by The global Pharmaceutical Analytical Testing Market is estimated to be valued at US$ 8356.52 Mn or billion in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Pharmaceutical analytical testing includes a variety of tests performed on pharmaceutical drug substances and drug products to ensure their safety, identity, strength, quality, and purity. The tests include microbial testing, stability testing, method validation, heavy metal testing, dissolution testing, and biocompatibility testing among others. Pharmaceutical analytical testing plays a crucial role in all stages of drug development from pre-clinical to commercial manufacturing. It helps pharmaceutical companies to bring more effective and safe drugs to the market. The advancement in analytical technologies such as LC-MS, NMR, and ICP-MS has enabled faster and reliable testing capabilities with high accuracy and precision.
Market key trends:
Increased R&D investment by pharmaceutical companies to develop innovative drugs is a major driving factor. Pharmaceutical companies are investing heavily in R&D to develop new drugs for various therapeutic areas such as oncology, immunology, and neurology. For instance, in 2021, global pharmaceutical R&D spending by top 20 pharmaceutical companies was around US$ 104 billion. This increase in R&D spending will in turn boost the demand for pharmaceutical analytical testing to support clinical drug development and commercialization. Furthermore, strict regulatory guidelines regarding drug approval process have increased the analytical testing requirements at various stages of drug development. Technological advancements in analytical testing with respect to equipment, software, and method development are also fueling the market growth. However, high costs associated with analytical testing equipment and lack of skilled professionals are some of the factors hindering the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. The pharmaceutical analytical testing market requires high capital investment to set up R&D facilities and testing labs. Stringent regulations also pose barriers to entry.
Bargaining power of buyers: The bargaining power of buyers is moderate to high. Large pharmaceutical companies have significant influence over pricing and purchase volumes.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers for analytical instruments and consumables. However, compliance with regulatory standards is important.
Threat of new substitutes: The threat of new substitutes is low as pharmaceutical analytical testing plays a vital role in drug development and safety. No close substitutes exist for mandated quality control testing.
Competitive rivalry: The market is competitive with the presence of global players as well as regional testing service providers. Companies compete based on service portfolio, technology, reputation, and pricing.
Key Takeaways
The Global Pharmaceutical Analytical Testing Market Size is expected to witness high growth, exhibiting a CAGR of 8.2% over the forecast period, due to increasing regulatory requirements for drug development and quality control testing.
Regional analysis: North America dominated the global market in 2023 and is expected to maintain its lead over the forecast period. This can be attributed to rising R&D expenditure by pharmaceutical companies and stringent regulatory standards in the region. Asia Pacific is anticipated to exhibit the fastest growth owing to growing generics industry, favorable government policies, and increasing manufacturing activity in countries such as India, China, and South Korea.
Key players: Key players operating in the pharmaceutical analytical testing market include Steris PLC, West Pharmaceutical Services Inc., Boston Analytical, Intertek Pharmaceutical Services, Pace Analytical Services, Labcorp (Toxikon Inc.), SGS SA, Eurofins Scientific, and Laboratory Testing Inc., among others. Major players are focusing on expansion in emerging markets through strategic partnerships and acquisitions to strengthen their geographical presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
