The global pharmaceutical analytical testing outsourcing market size is projected to reach $15,814.6 million by 2030, growing at a CAGR of 8.5% from 2021 to 2030. This can be ascribed to the extensive research & development activities, improved accessibility, increase in consumption of drugs, and government initiatives and funding. Moreover, pharmaceutical companies are focusing and investing in R&D in order to develop long-lasting drugs. Also, governments and businesses work together to close the demand–supply gap in the market.
API is the largest and fastest-growing category in the market, advancing at a CAGR of more than 9% during the forecast period. This is because producers are focusing on manufacturing advanced API drugs, improving their therapeutic power, and meeting consumers’ demands. The advantage of outsourcing APIs is that it saves money on exclusive containment infrastructure. Also, due to appropriate and safe infrastructure and stringent GMP obligations, certain pharmaceutical companies and CMOs offer in-house pharmacology and toxicology expertise. Thus, the consistent growth of API producers in the growing pharmaceutical sector will benefit the market growth in this category.
Globally, North America leads the pharmaceutical analytical testing outsourcing market. This is attributed to the rise in the number of biopharmaceutical companies in the U.S. and Canada, and the presence of major market players in the region.
Whereas, the APAC market is expected to grow at the highest pace in the coming years, owing to the surging development of pharmaceutical companies in the region. These companies are focusing on APAC, due to the low development and labor costs, improved GMP compliances, and the presence of a skilled workforce having the ability to perform complex drug synthesis.
Moreover, the availability of bulk and generic manufacturers, low-cost drug delivery, and high investment by key players in the APAC pharmaceutical industry will fuel the pharmaceutical analytical testing outsourcing market growth. Also, delivery centers in China, the Philippines, and India typically support APAC outsourcing services.
The market is moderately competitive. It is expected to grow due to the increase in the number of strategic developments adopted by key market players, such as facility expansions, partnerships, and acquisitions. For instance:
Major players in the market are SGS SA, • Laboratory Corporation of America Holdings, Eurofins Scientific SE, Pace Analytical Services LLC, Intertek Group Plc, Thermo Fisher Scientific Inc., WuXi AppTec Co. Ltd., Boston Analytical, Charles River Laboratories International Inc., and West Pharmaceutical Services Inc.