Pharmaceutical Analytical Testing Outsourcing Market Size, Share & Trends Report

Pharmaceutical Analytical Testing Outsourcing Market Size, Share & Trends Analysis Report By Service (Bioanalytical Testing, Method Development and Validation, Stability Testing), By End Use, By Region, And Segment Forecasts, 2024 - 2030

  • Report ID: GVR-1-68038-365-2
  • Number of Report Pages: 187
  • Format: PDF, Horizon Databook
  • Historical Range: 2018 - 2021
  • Forecast Period: 2023 - 2030 
  • Industry: Healthcare

Research Methodology

A three-pronged approach was followed for deducing the pharmaceutical analytical testing outsourcing market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for pharmaceutical analytical testing outsourcing market to gather the most reliable and current information possible.

  • We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
  • We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
  • We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
  • We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
  • We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of pharmaceutical analytical testing outsourcing market data depending on the type of information we’re trying to uncover in our research.

  • Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

  • Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

  • Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

  • Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

  • Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

  • Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

  • This step also entails the finalization of the report scope and data representation pattern.

  • Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Pharmaceutical Analytical Testing Outsourcing Market Categorization:

The pharmaceutical analytical testing outsourcing market was categorized into three segments, namely service (Bioanalytical Testing, Method Development & Validation, Stability Testing), end-use (Pharmaceutical Companies, Biopharmaceutical Companies, Contract Research Organizations), and region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa).

Segment Market Methodology:

The pharmaceutical analytical testing outsourcing market was segmented into service, end-use, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

  • Demand estimation of each product across countries/regions summed up to from the total market.

  • Variable analysis for demand forecast.

  • Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

  • Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

  • Used extensively for new product forecasting or analyzing penetration levels.

  • Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

  • Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

  • This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The pharmaceutical analytical testing outsourcing market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into thirty-two countries, namely, the U.S.; Canada; the UK; Germany; France; Italy; Spain; Russia; Netherlands; Switzerland; Turkey; Sweden; Japan; China; India; Australia; South Korea; Indonesia; Malaysia; Singapore; Thailand; Taiwan; Brazil; Mexico; Argentina; Colombia; Chile; South Africa; Saudi Arabia; UAE; Egypt; Israel.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Pharmaceutical analytical testing outsourcing market companies & financials:

The pharmaceutical analytical testing outsourcing market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

  • SGS SA offers inspection, testing, certification, and verification services for various industries. It operates in chemicals, consumer & retail goods, agriculture & food, construction, life sciences, energy, industrial manufacturing, logistics, oil & gas, public sector, mining, and transportation. For life sciences, the company caters to the following verticals: clinical research services, laboratory services, biopharmaceutical services, medical devices, pharmaceutical services, health & wellness, quality health safety & environment, and technical staffing services. The company has over 2,600 offices and laboratories globally.

  • Laboratory Corporation of America Holdings (LabCorp) was created in 1995 post the merger of National Health Laboratory Holdings, Inc. and Roche Biomedical Laboratories, Inc. It is involved in the development of drugs and diagnostics. The company serves clients across 100 countries. Its clients include hospitals, physicians, employers, governmental agencies, and other independent clinical laboratories. It has clinical laboratories that are located in the U.S. and other countries, including Canada, the UK, and UAE.

  • Eurofins Scientific SE (Eurofins) is the provider of analytical testing services across the globe. Eurofins has a portfolio of 150,000 analytical methods for the evaluation of composition, authenticity, and purity of biological substances. It also provides agro-testing, environment testing, consumer product testing, medical device testing, and chemical registration & authorization services. Eurofins cater its portfolio of services to pharmaceutical, consumer product, food, and environment with a network of more than 900 laboratories in 54 economies.

  • Pace Analytical Services, Inc. is a sampling and analytical testing services company and operates as a subsidiary of LAB Holdings, Inc. It offers chemistry services, such as method development, validation, verification, and method transfer services, including raw material testing, extractable & leachable testing, quality testing, residual solvents testing, environment monitoring, impurities testing, and microbiology laboratory testing. Pace also provides other services such as scientific staffing, instrument sale & services, and consulting. It offers its services through a network of analytical labs and service centers in the U.S. The company has over 500 certifications.

  • Intertek Group plc (IGP) provides quality and safety solutions and operates through three reportable segments: Product, Trade, and Resources. The product segment’s key offerings include inspection & certification services, laboratory testing, quality & performance testing, supplier auditing, vendor compliance, and sustainability analysis. Its trade and resources segment offers technical services, analytical testing services, calibration, and asset integrity services. IGP caters to life science, food, pharmaceuticals, and healthcare industries. It has presence in 1,000 locations in over 100 countries.

  • Pharmaceutical Product Development, LLC (PPD) provides drug discovery & development and post-approval services as well as compound partnering programs. The company caters to pharmaceuticals, medical device companies, biotechnology institutions, government organizations, and academic institutions. In December 2011, Carlyle Group in affiliation with Hellman & Friedman acquired PPD for USD 3.9 billion. Key therapeutic areas in which the company offers services include cardiology, critical care, dermatology, hematology, oncology, pulmonology, and urology.

  • WuXi AppTec, Inc. (WAI) is a provider of contract research & development outsourcing services for medical device, biotechnology, and pharmaceutical companies. Its pharmaceutical services include safety pharmacology, pharmacokinetics, bioanalysis, drug metabolism, and medicinal & analytical chemistry. WAI also offers biocompatibility testing, preclinical services, toxicology testing, package & validation testing, genetic toxicology, and material characterization services. It operates as a subsidiary of WuXi PharmaTech (Cayman) Inc. WAI has a strategic collaboration with REGENXBIO, Inc. & MedImmune, LLC and has a medical device testing center in China.

  • Boston Analytical is the life sciences division of Alpha Analytical and provides a variety of quality analytical testing services to support CMC for developing drug & release testing, including microbiology testing, analytical development testing, and complete stability testing. The company has an ISO/IEC-17025:2005 certified laboratory, which is FDA & DEA registered, and cGMP compliant. The company serves medical device, biopharmaceutical, and pharmaceutical companies globally. It also serves other industries such as packaging, plastic & polymers, nutraceutical & supplement, home health & beauty, and consumer products.

  • Charles River Laboratories International, Inc. is a provider of clinical laboratory services and preclinical services for pharmaceutical and biotechnology industries. It operates through three segments: Discovery & Safety Assessment (DSA), Research Models & Services (RMS), and Manufacturing Support. Its DSA segment offerings include bioanalysis, drug metabolism, toxicology, and pharmacokinetics services. It offers its products & services to biotechnology & pharmaceutical companies, medical device companies, hospitals, clinics, and academic institutions.

  • West Pharmaceutical Services Inc. manufactures delivery systems and containments for injectable medicines. The company caters to the needs of biotechnology, medical devices, pharmaceutical, and generic companies. The company also offers contract manufacturing services. The company manufactures stoppers & seals for blood collection, drug packaging, injection systems, drug packaging, and syringe components. It operates in the Americas, Asia Pacific, & Europe, and has affiliates in Mexico & Japan.

Value chain-based sizing & forecasting

Supply Side Estimates

  • Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

  • Segment revenue determination via variable analysis and penetration modeling.

  • Competitive benchmarking to identify market leaders and their collective revenue shares.

  • Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

  • Identifying parent markets and ancillary markets

  • Segment penetration analysis to obtain pertinent

  • revenue/volume

  • Heuristic forecasting with the help of subject matter experts

  • Forecasting via variable analysis

Pharmaceutical Analytical Testing Outsourcing Market Report Objectives:

  • Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

  • Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

  • Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Pharmaceutical Analytical Testing Outsourcing Market Report Assumptions:

  • The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

  • The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

  • We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

  • All market estimates and forecasts have been validated through primary interviews with the key industry participants.

  • Inflation has not been accounted for to estimate and forecast the market.

  • Numbers may not add up due to rounding off.

  • Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

  • Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

  • Latin America includes Central American countries and the South American continent

  • Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

  • Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

  • Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.

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