Pharmaceutical Analytical Testing Outsourcing Market Analysis By Services (Bioanalytical Testing, Method Development and Validation, Stability Testing), By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2018 - 2025

Industry Insights

The global pharmaceutical analytical testing outsourcing market size was valued at USD 4.4 billion in 2015 and is expected to grow with CAGR of 8.1% over the forecast period. Innovation in pharmaceutical industry, increasing focus on regulation, safety & quality, rising number of end-users, and pricing benefits of outsourcing are vital drivers for the lucrative growth of the market. Increasing R&D investments is one of the critical sustainability strategies.

Increasing R&D investments is one of the critical sustainability strategies. Not all companies have an infrastructure that is compatible for all types of analytical testing. Hence, outsourcing these operations is the most suitable option, which also helps save time and cost. In the recent years, the R&D expense to total revenue ratio is increasing and expected to continue to increase over the forecast period.

U.S. pharmaceutical analytical testing outsourcing market, by services 2014 - 2025 (USD Billion)

Increase in complexity and number of standards, which a single product may have to comply with, is driving substantial growth in the pharmaceutical analytical testing services outsourcing market. In addition, companies are required to stay abreast with regulatory updates and avail expertise & advisory services to be in synchronization with evolving standards. Moreover, international organizations such as the International Council for Harmonisation (ICH) give harmonized guidelines that are regularly updated.

Increasing awareness about product quality, environmental issues, and safety amongst consumers is driving companies to outsource tests as a means to ensure that the product complies with aforementioned aspects, thereby building a brand image and protecting & enhancing its reputation.

Services Insights

Services segment for the pharmaceutical analytical testing outsourcing market is inclusive of bioanalytical testing, method and validation, stability testing and others. Bioanalytical testing services, which is inclusive of clinical and non-clinical testing services held a lucrative share in 2015.

Global pharmaceutical analytical testing outsourcing market, by services, 2015

Changing regulations for in vivo and in vitro tests and increasing complexity of these tests are anticipated to bolster the demand for these services. Other services, which include physical characterization of the materials, raw material testing, batch release, microbial testing, and environmental monitoring are also anticipated to grow substantially over the forecast period.

Regional Insights

North America dominated the global pharmaceutical analytical testing services outsourcing market in 2015. This can be attributed to the fact that it is one of the top manufacturing hubs of highly reliable, complex, and high-end Pharmaceuticals. Consequently, original equipment manufacturers are increasingly moving toward electronics manufacturing service providers to efficiently handle increasing volume of electronic components in the current Pharmaceuticals.

The rapid increase in the manufacturing of the pharmaceuticals to meet the rising demand for efficient healthcare in the region is expected to be one of the major factors propelling development of the market. According to a recent study, in 2013. approximately 15.0% of the GDP was spent on healthcare and medical sector. Pharmaceutical outsourcing market is anticipated to grow further due to the increasing government support to curb the healthcare expenses in the region.

Asia Pacific is anticipated to witness fastest growth over the forecast period owing to rising demand for outsourcing services in comparatively immature markets. Outsourcing srvices in this region is typically supported from delivery centres in China, Manila and India. China is gaining popularity as a delivery location for onshore clients and nearshore clients that are based out of Japan.

Competitive Insights

Some of the key players in this market include SGS SA; Toxikon, Inc.; Eurofins Scientific; Pharmaceutical Product Development, LLC; Intertek Group plc; Pace Analytical Services, LLC; Exova Group plc; Boston Analytical; Charles River Laboratories International Inc.; and West Pharmaceutical Services, Inc. Regional & service portfolio expansions and merger & acquisitions are key strategic undertakings of these players.

Strategic Collaborations, geographical expansion, mergers and acquisitions, and service portfolio expansion are the key undertakings in this industry. For Instance, In April 2015, SGA SA completed major expansion in Mumbai, India. This expansion helped the company to gain extra laboratory space and cater to unmet needs of Indian healthcare sector.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the pharmaceutical analytical testing outsourcing market on the basis of services and region:

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

  • Bioanalytical Testing

    • Clinical

    • Non Clinical

  • Method Development & Validation

    • Extractable & Leachable

    • Impurity Method

    • Technical Consulting

    • Others

  • Stability Testing

    • Drug Substance

    • Stability Indicating Method Validation

    • Accelerated Stability Testing

    • Phostostability Testing

    • Others

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • Japan

    • China

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • South Africa