GVR Report cover Pharmaceutical Analytical Testing Outsourcing Market Size, Share & Trends Report

Pharmaceutical Analytical Testing Outsourcing Market Size, Share & Trends Analysis Report By Service (Bioanalytical, Method Development & Validation, Stability Testing), By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-1-68038-365-2
  • Number of Pages: 275
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2020
  • Industry: Healthcare

Report Overview

The global pharmaceutical analytical testing outsourcing market size was valued at USD 7.1 billion in 2021 and is anticipated to exhibit a compound annual growth rate (CAGR) of 8.4% from 2022 to 2030. Innovation in the pharmaceutical industry, increasing focus on regulation, safety and quality, rising number of end-users, and pricing benefits of outsourcing are the key factors driving the market for pharmaceutical analytical testing outsourcing. Small and medium sized pharmaceutical companies do not have necessary infrastructure to support various types of analytical testing. As a result, outsourcing these processes is the best alternative, as it saves time and money. The COVID-19 pandemic has increased the demand of pharmaceuticals.

U.S. pharmaceutical analytical testing outsourcing market size, by service, 2020 - 2030 (USD Billion)

During this crisis, global pharmaceutical analytical testing outsourcing providers played a predominant role in meeting the testing needs of pharmaceutical companies, biotech companies, contract research organizations, and other end users. These organizations have been actively working towards development of pharmaceutical samples, APIs, small and large molecules, and other pharmaceutical products. Hence, such actions by the outsourcing providers is expected to have impacted the market to some extent.

Other factors, such as the increasing need for product safety and quality, along with changing regulations for in vivo and in vitro tests are also expected to propel the growth of the market for pharmaceutical analytical testing outsourcing. For instance, the government of China issued a notification to upgrade the quality of generic drugs, remove the backlog of drug applications, improve the quality and transparency of the review and approval process, and encourage new drug R&D in line with global development.

The economic benefits associated with outsourcing these services and approvals in the pharmaceutical industry are projected to support the growth of the market for pharmaceutical analytical testing outsourcing. Quicker and reliable results, data safety, and improved efficiency are some key factors favoring market growth. Innovation or new product development is directly proportional to the demand for testing services. Due to competitive pressures, pricing concerns, and lead-time to market, companies are opting to outsource testing services. According to the Pharma Intelligence Report 2021, the total drugs in pipeline increased to 18,852 molecules in 2021 from 17,737 molecules in 2020.

Increasing focus on customized care and technological advancements are shortening the product lifecycle, which has resulted in the rapid development of new products. The development of combination products, biosimilar, and other innovative medicines has led to an increase in demand for specific types of tests. Outsourcing services are becoming the most preferable option for many pharma companies to increase operational efficiency, therapeutic expertise, and on-demand services along with the expansion of geographical presence.

The COVID-19 pandemic has significantly increased demand for biological medicines like vaccines, as of 15th April 2022, over 349 vaccines were under developments as per the WHO. This is expected to improve the demand for analytical testing services of COVID-19 vaccines under clinical trials. Apart from this, several outsourcing companies had helped the pharma companies in testing drugs for COVID-19. For instance, Eurofins Scientific supported the testing of investigational COVID-19 vaccine candidate of Johnson & Johnson. Similarly, SGS had supported AstraZeneca and the University of Oxford to test the ingredients of their vaccine candidate. Such actions by the outsourcing service providers is expected to have positive impact on the market for pharmaceutical analytical testing outsourcing.

Service Insights

The other service segment accounted for revenue share of over 39.6% in 2021. The segment includes environmental monitoring, raw material testing, batch release, microbial testing, and physical characterization of the materials. Changing regulations for in vivo and in vitro tests and innovative approaches to reduce the complexity of the tests are contributing to the segment growth.

The bioanalytical testing services segment is expected to witness the fastest growth over the forecast period. The entry of new participants in the market for pharmaceutical analytical testing outsourcing and an increasing number of clinical trial registrations have contributed to the segment growth. A lot of small-scale industries are not equipped with top-end analytical tools and opt for outsourcing of these studies to industry experts having years of experience in performing, documenting, and adapting to the challenges presented during analysis. This is also anticipated to drive segment growth.

Regional Insights

North America dominated the pharmaceutical analytical testing outsourcing market and accounted for the largest revenue share of over 53.7% in 2021 and will retain its dominant position throughout the forecast years. This is due to the fact that it is one of the top manufacturing hubs of complex, highly reliable, and high-end pharmaceuticals. The rise in the manufacturing of pharmaceuticals to meet the increasing demand for efficient healthcare in the region is also projected to be one of the major factors propelling market growth.

Global pharmaceutical analytical testing outsourcing market share, by region, 2021 (%)

In Asia Pacific, the market for pharmaceutical analytical testing outsourcing is expected to grow fast from 2022 to 2030 as a lot of developed countries are investing in countries in this region. Outsourcing services in APAC are usually supported by delivery centers in the Philippines, China, and India. China is gaining popularity as a delivery location for nearshore and onshore clients based out of Japan.

Key Companies and Market Share Insights

Market players are undertaking various strategic initiatives, such as mergers and acquisitions, collaboration, and service portfolio as well as geographic expansions, to gain a higher market share. For instance, in December 2021, SGS SA acquired Quay Pharma, a pharma R&D organization to expand its capability in biopharmaceutical analytical testing. Similarly, in May 2019, Intertek Group Plc announced the expansion of its pharmaceutical services laboratory in Milbourn. Some of the prominent players in the pharmaceutical analytical testing outsourcing market include:

  • SGS SA

  • Toxikon, Inc. (Labcorp)

  • Eurofins Scientific

  • Pace Analytical Services, Inc.

  • Intertek Group Plc

  • Pharmaceutical Product Development, LLC. (Thermo Fisher Scientific)

  • WuXi AppTec, Inc.

  • Boston Analytical

  • Charles River Laboratories International, Inc.

  • West Pharmaceutical Services Inc.

Pharmaceutical Analytical Testing Outsourcing Market Report Scope

Report Attribute

Details

Market Size value in 2022

USD 7.6 billion

Revenue forecast in 2030

USD 14.6 billion

Growth Rate

CAGR 8.4% from 2022 to 2030

Base year for estimation

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Services, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; 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

Key companies profiled

SGS SA; Toxikon, Inc.( Labcorp); Eurofins Scientific; Pace Analytical Services, Inc.; Intertek Group Plc; Pharmaceutical Product Development, LLC (Thermo Fisher Scientific); WuXi AppTec, Inc.; Boston Analytical; Charles River Laboratories International, Inc.; West Pharmaceutical Services Inc.

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Segments Covered in the Report
 

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 - 2030. For the purpose of this study, Grand View Research has segmented the global pharmaceutical analytical testing outsourcing market report on the basis of services and region:

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

    • Bioanalytical

      • 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 Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

      • Spain

      • Russia

      • Turkey

      • Netherlands

      • Switzerland

      • Sweden

    • Asia Pacific

      • Japan

      • China

      • India

      • Australia

      • South Korea

      • Indonesia

      • Malaysia

      • Singapore

      • Thailand

      • Taiwan

    • Latin America

      • Brazil

      • Mexico

      • Argentina

      • Colombia

      • Chile

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • UAE

      • Egypt

      • Israel

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