Pharmaceutical Analytical Testing Market Size (2024 - 2029)

Pharmaceutical Analytical Testing Market Analysis

The Pharmaceutical Analytical Testing Market size is estimated at USD 8.98 billion in 2024, and is expected to reach USD 13.43 billion by 2029, growing at a CAGR of 8.41% during the forecast period (2024-2029).

Various factors, such as the increasing number of clinical trials, the rising focus on Pharmaceutical Analytical Testing Services of biologics and biosimilars, and the increased trend of outsourcing laboratory testing services, are expected to boost the market growth over the forecast period.

The increase in clinical trials for developing new drugs is anticipated to boost the need for Pharma Testing Services and contribute to market growth. For instance, in February 2024, according to clinicaltrials.gov, there were 481,599 studies from locations comprising 50 states and 223 countries. Additionally, in December 2023, Mission Therapeutics, a United Kingdom-based company, received clinical trial authorization from the Medicines and Healthcare Products Regulatory Agency (MHRA) to evaluate the MTX325 in a Phase-I study for Parkinson's disease. Thus, with the high number of clinical trials, it is anticipated that Pharmaceutical Analytical Services are likely to be employed and contribute to market growth.

Additionally, initiatives taken by health regulatory bodies, such as the World Health Organization, to boost clinical trial activities are expected to propel the growth of the Pharmaceutical Analytical Testing Services Market over the forecast period. For instance, in November 2023, the World Health Organization Global Clinical Trials forum presented the global vision for developing clinical research infrastructure in various therapeutic areas such as cancer, cardiovascular disease, and metabolic and neurological disorders. It facilitates the ethics and regulatory approval process. Therefore, government initiatives for promoting clinical trials and research are anticipated to fuel the adoption of Pharmaceutical Analytical Services, contributing to market growth.

Moreover, the growing emphasis on analytical assessments of biosimilars and biologics drives the demand for Pharmaceutical Analysis Services and contributes to market growth. For instance, in February 2022, an article published in the Frontiers in Bioengineering and Biotechnology mentioned that analytical and biosimilarity assessments were conducted to ensure the approval of biosimilars worldwide. Thus, Pharmaceutical Analytical Services are highly employed, with a growing focus on analytical testing to ensure the approval process and safety of the molecules, thus driving the market growth.

The market players' strategic activities, such as collaborations and partnerships among Pharmaceutical Testing Companies, are anticipated to boost their capabilities to provide Pharmaceutical Analytical Services, which is expected to bolster the market growth. For instance, in July 2023, Recipharm opened a new analytical laboratory in Bengaluru, India, to promote its testing capabilities for nitrosamines, extractable and leachable, and elemental impurity testing worldwide. Additionally, in December 2023, Sterling Accuris Diagnostics acquired Vaibhav Analytical Services, a provider of analytical testing services based in Ahmedabad, India. With this acquisition, the company intends to expand its services to new horizons, especially in the realm of Pharmaceutical Analytical Testing. Such developments are estimated to propel market growth over the forecast period.

Therefore, owing to the aforementioned factors, such as the rise in clinical trials, growing attention on analytical testing of biologics and biosimilars, and the rising trend of outsourcing laboratory testing services, the Pharmaceutical Outsourcing Analytical Testing Market is anticipated to grow over the forecast period. However, the complex regulatory framework for maintaining laboratories and challenges in developing proper analytical techniques will likely impede market growth.

Pharmaceutical Analytical Testing Industry Segmentation

As per the scope of the report, pharmaceutical analytical testing is majorly used in pharmaceutical and biopharmaceutical companies for a series of clinical trials on newly manufactured drugs to ensure safety. This pharmaceutical analytical testing market is segmented by service type and geography. By service type, the market is segmented into bioanalytical testing, method development & validation, stability testing, drug substances testing, and other service types. By geography, the market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. For each segment, the market size is provided in terms of USD value.