Healthcare Analytical Testing Services Market Size, Share & Trends Analysis Report By Type (Medical Device, Pharmaceutical), By Region (APAC, North America, Europe, MEA), And Segment Forecasts, 2022 - 2030

Report Overview

The global healthcare analytical testing services market size was valued at USD 12.1 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.3% during the forecast period. The main drivers of the industry include a rise in outsourcing activities of analytical testing services by pharmaceutical companies, an increasing number of clinical trials that require analytical testing, and a growing focus on biosimilars. The COVID-19 pandemic has also helped in the growth of the industry. Due to the pandemic, there has been rapid development in drugs and therapeutics for its prevention and this has led to a rise in analytical testing services.

Initially, the market growth was hampered by the COVID-19 pandemic due to stay-at-home orders, disruption in the supply chain, and suspension of enrollment in clinical trials. However, it soon recovered due to a rise in vaccines, medical devices, and therapeutics to fight against COVID-19. For instance, in July 2020, SGS SA signed an agreement with AstraZeneca. The main aim of this agreement was to provide analytical testing services for the COVID-19 vaccine AZD1222. Analytical testing shortens the time to test quality and market, reduces the risk, and helps in determining the safety, performance, and regulatory standards of the product.

Also, the rise in innovations and the development of new products is directly linked to the demand for testing services. There has also been an increase in outsourcing of these services due to pricing concerns, lead-time to market, and competitive pressure. The development of biosimilars, combination products, and other innovative medicines has increased the demand for specific types of tests. Moreover, when companies diversify their business to a new location, it is mandatory to follow local standards, which may require them to conduct specific types of tests. The U.S. market is expected to grow as the number of chronic disease cases in the country rises.

Analytical testing establishes the physicochemical characterization to prove the “sameness” of the biosimilar to the reference molecule throughout the development of biosimilars. As a result, it is anticipated that the demand for healthcare analytical testing services will increase in the coming years. For instance, in July 2021, Pfizer was working on 96 biosimilars that are present in a different phase. The company is an industry leader in biosimilars and is based in the United States, which contributes to the region’s expansion.

Type Insights

The type segment is further sub-segmented into medical device and pharmaceutical analytical testing services. The pharmaceutical analytical testing services segment accounted for the largest share of more than 58.00% of the global revenue in 2021 and is estimated to expand further at the fastest CAGR during the forecast period. The drivers of the growth of this segment include increasing demand from raw material suppliers and pharmaceutical manufacturers, innovation of new products that are directly linked to the demand for testing services, and a rise in complexity & number of standards, by which a single product may have to comply.

The medical device analytical testing services segment is anticipated to register the second-fastest CAGR during the forecast period. Constant developments in new technologies, increasing expertise in difficult analytical measurements, stringent regulations, and an increasing number of small-scale manufacturers of medical devices that have to go through testing services are among the major factors responsible for the growth of this segment. Analytical testing services for medical devices are further categorized into physical, bioburden, and sterility testing, extractable & leachable, material characterization, and other tests.

Regional Insights

The North America region dominated the global industry in 2021 and accounted for the maximum share of more than 53.5% of the total revenue. It has one of the top manufacturing facilities that provide complex, highly reliable, and high-end pharmaceuticals. Technological advancements and rising demand for healthcare testing services are factors expected to drive the regional sector’s growth during the forecast years. Also, biopharmaceutical companies are focusing on the U.S. market through investments due to the rapidly growing healthcare sector and favorable regulatory reforms.

On the other hand, the Asia Pacific region is expected to register the fastest growth rate during the forecast period owing to the increasing investments by companies from developed economies in enhancing regional analytical services, amendments made by regulatory bodies for changing evaluation standards to align with the global standards, and establishment of new facilities & alliances to increase the reach of their offerings to various locations in the region. For instance, in November 2021, LabCorp expanded its footprint in the Asia Pacific with the addition of a new integrated bioanalytical laboratory in Singapore.

Key Companies & Market Share Insights

Key players are continuously involved in strategic initiatives like collaborations, partnerships, mergers, acquisitions, and expanding their facilities, which influence the industry dynamics. For instance, in April 2021, SGS SA completed the acquisition of SYNLAB Analytics, a provider of pharmaceutical, food, and environmental testing services. This acquisition added more than 37 laboratories to SGS and the key aim of this acquisition was to expand its analytical testing capabilities in pharmaceutical, environment, and food testing. Some 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

• Pace Analytical Services, LLC

• Toxikon, Inc.

• Intertek Group

Healthcare Analytical Testing Services Market Report Scope

Global Healthcare Analytical Testing Services Market Segmentation

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 2018 to 2030. For this study, Grand View Research has segmented the global healthcare analytical testing services market report based on type and region:

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

  • Medical Device Analytical Testing Services

    • Extractable & Leachable

    • Material Characterization

    • Physical Testing

    • Bioburden Testing

    • Sterility Testing

    • Other Tests

  • Pharmaceutical Analytical Testing Services

    • Bioanalytical Testing

    • Method Development & Validation

    • Stability Testing

    • Other Testing Services

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Colombia

    • Chile

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE