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.
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.
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 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
Report Attribute |
Details |
Market size value in 2022 |
USD 13.30 billion |
Revenue forecast in 2030 |
USD 25.1 billion |
Growth rate |
CAGR of 8.3% from 2022 to 2030 |
Base year for estimation |
2021 |
Historical data |
2018 - 2020 |
Forecast period |
2022 - 2030 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2022 to 2030 |
Report coverage |
Revenue forecast, competitive landscape, growth factors, and trends |
Segments covered |
Type, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Japan; China; India; Australia; South Korea; Mexico; Brazil; Argentina; Colombia; Chile; South Africa; Saudi Arabia; UAE |
Key companies profiled |
PPD, Inc.; ICON plc; LabCorp; Charles River Laboratories International, Inc.; Syneos Health; SGS SA; Eurofins Scientific; Pace Analytical Services, LLC; Toxikon, Inc.; Intertek Group |
Customization scope |
Free report customization (equivalent to up to 8 analysts' working days) with purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and purchase options |
Avail of customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The global healthcare analytical testing services market size was estimated at USD 12.1 billion in 2021 and is expected to reach USD 13.3 billion in 2022.
b. The global healthcare analytical testing services market is expected to grow at a compound annual growth rate of 8.3% from 2022 to 2030 to reach USD 25.1 billion by 2030.
b. North America dominated the healthcare analytical testing services market with a share of 53.7% in 2021. This is mainly attributed to the U.S. which is home to the largest clinical trial market at a global level.
b. Some key players operating in the healthcare analytical testing services market include Pharmaceutical Product Development; Charles River Laboratories International, Inc.; Syneos Health; SGS SA; Eurofins Scientific; Pace Analytical Services, LLC; Toxikon, Inc.; Intertek Group.
b. Key factors that are driving the healthcare analytical testing services market growth include increased outsourcing of analytical testing by pharmaceutical and biotech companies, an increase in the number of clinical trials, and a spotlight on biosimilars.
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