The global central lab market size, in terms of value, is estimated to be around USD 2,543.9 million in 2023. During the market forecast period from 2023 to 2033, the overall market is anticipated to expand at a CAGR of 5.8%. By the end of 2033, the net worth of total business by central labs worldwide could reach up to USD 4,473.5 million.
Central Lab Market Trends
| Report Attribute | Details |
|---|---|
| Central Lab Market Share (2023) | USD 2,543.9 million |
| Market Anticipated Forecast Value (2033) | USD 4,473.5 million |
| Market Projected Growth Rate (2023 to 2033) | 5.8% |
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According to our market survey, the demand for central lab services surged at 4.1% CAGR from 2018 to 2022 with a market valuation of USD 2,422.7 million. During the evaluation period, the worldwide central lab market was projected to have strong growth potential due to rising pharmaceutical and biotechnology company activities.
| Attributes | Details |
|---|---|
| Central Lab Market Size (2018) | USD 1,980.8 million |
| Market Size (2022) | USD 2,422.7 million |
| Market (CAGR 2018 to 2022) | 4.1% |
The importance of central labs surged during the pandemic years as they witnessed tremendous opportunities regarding research and development for curbing COVID-19 spread. Also, central labs were much preferred for genetic sequencing since they have better and more advanced technology, ultimately setting the trend for the future.
The need for central laboratories has increased since pharmaceutical companies always look for methods to lower the cost of medication research and manufacturing. So, giant pharmaceutical businesses are also making significant investments to establish facilities for providing central lab equipment and services in recent years.
To combat the rising burden of many chronic illnesses, several government health institutions have also come forward to encourage entrepreneurs to set up central labs. Throughout the projected period, government support is anticipated to serve as a driving force for clinical central laboratory market expansion.
In light of strict criteria for the standard of lab data in trials, central labs have recently emerged as the best choices for clinical trials. Also, the existence of advanced technologies and the inability of local laboratories to organize necessary tests has surged the demand for central labs in recent years.
Automation of procedures has boosted the central lab output as it requires less human interaction and performs better all around. Additionally, they have increased the scope of their services by integrating technological and software advancements.
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Clinical trials in any centralized laboratory services industry are one of the most expensive procedures that limit market expansion to certain degrees. Additionally, the necessity for significant capital expenditures to set up and run central lab equipment and services is restricting market expansion.
As central laboratory testing services deal with the healthcare sector, sufficient medical infrastructure remains a crucial challenge for the overall market. Also, regulatory difficulties have hindered the development of clinical central laboratory industry trends.
Owing to numerous clinical testing central labs, the United States has dominated the global market for a very long time. In 2022, the total revenue generated by the market players present in the country was around USD 1,010.2 million. The United States market is expected to expand at a healthy rate during the forecast period with rising drug research and development activities.
In 2022, Germany contributed roughly USD 112 million in the total revenue of USD 456 million generated by central lab services in Europe. An increase in genetic disorders and clinical testing services cases is poised to keep the German market profitable in the coming days. Also, some advanced central labs, including Eurofins in Luxembourg, are expected to keep the central laboratory testing services trends intact.
In the table below, we provide an estimated market share of the performing three countries in different geographical locations. The United States remains the leading market for central laboratory testing services trends. Meanwhile, Germany and Japan lead Europe and Asia markets, respectively, in demand for clinical trials.
| Regional Market Comparison | Global Market Share in Percentage (2023) |
|---|---|
| United States | 51% |
| Germany | 6% |
| Japan | 3% |
The market in the United Kingdom could progress at a higher rate than in Germany. The growing popularity of Alzheimer’s therapeutics services in the country has substantially improved the central lab outsourcing market in recent years. In addition, strengthening the medical tourism sector is projected to drive the market at a higher rate during the forecast years.
China is the leading market for central laboratory testing services in Asia, poised to grow 7.6% through 2033. China is also likely to witness a higher growth rate in demand for lab accessories used in central labs in the next ten years. Also, favorable support from the Chinese government for improving the country's central laboratory services market outlook is expected to drive this trend.
The need for central labs has significantly increased in India with rising government and pharmaceutical company investments in the development of innovative drugs. However, regulatory difficulties and the scarcity of central labs in many emerging and impoverished locations in India are still leading concerns for market growth.
The table below represents the projected growth rates for the expansion of regional markets as per central lab market statistics and forecast. Though Asian countries like China and India are likely to witness higher growth rates, the United Kingdom and Australia are anticipated to experience remarkable growth through 2033.
| Regional Markets | CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 5.1% |
| China | 7.6% |
| India | 6% |
| Australia | 4.9% |
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The incidence of chronic illnesses, including cancer, Alzheimer's disease, and diabetes, is on the rise and could drive the business of the central labs. This trend demonstrates the rising demand for biomarkers that form the leading service segment and generated almost USD 772.5 million in 2022.
| Attributes | Details |
|---|---|
| Top Service Type | Biomarker |
| Market Share in 2023 | 39% |
Central labs are primarily located where most clinical studies are carried out, limiting the business opportunities for the central diagnostic laboratories market. So, new drug discovery is the primary activity in central labs, resulting in the biotechnology sector being the dominant end-user segment for the overall market. However, the rising need for novel medications and vaccines after the pandemic has strengthened the market position of the pharmaceutical segment.
| Attributes | Details |
|---|---|
| Top End User | Biotechnology |
| Market Share in 2023 | 42% |
Multinational corporations are noticeably at the forefront of the adoption of services provided by central labs because of the many advantages they provide. Furthermore, to enhance the services provided by the central lab business, global market players are adopting collaborations and agreements as essential development tactics.
Emmes is a renowned organization that provides full-service clinical research with a focus on rare diseases. Likewise, the ICON plc acquired MolecularMD laboratory in February 2019. It is a molecular diagnostic specialty laboratory that facilitates discovering, developing, and commercializing discovered medicines for cancer treatment. It aims to expand ICON's testing platforms, including next-generation sequencing and immunohistochemistry, by improving the laboratory's ability in molecular diagnostic testing.
Regional expansion to Asian countries is a strategy for global businesses to expand after the saturation of current distribution channels. Many central lab service providers in the United States are employing this strategy to draw in additional clients from adjacent countries and Latin America.
The Alba Campus in Livingston, Scotland, expanded its laboratory and operational capabilities starting in June 2021, according to a statement from Q2 Solutions. Alba Camus is a premier global provider of clinical trial services for pharmaceutical laboratories and supports new growth areas for biopharma and pharma clients globally. Besides being a wholly owned subsidiary of IQVIA, it is expanding its capabilities for genomics, flow cytometry, and translational science laboratory services.
Recent Development
| Report Attributes | Details |
|---|---|
| Growth Rate | CAGR of 5.8% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million or billion, Volume in Kilotons, and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | By Service Type, By End Use, By Region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; Asia Pacific Excluding Japan; Japan; The Middle East and Africa (MEA) |
| Key Countries Profiled | United States, Canada, Brazil, Argentina, Germany, United Kingdom, France, Spain, Italy, Nordics, BENELUX, Australia & New Zealand, China, India, ASIAN, GCC Countries, South Africa |
| Key Companies Profiled | Covance (Labcorp); Eurofins Global Central Library; PPD Central Lab; ICON Central Labs; Medpace Reference Laboratory; Q² Solutions; ACM Global Laboratories; Labconnect Inc.; Cerba Research; Medicover Integrated Clinical Services; Versiti Inc.; A.P. Møller Holding A/S; Ampersand Capital Partners; Lambda Therapeutics Research Ltd; Cirion Biopharma Research Inc. |
| Customization & Pricing | Available Upon Request |
The global central laboratory market value in 2023 is roughly USD 2,543.9 million.
The global market is likely to record a 5.8% CAGR through 2033.
The global central lab market value could reach USD 4,473.5 million by 2033.
The United States alone accounts for over 50% of the global market.
China is predicted to witness a CAGR of 7.6% through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Service Type 5.1. Genetic Services 5.2. Biomarker Services 5.3. Microbiology Services 5.4. Anatomic Pathology/Histology 5.5. Specimen Management & Storage 5.6. Special Chemistry Services 5.7. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 6.1. Pharmaceutical Companies 6.2. Biotechnology Companies 6.3. Academic and Research Institutes 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Covance(Labcorp) 17.2. Eurofins Global Central Library 17.3. PPD Central Lab 17.4. ICON Central Labs 17.5. Medpace Reference Laboratory 17.6. Q² Solutions 17.7. Barc Lab 17.8. Frontage Labs 17.9. ACM Global Laboratories 17.10. Celerion 18. Assumptions & Acronyms Used 19. Research Methodology
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