The global pharmaceutical analytical testing outsourcing market was valued at $7,594.3 million in 2021 and is projected to grow at a rate of approximately 9%, reaching around $15,815 million by 2030. This growth is driven by advancements in the pharmaceutical sector, increased focus on safety and regulatory compliance, rising demand for testing services, and cost advantages of outsourcing.
The demand for bioanalytical services is expected to rise significantly, influenced by evolving regulations for in-vitro and in-vivo testing, as well as the complexities of these assessments. The growing need for biosimilars, combination therapies, and novel drugs has amplified the requirement for specialized tests such as electrochemical, electrophoresis, titrimetric assays, and immunoassays.
Pharmaceutical companies accounted for 48% of the market share historically, as many lack the resources to conduct in-house testing. Outsourcing analytical testing allows these companies to focus on core operations while saving time and resources. In the future, biopharmaceutical firms are expected to grow at the fastest rate, around 9%. These businesses require analytical testing for optimizing production, ensuring quality in biosimilars and biologics, and fulfilling regulatory requirements. The increasing demand for expert personnel to perform assays and handle regulatory filings is further driving the outsourcing trend in the biopharmaceutical sector.
North America held the largest share of the market, about 53%, due to its advanced pharmaceutical manufacturing hubs and increasing production to meet healthcare demands. Europe’s market is thriving with the adoption of cutting-edge microbial manufacturing technologies, while emerging nations collaborate with Western companies to build local capacities through services like clinical research and drug development.
Meanwhile, the Asia-Pacific region is expected to witness the fastest growth, driven by significant investments, expansion in the pharmaceutical industry, and the presence of major outsourcing centers in China, India, and the Philippines. China has become a preferred outsourcing destination for Japan’s nearshore and onshore clients due to its attractive delivery capabilities.
With rising drug consumption and increasing R&D activities, the demand for pharmaceutical analytical testing outsourcing continues to grow globally.