Healthcare Analytical Testing Services Market Size

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.

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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. '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)'

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.

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.

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.