Pharmaceutical Analytical Testing Outsourcing Market Size, Share, Industry Trends and Forecast to 2030

What is the Market Size & CAGR of Pharmaceutical Analytical Testing Outsourcing market in 2021?

The global pharmaceutical analytical testing outsourcing market size in 2021 was estimated to be USD 5.6 billion. It is projected to grow at a CAGR of 7.8% from 2021 to 2028, reaching USD 8.9 billion by the end of the forecast period. The increasing demand for specialized testing services, along with the rising complexity of drug formulas, is driving the growth of the market.

COVID-19 Impact on the Pharmaceutical Analytical Testing Outsourcing Market

The COVID-19 pandemic has significantly impacted the pharmaceutical analytical testing outsourcing market. The increased focus on drug development and testing to combat the virus has led to a surge in demand for analytical testing services. However, disruptions in supply chains and restrictions on movement have posed challenges to the market players. Despite the challenges, the market has witnessed growth opportunities in vaccine testing and development.

Pharmaceutical Analytical Testing Outsourcing Dynamics

The pharmaceutical analytical testing outsourcing market is driven by factors such as increasing R&D activities in the pharmaceutical industry, growing complexity of drug formulations, and stringent regulatory requirements. The market is also influenced by technological advancements in analytical techniques and the rising demand for specialized testing services. However, the market faces challenges in terms of data security concerns and pricing pressures from clients.

Segments and Related Analysis

The pharmaceutical analytical testing outsourcing market is segmented based on the type of testing services, which include bioanalytical testing, method development and validation, stability testing, microbial testing, and others. Each segment caters to specific requirements of pharmaceutical companies in different stages of drug development. The bioanalytical testing segment holds the largest market share due to the growing demand for bioequivalence studies and pharmacokinetic assessments.

By Region Analysis

In terms of regional analysis, North America dominates the pharmaceutical analytical testing outsourcing market due to the presence of a well-established pharmaceutical industry and a high demand for analytical testing services. Europe and Asia Pacific are also significant regions in the market, driven by increasing investments in drug development and outsourcing activities. Latin America and the Middle East & Africa regions are emerging markets with growth potential.

Key Market Players and Competitive Landscape

Key players in the pharmaceutical analytical testing outsourcing market include Charles River Laboratories, Eurofins Scientific, SGS SA, WuXi AppTec, and PPD Inc. These companies focus on expanding their service offerings, increasing their geographic presence, and forming strategic partnerships to strengthen their market position. The competitive landscape is characterized by intense competition, technological advancements, and regulatory compliance.

Recent Happenings in the Pharmaceutical Analytical Testing Outsourcing Market

- In June 2021, Eurofins Scientific announced the acquisition of Labcorp's Covance Food Solutions business, expanding its food testing capabilities. - In July 2021, Charles River Laboratories completed the acquisition of Cognate BioServices, a cell and gene therapy contract development and manufacturing organization. - In September 2021, SGS SA launched a new biopharmaceutical testing laboratory in China to meet the growing demand for analytical services in the region. - In October 2021, WuXi AppTec collaborated with AstraZeneca to establish an integrated laboratory space for pharmaceutical research and development. - In November 2021, PPD Inc. announced the expansion of its GMP analytical laboratory in Ireland to support the development of new drug products.