The process analytical technology market size is expected to advance at a CAGR of 18.0% during 2022–2030, to reach $13,626.5 million by 2030. This can be ascribed to the rising R&D spending by pharmaceutical companies, growing adherence to quality by design (QbD) principles, increasing investment by governments of emerging economies in this field, surging emphasis on improving quality and manufacturing process efficiency, and technological advancements in analytical devices.
During the COVID outbreak, the demand for PAT had increased, as it has been used by operational participants in the advanced manufacturing division to help in the production of medicines and other necessary items like sanitizers, masks, and gloves. Additionally, the COVID-19 drug scarcity has forced pharmaceutical companies to concentrate on figuring out faster ways to supply pharmaceuticals by leveraging PAT.
The pharma and biotech industries' increasing use of process analytical technology is helping in the market expansion, as it can improve product quality, lower process costs, and maintain product safety by integrating analyzers, sensors, probes, and software. Therefore, during the forecast period, these benefits may encourage the adoption of PAT.
Since the deployment of PAT requires a high capital investment and entails high operational costs, the growth of the market is dependent on the R&D expenditure in the pharmaceutical industry, which has increased significantly over the past few decades.
For instance, according to the Pharmaceutical Research and Manufacturers of America (PhRMA), its member companies invested around $102.3 billion in R&D in 2021. Additionally, according to the Organisation for Economic Co-operation and Development (OECD), R&D spending in emerging economies, such as Brazil, Russia, India, China, and South Africa (BRICS), has increased considerably in the recent past.
Moreover, the rising investment by governments of emerging economies in the pharmaceutical sector is boosting the market for PAT. For instance, in February 2021, the Union Cabinet approved $2,025.0 million (INR 15,000 crore) under the production-linked incentive (PLI) scheme for the pharmaceutical sector in India for 2021–2029. Thus, the increasing investments by governments in the pharmaceutical and healthcare sectors would lead to the rising demand for PAT.
North America is the leading market for PAT, which is expected to grow at a CAGR of 17.3% during the forecast period, and it is expected to maintain its position in the future. The presence of the majority of global PAT manufacturers and regulatory authorities that have stipulated strict quality standards to comply with for pharmaceutical companies; the growing biotechnology industry and consequently increasing use of analytical technologies; and high R&D expenditure by pharmaceutical companies in the region are some of the key factors driving the regional market.
The presence of the major PAT manufacturers has led to a high sale of PAT tools in the pharmaceutical and chemical industries of the region. For instance, in September 2020, PerkinElmer Inc. launched the Process Plus cloud-based software and DA 7350 instrument to provide continuous quality control in food and food ingredient manufacturing processes. The new solutions are designed to enable food producers to increase efficiency, yield, and margins, by reducing waste, optimizing the use of expensive raw materials, and improving product consistency.
The most-significant process analytical technology market players are PerkinElmer Inc., Shimadzu Corporation, Carl Zeiss AG, Mettler-Toledo International Inc., Emerson Electric Co., ABB Ltd., Danaher Corporation, Thermo Fisher Scientific Inc., Agilent Technologies Inc., and Bruker Corporation.