Market Size (2015)
2015
$4.23B
Vertical: HealthcareBase Year: 201711 Sections
Market Size (2015)
2015
$4.23B
Projected (2023)
2023
$8.10B
CAGR (2015–2023)
8.4%
8.4%Key Players
109+
Analytical testing plays an important role in the drug development and manufacturing process. It provides information about the safety and quality of raw materials and finished products. Majority of pharmaceutical companies outsource analytical testing to reduce production cost and save time. The key factors driving market growth are the expanding pharmaceuticals industry, increasing demand for analytical details on drugs, process development by regulatory agencies, and the growing prevalence of cancer and infectious diseases. However, the high cost of drug discovery and inconsistencies in the quality of products are expected to hamper market growth.
The global pharmaceutical analytical testing outsourcing market was valued at USD 4,957.3 million in 2017, and the market is estimated to grow at USD 8,095.0 million by 2023. In 2017, the Americas accounted for the largest market share of 38.8% with a market value of USD 1,924.4 million, followed by Asia-Pacific with a market value of USD 1,605.5 million in 2017.
The global pharmaceutical analytical testing outsourcing market has been segmented based on the product type, service, end user, and region.
Based on the product type, the finished products segment accounted for the largest market share of 42.3% in 2017, with a market value of USD 2,099.4 million, which is projected to register a CAGR of 8.16% during the forecast period.
Based on service, the bioanalytical testing segment accounted for the largest market share of 32.0% in 2017, with a market value of USD 1,587.3 million, which is projected to register a CAGR of 9.49% during the forecast period.
Based on end user, the pharmaceutical and biopharmaceutical companies segment accounted for the largest market share of 54.8% in 2017, with a market value of USD 2,716.2 million, which is projected to register a CAGR of 8.86% during the forecast period.
The Pharmaceutical Analytical Testing Outsourcing Market market is projected to grow at a CAGR of 8.4% from 2015 to 2023.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansTo provide a detailed analysis of the market structure along with a forecast for the next six years of various segments and sub-segments of the global pharmaceutical analytical testing outsourcing marketTo provide insights into factors affecting market growthTo provide historical revenue of market segments and sub-segments with respect to regions and their respective key countriesTo provide country-level analysis of the market with respect to the current market size and prospectsTo provide country-level analysis of the market by product type, services, end user, and regionTo provide strategic profiling of key players in the market, comprehensively analyzing their core competencies, and drawing a competitive landscape of the pharmaceutical analytical testing outsourcing market To track and analyze competitive developments such as joint ventures, strategic alliances, mergers and acquisitions, new product developments, and research and development in the global pharmaceutical analytical testing outsourcing market
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2017
Historical Period
2015 – 2017
Forecast Period
2017 – 2023
Primary Interviews
150+
Historical data (2015–2017) and forecast period (2017–2023)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansBargaining Power of Suppliers
The suppliers in the pharmaceutical analytical testing outsourcing market are the developers and manufacturers. There is a high number of suppliers in the pharmaceutical analytical testing outsourcing market thus leading to a high amount of bargaining power in the market. Switching cost of these suppliers is also high as suppliers tend to enter long-term associations with the major companies. However, Asia-Pacific countries are consisting of a large number of suppliers which offer pharmaceutical analytical testing outsourcing at a relatively less price. Due to this reason of high bargaining power of suppliers the profit potential of the global pharmaceutical analytical testing outsourcing market is reduced.
Bargaining Power of Buyers
The bargaining power of buyers is moderate to high in the global pharmaceutical analytical testing outsourcing market. The market has a large number of buyers comprising of healthcare facilities like pharmaceutical firms, and biotechnological industries. The buyers in the pharmaceutical analytical testing outsourcing market hold a certain degree of power over market players because of the high concentration of the buyers.
Threat of New Entrants
The threat of new entrants is moderate in the pharmaceutical analytical testing outsourcing market. Any pharmaceutical analytical testing outsourcing company trying to enter the market is required to accept or abide by the mandatory regulatory standards. The pharmaceutical analytical testing outsourcing market is also characterized by a reasonable degree of brand loyalty where establishing a brand name is difficult for newcomers. However, the cost involved in the initial setup is comparatively high which does not comfort the new entrants to enter the market easily.
Threat of Substitutes
The threat of substitutes in the pharmaceutical analytical testing outsourcing market is low as there is hardly any alternative for bioanalytical testing services.
Intensity of Rivalry
The degree of competition in the pharmaceutical analytical testing outsourcing market is high. The restrained degree of services differentiation among existing players increases the intensity of rivalry in the market. pharmaceutical analytical testing outsourcing companies are trying to develop less expensive pharmaceutical analytical testing consumable and instruments to make procedures more affordable in developing regions. To overcome the competition, players are engaged in developing processes to lower their manufacturing cost. Moreover, the players are also developing advanced products for differentiating from their rivals
Market estimates by geography (2023)
InsightAmericas leads with $3.07B by 2023, while Asia Pacific is projected to grow fastest at a 8.8% CAGR.
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View Subscription Plans| REGION | 2015 | 2017 | 2023 | CAGR | SHARE |
|---|---|---|---|---|---|
| Asia Pacific | $1.38B | $1.87B | $2.71B | 8.8% | 33% |
| Americas | $1.64B | $2.26B | $3.07B | 8.2% | 38% |
| Europe | $949.40M | $1.31B | $1.84B | 8.6% | 23% |
| Middle East and Africa | $263.80M | $360.40M | $474.70M | 7.6% | 6% |
| Total | $4.23B | $5.80B | $8.09B | 8.4% | 100% |
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View Subscription PlansTotal Market Size
$8.10B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Finished Products | $3.37B | 8.4% | 88% |
| Active Pharmaceutical Ingredients | $2.63B | 8.4% | 89% |
| Raw Materials | $2.10B | 8.4% | 61% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Pharmaceutical Analytical Testing Outsourcing Market covering market dynamics, competitive landscape, and strategic outlook.
The Pharmaceutical Analytical Testing Outsourcing Market market is projected to reach $8.10B by 2023, growing at 8.4% CAGR. The Finished Products segment holds the largest share.
Pharmaceutical analytical tests are procedures used to assess the quality, stability, and impurity of raw materials and (drug) compounds. Pharmaceutical analytical tests are a part of the drug development process and done before launching the product into the market. Many pharmaceutical and biotechnology companies have outsourced this process as a business strategy to improve efficiency and reduce cost. The key factors driving the market are growing pharmaceutical industry, increasing demand for analytical details on drugs and process development by regulatory agencies, and the increasing prevalence of critical diseases. However, factors such as the high cost of drug discovery and inconsistency in the quality of products may hamper market growth.
Innovation and development of different types of drug testing methods act as an opportunity to grow this market. Many pharmaceutical companies are investing a huge amount of money on research and development to offer high-quality products by performing different analytical tests. For instance, Pharmaceutical Product Development, LLC announced a strategic collaboration with Happy Life Tech (HLT) of China to develop a distinctive service offering for the China drug-development market delivering data science-driven clinical trials and real-world evidence of drug products’ effectiveness of drugs, safety, and value in February 2019.
The increasing interest of biotechnology and biopharmaceutical companies and scientists in new drug research is a major factor boosting the growth of the pharmaceutical industry. However, the high cost of various analytical tests used in the pharmaceutical industry is hampering the growth of the market. According to the Tufts Center for the Study of Drug Development (TCSDD), the cost of developing a new drug, from research and development (R&D) to marketing approval, is approximately USD 2.9 billion. Preclinical research is highly regulated by the Food and Drug Administration (FDA) and the average cost for this stage is USD 122 million in 1.5 years. This huge cost of drug development and parallelly the rising importance of preclinical research are hampering the growth of the market.
Near-term growth will likely concentrate in modular bioreactor lines and closed-system media workflows that shorten validation cycles while preserving batch traceability.
Partnerships between CDMOs and instrumentation vendors should accelerate standard datasets for comparability across sites, improving forecasting models used in capacity planning.
Longer horizon, organoid and microphysiological adoption may reshape segment mix; teams that invest early in assay interoperability and cloud QC hooks are better positioned to capture upside without fragmenting their analytics stack.
Profiles of 109 companies operating in the Pharmaceutical Analytical Testing Outsourcing Market market, including revenue, employee count, and market positioning where available.
Showing 109 of 109 companies
Merck KGaA
Company Headquarters: Darmstadt, Germany Founded: 1668 Workforce: ~60,348 Company Working: Merck KGaA (Merck) is a pharmaceutical company that offers a varied range of products subgrouped into three segments—healthcare, life sciences, and performance materials. The company delivers innovative health solutions and is dedicated to providing breakthrough solutions and technologies. The company research drugs in the areas of oncology and neurodegenerative as well as autoimmune and inflammatory diseases. It also markets cardiovascular, fertility, endocrinology, and over-the-counter products as well as products for industries such as pharmaceuticals, food, cosmetics, packaging, and coatings. It has expanded its global footprint through several mergers and acquisitions, such as the acquisition of Millipore and Sigma-Aldrich. The company is distributing its products in the following countries: China, India, Japan, Australia, Israel, United Arab Emirates, South Korea, Denmark, Italy, Netherlands, Spain, United Kingdom, Switzerland, Sweden, Argentina, Brazil, Canada, US, New Zealand among others.
Intertek Group PLC
Company Headquarters: London, UK Founded: 1888 Workforce: ~44,000 Company Working: Intertek Group plc is a one of the leading companies, which provides total quality assurance to industries worldwide. It provides various services including assurance, testing, inspection, certification, auditing, consulting, sourcing, and training. The company offers its products through its three segments namely, products, trade, and resources. Reservoir analysis is catered offered under the products segment. It offers high-quality reservoir fluids analysis for exploration and production clients across the globe. The company provides its products and services to various end-use industries, such as chemicals, construction, food & beverage, healthcare, energy, products & retail, and transportation. The company has 1,000 offices and testing facilities in more than 100 countries. ETL SEMKO (London), Alchemy Systems (US), Architectural Testing, Inc. (US), NTA Monitor Limited (UK), and Professional Service Industries, Inc. (US) are some of the major subsidiaries of the company.
Eurofins Scientific
Company Headquarters: Luxembourg Founded: 1987 Workforce: 45,000 Company Working: Eurofins Scientific is a leader in analytical testing services that provides clinical tests and laboratory services in drug discovery pharmacology, genomics, forensics, contract manufacturing organization (CMO), advanced material sciences, and for supporting clinical studies across multiple industries. Pharmaceutical, environment, food, and cosmetics are the major clients for Eurofins Scientific’s products. The company has around 800 laboratories across 47 countries. It has a portfolio of over 200,000 analytical methods to evaluate and identify the safety, composition, authenticity, purity, and origin of biological substances and products, also used in clinical diagnostics. Geographically, the company operates in North America and South America, Europe, and Asia-Pacific.
Toxikon
Company Headquarters: US Founded:1977 Workforce: 200 Company Working: Toxikon is involved in preclinical contract research organization (CRO) for drug and medical device testing. Toxikon provides analytical, in-vivo, and in-vitro testing services for the pharmaceutical, biotechnology, and medical device industry. The services provided by the company include biocompatibility, surgical, ocular models, extractable and leachable (E&L), risk assessments, microbiology, toxicology, chemical characterization, impurities analysis, and synthesis and bioanalytical.
SGS SA
Company Headquarters: Geneva, Switzerland Founded: 1878 Workforce: ~29,500 Company Working: SGS SA is one of the leading inspection, verification, testing, and certification companies, which sets a quality benchmark with its products in the oil & gas industry. The company has a service portfolioin line with exploring, extracting, refining, transporting or marketing oil, gas, oil sands or other hydrocarbons. It offers logging and calibration services, emissions measurements and metering consultancy services as well as it provides upstream services, such as reservoir and production fluids analysis, sample management & distribution, and unconventional resources services, for the analysis of coal bed methane, and well-testing services. Under its downstream services, it offers calibration services, facility audits, leak detection, and maintenance. It caters to the requirements of various end-use industries, such as agriculture & food, construction, energy, industrial manufacturing, mining, oil & gas, and transportation. The company has a wide geographic presence, with 2,600 offices and laboratories across the globe.
Source BioScience
Company Headquarters: Nottingham, Nottinghamshire, UK Founded: 1903 Workforce: 230 Company Working: Source BioScience is a healthcare and biotechnology company that operates businesses in three sectors, namely, healthcare, pharma biotech services, and life science research. The company is engaged in providing diagnostic and screening services to the healthcare sector as well as genetic analyses and biomolecular tools and products to the life science research and pharma biotech sectors. The services offered by Source BioScience in the health care sector comprises screening and reference laboratory diagnostic testing services for cancer and other diseases; whereas for pharma-biotech it offers a range of services from clinical trials, tissue pathology, immunohistochemistry, sophisticated image analysis, biomarker determination, and assay development to pharmacogenomics including genotyping and gene expression analysis.
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Pharmaceutical Analytical Testing Outsourcing Market