Market Trends of GMP Testing Service Industry
Pharmaceutical and Biopharmaceutical Companies Segment Expected to Hold Significant Share in the GMP Testing Service Market
GMP is a system that guarantees goods are consistently produced and controlled by quality standards. The hazards associated with pharmaceutical production that cannot be removed through testing the finished product are intended to be reduced as much as possible. The pharmaceutical and biopharmaceutical companies segment is expected to grow during the forecast period.
The pharmaceutical and biopharmaceutical industries' innovative drug development is anticipated to fuel market expansion in this sector. According to the International Federation of Pharmaceutical Manufacturers and Associations' "Facts & Figures Report 2021," 24 were in Phase I, 34 were in Phase II, and 23 were in Phase III trials. The same report states that as of March 2021, the European Medicines Agency (EMA) had given Pfizer-BioNTech, Janssen, Moderna, and AstraZeneca's COVID-19 vaccines a conditional marketing authorization. The United States Food and Drug Administration (FDA) also approved COVID-19 vaccines from Pfizer BioNTech, Janssen, and Moderna. According to the Food and Drug Administration (FDA) Drug Recall Statistics published in July 2021, approximately 1,279 drugs are recalled each year globally, with 94% of FDA drug recalls occurring in the United States, followed by 4% in Canada. The FDA issued 12,028 drug recalls in the United States between 2012 and 2021. It necessitates the GMP testing of manufacturing plants and the assurance of public safety before they are marketed.
The strategic activities of the market players are expected to boost the market over the forecast period. For instance, in April 2021, PPD Inc., a leading global contract research organization, announced its plans to expand its Good Manufacturing Practice (GMP) lab in Ireland to enhance its biopharmaceutical testing capabilities. As a result, the category of pharmaceutical and biopharmaceutical businesses is driving market expansion. It is anticipated to favorably affect the GMP testing services market growth during the projected year.
North America is Expected to Hold Significant Share in the GMP testing Services Market Over the Forecast Period
North America is projected to hold a significant market share over the forecast period, owing to the presence of key market players and the availability of advanced technologies. Furthermore, favorable regulatory infrastructure and high medical demand are projected to boost regional market growth. FDA ensures product quality by closely monitoring drug manufacturers' compliance with its Current Good Manufacturing Practice (CGMP) regulations. The CGMP regulations for drugs include minimum requirements for the methods, facilities, and controls used in manufacturing, processing, and packaging a drug product. The regulations ensure a product is safe and contains the ingredients and strength it claims.
Moreover, the growing burden of chronic diseases is expected to spur increased demand for novel drugs, likely increasing drug manufacturing activities, thereby driving market growth. For instance, according to the 2022 data from the CDC, about six out of ten Americans suffer from chronic diseases, leading drivers of the nation's annual healthcare costs, amounting to around USD 4.1 trillion. The high disease burden is expected to increase demand for high-quality medicine, which leads to an increase in manufacturing activity that requires GMP testing, boosting the market growth.
The rising government investments in companies to improve their manufacturing technologies and the rising number of pharmaceutical manufacturers fueled market growth over the forecast period. For instance, in January 2021, Continuus Pharmaceuticals received a USD 69.3 million contract from the United States government to facilitate the domestic production of vital medicines to treat critically ill patients. Contract manufacturing organizations are expected to register a notable growth rate over the forecast period, owing to the increase in these organizations in developing regions. Moreover, the escalating number of drug approvals and the need for more manufacturing facilities to meet the studied market's demand are anticipated to boost the market's growth.
Thus, all the factors above are expected to propel the growth of the studied market over the forecast period.
