Mass Spectrometry Services - Disruptors

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Mass Spectrometry Services - Disruptors

OVERVIEW

Disruptions in the Mass Spectrometry Service segment are led by innovators who are creating new trends in the industry and forcing traditional leaders to go into mergers. Examples of such innovators are MartinProtean and Bruker. We were not able to find more disruptors; they may be found in paid versions of the reports we analyzed. However, leading names like Thermo Fisher Scientific and Perkinelmer are responding to the challenge posed by disruptors by seeking mergers with organizations that can offer new technologies. Software that can reduce time spent analyzing, modifying and characterizing proteins are in high demand.
MASS SPECTROMETRY SERVICES SEGMENT
US spectrometry services companies include Perkinelmer, Thermo Fisher Scientific, Performed Line Products and Kaman Corporation. While the first three have grown at an average of 27.3% year-on-year, Kaman Corporation grew at 3.52%.

Aside from these leading names, there are other players in the market, corporations and laboratories. Some challenges affecting this segment is manpower and funding. The cost of investing is preventing entry by newcomers.

However, a new trend in software development is forcing market leaders to react with mergers. This is why the forecast is expected growth, up to $9.99billion in 2024. The growth is also driven by an increased need for higher quality analytic tools.

DISRUPTORS IN MASS SPECTROMETRY SERVICES SEGMENT
The main disruptions in the mass spectrometry segment are innovations that shorten the time spent on examination of tissues, and mergers and acquisitions that eliminate the competition.
MartinProtean presents itself as a disruptor. They claim to have technology that addresses one of the biggest challenges in protein sequencing. The company offers services in chemically modified protein analysis, protein structure phi-value analysis and biologic disulfide validation.
Although established in 1961, Bruker says it brings innovation into the segment by adopting new ways of applying mass spectrometry in biomass analysis. They provide software solutions such as SCiLs Lab for MS Imaging. This technology has been described as powerful but user-friendly and it addresses a major pain point for laboratory professionals.

REACTION OF TRADITIONAL MARKET LEADERS
Traditional market leaders like Thermo Fisher Scientific and Perkinelmer are working to maintain their market share. One instrument they are using is mergers and acquisitions. In January 2018 alone, US biotech companies spent $30 billion in M&A. There is no doubt that this spend will have an impact in mass spectrometry.
To illustrate, Thermo Fisher bought over FEI in order to get their hands on technology they did not already have and grow their business. Similarly, Perkinelmer is acquiring RHS — a research institution specialized in developing of advanced single cell genomic technology. This acquisition, framed as an opportunity for both companies to expand further into the global market, will also help the two market leaders maintain their lead and increase their market share thereby outpacing the competition.
CONCLUSION
Two trends have dominated the mass spectrometry segment in recent years. The first trend is the development of software and other technologies that will speed up the process of analysis and diagnostics of biomass. The second is the acquisition of smaller labs and biotech corporations by market leaders. These two trends are the major cause of disruptions into segment as the entry of new players is often prohibited by cost.

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