Pharmaceutical Analytical Testing Outsourcing Market

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.