Central Lab Market Size, Share & Trends Analysis Report By Services (Genetic Services, Biomarker Services), By End-use (Pharmaceutical Companies, Biotechnology Companies), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global central lab market size was valued at USD 31.10 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 6.50% from 2023 to 2030. The growth can be attributed to the increasing investment in R&D and the increased focus of sponsors & investigators on reducing research costs. The outsourcing of central lab work is further driving the market growth. These laboratories faced difficulties in sample movement across borders during the SARS-CoV-2 pandemic, stringent regulations influenced the business adversely. Furthermore, pharmaceutical and biopharmaceutical companies are increasingly preferring services from the CROs that provide central lab services as a part of their integrated service models. Better integration of central lab and bioanalytical services aids in easier patient management.

Changes in the demand side significantly impacted the movement of business in central labs. Consumers are increasingly looking for a customized approach based on their specific needs. Logistics and sample management owing to increased monitoring on an individual basis of the candidates based on the diseases makes the personalized approach significantly advantageous for the customer.

The demand for innovative drugs for diseases is rising, which can be attributed to increasing awareness and personal approaches to treatment. Furthermore, the accelerating pace of innovation cycles is leading products to enter into preclinical stages. Thereby, creating a market opportunity for the central labs.

The high cost of treating the geriatric population with multiple diseases is further accelerating the demand for cost-effective products. Novel products also create revenue streams for companies, which increases the industry’s focus on R&D. This allows the companies to build robust product portfolios with strong Intellectual Property Rights (IPR). As a result, there will be more opportunities for clinical trials and a greater demand for central lab services.

Services Insights

The biomarker services segment held the highest market share of 38.30% in 2022 and is expected to witness the highest growth during the forecast period. The growth of the segment can be attributed to the co-development of diagnostics & drugs and the selection of appropriate assay development platforms that provide new opportunities for the integration of biomarkers in clinical processes. In the case of central labs, integration of biomarker services with other trial support offerings can strengthen the offerings by increasing the feasibility of the evaluation of biomarker assays.

Genetic services are gaining a foothold due to the increasing significance of genetic analysis in clinical studies and is expected to grow at a CAGR of 7.8% over the forecast period. Understanding the underlying genetic factors can aid in the development of targeted therapies for a variety of diseases, such as cancer and inheritable diseases. Furthermore, genetic differences in pathways for drug metabolism may alter a patient’s response to treatment. Hence, genetic services can add value to trial analysis and help guide treatment options.

End-use Insights

The pharmaceutical companies end-use segment held the highest market share of 45.34% in 2022. Clinical trials for new pharmaceuticals are supported by central labs, as are genetic testing services for disorders such as Alzheimer's disease, sickle cell anemia, and Parkinson's disease. As a result, the increasing number of clinical studies and the rising prevalence of genetic illnesses are expected to fuel the expansion of the market during the forecast period. Furthermore, as pharmaceutical firms are continually looking for ways to save costs in drug development and manufacturing, the demand for central labs is expected to surge in the future.

The academic and research institutes segment held a significant market share in 2022, owing to the increasing trend among pharmaceutical companies to outsource non-core activities or development-related processes to off-shore sites to save money. Hence, by opting for the help of CROs, several operational benefits can be obtained. Moreover, factors driving the market include an increase in the number of diseases, the development of novel treatments & medications, and significant research funding, proposals, & financing from governments to build innovative testing processes. 

Regional Insights

North America dominated the market with a share of 41.55% in 2022. The market is collectively driven by a significant percentage of R&D in the region along with the presence of a supportive regulatory landscape. Moreover, the high prevalence of infections such as Sexually Transmitted Infections (STI) & tuberculosis in the region is also anticipated to propel the demand for clinical research pertaining to the development of diagnostics devices and therapeutics.

The Asia Pacific is expected to witness the fastest growth of 7.8% in the market due to the increasing adoption of central lab services in the region. This can be attributed to rapid economic growth and an increase in R&D investment by countries, such as China and Japan, which has led to a rise in the number of clinical trials conducted.

Key Companies & Market Share Insights

A market expansion plan is a method for organizations to grow after they have exhausted their existing channels. This is the most widely used method by companies to attract more customers. In September 2020, LabConnect has announced the addition of its Johnson City facilities to accommodate its massive development in cell and gene therapy, as well as immuno-oncology research. The company after relocating its headquarters to Tennessee is increasing the capacity of its biorepository for specimen storage as well as its clinical trial kit manufacturing capability. Some of the key players in the global central lab market include:

• ACM Global Laboratories

• Labconnect

• Cerba Research

• Eurofins Scientific

• Medicover Integrated Clinical Services

• Versiti

• A.P. Møller Holding A/S

• Ampersand Capital Partners

• Lambda Therapeutics Research Ltd

• Cirion Biopharma Research Inc. 

Central Lab Market Report Scope 

Global Central Lab Market Segmentation

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the global central lab market report based on services, end use, and region:

• Services Outlook (Revenue, USD Million, 2018 - 2030)

  • Genetic Services

  • Biomarker Services

  • Microbiology Services

  • Anatomic Pathology/Histology

  • Specimen Management & Storage

  • Special Chemistry Services

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Pharmaceutical Companies

  • Biotechnology Companies

  • Academic & Research Institutes

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE