Market Overview

GCC Laboratory Analytical Testing Services Market Outlook and Trends to 2020 -


The "Laboratory
Analytical Testing Services Market in the GCC Outlook and Trends"

report has been added to's

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

While economic uncertainty will impact new projects of oil, gas and
construction, the established/existing industrial base will continue to
seek laboratory analytical services. Stringent enforcement of
regulations and growth in local populace coupled with increase in number
of expats, especially in GCC countries has translated into greater
demand food and food services, which has increased opportunities for
laboratory analytical services.

It will be crucial for Service Providers to offer end to end services;
faster service and proximity to customer location will be an added
advantage. This Industry docket provides an overview of the market, its
growth path, drivers and restraints impacting it and the way forward for
success in this market.

Key Topics Covered:

Scope & Limitations

Lab Analytics Market - GCC Overview

  • 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
  • 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
  • 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
  • Most of the end users follow USEPA/USFDA/APHA regulation standards
  • Regulations expected to increase the usage of laboratory services
    across end-user segments

The Industry going Forward

  • 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

Companies Mentioned

  • SGS
  • Intertek
  • Bureau Veritas

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