USD 7.39 Billion
Healthcare Analytical Testing Services Market Size, Share, and Growth Analysis
Healthcare Analytical Testing Services Market By Type (Medical Device Analytical Testing Services, Pharmaceutical Analytical Testing Services), By End User (Pharmaceutical & Biopharmaceutical Companies, Hospitals & Clinics), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG35D2273 |
Region:
Global |
Published Date: November, 2024
Pages:
168
|Tables:
61
|Figures:
70
Format -
Healthcare Analytical Testing Services Market Insights
Healthcare Analytical Testing Services Market size was valued at USD 7.39 Billion in 2023 and is poised to grow from USD 8.22 Billion in 2024 to USD 17.29 Billion by 2032, growing at a CAGR of 11.2% during the forecast period (2025-2032).
The major forces driving the market growth include the increasing number of clinical trials that require analytical testing, increasing emphasis on biosimilars, and outsourcing of analytical testing services by pharmaceutical firms at an increasing rate. The COVID-19 pandemic partly contributes to the expansion of the market. Due to the rapid advancement of the pandemic in its medications and various treatments for its prevention, analytical testing services have risen. The COVID-19 pandemic slowed the market growth in the first place because it forced the order to stay at home, disrupted the supply chain, and suspended enrolment in clinical trials. It rapidly rebounded due to the increase in vaccinations regarding COVID-19, medical equipment, and treatments. In July 2020, SGS SA and AstraZeneca signed a contract. This was intended for the supply of analytical testing services to a vaccine regarding COVID-19, named AZD1222. It reduces the risk, accelerates quality and market testing, and helps with the performance, safety, and regulatory compliance of the product in question.
There is a correlation in the demand for the testing services to the increase in innovations and the production of new products. Competition pressures, lead times to market, and pricing issues have increased the demand for outsourcing these services. Certain test types have become indispensable due to the introduction of biosimilars, combination products, and other innovative drugs. In a similar fashion, companies that expand into new territories must fulfill local requirements, which may require conducting certain types of testing.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Pharmaceutical Testing
Fastest Growth
Medical Testing Devices
Growth Rate
11.2% CAGR
Global Healthcare Analytical Testing Services Market ($ Bn)
Country Share for North America Region (%)
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Healthcare Analytical Testing Services Market Segments Analysis
Global Healthcare Analytical Testing Services Market is segmented by Type, End User, and Region. Based on Type, the market is segmented into Medical Device Analytical Testing Services (Extractable and Leachable, Material Characterization, Physical Testing, Bioburden Testing, Sterility Testing, Others), Pharmaceutical Analytical Testing Services (Bioanalytical Testing, Method Development & Validation, Stability Testing, Other Testing Services). Based on End User, the market is segmented into Pharmaceutical & Biopharmaceutical Companies, Medical Device Companies, Hospitals & Clinics, Forensic Labs, Cosmetic & Nutraceutical Companies. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis By Type
The pharmaceutical analytical testing services segment held the largest share of more than 58% in the global market revenues for the year 2023. It is poised to record the highest CAGR during the forecast period, led by strong demand from pharmaceutical manufacturers and active pharmaceutical ingredient suppliers. Testing services are needed in direct proportion to innovation and new product development. Growth is engendered by the increasing complexity of the various requirements that a single product needs to conform to. Thus, with pharmaceutical companies directing their focus at developing new therapies, the related need for analytical testing services will increase and consequently drive the segment.
The medical device analytical testing services segment is poised to grow at the second-fastest CAGR during the forecast period. Some of the key drivers for such an increase include new innovations in technology, development of expertise in challenging analytical measures, and stringent regulations. Small-scale medical device manufacturers are inducing demand for testing services. Material characterization tests, extractable and leachable test, bioburden and sterility test, and other tests are segments. As the medical device industry expands, the demand for detailed analysis testing services will be higher and will be one of the factors contributing to segmental growth.
Analysis By End Use
Due to the high demand of the pharmaceutical industry for testing services, the Pharmaceuticals & Biotechnology Companies segment leads the market, with a huge market share. Strong demand arises because testing and validation of biologics are of immense importance in the pharmaceutical industry. Pharmaceutical companies need end-to-end testing services that ensure regulatory compliance drive innovation and accelerate product development. Hence, pharmaceutical companies primarily rely on the service of analytical testing service providers for their operations and this segment holds the largest share of the market.
With the rise in R&D activities in academic institutes, the demand for analytical testing services is growing, hence the segment is expected to grow at the fastest rate over the forecast period. Government grants and research funding further create demand for this market segment. If academic institutions are crucial for the development of science, this market will continue to grow, and if there will be testing service needs. In general, this market will experience growth in demand due to the need for quality testing services that support the conduct of innovative research.
Global Healthcare Analytical Testing Services Market By Type
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Healthcare Analytical Testing Services Market Regional Insights
North America held over 53.5% share of the global revenue share in 2023. The region is a host to advanced production hubs that design and produce complex, reliable, and superior quality products. High demand for testing services in healthcare and technical advancements drive the regional market. Favorable regulatory reforms and other transformations in the healthcare industry are predicted to pull biopharmaceutical firms to the U.S. market in conjunction with these factors. Developed infrastructure, expertise labor force, and broad scope for testing services in analysis will drive the business in ensuring the region's supremacy. North America will maintain its position in the global market as the healthcare industry keeps on evolving in many ways with developments.
Asia-Pacific is projected to grow at a higher growth rate during the forecast period owing to rising investments by developed economies in regional analytical services development. Growth emanates from regulatory amendments, besides setting up new facilities. For instance, LabCorp opened a bioanalytical laboratory in Singapore in November 2021, a factor that further illustrates the growth. Increase in demand for health testing services within the region, increase in partnerships, and expansion of services to new locations stimulates growth. While the region continues to invest in its healthcare infrastructure, installs more advanced technologies, and is consequently expected to witness rapid growth, it may eventually challenge the dominance of North America.
Global Healthcare Analytical Testing Services Market By Geography
- Largest
- Fastest
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Healthcare Analytical Testing Services Market Dynamics
Drivers
Increasing Demand for Medical Testing Services
- The increasing demand for medical testing services drives the market growth. Due to growing aging population and the higher prevalence of chronic conditions, the demand for diagnostic testing and its associated analytical services increased manifold. This has been driven by personalized medicine because it depends heavily on advanced testing and analysis. Increasing investment by health professionals and biopharmaceuticals in analytical testing services has given a lot of momentum to the market. As accurate and reliable diagnostic outcomes have become crucial, further expansion in the use of healthcare testing services is predicted to continue.
Technological Advancement
- Technological innovation has completely changed the dynamics of the healthcare analytical testing services market. Improvement in proteomics, bioinformatics, and genomics has extended test speeds and accuracies. This is because better software and equipment deliver results more speedily and reliably, hence raising the demand for services of analytical testing. These developments have increased the application of these services, the analytical testing services, and subsequently have caused this market to grow. Further growth with continuous technological advancements is predicted and will make testing services even more effective and efficient.
Restraints
High Costs and Complexity
- Two of the most influential barriers for this market are high pricing and complexity. Analytical testing services require complicated software, special equipment, and skilled labor; hence, such services are expensive. The complexity in testing and analysis could lead to errors and inconsistencies that may hamper the growth in the market. Due to these costs and complexity, it is hard for small and medium-scale industries to invest in analytical testing services. The limitation may weaken the growth in the market while companies weigh the benefits against the drawbacks.
- Challenges from Regulations
Regulatory issues hamper the market, as analytical testing services must follow strict rules and regulations. This may impede the growth of the market since much time and finances are invested in the compliance processes. The uncertainty brought forward by changes within the regulation disrupts the market, along with the involvement of spending money on the analytical testing services by any business. Businesses work in accordance with these rules, which can make the entry of new players difficult. Regulatory hurdles are predicted to slow down market growth as businesses adapt to changing regulatory requirements.
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Healthcare Analytical Testing Services Market Competitive Landscape
The market remains highly dynamic in nature, with almost incessant strategic moves by large firms in the form of alliances, mergers, acquisitions, and facility expansions. For instance, in April 2021, SGS SA completed its purchase of SYNLAB Analytics, a provider of pharmaceutical and food and environmental testing services. The purchase was targeted at expanding the analytical capacity of the company into areas of environmental, food, and pharmaceutical testing, having given access to SGS to over 37 new laboratories.
Top Players in Healthcare Analytical Testing Services Market
- Eurofins Scientific (Luxembourg)
- Laboratory Corporation of America Holdings (US)
- SGS S.A. (Switzerland)
- Charles River Laboratories (US)
- WuXi AppTec Co. Ltd. (China)
- Element Materials Technology (UK)
- Thermo Fisher Scientific, Inc. (US)
- Pace Analytical Services LLC (US)
- Intertek Group plc (UK)
- IQVIA Inc. (US)
- Merck KGaA (Germany)
- Source BioScience (UK)
- Almac Group (UK)
- ICON Plc (Ireland)
- Frontage Laboratories, Inc. (US)
- STERIS Plc (US)
- Sartorius AG (Germany)
- ALS Life Science (US)
- Syneos Health, INC (US)
- Medpace Holdings, Inc. (US)
Recent Developments
- In July 2022, Alliance Pharma announced the acquisition of United Kingdom-based Drug Development Solutions. They expect to expand the portfolio of the laboratory possibilities and analytical with bioanalytical services through this acquisition.
- In February 2022, Center for Breakthrough Medicines and BioAnalysis LLC announced their partnership. With this partnership, the client of the Center for Breakthrough Medicines get access to the testing services performed at BioAnalysis.
- In December 2021, Masy Systems, Inc. was acquired by USA-based CDMO Alcami Corp. Alcami have access through the acquisition to Masy's Pharma and storage products, while Masy have access to Alcami's services, which include among other things analytical services.
Healthcare Analytical Testing Services Key Market Trends
- Outsourcing of Analytical Testing Services: Outsourcing of analytical testing services is gaining momentum in the healthcare analytical testing services market. Companies within the biotechnology and pharmaceutical industries are increasingly contracting specialist service providers to conduct their analytical testing work. The need to reduce costs, adopt advanced technologies, and focus on core competencies drives this trend. In this way, companies can boost productivity and improve turnaround times by outsourcing their analytical testing services through the resources and capabilities of specialist suppliers. Outsourcing was expected to gain greater popularity given the continuing rise in demand for analytical testing services.
- Adoption of Digital Technology: One of the factors changing the healthcare analytical testing service market is the widespread adoption of digital technology. Technological advancements in artificial intelligence, machine learning, and data analytics continue to facilitate faster, more accurate, and efficient testing services. In addition, digital technology is making it easier to integrate the analytical testing services with other elements for increasing efficiency related to the drug development process. As digital technologies continue to grow in power, the space for more significance in analytical testing services would drive innovation and market growth.
Healthcare Analytical Testing Services Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the modern trends of outsourcing, advancements of technologies, and increase of healthcare testing services push the healthcare analytical testing services market forward. However, such factors as regulatory obstacles, high costs, and potential complexity hinder the growth of this market. Despite all these challenges, the future of this market is shaped due to an upward trend going on in digital technologies and rising demand for advanced services related to analytical testing. This market is expected to play a critical role in the development of the healthcare sector by aiding in the development of new medicines and therapies, which in turn would lead to improved patient outcomes and expansion of the market.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 7.39 Billion |
| Market size value in 2032 | USD 17.29 Billion |
| Growth Rate | 11.2% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Healthcare Analytical Testing Services Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Healthcare Analytical Testing Services Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Healthcare Analytical Testing Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Healthcare Analytical Testing Services Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Healthcare Analytical Testing Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Healthcare Analytical Testing Services Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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