The global bioanalytical testing services market is poised for robust growth in the coming years, according to a new report from MarketsandMarkets. The market was valued at $2.9 billion in 2022 and is projected to reach $6.0 billion by 2027, growing at a compound annual growth rate (CAGR) of 15.6% during the forecast period.
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Bioanalytical testing services support drug development through specialized testing and analysis at various stages, generating critical data on the safety, efficacy, quality, and pharmacokinetics of new drug candidates and therapies. Rising investments in pharmaceutical research and development, increasing number of clinical trials, growth of the biologics and biosimilars market, and greater outsourcing of analytical testing services are driving growth in this market.
Cell-based assays accounted for the largest share of the bioanalytical testing services market in 2022. The huge demand for testing services in oncology is expected to spur the growth of cell-based assays. The oncology segment also dominated the market in terms of applications, driven by the surging number of clinical trials for cancer therapies. Further, pharmaceutical and biopharmaceutical companies formed the largest customer segment due to their focus on bringing novel treatments to market and growing partnerships with contract testing laboratories.
Geographically, North America was the largest regional market, but the Asia Pacific market, especially China and India, is anticipated expand at the fastest pace during the forecast period. The rapid growth of pharmaceutical manufacturing and research in these countries, combined with lower testing costs than more developed countries, makes the Asia Pacific an attractive destination for outsourcing bioanalytical testing services.
While the future outlook is positive overall, challenges remain in the bioanalytical testing services marketplace. The industry has faced shortages of trained professionals and specialists to operate complex analytical instrumentation and implement innovative testing methodologies. Intense competition has also led to pricing pressures, with emerging regional providers able to undercut established global players particularly in developing markets. As drug therapies and biologics continue to advance, testing laboratories must keep pace by adopting the latest and most sensitive assay technologies.
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The entry of new players and shift towards strategic partnerships, capacity expansions, and consolidation activities promise to make the bioanalytical testing services space increasingly dynamic in the years ahead. Companies looking to tap the potential of this high-growth market should focus on enhancing technical capabilities, geographic reach, flexibility, and value-added offerings to clients.