close to average. Components for these systems include light sources and polarimeter cells, while consumables include rubber hoses and syringes for injection to the instrument..

POLARIMETRY AND REFRACTOMETRY DEMAND BY PRODUCT TYPE, 2017 - 2022

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

Initial System Refractometers 46% 75 77 79 81 83 86 2.9% Polarimeters 21% 34 35 36 37 38 39 2.6% Density Meters 16% 26 26 27 28 28 29 2.0% Total Initial Systems 83% 134 138 142 146 149 153 2.6%Aftermarket Components 10% 16 17 17 18 18 19 2.9% Consumables 3% 5 5 5 5 5 6 2.6% Total Aftermarket 13% 21 22 22 23 24 24 2.8%Service 4% 6 7 7 7 7 7 2.1%Total 100% 162 167 171 175 180 184 2.6%




n Over 80% of all unit shipments were for refractometers, the result of their lower average price. Many portable, analog refractometers can be found for under $1,000 while more accurate benchtop models lean more towards the price ceiling. In general, the price ranges for these technologies vary widely due to the availability of portable models. Density meters and polarimeters make up nearly 20% of the units shipped as the average prices for these technologies, both portable and benchtop, are higher compared to refractometers.

Polarimetry and Refractometry: Unit Shipments

POLARIMETRY AND REFRACTOMETRY PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Refractometers <$1K - $40K 18,425 1,950 20,375

Polarimeters $1K - $80K 1,700 175 1,875

Density Meters $2K - $20K 2,500 275 2,775

Total 22,625 2,400 25,025




Chemicals10%


Biotech10%

Aerospace/ Auto8%

Pharma6%

Academia7%

Other17%

QA/QC48%

AnalyticalService

25%

Applied R&D16%

Basic R&D6%


Other4%

Ag/Food32%

n Nearly one-third of demand comes from the ag/food industry. The quantification of various sugars is the major application for both refractometers and polarimeters, but there are other food applications for analyzing alcohol, salt content, honey, syrups, juices, seed oils, and other liquid materials. Another major market in the applied sector is hospital & clinical labs, where polarimeters and refractometers are used to examine patient samples, perform toxicology testing, and verify drugs.

n Major industries in the industrial sector include chemicals and aerospace/automotive. In the chemical industry, these technologies allow for fast analysis of materials to ensure specific gravity and refractive index meets specifications. Polarimeters are used here as well, but only for chemicals with chirality. In the automotive industry, there are niche applications testing antifreeze, brake fluid, and battery acids. These technologies also find major usage in flavors & fragrances, for both raw material and finished product testing.

n The pharmaceutical and biotechnology industries make use of these techniques in both quality and research applications. Determination of purity can be measured by monitoring the optical properties in a variety of compounds, including amino acids, antibiotics, and analgesics. These instruments are also being used in research that involves determining chemical structure or reaction progression.

n These technologies are better known for their applications in QC labs rather than research labs. Even in academia, they are employed more for educational tools than basic research. While analytical service labs routinely use them, given their ease of use, the cost of purchasing and utilizing a new instrument for private manufacturers is not usually considered a substantial investment.

Polarimetry and Refractometry: Application Segmentation POLARIMETRY AND REFRACTOMETRY

DEMAND BY INDUSTRY, 2017POLARIMETRY AND REFRACTOMETRY





n Growth across all sectors is expected to be mild. By a thin margin, pharma/bio will grow at the fastest rate, where research and QC functions that utilize polarimeters is expected to drive growth, particularly in developing regions. Meanwhile, the public sector has the smallest market share and is expected to see below-average growth, partially due to market saturation and partially due to tighter research budgets.

n The widest range of applications can be found in the applied and industrial sectors. In the former category, where the bulk of demand is taken up by the ag/food industry, growth will be driven by the expansion of food manufacturing facilities in China and other developing regions. Additionally, growth in both sectors will be characterized by the rise of both cheaper, portable units that allow for convenient field testing, and the simultaneous rise of more expensive, automated, multiparameter systems that allow for high throughput testing.

POLARIMETRY AND REFRACTOMETRY DEMAND BY APPLICATION SECTOR, 2017 - 2022

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


Polarimetry and Refractometry: Application Segmentation




POLARIMETRY AND REFRACTOMETRY DEMAND BY REGION, 2017

POLARIMETRY AND REFRACTOMETRY DEMAND BY COUNTRY, 2017

n About one third of demand comes from the US & Canada while about another third comes from Europe, with France, Germany, and the United Kingdom being the largest contributors. In fact, benefitting the polarimetry & refractometry market is that fact that the food industry is the largest manufacturing sector in Europe.

n Countries in Asia combine to form nearly 30% of the market. The market share of China and India has increased steadily in recent years while Japan has had well-established industries to keep demand stable. Besides the US, China and India are the world’s top producers of food, making these regions a major driver of overall growth. Other industries, including chemicals and aerospace/automotive, have grown in these countries in recent years and will help boost sales as well.

n Latin America and the Rest-of-World combine to make up 7% of the market. Despite being one of the world’s top food producers, recent economic recessions and slow recovery in Brazil have kept demand low. In regions like Africa and the Middle East, demand remains low as key industries remain relatively small compared to other regional markets.

Polarimetry and Refractometry: Demand by Region

US & Canada33%

Europe31%

China10%

Japan12%

India3%


Latin America4%

Rest-of-World3%

30%

10%

12%

7%

6%

5%

4%

4%

3%

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

United States

Japan

China

France

Germany

United Kingdom

Italy

India

Canada




POLARIMETRY AND REFRACTOMETRY DEMAND BY REGION, 2017 - 2022

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


n Growth in the US & Canada and Europe is expected to be below average, but both geographies will retain their sizeable market shares. Continued

growth from foods, pharmaceuticals, and chemicals in these two regions should continue to keep demand steady.

n China, India, and other Asia Pacific countries will experience the fastest growth. Should the trajectory of China’s expansion and Japan’s flat growth continue as predicted, demand for these products should equalize between the two countries by 2022. As food safety remains a source of concern in these rapidly-growing regions, government regulations continue to pressure the expansion of QC laboratories, and with it the growth for polarimetry & refractometry sales.

n Growth in Latin America and the Rest-of-World region is expected to be average. In these geographies, market expansion will be driven by the increase of food testing laboratories, but offset by slow economic growth.

Polarimetry and Refractometry: Demand by Region




n The largest vendor in this market is Japan-based ATAGO, with nearly one-fifth of total demand. It is well-known for producing several types of digital and analog refractometers, as well as benchtop and handheld models. The company also occupies a moderate share of polarimeters. Rudolph Research Analytical, located in the United States, is the only other company with a double-digit market share. Diversified in all three product segments, it is a major supplier of polarimeters and density meters, and a moderate supplier of refractometers.

n Anton Paar is diversified in all three product segments and focuses primarily on benchtop models. The company offers portable density meters as well. HANNA Instruments, known for its pH meters, is the second largest supplier of refractometers.

POLARIMETRY AND REFRACTOMETRY VENDOR SHARE, 2017

Polarimetry and Refractometry: Competitive Situation

ATAGO19%

Rudolph Research

10%

Anton Paar9%

Hanna Instruments

9%

Reichert (AMETEK)

6%Mettler-Toledo

6%

Schmidt+Haensch5%

Bellingham+Stanley (Xylem)

5%

Other31%




n Reichert has a moderate share of all three product segments. Mettler-Toledo holds a relatively small share of the market given its size as a company. Focused mainly on other technologies, the company is a moderate supplier of refractometers and density meters. Schmidt+Haensch focuses mainly on these technologies and has minor to moderate shares of all three product segments. Bellingham+Stanley, part of Xylem, specializes in refractometers and polarimeters and commands a similar portion of the market as Schmidt+Haensch and Mettler-Toledo. Other companies with smaller shares of the market vary in size, but most are more focused on other technologies or process solutions.

POLARIMETRY AND REFRACTOMETRY VENDOR PARTICIPATION, 2017

Polarimetry and Refractometry: Competitive Situation

Company Ref

ract

omet

ers

Den

sity

Met

ers

Pola

rimet

ers

A. KRUSS OptronicAnton PaarApplied PhotophysicsATAGOBellingham+Stanley (Xylem)Cannon Instrument CompanyEagle Eye Power SolutionsExtech (FLIR)Hanna InstrumentsHanon InstrumentsHINDS InstrumentsIntegrated Sensing SystemsISL (PAC)JASCOKyoto ElectronicsLEMIS ProcessMettler-ToledoMISCOOLISReichert (AMETEK)Rudolph ResearchSchmidt+HaenschStorage Battery SystemsTesting Machines





POLARIMETRY AND REFRACTOMETRY RECENT DEVELOPMENTS, 2016 - 2017


Development

Mar-2016 Hanna Instruments Hanna Instruments debuted the HI83300 family of multiparameter photometers, consisting of nine models. New features include a digital pH electrode connection option, and cuvettes with 25 mm path lengths, allowing for more accurate measurements.

Mar-2016 Xylem Xylem introduced the Bellingham + Stanley RFM-T series refractometers, which are Peltier temperature controlled with a measurement range up to 1.70 RI and a touchscreen. The series consists of five models.

Mar-2016 Rudolph Research Rudolph introduced the Autopol VII polarimeter for high-throughput pharmaceutical labs, featuring automated sample loading, quartz plates that perform a three-point validation automatically, and an electronic temperature-control system.

Mar-2016 Rudolph Research Rudolph Research Analytical introduced the AutoFill for its Autopol V Plus polarimeter. The upgrade enables end-users to pour samples directly into the AutoFill where they are automatically directed into the measuring cell. The AutoFill is easily cleaned with solvent and features automated drying.

May-2016 Reichert (AMETEK) Reichert Technologies announced the addition of three new Polarimeters to its line of analytical instruments: the Polar1, Polar2, and Polar3.

May-2016 Anton Paar Anton Paar introduced the new Modulyzer that combines a DMA Generation M density meter with an Abbemat refractometer and an MCP polarimeter.

Jul-2016 Reichert (AMETEK) Reichert Technologies announced that the Density4 Density Meter has a specification improvement regarding accuracy of measurement.

Sep-2016 Schmidt + Haensch Schmidt + Haensch announced their EDM 4000+ density meter is being offered as an improved version with higher accuracy and reproducibility of 0.0001 g/cm³.

Apr-2017 Anton Paar Anton Paar launched three new compact refractometer models: Abbemat 3200, 3100, and 3000. They feature low sample volume, nearly no maintenance, and a color touchscreen.

May-2017 Rudolph Research Analytical Rudolph Research Analytical introduced the J457 digital, benchtop refractometer, featuring automated clean prism monitoring, automated sample load monitoring, and automated sample calibration inspection.

Polarimetry and Refractometry: Recent Developments



XI. ELLIPSOMETRY

SECTION XI

ELLIPSOMETRY



XI. ELLIPSOMETRY

Ellipsometry: Technology Overview

Ellipsometry is a non-contact, non-destructive technique based on the analysis of changes in the properties of light after reflection from a surface. The interaction of polarized light with surfaces can be complex such that there are multiple planes of reflection, all of which can produce interference effects. The principal measurements are the change in the amplitude and phase of light polarized in both the parallel and perpendicular orientation with respect to the plane of incidence. Analysis provides information about the surface, particularly the thickness of thin films deposited on the surface.

Spectroscopic ellipsometers generate the most information, as they analyze across many wavelengths, including the visible, UV, and IR spectrums. Since they provide information across the spectrum, they can determine the thickness of multiple layers of thin films. Laser ellipsometers are more limited, probing interactions at only a single wavelength. Generally speaking, they analyze only single layers of a thin film on the sample. Despite this limitation, laser ellipsometers are simpler and less expensive and may even offer one advantage for some applications: the laser source can be focused to a very small spot on the sample, allowing the analysis of small features, or variations across a sample.

The final product segment is reflectometry. Unlike ellipsometers, these systems do not use polarization for measurements, but do use wave interference effects to measure the thickness of single or multiple layers of thin films on a sample. Some reflectometers also make use of transmitted light in addition to the reflected light for measurements. Ellipsometers and reflectometers can measure thicknesses ranging from nanometers to microns. This section only considers laboratory instruments, and not automated process tools.

SEMILAB LE-103PV LASER ELLIPSOMETER

J. A. WOOLLAM M-2000 SPECTROSCOPIC ELLIPSOMETER



XI. ELLIPSOMETRY


65%

Laser Ellipsometers

11%

Reflectometers24%

Ellipsometry: Key Market Dynamics

ELLIPSOMETRY DEMAND BY PRODUCT TYPE, 2017

$88M

n The total ellipsometry market was $88 million in 2017, almost two-thirds of which is comprised of sales for spectroscopic models. The semiconductor and electronics industries are the main drivers. The semiconductor industry is well known for its cyclical nature of boom and bust, but while these cycles may persist in the future, the changes in industry performance are not likely to be as dramatic as in the past. As newer markets continue to mature, such as those in China and other Asian markets, the semiconductor industry’s cyclical nature should become stable and grow at a modest rate. This continued growth will only benefit the ellipsometry market and provide greater demand.

n Outside of the semiconductor industry, the automotive industry is projected to grow by a combination of a growing consumer base in developing regions and a drive for more fuel-efficient vehicles. This will benefit ellipsometer sales, since they are used with the paints and coatings in vehicles, and with the metals for raw materials. In addition to automobiles, newer and more efficient solar panels are projected to see increased demand in the future. The use of ellipsometry in thin film characterization is well suited for the photovoltaics industry. Countries moving towards green energy will also see rising demand for this technology.

n Asian markets will see the greatest growth for ellipsometers, in particular China. Chinese demand continues to outpace the growth of other regions, and this trend does not seem to be changing in the near-term. The semiconductor industry in China is currently booming and with the country looking to challenge US dominance of the market, along with large amounts of both private and government capital being poured into the industry, this trend bodes well for ellipsometry sales. Moreover, with nearly a fifth of total market share, Japan is expected to maintain its position as the largest market in Asia for ellipsometers, the result of its strong presence in the automotive and semiconductor industries.



XI. ELLIPSOMETRY

Ellipsometry: Product Segmentation

n Largely driven by the semiconductor and electronics industry, the market for ellipsometers is expected to grow by 3.3% over the next five years, reaching $104 million by 2022. Demand should continue a steady growth by a combination of market stabilization and the maturation of newer markets.

n Spectroscopic ellipsometers continue to hold the lion’s share of the market due to their versatility. With wavelengths ranging from UV to IR, along with the ability to measure numerous surface parameters of various different products, their command of the market can be understood. As such, their initial systems are expected to grow well above the other two ellipsometry product segments.

n Laser ellipsometers offer the advantage of analyzing smaller spot sizes while also being used for imaging, despite being limited in their range of wavelengths for analysis. Reflectometers can measure film thickness and other optical constants, but can also determine film composition and analyze various coatings. Both of these techniques are more limited in their scope of use compared to spectroscopic ellipsometers, and are therefore projected to grow at a slower rate.

n Aftermarket components are expected to grow above average given how most instruments are very modular in their design, making individual components easy to upgrade and keep up with current technology. Due to the non-contact nature of the technology, growth in the consumables market is likely to remain flat.

ELLIPSOMETRY DEMAND BY PRODUCT TYPE, 2017 - 2022

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

Initial System Spectroscopic Ellipsometers 44% 38 40 42 44 46 48 4.6% Laser Ellipsometers 7% 6 6 6 6 7 7 1.9% Reflectometers 14% 13 13 13 13 13 14 1.5% Total Initial Systems 65% 57 59 62 63 66 69 3.7%Aftermarket Components 17% 15 15 16 16 17 18 4.0% Consumables 3% 2 2 2 2 3 3 1.7% Total Aftermarket 19% 17 18 18 19 20 20 3.7%Service 16% 14 14 14 14 15 15 1.5%Total 100% 88 91 94 97 100 104 3.3%



XI. ELLIPSOMETRY

n In 2017, nearly half of the 950 total systems shipped were reflectometers, owing to their lower price range. Despite selling fewer units than reflectometers, spectroscopic ellipsometers made the bulk of the technology’s sales due to their price point and their versatility in use. Laser ellipsometers sold 150 units with the lowest sales of the three product segments. Their low demand stems from their lack of flexibility and general use in niche applications.

Ellipsometry: Unit Shipments

ELLIPSOMETRY PRICES AND UNIT VOLUMES, 2017


2017New Used Total

Spectroscopic Ellipsometers $60K - $210K 325 25 350

Laser Ellipsometers $18K - $100K 125 25 150

Reflectometers $10K - $155K 400 50 450

Total 850 100 950



XI. ELLIPSOMETRY

n With the electronic and semiconductor industry relying on ellipsometers, it makes sense that this booming market makes up the largest share of the demand for this technology. Ellipsometers are closely tied to these industries and as they continue to grow, so should demand for ellipsometers.

n Academia makes up the next largest portion of demand. This research is often tied with semiconductors, but other applications of the technology are often related to biotechnology research. In fact, the biotechnology industry is the third largest market.

n In terms of function, QA/QC makes up the largest share of demand. This is closely tied to the semiconductor and electronics industry, but also comprises other industries, such as paints and coatings, where thin films and layers are analyzed.

Ellipsometry: Application Segmentation

ELLIPSOMETRY DEMAND BY INDUSTRY, 2017 ELLIPSOMETRY DEMAND BY FUNCTION, 2017

Biotech11%

Gen./Environ. Testing

9%

Paints & Coatings8%

Gov. Research6%

Metals/Mining5%

Other8%

Applied R&D18%

Basic R&D13%


Other6%

QA/QC43%

18%

Analytical Service

Electronics/ Semicon./ Nanotech.

39%

Academia14%



XI. ELLIPSOMETRY

n The industrial sector makes up over half of the overall demand for the technology, stemming from the regular use of ellipsometers in various industries ranging from semiconductors and solar panels to electronic displays and optical coatings. The versatility of the technology allows it to be used across a diverse list of industries. As the semiconductor market continues to perform well and as other industries recover from lackluster performance in recent years, demand is projected to grow in this sector faster than in others.

n The public and applied sectors together comprise almost a third of demand. While most academic and government research is related to semiconductors and related technology, other research in materials science, surface chemistry, and biotechnology also provides interesting avenues for ellipsometry. In the applied sector, environmental testing is the main driving force, particularly in China. A well-established technology, these instruments can last a long time in research or testing settings, but even with new research, growth will be outpaced by the industrial sector.

n For applications involving the analysis of organic films, coatings, and similar materials, ellipsometry is ideal for companies in the pharma/bio sector thanks to its non-contact, non-destructive nature. Biotechnology research applications in particular make up a substantial portion of this sector. Demand in this space is also set to grow at an above average rate due to increased research in applications like drug discovery and organic thin films.

ELLIPSOMETRY DEMAND BY APPLICATION SECTOR, 2017 - 2022

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


Ellipsometry: Application Segmentation



XI. ELLIPSOMETRY

ELLIPSOMETRY DEMAND BY REGION, 2017

ELLIPSOMETRY DEMAND BY COUNTRY, 2017

n The United States makes up the largest portion of demand, partially owing to the country’s dominance in the semiconductor industry. Demand from Japan is also quite large, due in part to its sizeable photovoltaics and automotive industry, a market trait it shares with Germany.

n Outside of Japan, much of the demand in Asia is occupied by China, South Korea, and Taiwan, where the semiconductor market dominates and numerous other industries continue to expand.

n All of Europe maintains just over a fifth of the market, but low economic growth in Italy and Russia caused a slight decline in this region. Other European nations such as Spain and France continue to hold significant shares of the market due to relative economic stability.

n Latin America and the Rest-of-World together hold just over 5% of the overall ellipsometry market, their small market size the result of their infrastructure gap and different industrial landscape. In the Middle East, industries tied to ellipsometry, such as semiconductors and photovoltaics, are largely not present. It is a similar situation in Latin America, compounded as well by recent economic disruptions.

Ellipsometry: Demand by Region

US & Canada26%

Europe22%

China8%

Japan17%

India4%



3%25%

16%

8%

6%

6%

5%

4%

3%

3%

3%

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

United States

Japan

China

South Korea

Taiwan

Germany

India

Spain

United Kingdom

France



XI. ELLIPSOMETRY

ELLIPSOMETRY DEMAND BY REGION, 2017 - 2022

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


n With over one quarter of the total ellipsometry market, the United States and Canada are expected to retain their top position in the coming years

with a growth rate just below average. Despite coming to the semiconductor industry decades behind their counterparts in the United States, Europe, and Japan, China is expected to grow faster than other regions, helped from US manufacturing moving overseas. In addition to electronics, green energy is trending upwards in China, adding to the country’s projected above average growth. Other Asian markets are also expected to grow at an above-average rate.

n Europe and Japan are expected to experience below average growth in the coming years due in part to stable auto production and the slow growth of solar energy in these regions. When compared to China and the US where both industries continue to expand, growth in Europe and Japan can mostly be attributed to the electronics and semiconductor industry.

n Growth outside of major regions is expected to be slow. While Saudi Arabia and other Middle Eastern countries look to diversify their economy outside of oil, the region as a whole will likely be slow to change. In Latin America, Brazil is making its way out of an economic recession while Venezuela is still experiencing economic issues, so it is projected that overall growth for the region will remain low.

Ellipsometry: Demand by Region



XI. ELLIPSOMETRY

n The ellipsometry market is evenly split among several manufacturers, with not one company having clear dominance over the market. Half of the total demand is almost evenly split among four companies. The largest of these is Germany-based SENTECH. It is one of two companies diversified in all three ellipsometry product segments, and holds a slim lead over other manufacturers of the technology. Hungary-based Semilab, the other company with a presence in all three product segments, is also the second largest.

n Nanometrics, headquartered in the United States, holds 12% of the market, and focuses mainly on reflectometers. Based in Japan, HORIBA is the largest company in this market in terms of overall revenue, but they remain a player in the ellipsometry market with a focus on spectroscopic ellipsometers.

ELLIPSOMETRY VENDOR SHARE, 2017

Ellipsometry: Competitive Situation

SENTECH15%

Semilab13%

Nanometrics12%

HORIBA11%

J. A. Woollam11%

ULVAC8%

Filmetrics4%

Other26%



XI. ELLIPSOMETRY

n Half of the ellipsometry market is split among several smaller companies, some of which hold a major share of the market in a respective product segment. J. A. Woollam focuses solely on spectroscopic ellipsometers and holds a major share in that product segment. Gaertner Scientific and Accurion GmbH are smaller companies that offer few products outside of ellipsometers, but both hold major shares in laser ellipsometers. ULVAC focuses mainly on vacuum pumps and components, but their small line of ellipsometers holds a moderate share of the market. Filmetrics specializes in reflectometers and hold a major share of that segment. Ocean Optics focuses mainly on spectrometers, but hold a moderate share of reflectometers. Nano-view, SCI, Angstrom Sun Tech., Digipol, and Film-sense all offer various optical solutions for different industries, and each hold minor to moderate parts of spectroscopic ellipsometers or reflectometers.

.

ELLIPSOMETRY VENDOR PARTICIPATION, 2017

Ellipsometry: Competitive Situation

Company Spec

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Ellip

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Ref

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Accurion GmbHAngstrom Sun Tech.DigiPol TechnologiesFilmetricsFilm-senseGaertner ScientificHORIBAJ.A. WoollamNanometricsNano-ViewSCI (Scientific Comp. Int’l)SemilabSENTECHULVAC




XI. ELLIPSOMETRY

ELLIPSOMETRY RECENT DEVELOPMENTS, 2016 - 2017


Development

Apr-2016 Nanometrics Nanometrics launched its Atlas III. The new model is the company’s latest flagship system for optical critical dimension and thin films process control. The Atlas III incorporates a proprietary combination of spectroscopic reflectometry and spectroscopic ellipsometry solutions.

Apr-2016 SENTECH SENTECH announced the release of its latest ellipsometers, the SEN-research 4.0. The new system comes standard with SENTECH’s SpectraRay/4, a comprehensive ellipsometry software for advanced material analysis. The systems can be configured for a range of 190 nm to 3,500 nm (UV to NIR), also possessing thick film analysis capabilities (up to 200 μm) using FTIR ellipsometry.

Jun-2016 Nanometrics Nanometrics launched the IMPULSE+, its latest system for integrated process control enabling both optical critical dimension and thin film metrology. The IMPULSE+ works in conjunction with Nanometric’s other critical dimension modeling and control systems, such as Trajectory T3 and the Atlas series. IMPULSE can be employed across key steps in DRAM, 3d-NAND, CMOS image sensor, and foundry/logic devices.

Jul-2017 HORIBA HORIBA announced the launch of their new UVISEL Plus, a modular ellipsometer which includes the newest acquisition technology designed to measure thin film samples faster, and more accurately than ever. The new FastAcq technology enables a sample measurement from 190 to 2100nm to be completed within 3 minutes, at high resolution.

May-2017 Angstrom Sun Technologies Inc.

A new version of IR spectroscopic ellipsometer IRSE was released, allowing users to observe material behavior very different to behavior observed in UV or visible wavelength ranges. IRSE allows users to characterize for structural, optical, electrical and also chemical information of materials.

May-2017 ULVAC Schaefer-Tec Group took over distribution of ULVAC Ellipsometer series. The UNECS model range includes both, portable and manual as well as automated ellipsometer systems.

Ellipsometry: Recent Developments

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