Pharmaceutical Analytical Testing Outsourcing Industry 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.
Gather more insights about the market drivers, restrains and growth of the Global Pharmaceutical Analytical Testing Outsourcing Market
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.
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Pharmaceutical Analytical Testing Outsourcing Market Segmentation
Grand View Research has segmented the global pharmaceutical analytical testing outsourcing market report on the basis of service and region:
- Pharmaceutical Analytical Testing Outsourcing Service Outlook (Revenue, USD Million, 2016 – 2028)
- Method Development & Validation
- Extractable & Leachable
- Impurity Method
- Technical Consulting
- Stability Testing
- Drug Substance
- Stability Indicating Method Validation
- Accelerated Stability Testing
- Photostability Testing
Pharmaceutical Analytical Testing Outsourcing Regional Outlook (Revenue, USD Million, 2016 – 2028)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Market Share Insights
- May 2019: Intertek Group Plc announced the expansion of its pharmaceutical services laboratory in Milbourn, which is likely to open at the end of 2019.
- December 2018: SGS SA invested USD 3.84 million to undertake a two-phase expansion project at its laboratory in Poitiers, France, to implement a 50% increase in bioanalytical capabilities at the site by 2020.
Key Companies profiled:
Some prominent players in the global pharmaceutical analytical testing outsourcing market include:
- SGS SA
- Toxikon, Inc.
- Eurofins Scientific
- Pace Analytical Services, Inc.
- Intertek Group Plc
- Pharmaceutical Product Development, LLC.
- WuXi AppTec, Inc.
- Boston Analytical
- Charles River Laboratories International, Inc.
- West Pharmaceutical Services Inc.
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