Market Size of Pharmaceutical Analytical Testing Industry
| Study Period | 2021 - 2029 |
| Market Size (2024) | USD 8.98 Billion |
| Market Size (2029) | USD 13.43 Billion |
| CAGR (2024 - 2029) | 8.41 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Pharmaceutical Analytical Testing Market Analysis
The Pharmaceutical Analytical Testing Market size is estimated at USD 8.98 billion in 2024, and is expected to reach USD 13.43 billion by 2029, growing at a CAGR of 8.41% during the forecast period (2024-2029).
The impact of COVID-19 on the pharmaceutical analytical market was significant owing to the increase in demand for developing new drug candidates and vaccines to control the spread of the coronavirus disease. Since, analytical testing is required at all phases of drug development to monitor accuracy, efficiency, and safety. Due to the uncontrolled and sudden increase in covid-19 cases, the development of biosimilars, combination molecules, and other innovative vaccines and medicines has grown, which has resulted in an increased demand for significant bioanalytical testing such as electrophoresis, electrochemical and titrimetric assays, and immunoassays.
In addition, the increasing number of clinical trials, focus on analytical testing of biologics and biosimilars and increased trend of outsourcing laboratory testing services are actively affecting the growth of the studied market.
According to the FDA drug recall statistics, approximately 1,279 drugs are recalled every year globally, and 94% of FDA drug recalls have been in the United States, followed by 4% of FDA drug recalls in Canada in 2021. From 2012 to 2021, the FDA issued 12,028 drug recalls in the United States. This emerges the need to test the products and ensure public safety before they are marketed. Medicines are intended for a better outcome in humans and animals as the poor quality of medicines would affect the health of the patients and the funding systems. Therefore, analytical testing holds an important role in ensuring the safety and efficacy of the drugs.
An increase in R&D activities, collaborations, and strategic partnerships is expected to drive market growth. For instance, in November 2021, Alcami Corporation, Inc. signed a master laboratory services agreement with Novavax. With this agreement, Novavax secured full-time equivalent (FTE) resources to provide analytical testing support for its recombinant nanoparticle protein-based COVID-19 vaccine candidate with Matrix-M adjuvant. Such developments are estimated to propel market growth.
Therefore, owing to the aforementioned factors the studied market is anticipated to witness growth over the analysis period. However, the complex regulatory framework for maintaining laboratories and challenges in the development of proper analytical techniques are likely to impede market growth.
