GMP Testing Service Market Size

GMP Testing Service Market Analysis

The GMP Testing Service Market size is estimated at USD 1.44 billion in 2024, and is expected to reach USD 2 billion by 2029, growing at a CAGR of 6.84% during the forecast period (2024-2029).

Lockdowns were implemented following the COVID-19 outbreak to stop the virus's spread. Both demand and supply-side effects on the industrial sector were seen as a result of these lockdowns. According to Eurostat 2021 from the European Commission, European industrial production climbed by 1.4% in July 2021, and the overall production level was 1% higher than in February 2020. The production of pharmaceutical goods and products increased by more than 30% between July 2020 and July 2021. However, businesses started to provide GMP-compliant coronavirus vaccine testing solutions for new viral threats and pandemics. It uses quick and sophisticated testing platforms, such as Next Generation Sequencing (NGS) technologies and more than 400 validated rapid PCR tests for potentially dangerous viruses in vaccine manufacturing processes. However, the market is growing at a stable pace due to a resumption of manufacturing activities. It is expected to witness a similar trend over the coming years.

Factors such as the growing pharmaceutical industry and increased drug and device development are expected to increase the market growth. For instance, according to the Indian Brand Equity Foundation Report 2022, India is the 12th largest exporter of medical goods globally. Indian drugs are exported to more than 200 countries worldwide, with the US being the key market. In addition, as per the same source mentioned above, generic drugs account for 20% of global exports in volume, making the country the largest provider of generic medicines globally. Indian drug and pharmaceutical exports stood at USD 24.60 billion in FY22 and USD 24.44 billion in FY21. Indian drug and pharmaceutical exports stood at USD 2,196.32 million in September 2022. Thus, growing pharmaceutical sectors are expected to boost demand for GMP testing services, boosting market growth.

The increasing manufacturing plant is expected to boost demand for GMP testing services, boosting market growth. For instance, in April 2022, Ferring Pharmaceuticals opened its integrated R&D and manufacturing facility in Hyderabad, which was established with a total investment of EUR 30 million (USD 32.73 million). The R&D capability includes formulation development, packaging development, and analytical development. The manufacturing facility is mainly designed for the solid oral dosage form.

While the above factors are expected to play a significant role in the GMP testing services market's growth, the regulatory framework's precise requirements concerning GMP outsourced activities may hinder the market's growth in the forecasted period.