PHARMACEUTICAL ANALYTICAL TESTING MARKET ANALYSIS

Pharmaceutical Analytical Testing Market Size and Trends

The pharmaceutical analytical testing market is estimated to be valued at USD 8.41 billion in 2024 and is expected to reach USD 15.12 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031.

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The pharmaceutical analytical testing market is driven by the increased R&D expenditure in pharmaceutical and biotechnology companies. The stringent regulatory guidelines for drug development and safety have increased the demand for analytical testing. Moreover, the growth of generics and biosimilars has significantly contributed to the market expansion. However, the high cost of analytical instruments and lack of skilled professionals are the major factors limiting the market growth.

Increasing R&D investment in drug development

Increased research and development activities, along with collaborations and strategic agreements, are expected to fuel the market growth. For instance, in November 2021, Alcami Corporation, Inc., a contract development and manufacturing organization, entered into a master laboratory services agreement with Novavax, a biotechnology company. Through 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. These developments are projected to drive market expansion.

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Increase in outsourcing of analytical testing services 

The pharmaceutical analytical testing market is poised for growth over the forecast period due to the rising global demand for analytical testing services and solutions. For example, bio-pharmaceutical companies utilize analytical testing to characterize biologics and biosimilars, enhance productivity, and ensure real-time product quality control. In July 2021, LGM Pharma, a pharmaceutical outsourcing company, introduced its Analytical Services offering, providing analytical testing and stability services to pharmaceutical industry clients. LGM Pharma now extends its analytical services expertise and facilities as a standalone contract service for pharmaceutical industry clients. Furthermore, the surge in drug approvals and clinical trials worldwide is anticipated to bolster the expansion of the global pharmaceutical analytical testing market. Notably, the number of registered clinical trials has notably increased in recent years. Despite the ongoing impact of COVID-19, the U.S FDA's approval count remained consistent with recent trends last year. In 2021, the FDA's Center for Drug Evaluation and Research (CDER) greenlit 50 novel therapeutics, aligning with the five-year average of 51 drugs per year. A decade ago, the average was 24 drugs per year. This trend is expected to drive market growth.