Pharmaceutical Analytical Testing Market
By Service;
Bioanalytical Testing Services, Method Development & Validation, Stability Testing, Drug Substances, and OthersBy Type;
Active Pharmaceutical Ingredients (API), Additives, and Finished ProductsBy End User;
Medical Device Companies, Pharmaceutical & Biopharmaceutical Companies, and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031).Introduction
Global Pharmaceutical Analytical Testing Market (USD Million), 2021 - 2031
In the year 2024, the Global Pharmaceutical Analytical Testing Market was valued at USD 8,924.47 million. The size of this market is expected to increase to USD 15,048.84 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 7.8%.
Pharmaceutical Analytical Testing Market
*Market size in USD million
CAGR 7.8 %
Study Period | 2025 - 2031 |
---|---|
Base Year | 2024 |
CAGR (%) | 7.8 % |
Market Size (2024) | USD 8,924.47 Million |
Market Size (2031) | USD 15,048.84 Million |
Market Concentration | Medium |
Report Pages | 388 |
Major Players
- Steris
- Intertek Pharmaceutical Services
- Pace Analytical Services
- SGS SA
- Boston Analytical
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Pharmaceutical Analytical Testing Market
Fragmented - Highly competitive market without dominant players
The global pharmaceutical analytical testing market is a crucial component of the pharmaceutical industry, ensuring the safety, quality, and efficacy of drugs before they reach the market. This market encompasses a wide range of analytical techniques and services, including method development and validation, stability testing, raw material testing, microbial testing, and quality control testing. With the increasing complexity of pharmaceutical products and stringent regulatory requirements, demand for analytical testing services continues to rise.
Several factors are driving the growth of the global pharmaceutical analytical testing market. These include the growing emphasis on quality control and assurance by regulatory authorities such as the FDA and EMA, the rise in the number of pharmaceutical outsourcing activities, and the increasing adoption of analytical techniques for drug development and manufacturing processes. Additionally, the expanding pharmaceutical industry in emerging markets, technological advancements in analytical instruments, and the growing trend of biosimilar and generic drug development further contribute to market growth.
Key players in the global pharmaceutical analytical testing market include Contract Research Organizations (CROs), pharmaceutical companies, and analytical instrument manufacturers. These companies offer a wide range of services and solutions tailored to meet the diverse needs of the pharmaceutical industry. As the demand for pharmaceuticals continues to rise globally and regulations become increasingly stringent, the market for analytical testing services is expected to witness significant growth in the coming years, with a focus on ensuring the safety, quality, and efficacy of pharmaceutical products.
Global Pharmaceutical Analytical Testing Market Recent Developments
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In March 2024, LGM Pharma, a contract development and manufacturing organization (CDMO), announced a significant expansion of its analytical testing services (ATS) in March 2024. This included a 50% increase in capacity and a $2 million investment. This upgrade strengthens their internal resources, allowing them to offer clients a more streamlined and efficient solution for both manufacturing and testing.
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In August 2023, Eurofins Scientific, a major player in analytical services, partnered with Astellas, a pharmaceutical company, in August 2023. This unique deal involved outsourcing. Eurofins acquired one of Astellas' internal testing facilities, Astellas Analytical Science Laboratories, Inc. This strategic move allows Eurofins to expand its capabilities and potentially attract new clients in the pharmaceutical industry.
pharmaceutical analytical testing market Segment Analysis
In this report, the pharmaceutical analytical testing market has been segmented by Test Type, End User and Geography.
Pharmaceutical Analytical Testing Market, Segmentation by Service
The Pharmaceutical Analytical Testing Market has been segmented by Service into Bioanalytical Testing Services, Method Development & Validation, Stability Testing, Drug Substances and Others
Bioanalytical Testing Services
Bioanalytical testing services account for around 32–35% of the pharmaceutical analytical testing market, driven by the increasing demand for drug efficacy evaluation and pharmacokinetic studies. These services play a critical role in supporting clinical trials and ensuring regulatory compliance in drug development.
Method Development & Validation
Method development & validation services represent approximately 25–28% of the market, as pharmaceutical companies prioritize accurate analytical methods for drug safety and quality assessment. The segment benefits from stringent FDA and EMA guidelines that mandate validated testing protocols.
Stability Testing
Stability testing holds nearly 20–22% market share, driven by the need to assess a drug’s shelf life and ensure its efficacy over time. With increasing regulatory requirements, stability studies are essential for obtaining and maintaining product approvals.
Drug Substances
The drug substances segment comprises about 12–14% of the market, focusing on purity analysis and chemical characterization of active pharmaceutical ingredients (APIs). The demand is fueled by the growing production of complex molecules and biologics.
Others
The others category contributes roughly 5–6% of the market, encompassing specialized services such as extractable and leachable testing, impurity profiling, and advanced analytical consulting. This segment caters to niche but vital requirements in the pharmaceutical sector.
Pharmaceutical Analytical Testing Market, Segmentation by Type
The Pharmaceutical Analytical Testing Market has been segmented by Type into Bioanalytical Testing Services, Method Development & Validation, Stability Testing, Drug Substances and Others.
Bioanalytical Testing Services
Bioanalytical testing services hold a market share of approximately 32–35%, driven by their essential role in drug efficacy evaluation and pharmacokinetic analysis. These services support clinical trials by ensuring precise measurement of drug concentrations, meeting stringent regulatory requirements.
Method Development & Validation
Method development & validation accounts for around 25–28% of the market, focusing on creating accurate analytical methods for drug quality and safety testing. Demand is supported by strict FDA and EMA guidelines that mandate robust validation processes before product approval.
Stability Testing
Stability testing contributes nearly 20–22% to the market, ensuring a product’s shelf life and therapeutic effectiveness over time. Increasing regulatory emphasis on long-term stability data continues to fuel growth in this segment.
Drug Substances
The drug substances segment holds about 12–14% share, focusing on the purity analysis and characterization of active pharmaceutical ingredients (APIs). This category is expanding due to rising production of complex formulations and biologics.
Others
The others category makes up around 5–6% of the market, covering specialized solutions such as extractable and leachable studies, impurity profiling, and advanced analytical consulting to address unique pharmaceutical testing needs.
Pharmaceutical Analytical Testing Market, Segmentation by End User
The Pharmaceutical Analytical Testing Market has been segmented by End User into Medical Device Companies, Pharmaceutical & Biopharmaceutical Companies and Others.
Medical Device Companies
Medical device companies contribute around 18–20% of the pharmaceutical analytical testing market, utilizing these services for biocompatibility testing, material characterization, and regulatory compliance. The growing need for safe and effective devices continues to drive demand in this segment.
Pharmaceutical & Biopharmaceutical Companies
Pharmaceutical & biopharmaceutical companies hold the largest share of approximately 70–72%, leveraging analytical testing for drug development, quality control, and regulatory submissions. This dominance is fueled by rising R&D investments and a growing pipeline of innovative therapies.
Others
The others segment, accounting for nearly 8–10%, includes contract research organizations (CROs) and specialized labs that provide outsourced testing solutions. Increasing outsourcing trends and the need for cost-efficient analytical expertise are key drivers of this category’s growth.
Pharmaceutical Analytical Testing Market, Segmentation by Geography
In this report, the Pharmaceutical Analytical Testing Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East & Africa and Latin America.
Regions and Countries Analyzed in this Report
Pharmaceutical Analytical Testing Market Share (%), by Geographical Region
North America
North America commands the largest share of the pharmaceutical analytical testing market at approximately 38–40%, driven by advanced R&D infrastructure, strong regulatory frameworks, and a high concentration of biopharmaceutical companies. The region’s emphasis on quality assurance continues to fuel market growth.
Europe
Europe accounts for about 28–30% of the market, supported by stringent drug quality regulations and a robust network of analytical laboratories. Rising demand for biosimilar testing and expansion in clinical research activities are contributing to steady growth.
Asia Pacific
The Asia Pacific region holds nearly 22–24% of the market, experiencing rapid expansion due to growing pharmaceutical manufacturing hubs, cost-effective testing services, and increased clinical trial activities. Countries like China and India are emerging as major contributors.
Middle East & Africa
Middle East & Africa capture around 5–6% of the market, with growth supported by improving healthcare infrastructure and increased investments in drug quality testing. Regulatory harmonization in select countries is creating new opportunities.
Latin America
Latin America holds an estimated 4–5% share, driven by expanding pharmaceutical production and growing demand for regulatory-compliant analytical testing. Brazil and Mexico are key markets propelling regional growth.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Pharmaceutical Analytical Testing Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunities Analysis
Drivers:
- Regulatory Compliance
- Technological Advancements
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Rapid Growth in Pharmaceutical R&D - The continuous expansion of pharmaceutical research and development pipelines is fueled by several factors, including the emergence of new diseases, the advancement of personalized medicine, and the increasing focus on biopharmaceuticals. With the discovery of novel pathogens and the evolution of existing ones, pharmaceutical companies are continually striving to develop new treatments and vaccines to address unmet medical needs. Moreover, the trend toward personalized medicine, which involves tailoring treatments to individual patients based on their genetic makeup, requires innovative approaches to drug development and testing. Additionally, the rise of biopharmaceuticals, including biologics and biosimilars, presents unique challenges in terms of analytical testing due to the complexity of these molecules and the need for rigorous characterization to ensure safety and efficacy.
As pharmaceutical research and development pipelines continue to expand, the demand for analytical testing services grows in parallel. Analytical testing plays a critical role in pharmaceutical development by providing essential data on product quality, purity, potency, and stability throughout the drug development lifecycle. Moreover, regulatory agencies such as the FDA and EMA require thorough analytical testing to ensure compliance with stringent quality standards and regulations before new drugs can be approved for market release. Therefore, the increasing complexity and diversity of pharmaceutical products, coupled with regulatory requirements, underscore the importance of analytical testing in safeguarding product quality and public health while supporting innovation and advancement in the pharmaceutical industry.
Restraints:
- Complexity in Testing Procedures
- Data Security Concerns
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Limited Access to Advanced Technologies - For regions or smaller pharmaceutical companies, accessing cutting-edge analytical technologies can present significant challenges due to various factors. High initial costs associated with acquiring state-of-the-art instrumentation and implementing advanced analytical techniques can pose a major barrier, especially for companies with limited financial resources. Additionally, inadequate infrastructure and technical expertise may further impede their ability to adopt and utilize these technologies effectively. In some cases, regulatory barriers and stringent compliance requirements may also hinder access to advanced analytical tools and methods, as companies must navigate complex regulatory pathways and ensure adherence to regulatory standards.
These constraints can significantly impact the competitiveness of smaller pharmaceutical companies and regions with limited access to cutting-edge analytical technologies. Without access to the latest analytical tools and methodologies, these companies may face limitations in their ability to innovate, develop high-quality products, and compete effectively in the market. As a result, they may struggle to keep pace with larger pharmaceutical companies that have greater resources and access to advanced technologies. To address these challenges, collaboration with academic institutions, research organizations, and larger pharmaceutical companies can provide opportunities for smaller players to access cutting-edge analytical technologies through partnerships, knowledge sharing, and resource pooling. Additionally, governments and regulatory agencies can play a crucial role in facilitating technology transfer, providing financial incentives, and streamlining regulatory processes to support the adoption of advanced analytical technologies by smaller pharmaceutical companies and regions, thereby fostering innovation and competitiveness in the global pharmaceutical market.
Opportunities:
- Outsourcing Trend
- Emerging Markets
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Integration of AI and Automation - The integration of artificial intelligence (AI) and automation technologies into analytical testing processes represents a transformative shift in the pharmaceutical industry. AI algorithms can analyze vast amounts of data more quickly and accurately than traditional methods, enabling researchers to identify patterns, predict outcomes, and optimize testing protocols with unprecedented precision. Automation technologies further streamline workflows by automating repetitive tasks, reducing human error, and increasing throughput. This combination of AI and automation not only enhances efficiency and reduces costs but also improves the accuracy and reliability of analytical testing results, ultimately contributing to better decision-making and faster time-to-market for pharmaceutical products.
Moreover, the integration of AI and automation fosters innovation and differentiation in the pharmaceutical analytical testing market. By leveraging AI-driven insights and automated processes, companies can develop novel testing methodologies, discover new biomarkers, and accelerate drug discovery and development timelines. Additionally, AI-powered analytics enable real-time monitoring of manufacturing processes, facilitating proactive quality control and ensuring compliance with regulatory standards. As a result, pharmaceutical companies can gain a competitive edge by delivering high-quality products more efficiently and cost-effectively, driving growth and market differentiation in an increasingly competitive landscape.
Competitive Landscape Analysis
Key players in Global Pharmaceutical Analytical Testing Market include
- Steris
- Intertek Pharmaceutical Services
- Pace Analytical Services
- SGS SA
- Boston Analytical
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Service
- Market Snapshot, By Type
- Market Snapshot, By End User
- Market Snapshot, By Region
- Pharmaceutical Analytical Testing Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Regulatory Compliance
- Technological Advancements
- Rapid Growth in Pharmaceutical R&D
- Restraints
- Complexity in Testing Procedures
- Data Security Concerns
- Limited Access to Advanced Technologies
- Opportunities
- Outsourcing Trend
- Emerging Markets
- Integration of AI and Automation
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Pharmaceutical Analytical Testing Market, By Service, 2021 - 2031 (USD Million)
- Bioanalytical Testing Services
- Method Development & Validation
- Stability Testing
- Drug Substances
- Others
- Pharmaceutical Analytical Testing Market, By Type, 2021 - 2031 (USD Million)
- Active Pharmaceutical Ingredients (API)
- Additives
- Finished Products
- Pharmaceutical Analytical Testing Market, By End User, 2021 - 2031 (USD Million)
- Medical Device Companies
- Pharmaceutical & Biopharmaceutical Companies
- Others
- Pharmaceutical Analytical Testing Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Pharmaceutical Analytical Testing Market, By Service, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Steris
- Intertek Pharmaceutical Services
- Pace Analytical Services
- SGS SA
- Boston Analytical
- Company Profiles
- Analyst Views
- Future Outlook of the Market