Healthcare Analytical Testing Services Market Size, Share, Industry, Forecast and outlook (2024-2031)

Healthcare Analytical Testing Services Market is segmented By Test Type (Bioanalytical Testing Services, Method Development & Validation, Stability Testing, Drug Substances, Others), By End-User (Pharmaceutical & Biopharmaceutical Companies, Medical Device Companies, Contract Research Organizations), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Healthcare Analytical Testing Services Market Overview

The Global Healthcare Analytical Testing Services Market reached USD 6.4 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 14.7 billion by 2030. The global Healthcare Analytical Testing Services Market is expected to exhibit a CAGR of 11.1% during the forecast period (2023-2030).  Advanced technology and procedures are used by healthcare analytical testing services to deliver accurate and trustworthy test results.

This guarantees that professionals and healthcare workers may make wise judgements based on reliable information. Services for analytical testing are essential for guaranteeing patient safety. They aid in the detection of impurities, pollutants, and potential dangers in medicines, medical equipment, and other healthcare products.

Further more, Healthcare Analytical Testing Services market size is growing rapidly because of a following factors, rise in outsourcing activities of analytical testing services by pharmaceutical companies, an increasing number of clinical trials. Due to the massive healthcare expenditure in countries like the U.S. and Canada, the market is seeing an increase in demand from North American regions. With significant competitors like SGS SA, Toxikon Inc., Pace Analytical Services, and others actively operating in the market.

Healthcare Analytical Testing Services Market Scope

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Healthcare Analytical Testing Services Market Dynamics

Rising Clinical Trials Will Drive The Market Growth

The number of clinical studies has expanded dramatically over the last two decades. This is due to the increasing penetration of cutting-edge medical technologies, as well as the increased desire for innovative, more efficacious treatments.

For instance, as of June 2022, globally, 419,000 clinical trials were registered, including almost 80% interventional research and 23% observational studies, according to the US National Library of Medicine. Furthermore, according to the WHO International Clinical Trials Registry Platform (ICTRP), the United States (157,619) had the most clinical trials registered between 1999 and 2021, followed by China (80,000) and Japan (57,750).

Although clinical trial management systems are used to collect and organise data, they are both cost and time effective. They can be shared with numerous care providers and scattered throughout multiple systems. These technologies can aid in site identification and recruitment, as well as control and tracking of participant enrolment and participant databases. As a result, the increase in clinical studies contributes to market growth.

Increasing Growth For Bioanalytical Testing Services

Due to its benefits, such as its utility in reducing drug development costs and properly analysing the therapeutic entity, resulting in a cost-effective drug development cycle, bioanalytical testing services are in high demand. The leading companies' strategies are another factor in the market's expansion.

For instance, February 2, 2021, With the recent acquisition of GSK's vaccine clinical bioanalytical laboratory in Marburg, Germany, Nexelis has expanded its bioanalytical capabilities. GlaxoSmithKline (GSK) and Nexelis, a portfolio company of Ampersand Capital Partners and a provider of advanced assay development and laboratory testing services, have signed an asset purchase agreement for Nexelis to purchase GSK's clinical bioanalytical laboratory in Marburg, Germany, which is GCLP-certified. As a result, the expansion of strategies by key players aids in market expansion.

Data Insecurity will Hamper The Growth Of The Market. 

Healthcare organizations, including testing services, are prime targets for cyberattacks due to the valuable and sensitive nature of the data they possess. Hackers may attempt to gain unauthorized access to patient records, test results, or other confidential information, leading to data breaches and potential misuse of personal health information. Data insecurity can also stem from internal sources, such as employees or contractors with authorized access to the data. Misuse, intentional or accidental, by insiders can compromise the confidentiality, integrity, or availability of healthcare data. Thus above factors restrict the market growth.   

Healthcare Analytical Testing Services Market Segment Analysis

The global healthcare analytical testing services market is segmented based on test type, end user and region.

Owing to Key Strategies By Key Players, the Stability Testing Segment Accounted for Approximately 23.7% of the Healthcare Analytical Testing Services Market Share

The strategic initiatives taken by the key players such as product launches, approvals, partnerships is also fueling the Stability Testing segment growth. For instance, on May 31, 2023, the World Health Organisation (Geneva)-Prequalification Unit (PQT) has given the SGS Health Science laboratory in Navi Mumbai the go-ahead for testing, analytical services, and stability studies. 

The company's capacity to offer unmatched assistance to pharmaceutical manufacturers all over the world in the production of high-quality pharmaceutical goods has advanced significantly as a result of the WHO-PQT approval. All nations served by the World Health Organisation can now receive testing services from SGS' Health Science laboratory in Navi Mumbai, as per the scope outlined in the WHO Public Inspection Report. As a result, these elements are anticipated to fuel segment growth.

Source: DataM Intelligence Analysis (2023)

Healthcare Analytical Testing Services Market Geographical Penetration

North America Accounted for Approximately 39.3% of the Market Share in 2022, Owing to the Strong Presence of Major Players and Increasing Healthcare Infrastructure Investment

Due to an increase in R&D activities and investments, North America is anticipated to be a dominating area in the pharmaceutical analytical testing market. According to data given by the Centre for Drug Evaluation and Research (CDER), Food and Drug Administration (FDA), 63 innovative medications were approved in 2020, and 50 in 2021. According to the FDA, the majority of the medications that were approved globally in 2020 and 2021 were first approved in the United States. 

Additionally, 136,276 clinical studies have been filed in the United States as of the present year, accounting for 31% of all clinical trials worldwide. The region's high rate of drug approvals is anticipated to accelerate market expansion throughout the projection period.

Source: DataM Intelligence Analysis (2023)

Healthcare Analytical Testing Services Companies 

The major global players in the healthcare analytical testing services market include Pharmaceutical Product Development, LLC (PPD), Eurofins Scientific, SGS SA, Toxikon Inc., Pace Analytical Services, Intertek Pharmaceutical Services, Boston Analytical, West Pharmaceutical Services Inc., Steris, and Charles River Laboratories among others.

COVID-19 Impact on Healthcare Analytical Testing Services Market

Russia Ukraine Conflict Analysis

The Russia-Ukraine conflict is estimated to have a moderateimpact on the global Healthcare Analytical Testing Services Market, owing to the low prevalence and absence of key market players in this region. However, the impact of the import and export of raw materials is expectedto have little influence over the global Healthcare Analytical Testing Services market growth over the forecast period.

Artificial Intelligence Impact

Analytical testing generates vast amounts of data, such as laboratory results, medical images, and patient records. AI can analyze and interpret this data efficiently and accurately, helping healthcare professionals make more informed decisions. Machine learning algorithms can identify patterns, trends, and correlations in the data, enabling better diagnosis, treatment planning, and disease monitoring.

By Test Type

• Bioanalytical Testing Services 
• Method Development & Validation
• Stability Testing
• Drug Substances
• Others

By End User

• Pharmaceutical & Biopharmaceutical Companies
• Medical Device Companies
• Contract Research Organizations
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The U.K.
  • France
  • Spain
  • Italy
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On November 15, 2021, with the launch of a new, comprehensive bioanalytical laboratory in Singapore, US-based Labcorp announced the extension of its global offerings and its footprint in the Asia-Pacific (APAC) region. The lab has additional capabilities that expand the wide range of bioanalytical services that Labcorp Drug Development presently provides, enabling the business to satisfy rising demand from pharmaceutical and biotechnology companies.
• In January 2021, leading European provider of environmental, food, and tribology services, SYNLAB Analytics & Services (A&S), was acquired by SGS, the world's largest testing, inspection, and certification organization. Our global network in important strategic emphasis areas, such as the environment, food, life sciences, and oil condition monitoring, has been greatly strengthened by the acquisition of A&S. 
• In July 2022, Alliance Pharma stated that it acquired Drug Development Solutions, a company based in the UK. They intend to use this acquisition to enhance their laboratory skills and service offerings for analytical and bioanalytical services.

Why Purchase the Report?

• To visualize the global healthcare analytical testing services market segmentation based on test type, drug type, end user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of healthcare analytical testing services market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global Healthcare Analytical Testing Services Market report would provide approximately 53 tables, 54 figures and 195 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies