The global pharmaceutical analytical testing outsourcing market size was estimated at USD 6522.5 million in 2020 and is expected to reach USD 11352 million by 2027 anticipated to register a CAGR of 8.2 % over the forecast period. Pharmaceutical analytical testing is majorly used in pharmaceutical and biopharmaceutical companies for series of clinical trials on new manufactured drugs to ensure safety.
The drugs undergo bioanalytical testing, method development & validation and stability testing before the launch. Pharma companies are focusing on analytical testing outsourcing as it enhances drug safety and shortens drug development time. Pharmaceutical analytical testing outsourcing market is growing due to competition within pharmaceutical market for disease specific drugs. Pharmaceutical analytical testing involves identification and quantification of components in pharmaceutical solutions or drugs. Due to increasing demand for drugs, there is substantial growth in R&D investments. The lengthy drug approval procedures and financial issues leads to in reduced return on investments, thereby, increasing company’s preference towards outsourcing these services.
Furthermore, availability of advanced analytical testing techniques such as hyphenated technique, kinetic method of analysis, electrochemical techniques enables specific monitoring of components in drug development. However, high cost associated with pharmaceutical testing and varied outsourcing expenditures by companies may restrain pharmaceutical analytical testing outsourcing market growth over the forecast period.
The practice wherein a company transfers a portion of its work to an outside supplier to cut costs is referred to as outsourcing. It is said to be a cost-saving strategy observed by several companies. In pharmaceutical industries, in-house laboratory testing might be an expensive affair. Some resources might also be unavailable. Therefore, outsourcing is an excellent way that could be employed to deal with these issues. Analytical testing is an important step in manufacturing which provides first-hand information to the manufacturer, therefore reducing the operating cost. It is also often outsourced.
The global pharmaceutical analytical testing outsourcing market is expected to experience rapid growth during the forecast period due to the swiftly developing pharmaceuticals market, increasing demand for bio-similar & biopharmaceutical products as well as for analytical drugs, and the rising number of products in the pipeline. Furthermore, improved efficiency in testing reduced cost, quicker & reliable results, and data safety are other factors propelling the global market. However, quality approvals and regulatory audits conducted in outsourcing laboratories could hinder the global pharmaceutical analytical testing outsourcing market during the forecast period
Key players operating in the global pharmaceutical analytical testing outsourcing market include Eurofins Scientific, Boston Analytical, Intertek Group plc, Dalton Pharma Services, Charles River Laboratories International, Inc, West Pharmaceutical Services, Inc., Exova, and Halo Pharma.
Geographically, the global pharmaceutical analytical testing outsourcing market is distributed over North America, Asia Pacific, Europe Latin America, and Middle East & Africa. North America occupies a major share in the global analytical testing outsourcing market in terms of value, followed by Europe. The factors attributing to the expansion of the analytical testing outsourcing market in North America by 2025 include the technological advancements, extensive research & development facilities, better quality, and rising demand for drugs & other pharmaceutical products in the region. The global analytical testing outsourcing market in Asia Pacific is anticipated to be developing rapidly during the forecast period owing to the speedy growth in pharmaceutical industries in India & China, high demand for biopharmaceuticals, immense investments by established market players in developing countries, and low-cost proposals in low- and middle-income countries.
The drugs undergo bioanalytical testing, method development & validation and stability testing before the launch. Pharma companies are focusing on analytical testing outsourcing as it enhances drug safety and shortens drug development time. Pharmaceutical analytical testing outsourcing market is growing due to competition within pharmaceutical market for disease specific drugs. Pharmaceutical analytical testing involves identification and quantification of components in pharmaceutical solutions or drugs. Due to increasing demand for drugs, there is substantial growth in R&D investments. The lengthy drug approval procedures and financial issues leads to in reduced return on investments, thereby, increasing company’s preference towards outsourcing these services.
Furthermore, availability of advanced analytical testing techniques such as hyphenated technique, kinetic method of analysis, electrochemical techniques enables specific monitoring of components in drug development. However, high cost associated with pharmaceutical testing and varied outsourcing expenditures by companies may restrain pharmaceutical analytical testing outsourcing market growth over the forecast period.
The practice wherein a company transfers a portion of its work to an outside supplier to cut costs is referred to as outsourcing. It is said to be a cost-saving strategy observed by several companies. In pharmaceutical industries, in-house laboratory testing might be an expensive affair. Some resources might also be unavailable. Therefore, outsourcing is an excellent way that could be employed to deal with these issues. Analytical testing is an important step in manufacturing which provides first-hand information to the manufacturer, therefore reducing the operating cost. It is also often outsourced.
The global pharmaceutical analytical testing outsourcing market is expected to experience rapid growth during the forecast period due to the swiftly developing pharmaceuticals market, increasing demand for bio-similar & biopharmaceutical products as well as for analytical drugs, and the rising number of products in the pipeline. Furthermore, improved efficiency in testing reduced cost, quicker & reliable results, and data safety are other factors propelling the global market. However, quality approvals and regulatory audits conducted in outsourcing laboratories could hinder the global pharmaceutical analytical testing outsourcing market during the forecast period
Key players operating in the global pharmaceutical analytical testing outsourcing market include Eurofins Scientific, Boston Analytical, Intertek Group plc, Dalton Pharma Services, Charles River Laboratories International, Inc, West Pharmaceutical Services, Inc., Exova, and Halo Pharma.
Geographically, the global pharmaceutical analytical testing outsourcing market is distributed over North America, Asia Pacific, Europe Latin America, and Middle East & Africa. North America occupies a major share in the global analytical testing outsourcing market in terms of value, followed by Europe. The factors attributing to the expansion of the analytical testing outsourcing market in North America by 2025 include the technological advancements, extensive research & development facilities, better quality, and rising demand for drugs & other pharmaceutical products in the region. The global analytical testing outsourcing market in Asia Pacific is anticipated to be developing rapidly during the forecast period owing to the speedy growth in pharmaceutical industries in India & China, high demand for biopharmaceuticals, immense investments by established market players in developing countries, and low-cost proposals in low- and middle-income countries.
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