Pharmaceutical Analytical Testing Outsourcing Market by Services (Bioanalytical Testing, Method Development & Validation, Stability Testing), Testing Technique (Chromatography, Mass Spectrometry, Spectroscopy), End-use - Global Forecast 2024-2030

Pharmaceutical Analytical Testing Outsourcing Market by Services (Bioanalytical Testing, Method Development & Validation, Stability Testing), Testing Technique (Chromatography, Mass Spectrometry, Spectroscopy), End-use - Global Forecast 2024-2030

The Pharmaceutical Analytical Testing Outsourcing Market size was estimated at USD 9.23 billion in 2023 and expected to reach USD 10.07 billion in 2024, at a CAGR 9.38% to reach USD 17.30 billion by 2030.

Pharmaceutical analytical testing outsourcing refers to the professional services provided by external organizations that specialize in performing various analytical testing procedures for pharmaceutical companies. This practice of outsourcing is a strategic approach adopted by pharmaceutical companies to attain cost efficiencies, access specialized expertise, and benefit from advanced technologies that they may not possess in-house. The demand for pharmaceutical analytical testing outsourcing is driven by factors such as increasing regulatory demands for precise drug validation, the rising complexity of drugs, which requires advanced analytical methods, and cost optimization efforts from pharmaceutical companies looking to focus on core competencies. Despite the growth prospects, intellectual property concerns and the need for compliance with stringent regulatory standards, which can lead to an increase in lead time and costs, act as a restraint for market growth. However, advancements in technology, such as AI and high-throughput screening methods, present new avenues for market growth. The trend towards personalized medicine and orphan drugs also opens up a potential for specialized analytical testing services, presenting significant opportunities for the pharmaceutical analytical testing outsourcing market.

Regional Insights

The pharmaceutical analytical testing outsourcing market in the Americas is demonstrating robust growth. This growth is fortified by the presence of a pharmaceutical industry, along with well-established outsourcing companies. The stringent regulatory landscape, spearheaded by the U.S. Food and Drug Administration (FDA), and the increasing demand for cost-efficiency, innovation, and faster time-to-market are driving outsourcing activities. Europe remains a major contributor to the pharmaceutical analytical testing outsourcing market within the EMEA region. The market is benefiting from advanced healthcare infrastructure, significant investment in pharmaceutical R&D, and well-defined regulatory frameworks in the region. The Middle East and Africa, while smaller in comparison to Europe, are experiencing gradual expansions fueled by growing investment in healthcare sectors and a rising interest in pharmaceutical outsourcing to reduce costs and leverage regional expertise. The APAC market is experiencing rapid growth in pharmaceutical analytical testing outsourcing, backed by emerging economies such as China and India. These countries are becoming hotspots owing to their cost-competitive labor, growing expertise in pharma analytics, and increasing compliance with international quality standards. The expansion of local pharmaceutical manufacturers, coupled with increased foreign investments in healthcare infrastructure, continues to create new opportunities for pharmaceutical analytical testing outsourcing services in the region.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Pharmaceutical Analytical Testing Outsourcing Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Increasing research and development in drug discovery and development
Complexity of drug formulations and need for compliance with stringent regulatory standards
Growing preferences for pharmaceutical analytical testing outsourcing as a cost optimization strategy

Market Restraints

High cost of analytical instruments and maintaining state-of-the-art facilities

Market Opportunities

Emerging technological advancements in drug testing procedures
Increasing investments in the pharmaceutical industry

Market Challenges

Concerns associated with intellectual property rights

Market Segmentation Analysis

Services: Demand for bioanalytical testing services to determine efficacy and safety of pharmaceutical products
Testing Technique: Significant benefits of chromatography owing to its efficiency in separating and quantifying analytes in samples
End-use: Growing need for a broad range of high-complexity testing services from contract manufacturing organizations

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Pharmaceutical Analytical Testing Outsourcing Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Pharmaceutical Analytical Testing Outsourcing Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Sterling Accuris expands into pharmaceutical and analytical testing through new acquisition

Sterling Accuris Diagnostics, an esteemed network of pathology labs with NABL accreditation, has recently enhanced its service portfolio through the strategic acquisition of Vaibhav Analytical Services, an analytical testing service provider in Ahmedabad. This merger marks a pivotal expansion into pharmaceutical analytical testing for Sterling Accuris.

Eurofins expands its biopharmaceutical products testing footprint with an outsourcing agreement with Astellas in Japan

Eurofins Scientific, a company in the field of biopharmaceutical testing, has forged a strategic outsourcing partnership with Astellas Pharma Inc., involving the latter's Astellas Analytical Science Laboratories, Inc. (ASL). ASL has been integral to Astellas's operations, offering comprehensive analytical testing services crucial for the quality assurance of pharmaceutical products.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Pharmaceutical Analytical Testing Outsourcing Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Pharmaceutical Analytical Testing Outsourcing Market, highlighting leading vendors and their innovative profiles. These include Ajinomoto Bio-Pharma, Alcami Corporation, AptarGroup, Inc., Ascendia Pharmaceuticals, BioAgilytix, Cambrex Corporation, Catalent, Inc, Charles River Laboratories International, Inc., Element Materials Technology, Eurofins Scientific SE, ICON PLC, Intertek Group PLC, Laboratory Corporation of America Holdings, LGM Pharma, Medpace Holdings, Inc., Merck KGaA, Pace Analytical Services, Inc., SGS SA, Societal CDMO, Source BioScience, Syneos Health, Thermo Fisher Scientific Inc., West Pharmaceutical Services, Inc., and WuXi AppTec.

Market Segmentation & Coverage

This research report categorizes the Pharmaceutical Analytical Testing Outsourcing Market to forecast the revenues and analyze trends in each of the following sub-markets:

Services
Bioanalytical Testing
Clinical
Non-Clinical
Method Development & Validation
Extractable & Leachable
Impurity Method
Technical Consulting
Stability Testing
Accelerated Stability Testing
Drug Substance
Photostability Testing
Stability Indicating Method Validation
Testing Technique
Chromatography
Mass Spectrometry
Spectroscopy
End-use
Biopharmaceuticals & Pharmaceuticals
Contract Manufacturing Organizations
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year