Efficacy Testing Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Efficacy Testing Market Size

Efficacy Testing Market Analysis

The growing adoption of the QbD approach by pharmaceutical and biotechnological companies because of the importance of the stability and efficacy of any drug among patients and themselves is a major trend in the healthcare sector. Many companies are adopting this approach to ensure that all the sources of variability affecting a process are identified, explained, and managed with appropriate measures and to maintain the quality of the drugs. This enables the finished medicine to consistently meet the predefined performance characteristics from the start.

Hence, right since the introduction of QbD concepts, they have been quickly accepted by the industry to ensure that the quality of pharmaceutical and biotechnological products meet all the compliance requirements, being designed and created using the approved R&D and manufacturing procedures. Many of the quality requirements are related to the way in which a pharmaceutical or biotechnological product is designed. A poorly designed product will show poor safety and efficacy no matter how many tests or analyses have been done to verify its quality. Thus, the QbD approach becomes advantageous for pharma and biopharma companies by demonstrating that the drug quality will not improve by merely increasing the tests performed on the products; a proper R&D approach is essential.

The global efficacy testing market is expected to grow owing to the surge in the demand for novel drugs and therapies across the world. This is itself due to the rising prevalence of chronic and infectious diseases, such as cancer, diabetes, TB, and heart diseases. The boom in the geriatric population riddled with chronic diseases is another factor behind the rising demand for novel drugs and therapies. According to the WHO, in 2020, cancer was a leading cause of death worldwide, with nearly 10 million deaths. Hence, governments are taking initiatives for enhancing their healthcare infrastructure, which leads to the growth of the pharmaceutical industry.

Furthermore, the demand for personalized drugs is rising due to the growing incidence of genetic disorders and cancer. Moreover, due to individuals’ varying susceptibility to infections as well as the inter-individual unpredictability while designing a prognosis and treatment for the ailment, the demand for personalized medicines is growing. Furthermore, the large pool of patients leads to wide variations in individual behavior and bodily response, which drives the demand for personalized medicines for better efficacy, thus propelling the demand for testing of the efficacy of the drugs.

Well-established as well as growing pharmaceutical companies have large numbers of orders for manufacturing, due to which they are shifting toward the outsourcing of efficacy testing. This approach is adopted by many players as it allows them to improve their focus on their core business activities, increase their efficiency, control their costs, and utilize more funds in other areas of business. Moreover, outsourcing helps increase efficiency because CROs and CDMOs specialize in these processes, which can help the actual pharma and biopharma companies achieve a more-productive, efficient service, often of a greater quality.

Disinfection Category Held Larger Revenue Share

Based on service type, the disinfection category accounted for the larger share, of around 64%, in the global efficacy testing market in 2022, and it will further maintain its dominance in the future. This is owing to the growing awareness of personal & environmental hygiene, which has resulted in the increasing use of surface disinfectants.

Further, the advancements in technologies and the surge in the R&D investments by the leading players to deliver the emerging technologies in the market are driving the growth of the category. Moreover, the growing need to ascertain how effective disinfectant and sanitizing agent is at eliminating microbes is projected to fuel the volume of such tests.

Geographical Analysis

North America captured the largest revenue share in the market, of around 52%, in 2022, and it is further expected to maintain its dominance during the forecast period. The major reasons for this include the high adoption rate of advanced techniques and diagnostic tools, highest healthcare and R&D expenditure, and growing outsourcing of testing procedures by pharmaceutical and cosmetics companies in the region. Moreover, the strong presence of the major service providers in the region makes its market lucrative for investors and players. Moreover, the existence of stringent regulations for drug development in the U.S. and the rising count of government initiatives and funding for startups in the domain of life sciences are the other factors that increase the demand for efficacy testing in the U.S.

Further, North America has most of the world’s leading pharma and medical device corporations as well as market players’ headquarters, and other competitors have also concentrated on expanding their geographical presence to advance their market opportunities and capabilities. Additionally, regional governments are investing amply in CDMOs for the manufacturing of drug components and substances, to expand drug manufacturing capacities. As part of such initiatives, the U.S. Department of Health & Human Services invested USD 628 million in Emergent BioSolutions in June 2020 to advance the manufacturing competencies for COVID-19 vaccines.

Moreover, Canada’s contribution in making North America dominant on this market is expected to grow steadily over this decade. This would be owing to the growing pharmaceutical and cosmetics industries and their rising dependence on third-party efficacy testing service providers.

Furthermore, Europe accounts for a significant share in the market. This is owing to the increasing stringency of the regulatory policies for the safety of drugs and the presence of a robust healthcare infrastructure. Additionally, the presence of many key players providing outsourcing services drives the market in the region.

Report Breakdown

Based on Service Type

• Antimicrobial
  • Traditional test methods
  • Rapid test methods
• Disinfectant
  • Surface test methods
  • Suspension test methods

Based on Application

• Biopharmaceutical Application
• Cosmetic And Personal Care Products
• Consumer Products
• Medical Device

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Efficacy Testing Service Providers