Laboratory Analytical Testing Services Market in the GCC—Outlook and Trends

Scope & Limitations

Currently affected by the drop in oil prices, GCC countries will need to undergo a transformational shift to achieve desirable growth

In 2016, GCC market for laboratory analytical services was USD 721 Mn; CAGR expected until 2020 is 3%

Top 4 end-user segments drive the demand for the top services of material testing & analysis, chemical and microbiological analysis

Lab analytical service providers based out of Dubai (UAE) cater to 50+% requirements; inclusive of those of other GCC countries

Growing population and increasing imports boost market growth

Lab analytical services market to become a USD 811 Mn opportunity by 2020

Initiatives to develop halal clusters beneficial for overall market growth; service segments like food, cosmetics and personal care items to benefit

Dubai-based laboratory analytical service providers to retain dominant market standing throughout forecast period as GCC countries continue to rely on them

In 2015, SGS, Intertek and Bureau Veritas constituted ~47% of the overall market

60+% share of “Others” translates to fragmented nature of market; intense price wars are a common feature

End-user companies directly engage with laboratory service providers for all service requirements; pertinent government entities mandate guidelines

New testing techniques/testing kits are being developed to reduce time taken to test samples

Pricing is derived based on number of samples and tests; usually, higher the volume of samples, lower is cost of test

End-user companies expect laboratory service providers to be certified; accreditation by the regulatory authorities renewed promptly

Lead time, proximity and industry references feature among the key criteria for vendor evaluation/selection

Upstream material tested onsite; downstream tested in labs; additional discounts expected by customers for more tests and samples

Agriculture, food & food services is the key segment to target for analytical services

End users conduct various tests like chemical and micro biological analysis as it is very important to determine foreign bodies and product quality

Samples tested in-house & also outsourced to rule out variations in results: have implications on product quality and also to avoid health hazards

Most of the end users follow USEPA/USFDA/APHA regulation standards

Regulations expected to increase the usage of laboratory services across end-user segments

Economic uncertainty to impact new O&G & construction projects; however, established/existing industrial base to continue laboratory analytical services

Market consolidation is a key market feature; Cosmetic testing is an emerging area

Scheduled plant maintenance activities to generate additional revenue; halal, cosmetic & FMCG to be emerging sectors

Maximise opportunities from existing products and markets; systematically explore new products, markets, including inorganic Opportunites

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