Merck 2014 Annual Report Download - page 86

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81GROUP MANAGEMENT REPORT → REPORT ON ECONOMIC POSITION → Macroeconomic and sector-specific environment
Life science market
The Life Science division is a leading supplier of products and
services for general laboratory applications, as well as for the
research, development and production of drug therapies of bio-
logical and chemical origin.
For the global laboratory product market relevant to the Lab
Solutions business, the market research firm Frost & Sullivan cal-
culated slight growth of 2.6 % for 2014. Growth was thus 0.8per-
centage points higher than the original forecast for the year 2014
(+ 1.8 %). In terms of growth, the individual regions varied consid-
erably. In comparison with 2013, the market situation in Europe
(+ 1.6 %) and the United States (+ 2.5 %) improved, especially due
to positive market developments in Germany, the United Kingdom
and Spain, as well as an initial slight improvement in the U.S.
academic and government sectors. Emerging economies grew
much more strongly than industrialized countries; however their
11.9 % share of the global market volume remains relatively low.
The main drivers of growth in emerging economies were India
(+ 8.7 %) and China (+ 8.5 %).
The demand for Process Solutions products depends heavily
on the sales as well as research & development activities of phar-
maceutical companies. Both primary influencing factors had a
positive impact on the Process Solutions market, leading to no-
ticeable growth. Global pharmaceutical sales increased by 8.1 %
according to IMS Health. Moreover, research & development
spending increased by 3.2 % compared with the previous year,
according to the market research firm Evaluate Pharma, and the
number of
PhaseI to
III
clinical trials continues to increase, leading
to higher
demand for Process Solutions products. This is mostly
being driven by greater demand for monoclonal antibodies as well
as increased biosimilars development and biological manufactur-
ing, particularly in emerging markets.