[324 Pages Report] The global outsourced testing services market is set to enjoy a valuation of USD 36.4 Billion in 2022, and further expand at a CAGR of 7.7% to reach USD 76.3 Billion by the year 2032. According to a recent study by Future Market Insights, pharma/biopharmaceutical tests are leading the market with a share of 40.8% in 2021 within the global market.
Market Outlook:
| Data Points | Market Insights |
|---|---|
| Market Value 2021 | USD 34.2 Billion |
| Market Value 2022 | USD 36.4 Million |
| Market Value 2032 | USD 76.3 Billion |
| CAGR 2022 to 2032 | 7.7 % |
| Market Share of Top 5 Countries | 47.2% |
| Key Market Players | Eurofins Scientific, Sotera Health (Nelson Labs), Laboratory Corporation of America Holdings, Thermo Fisher Scientific Inc., IQVIA Inc., Elements Group (Element Materials Technology), Lucideon Limited, Canadian Analytical Laboratories Inc., Intertek Group plc, North American Science Associates, LLC, WuXiAppTec, Syneos Health, Charles River Laboratories, Parexel International Corporation, West Pharmaceutical Services, Inc., ICON plc, SGS SA, and UL LLC. |
Research and development of effective and new drugs and therapies as well as appropriate tools and technologies such as vaccinations, medications, diagnostics, personal protective equipment (PPE), and medical equipment, is necessary given the growing threat of infectious disease outbreaks.
Chronic diseases such as heart disease, cancer, diabetes, stroke, arthritis, etc. are now becoming leading causes of disabilities and death, with the prevalence of such diseases increasing rapidly.
The growing revenues of companies have led to increased research and development activities in order to launch new products/services and upgrade their existing portfolio. In addition, the increasing demand for prescription drugs encourages new drug development.
Thus, the rising prevalence of emerging pathogenic viral diseases as well as increasing research and development activities of the key players is expected to lead to the growth of the global outsourced testing services market during the forecast period, from 2022 to 2032.
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The sales of the outsourced testing services market expanded at a CAGR of 5.7% from 2015 to 2021.
The market value for outsourced testing services holds approximately 36.4% of the overall USD 94.0 Billion global outsourcing services market in 2021.
The COVID-19 pandemic has led to an increase in the demand for the production of pharmaceutical products like vaccines, supplements, and some generic medicines. Hence, in many emerging countries, including China, India, and others, outsourcing of clinical testing services is increasing enormously.
Contract research organizations (CROs), contract development, and manufacturing companies (CDMOs) are focusing on expanding their service offerings by entering into collaborations and acquisitions with other key players. For instance, in February 2021, Adaptive Biotechnologies expanded its collaboration with Laboratory Corporation of America. This collaboration will enable access to the company’s immune-driven clinical diagnostic and research products portfolio.
Thus, increasing service offerings by the key players can generate higher revenues and enhance the growth of the company, ultimately driving the growth of the outsourced testing services market.
These factors thus offer a great opportunity for the investors of the industry, and the market is set to grow at a CAGR of 7.7% from 2022 to 2032 globally.
Ageing population, with a steadily increasing life expectancy, will drive the demand for new therapies and medical equipment for patient care. This will ultimately increase the number of clinical trials for new therapies and equipment. This can be considered an opportunity for the outsourced testing services market.
According to the United Nations, there were 703 Million persons aged 65 years or over in the world in the year 2019. The number of older persons is expected to double to 1.5 Billion in the year 2050.
Large outsourcing of production capabilities to emerging economies such as India and China has propelled the overall market for outsourcing testing. The rising global disease burden is a factor aiding this propulsion in growth.
An increase in healthcare spending is a direct indication of improvement in the healthcare sector of the country. Such investments and funding will create more potential for the overall growth of the outsourced testing services market. These factors are set to present a fantastic opportunity for the outsourced testing services market to grow between the years 2022 and 2032.
Principal Consultant
Major factors such as delays in drug approvals can hamper the growth of the outsourced testing services market. Drugs that are approved, post clinical trials, are sometimes recalled because of toxicity identified in drugs after a few days of approval, through reported adverse events.
Many drug candidates never reach the approval stage, because they do not effectively treat the condition they are meant to cure or the negative impacts are too strong. Due to such factors, about 90% of clinical trials fail even with proper investments and significant time allotment.
About 40% to 50% of clinical trials fail due to the drug's inability to have the expected effect on humans due to a lack of clinical efficacy. Approximately 10% of clinical trials fail because of inadequate strategic planning and a lack of commercial interest.
Hence, such limited success in process flow and management of clinical trials, as well as the adverse events reported after the marketing of final products, can hamper the growth of the outsourced testing services market.
The USA rules the North American region with a total market share of about 86.7% in 2021, and the market is expected to continue to experience the same growth throughout the forecast period.
According to the United Nations, globally, the share of the population aged 65 years or over increased from 6 percent in 1990 to 9 percent in 2019. That proportion is projected to rise further to 16 percent by 2050, so that one in six people in the world will be aged 65 years or over. With a highly older population group, the market within the country is set to expand at a lucrative pace over the forecasted years.
Germany is set to exhibit a CAGR of nearly 8.3% in the European outsourced testing services market during the forecast period.
The factor influencing the growth of the outsourced testing services market for Germany is anticipated to be the government improving healthcare facilities. Government spending on health in the EU accounted for 8% of GDP in 2020. Healthcare spending directly translates to greater adoption of outsourced services, providing operational cost relief to native manufacturers.
China holds a 41.6% share in the East Asia outsourced testing services market in 2021 and is projected to grow at a CAGR of 11.1% during the forecast period. With China as a hub for outsourced manufacturing services, owing to the presence of manufacturing units of major and established players within the country, this segment is set to propel the growth of the overall market during the forecasted years.
India holds a 63.2% share in the South Asia outsourced testing services market in 2021, and is projected to grow at a CAGR of 10.2% during the forecast period. This growth is associated with the significant investments of major and small pharmaceutical companies in research facilities and Research and Development operations in recent years. Also, the rising healthcare expenditure and development of the medical infrastructure, are rapidly improving. These factors are expected to drive market growth during the forecast years in India.
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Pharma/biopharmaceuticals test segment is set to project lucrative growth at a CAGR of 8.1% till the end of the forecast period, with a market share of around 40.8% in 2021. It is anticipated that the increased developments in the pharma/biopharmaceuticals sector will increase overall revenue sales of the Pharma/biopharmaceuticals sector, as the projection period ends in 2032.
Contract research organizations lead the outsourced testing services market with a 51.5% market share in 2021 because many companies prefer to outsource their pre-clinical studies of drugs or products from a specialized contract research organization (CRO).
Key players in the outsourced testing services market are focusing their efforts on geographical expansion and acquisition as key strategies. These will aid market participants in expanding their product portfolios and increasing market penetration, thus boosting their entire revenue share in the market for testing services that are outsourced globally.
Given below are a few examples of the key strategies followed by the manufacturers:
Similarly, recent developments related to companies providing outsourced testing services have been tracked by the team at Future Market Insights, which are available in the full report.
| Attribute | Details |
|---|---|
| Forecast Period | 2015 to 2021 |
| Historical Data Available for | 2022 to 2032 |
| Market Analysis | USD Million for Value |
| Key Regions Covered | North America, Latin America, Europe, South Asia, East Asia, Oceania, and Middle East & Africa |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Argentina, Germany, Italy, France, UK, Spain, BENELUX, Russia, Nordic Countries, China, Japan, South Korea, India, Indonesia, Malaysia, Thailand, Australia, New Zealand, GCC countries, Turkey, Israel, and South Africa. |
| Key Market Segments Covered | Test Type, End User, and Region |
| Key Companies Profiled | Eurofins Scientific; Sotera Health (Nelson Labs); Laboratory Corporation of America Holdings; Thermo Fisher Scientific Inc.; IQVIA Inc.; Elements Group (Element Materials Technology); Lucideon Limited; Canadian Analytical Laboratories Inc.; Intertek Group plc; North American Science Associates, LLC; WuXiAppTec; Syneos Health; Charles River Laboratories; Parexel International Corporation; West Pharmaceutical Services, Inc.; ICON plc; SGS SA; UL LLC |
| Pricing | Available upon Request |
The global outsourced testing services market is worth USD 34.2 Billion in 2021 and is set to expand 2.1X over the next ten years.
The outsourced testing services market is expected to reach USD 76.3 Billion by the end of 2032, with sales revenue expected to register a 7.7% CAGR.
Increasing adoption of outsourced testing services and new trend of automation in outsourced testing services are some of the key trends being witnessed in outsourced testing services marketplace.
The USA, India, the UK, China, and Japan are expected to drive demand for the outsourced testing services market.
North America is one of the key markets for outsourced testing services, with the USA expected to account for 86.7% of the North American outsourced testing services market in the year 2021.
Demand for outsourced testing services in Europe is expected to register a growth of 6.9% over the next ten years.
Germany is set to expand at a CAGR of 8.3% over the forecast period.
UK outsourced testing services market is set to expand at a CAGR of 7.0% over the forecast period.
Eurofins Scientific, Sotera Health (Nelson Labs), Laboratory Corporation of America Holdings, Thermo Fisher Scientific Inc., IQVIA Inc., Elements Group (Element Materials Technology), Lucideon Limited, Canadian Analytical Laboratories Inc., Intertek Group plc, North American Science Associates, LLC, WuXiAppTec, Syneos Health, Charles River Laboratories, Parexel International Corporation, West Pharmaceutical Services, Inc., ICON plc, SGS SA and UL LLC., are the key service providers in the outsou
1. Executive Summary | Outsourced Testing Services Market 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Market Background 6. Global Market Demand (in Value or Size in US$ Million) Analysis 2015 to 2021 and Forecast, 2022 to 2032 7. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Test 7.1. Pharma/Biopharmaceuticals 7.1.1. Clinical Trials Testing 7.1.2. Bioanalytical Testing 7.1.3. Biocompatibility & Toxicology Testing 7.1.4. Extractables & Leachables Testing 7.1.5. Clinical Stability Testing 7.1.6. Sterilization Testing 7.1.7. Facility & Process Validation 7.2. Medical Devices 7.2.1. Clinical Trials Testing 7.2.2. Bioanalytical Testing 7.2.3. Biocompatibility & Toxicology Testing 7.2.4. Extractables & Leachables Testing 7.2.5. Chemical Characterization & Product Stability Testing 7.2.6. Microbial & Sterility Testing 7.2.7. Others 7.3. Cosmetics 7.3.1. Microbiological Testing 7.3.2. Stability testing 7.3.3. Safety and Toxicological testing 7.3.4. Performance Testing 7.3.5. Compatibility testing with packaging 7.3.6. Others 7.4. Nutraceuticals 7.4.1. Clinical Trials Testing 7.4.2. Bioanalytical Testing 7.4.3. Contamination Testing 7.4.4. Allergen Testing 7.4.5. Others 7.5. Food & Beverage Testing 7.5.1. Analytical Chemistry Testing 7.5.2. Sensory Testing 7.5.3. Nutrition Analysis 7.5.4. Microbiology Testing 8. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By End User 8.1. Contract Research Organization 8.2. Contract Development and Manufacturing Organization 8.3. Academic and Research Institutes 9. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, by Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. East Asia 9.5. South Asia 9.6. Oceania 9.7. Middle East and Africa (MEA) 10. North America Market Analysis 2015 to 2021 and Forecast 2022 to 2032 11. Latin America Market Analysis 2015 to 2021 and Forecast 2022 to 2032 12. Europe Market Analysis 2015 to 2021 and Forecast 2022 to 2032 13. East Asia Market Analysis 2015 to 2021 and Forecast 2022 to 2032 14. South Asia Market Analysis 2015 to 2021 and Forecast 2022 to 2032 15. Oceania Market 2015 to 2021 and Forecast 2022 to 2032 16. Middle East and Africa (MEA) Market Analysis 2015 to 2021 and Forecast 2022 to 2032 17. Market Structure Analysis 18. Competition Analysis 18.1. Eurofins Scientific 18.2. Sotera Health (Nelson Labs) 18.3. Laboratory Corporation of America Holdings 18.4. Thermo Fisher Scientific Inc. 18.5. IQVIA Inc. 18.6. Elements Group (Element Materials Technology) 18.7. Lucideon Limited 18.8. Canadian Analytical Laboratories Inc. 18.9. Intertek Group plc 18.10. North American Science Associates, LLC 18.11. WuXiAppTec 18.12. Syneos Health 18.13. Charles River Laboratories 18.14. Parexel International Corporation 18.15. West Pharmaceutical Services, Inc. 18.16. ICON plc 18.17. SGS SA 18.18. UL LLC 19. Assumptions and Acronyms Used 20. Research Methodology
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Outsourced Testing Services Market
