May 21, 2024
Pharmaceutical Analytical Testing Market

Pharmaceutical Analytical Testing Market is Estimated to Witness High Growth Owing to Outsourcing Trend

Pharmaceutical analytical testing services ensure drug quality standards and safety through analytical techniques like chromatography, spectroscopy, and titrimetry. These analytical methods help characterize the identity, purity, strength, and stability of drug substances and products during various stages such as research and development, pre-clinical testing, clinical trials, manufacturing, and quality control. The pharmaceutical analytical testing market is growing owing to strict quality control regulations and the need for specialized testing technologies.

The global Pharmaceutical Analytical Testing Market is estimated to be valued at US$ 11.36 billion in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Outsourcing of analytical testing has been gaining traction in the pharmaceutical industry as it helps companies optimize costs and remain compliant with evolving regulations. The outsourcing trend provides a significant growth opportunity for pharmaceutical analytical testing service providers. Growing reliance on contract service organizations offering advanced technologies helps drug makers focus on their core competencies. Their specialized expertise and efficiency ensures timely delivery of test results needed by innovator and generic drug companies across various geographical markets. This allows pharmaceutical players to gain a competitive edge by quickly bringing new therapies to patients while adhering to quality norms.

Porter’s Analysis
Threat of new entrants: The pharmaceutical analytical testing market requires high capital investments for establishing testing laboratories and procuring advanced analytical instruments. Stringent regulatory compliances also act as a barrier for new players.

Bargaining power of buyers: Pharmaceutical companies have significant bargaining power due to the availability of multiple testing service providers. However, specialized analytical requirements and accredited certifications reduce their power to some extent.

Bargaining power of suppliers: Reputable analytical instrument manufacturers enjoy strong bargaining power due to their differentiated technologies and capabilities. Suppliers often bundle their products and services to increase stickiness with buyers.

Threat of new substitutes: There are limited substitute analytical testing services for ensuring drug safety and efficacy. However, in-house testing capabilities of large pharma companies pose a minor threat.

Competitive rivalry: The market is consolidated with the top players accounting for major shares. Players compete based on service quality, regulatory approvals, pricing, and geographical reach.

SWOT Analysis
Strengths: Extensive experience in handling complex analysis techniques. High degree of accuracy and precision ensured by advanced technologies.
Weaknesses: Require huge capital investments and skilled workforce. Testing delays can impact project timelines.
Opportunities: Growing R&D spending on drug development provides new testing requirements. Emerging therapies in the biopharmaceutical sector open new avenues.
Threats: Pricing pressures due to the bargaining power of pharmaceutical giants. Stringent regulations raise compliance costs.

Key Takeaways
The Global Pharmaceutical Analytical Testing Market is expected to witness high growth over the forecast period of 2023 to 2030. The market growth can be attributed to rising generics market and expanding biologics sector worldwide. The global Pharmaceutical Analytical Testing Market is estimated to be valued at US$ 6.4 billion in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023-2030.

Regional analysis: North America dominates the global market currently due to presence of major pharmaceutical companies and stringent regulatory environment mandating quality testing. Asia Pacific is identified as the fastest growing regional market owing to increasing pharmaceutical manufacturing activities and rising expenditures on healthcare R&D in major economies like China and India.

Key players: Key players operating in the pharmaceutical analytical testing market are Eurofins Scientific, SGS SA, Charles River Laboratories International Inc, Merck KGaA, and Intertek Group plc. Other prominent players include Toxikon Corporation, Pace Analytical Services, Boston Analytical, West Pharmaceutical Services, and Polymer Solutions.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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