Healthcare Analytical Testing Services Market Size, Share & Trends Analysis Report By Product Type (Medical Device, Pharmaceutical), By Region (APAC, North America), And Segment Forecasts, 2021 - 2028

Report Overview

The global healthcare analytical testing services market size was valued at USD 11.4 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 9.8% during the forecast period. Increased outsourcing of analytical testing by pharmaceutical and biotech companies, rise in the number of clinical trials, and spotlight on biosimilars are some of the key factors expected to drive the global market. Since biosimilars serve as a cheaper treatment option as compared to biologics, pharmaceutical companies are investing more in the development and approval of biosimilars, especially in the U.S. As per the 2020 Biosimilars Trend Report, in July 2020, 28 biosimilars were approved in the U.S. Also, there has been an increase in the number of biosimilar approvals by 65% from 2015 to 2020 in the country.

The U.S. is also home to the frontrunner biosimilar player, Pfizer, which further supports market growth. Moreover, with increasing cases of chronic diseases in the country, the demand for biosimilars is expected to increase. In biosimilars development, analytical testing determines the physicochemical characterization to establish the ‘sameness’ of the biosimilar to the reference molecule. Thus, demand for healthcare analytical testing services is also expected to increase in the coming years.

Pharmaceutical and medical devices have become increasingly complex. Thus, demand for analytical testing of medical devices and combination drugs is on the rise. These complex products require instrumentation to characterize. In view of this, pharmaceutical & medical device companies are outsourcing such services.

Pharmaceutical firms are opting for service providers in emerging countries, such as India, owing to low cost and high-quality data. For instance, Veeda Clinical Research is one of the leading CROs in India offering bioanalytical services to international pharma companies. In February 2021, the company formed a partnership with Somru BioScience Inc., a Canada-based biotechnology company that launched a bioanalytical laboratory in Ahmedabad, India, given the growing biosimilars market.

Furthermore, there has been a rapid move by pharma companies around the world to develop therapeutic drugs & vaccines for the treatment of COVID-19. This has led to the increased outsourcing of analytical testing by these companies. For instance, in July 2020, SGS formed an analytical testing services agreement with AstraZeneca to support AZD1222, a COVID-19 vaccine candidate. Under the terms of the agreement, SGS will conduct analytical testing of vaccine production in its Belgium-based laboratory.

Product Type Insights

The pharmaceutical product type led the market and held the largest revenue share of 57.6% in 2020. Based on product type, the market is segmented into medical device and pharmaceutical analytical testing services. Analytical testing is one of the most outsourced activities of pharmaceutical companies as it requires highly skilled staff and specialized equipment.

For instance, in June 2020, Emergent BioSolutions signed a CDMO agreement with AstraZeneca’s vaccine candidate for COVID-19, under which, it was likely to provide analytical testing services to AstraZeneca. The medical device product type segment is projected to witness the fastest CAGR of over 11% during the forecast period owing to the growing regulatory pressure for more detailed chemical analysis of medical devices. The combination of the digital age with biochemical testing is expected to create lucrative opportunities for analytical testing labs.

Regional Insights

North America accounted for the largest revenue share of 42.0% in 2020. This is mainly attributed to the U.S., which is home to the world’s largest clinical trial market. As per the data released by ClinicalTrials.gov in March 2021, globally, over 30% of all the registered studies are held in the U.S. Thus, with the wide base of clinical trials in the country, demand for analytical testing is also expected to increase. The country is also home to major pharmaceutical companies involved in extensive R&D with a special focus on biosimilars. Pfizer Inc. holds a leading position as a biosimilars company at the global level. The company is actively involved in the development and approval of biosimilars, which require analytical testing.

The Asia Pacific region is projected to register the fastest CAGR from 2021 to 2028, owing to the expansion of the biosimilars market in countries such as India. The country has over 95 approved biosimilars. In addition, a robust biosimilar pipeline also awaits, with over 40 biosimilars in the clinical development stage. The Indian government’s initiative to offer subsidies to biosimilar manufacturers is further expected to boost the market growth in the country.

Key Companies & Market Share Insights

Collaborations, service portfolio expansions, and mergers & acquisitions are key strategic undertakings by the major market players. Companies are also providing various types of services, assay validations, and other laboratory solutions to enhance their position in the market.

For instance, in January 2020, LabCorp’s drug development business, Covance, launched preclinical, clinical, and post-approval cell and gene therapy development solutions. In August 2020, PPD, Inc. signed a 3-year contract with Pfizer, Inc. to provide services to advance Pfizer’s drug development portfolio. PPD is anticipated to provide clinical development & laboratory services to Pfizer, supporting its drug development initiatives across multiple therapeutic areas. Some of the prominent players in the global healthcare analytical testing services market include:

• PPD, Inc.

• ICON plc

• LabCorp

• Charles River Laboratories International, Inc.

• Syneos Health

• SGS SA

• Eurofins Scientific

• Toxikon, Inc.

• Intertek Group

• Pace Analytical Services, LLC

Healthcare Analytical Testing Services Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global healthcare analytical testing services market report on the basis of product type and region:

• Product Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Medical Device

    • Extractable & Leachable

    • Material Characterization

    • Physical

    • Bioburden

    • Sterility

    • Other Tests

  • Pharmaceutical

    • Bioanalytical

    • Method Development & Validation

    • Stability

    • Other Services

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • India

    • Japan

    • China

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Colombia

    • Chile

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE