Drug of Abuse Testing Services Market Analysis By Type (Alcohol, Cannabis, Cocaine, Opioids, Amphetamine, LSD), By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2018 - 2025

Industry Insights

The global drug of abuse testing services market size was estimated at USD 1,465.4 million in 2016. Increase in the number of disorders associated with overuse of illicit substance and enforcement of legislations for Alcohol and Drug (A&D) testing are some of the key factors anticipated to boost the market over the forecast period. In addition to rise in number of substance abusers and increase in number of government initiatives to avoid ill effects of substance abuse at workplace & reduce number of accidents due to consumption of illicit substance are also contributing to market growth.

According to World Drug Report 2016, only 17% of the total number of illicit substance abusers have access to treatments. The fraction of population seeking treatment for cannabis-related disorders for the first time is comparatively higher. Although testing services market is not directly related to illicit substance-related treatments, growing prevalence of substance abuse is one of the factors that is expected to boost the market. The testing services include analysis of urine, blood, hair, nails, and other samples.

Implementation of stringent regulations against use of illicit substance is one of the key factors anticipated to boost the market. Some of the countries, such as Malaysia, Colombia, Iran, China, North Korea, and Saudi Arabia, have harsh laws for substance abuse, which are further expected to surge demand for drug abuse testing services, especially during pre-employment and post accidents. Majorly in the gulf countries, such as Saudi Arabia and Iran, the possession or consumption of alcohol or illicit substance is illegal and can result in various penalties, such as fines, public flogging, and imprisonment.

The concept of drug-free workplace was introduced in 1986 and is now a standard for public and private employers, mostly in the U.S. This act was introduced with an aim to ensure safe, productive, and quality-oriented work environment. The testing services undertaken by employers include pre-employment testing, testing on reasonable suspicion, postincident testing, and random drug testing. The enactment of Omnibus Transportation Employee Testing Act of 1991 by Federal Highway Administration (FHWA) and the U.S. Department of Transportation (DOT), enforces A&D testing in various fields, such as aviation, railroad, transportation, and mass transit. The existence of these regulations is one of the key attributes for market growth.

Rise in the number of drug-related deaths is expected to increase demand for A&D screening at workplace, transport facilities, and other professional environments. In 2014, approximately 0.2 million deaths due to substance abuse were reported. The highest mortality rate due to drug abuse was reported in North America, which accounted for approximately 25% of the global drug-related deaths. In 2014, nearly 61% of the overall substance abuse overdose cases were related to prescribed heroin and opioids in the U.S.

Drug Type Insights

In 2016, cannabis emerged as the largest segment that accounted for approximately 40.1% of the total revenue share. According to World Drug Report 2016, cannabis is the most commonly abused substance. In 2014, around 183 million people used cannabis, and its use significantly increased in North America and the European region. Legalizing marijuana for recreational purpose is one of the major reasons for increased consumption of cannabis in North American countries. These aforementioned factors are increasing cannabis abuse in North America and Europe, which is anticipated to further increase demand for drug abuse testing, especially in workplaces. 

Globally, amphetamine is the second most commonly used drug, although its usage has been quite stable through the years. However, the trend is different in East and Southeast Asian regions that reported an increase in use of amphetamine. In Hungary, reduced availability of heroin and lower price as well as high availability of amphetamine also resulted in people switching to the other injectable substances. Despite being the second most widely used drug, the reported treatment rate is lower as compared to other narcotic abuse; therefore, initiatives regarding its eradication are quite low as of 2016.

Opioids is expected to be the fastest growing segment with a CAGR of nearly 11.7%. In 2014, around 33 million people were estimated to be using opioids. Opioids are major hallucinogen of potential harm and adverse health consequences, which represents a growth opportunity for the testing market. The use of opioids in the U.S is increasing. The increased usage of opium in pain management is also among few factors that raises the chance of drug misuse, and this is anticipated to boost demand for opioid testing.

Regional Insights

As of 2016, North America dominated the market with a revenue share of 69.6%, and nearly 27 million people in the U.S. aged 12 and above used illicit substances. Increased use of drug testing services in investigational procedures is a key factor for high market share of this region. A number of government initiatives against substance abuse, growing adoption of drug testing at workplace, and increasing number of toxicological laboratories are some of the factors that are anticipated to boost the market.

Asia Pacific is expected to emerge as the fastest growing region with a growth rate of approximately 9.6%. As compared to the developed regions, such as North America and Europe, this region has lower prevalence of substance abuse. According to data published in 2017 by Australian National Council, the estimated prevalence of illicit drug usage is in the range of 0.01 to 4.6%. This market is in its introductory phase in this region. Some of the countries having a prevalence rate of 2% or more are Cambodia, Hong Kong, Philippines, Thailand, and Indonesia. Screening kits are widely used in emergency rooms and intensive care units. Due to presence of strong pipeline products and emerging regulations in this region, the drug of abuse testing services market is expected to grow over the forecast period.

China held the largest revenue share in the Asia Pacific region in 2016. According to data published by Bureau of Public Affairs, U.S., China is considered as the transit country and also as one of the significant destinations for illicit substances due to growth in economy, increase in disposable income of the tremendously growing population, and increase in global commerce. The synthetic hallucinogen namely, methamphetamine, amphetamine-type stimulants, and MDMA (3,4-methylenedioxy-methamphetamine) are the most abused material in China. In addition, the stringent regulation against drug of abuse is one of the crucial factors contributing to its market share.

Competitive Insights

The drug of abuse testing services market is fairly fragmented in nature and each region is majorly dominated by few local registered laboratories (players). However, in the U.S., the market is highly consolidated among four major players, namely Laboratory Corporation of America Holdings; Alere; United States Drug Testing Laboratories, Inc. (USDTL); and Quest Diagnostics, Inc., and they hold 85% of the market share. The demand for drug abuse testing services is expected to increase over the forecast period. However, Alere, Inc. and Randox Laboratories are some of the global players. The competitive rivalry is moderate to high due to few numbers of regional players, which is anticipated to increase competition for a consolidated customer base. 

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research, Inc. has segmented the drug of abuse testing services market on the basis of drug type and region:

• Drug Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Alcohol

  • Cannabis

  • Cocaine

  • Opioids

  • Amphetamine

  • LSD

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • Japan

  • Latin America

    • Chile

    • Mexico

  • Middle East & Africa

    • South Africa