Pharmaceutical Analytical Testing Outsourcing Market Size, Share & Trends Analysis Report By Service (Bioanalytical, Stability Testing, Method Development & Validation), And Segment Forecasts, 2019 - 2026

Industry Insights

The global pharmaceutical analytical testing outsourcing market size was valued at USD 5.59 billion in 2018. The market is projected to expand further at a strong CAGR of 8.1% from 2019 to 2026. Increasing demand for biopharmaceuticals, bio-similar, and analytical drugs is projected to be one of the key factors augmenting the market growth.

In addition, recent approvals in the pharmaceutical industry and price benefits associated with outsourcing these services are likely to drive the market further. Quicker and reliable results, improved efficiency, and data safety are a few other key factors favoring market growth. Factors, such as rising R&D investments, from drug approval to development, and declining Return-on-Investment (RoI), are forcing companies to outsource their operations to save time and cost.

This, in turn, will support the market development. In the last few years, the ratio of R&D expense and total revenue has increased and is expected to continue growing during the forecast period. The International Council for Harmonization (ICH) regularly introduces updated guidelines, which will also contribute to the industry development.

However, quality maintenance and regulatory audits in the outsourced laboratories may impede the market growth in the coming years. The susceptibility of small and large molecules to highly potent and active pharmaceutical ingredients and integrity standards required by the clients are expected to be restraining factors for the market.

Service Insights

Based on services, the market is divided into bioanalytical testing, stability testing, method and validation, and others. Bioanalytical testing services are further bifurcated into clinical and non-clinical tests. The method and validation segment is categorized into technical consulting, impurity method, extractable & leachable, and others. Stability testing is segmented into drug substance, accelerated stability testing, photo-stability testing, stability indicating method validation, and others.

Other services include physical characterization of the materials, microbial testing, batch release, raw material testing, and environmental monitoring. The bioanalytical segment held a substantial share of 40.0% in 2018. However, other services segment is anticipated to witness maximum lucrative growth over the forecast period. Factors responsible for this growth include innovative approaches to decrease the complexity of the tests and changing regulations for in vivo and in vitro tests.

Regional Insights

North America led the global market in 2018 owing to the presence of top pharmaceutical companies in the region. Constant development of new pharmaceutical drugs to meet the rising demand for efficient healthcare in North America is anticipated to drive the regional market further. In addition, strong support from the federal government, in terms of healthcare expenses, is projected to contribute to the region’s development.

The Asia Pacific is anticipated to witness the fastest growth over the study period due to rising demand for outsourcing services in the low-cost labor markets. Outsourcing services in this region are typically supported from delivery centers in China, Indonesia, and India. China is gaining popularity as a delivery location for on-shore clients and off-shore clients that are based out of Japan.

Pharmaceutical Analytical Testing Outsourcing Market Share Insights

Some of the key companies in the market are SGS SA; Intertek Group PLC; Pharmaceutical Product Development, LLC; Toxikon, Inc.; Exova Group PLC; Eurofins Scientific; Pace Analytical Services, LLC; Charles River Laboratories International, Inc.; Boston Analytical; and West Pharmaceutical Services, Inc.

Strategic collaborations, agreement, M&A, and service portfolio expansion are the key undertakings in this market. For instance, in January 2019, Clinigen Group extended its European clinical trial suppliers agreement with the Accord Healthcare. The extended agreement will also include on-demand services to the Accord’s product portfolio.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2026. For the purpose of this study, Grand View Research has segmented the global pharmaceutical analytical testing outsourcing market report on the basis of service and region:

• Service Outlook (Revenue, USD Billion, 2015 - 2026)

  • 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

    • Photostability Testing

    • Others

  • Others

• Regional Outlook (Revenue, USD Billion, 2015 - 2026)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Colombia

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE