Healthcare Analytical Testing Services Market by End-user and Geography - Forecast and Analysis 2021-2025

The healthcare analytical testing services market share is expected to increase by USD 11.38 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 5.62%.

This healthcare analytical testing services market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers healthcare analytical testing services market segmentation by end-user (pharmaceutical and biotechnology companies, medical device companies, and CRO) and geography (North America, Europe, Asia, and ROW). The healthcare analytical testing services market report also offers information on several market vendors, including Almac Group Ltd., Charles River Laboratories International Inc., Envigo, Eurofins Scientific SE, Laboratory Corp. of America Holdings, Merck KGaA, SGS SA, STERIS Plc, Thermo Fisher Scientific Inc., and WuXi AppTec Co. Ltd. among others.

What will the Healthcare Analytical Testing Services Market Size be During the Forecast Period?

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Healthcare Analytical Testing Services Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The increasing demand for analytical testing services from the pharmaceutical and biotechnology sector is notably driving the healthcare analytical testing services market growth, although factors such as difficulty in marketing services may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the healthcare analytical testing services industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Healthcare Analytical Testing Services Market Driver

Increasing demand for analytical testing services from the pharmaceutical and biotechnology sector is a major driver fueling the healthcare analytical testing services market growth. The increasing number of deadly diseases such as cancer is creating a growing need for increased production of drugs and the development of new drugs to reduce the burden on existing ones. These factors are increasing the demand for high-quality analytical services from the pharmaceutical and biotechnology companies, as they need to focus more on their core competencies and the scientific aspects of the drugs. For smooth functioning, pharmaceutical and biotechnology companies partner with vendors offering analytical testing services to ensure that the product is not adversely impacted and the manufacturing facilities do not face regulatory compliance issues.regulatory compliance issues. At present, analytical testing is conducted with increased caution to develop contamination-free, safe products and to adhere to regulatory compliance. With the increasing number of biopharmaceuticals being produced, the demand for analytical testing will be high, as manufacturers cannot afford the losses associated with failed products. The need for stability in pharmaceutical products and patient safety has given rise to new techniques that help minimize toxic degradation in products and their loss of efficacy, thereby affecting overall clinical outcomes.  As the need for high-quality products will increase, the reliance on quality analytical testing procedures will also increase. As a result, the global healthcare analytical testing services market will experience growth throughout the forecast period.

Key Healthcare Analytical Testing Services Market Trend

Growing focus on promotional activities is a major trend influencing the healthcare analytical testing services market growth. There is a growing trend among the vendors to look for alternative marketing strategies for promoting their service portfolios because the global healthcare analytical services market is largely dependent on partnerships with pharmaceutical and biotechnology companies. The nature of the services makes it difficult for vendors to market these services. Advertising and marketing of the services have been limited in the past, and there has been a significant lack of awareness among end-users about the benefits of partnering with an efficient analytical testing service provider. However, there has been a paradigm shift in terms of the promotion of services, as vendors have moved from conventional channels of marketing to alternative methods. The key vendors in the market are also active on social and digital media platforms, where they post interactive videos and case studies showing how the pharmaceutical companies have benefitted from availing these services. The digital reach of the key vendors in the market has been highlighted below. Therefore, as vendors realize the importance of promoting services through alternate routes such as digital media, the trend of promotion of services and their benefits to various pharmaceutical, biotechnology, and medical device companies are also growing. This trend is expected to positively impact the market and assist in the increasing adoption of these services during the forecast period.

Key Healthcare Analytical Testing Services Market Challenge

Difficulty in marketing services is a major hindrance to the healthcare analytical testing services market growth. Marketing products is a simpler process than marketing services. Vendors can align their products with the market standards, price the product competitively, and state-specific advantages of the product. Although a similar strategy is observed in the services market, the vendors must convince their clients on the basis of statistical evidence. Also, mapping the results of the service is difficult since these results are not immediate and reflect at a later stage. Conversely, with a product, the results can be experienced almost immediately. Both the existing vendors and new entrants face the challenges mentioned above. However, the vendors with a strong presence in the market have better client relations with pharmaceutical and biotechnology companies, which has enabled them to establish an end-user-centric services portfolio for acquiring new clients. However, this is increasingly difficult for new vendors entering the market, as they have little market experience and are unable to position themselves in the market strongly. Therefore, until the services market is standardized, new vendors will struggle to establish a foothold in the market as selling of services will be a challenge, despite their strong technical experience.Impact of drivers and challenges

This healthcare analytical testing services market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the healthcare analytical testing services market as a part of global healthcare technology market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the healthcare analytical testing services market during the forecast period.

Who are the Major Healthcare Analytical Testing Services Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Almac Group Ltd.
• Charles River Laboratories International Inc.
• Envigo
• Eurofins Scientific SE
• Laboratory Corp. of America Holdings
• Merck KGaA
• SGS SA
• STERIS Plc
• Thermo Fisher Scientific Inc.
• WuXi AppTec Co. Ltd.

This statistical study of the healthcare analytical testing services market encompasses successful business strategies deployed by the key vendors. The healthcare analytical testing services market is fragmented and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The healthcare analytical testing services market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Healthcare Analytical Testing Services Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the healthcare analytical testing services market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of global healthcare technology market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Healthcare Analytical Testing Services Market?

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46% of the market's growth will originate from North America during the forecast period. The US is a key market for healthcare analytical testing services in North America. Market growth in this region will be slower than the growth of the market in regions.

The growing acceptance of the QbD approach in research and manufacturing will facilitate the healthcare analytical testing services market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The healthcare analytical testing services market in North America witnessed a slow growth in 2020, owing to the outbreak of COVID-19. Countries across North America have been severely affected by the pandemic. The outbreak resulted in disruptions in the supply chains for raw materials, such as reagents and analyzers required in laboratories for testing, limited availability of workforce, and a decline in the number of referred patients from hospitals for healthcare analytical testing. This, in turn, lowered the patient volume to a certain extent during the first few months of 2020. Moreover, the increase in the number of COVID-19 cases across the region impacted healthcare, including healthcare analytical testing services, which hampered the growth of the regional healthcare analytical testing services market to a certain extent. However, since the second half of 2020, most hospitals have been resuming their operations in North America. As all surgeries and procedures are now performed with full safety precautions and all the necessary COVID-19 guidelines are followed, the demand for gastrointestinal stents is expected to increase in the region. This, in turn, will drive the growth of the healthcare analytical testing services market in North America in the coming years. 

What are the Revenue-generating End User Segments in the Healthcare Analytical Testing Services Market?

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The healthcare analytical testing services market share growth by the pharmaceutical and biotechnology companies segment has been significant. The diverse services offered by the vendors to cater to the specific needs of the pharmaceutical and biotechnology companies during the development of a drug are increasing the demand from this segment. Vendors have also responded to the needs of these companies by rendering their services across various phases of clinical drug development. Vendors in the market offer their services in a way that indicates how their services could assist across all phases of drug development and commercialization.

This report provides an accurate prediction of the contribution of all the segments to the growth of the healthcare analytical testing services market size and actionable market insights on post COVID-19 impact on each segment.

 

Healthcare Analytical Testing Services Market Scope
Report Coverage	Details
Page number	120
Base year	2020
Forecast period	2021-2025
Growth momentum & CAGR	Accelerate at a CAGR of 5.62%
Market growth 2021-2025	$ 11.38 billion
Market structure	Fragmented
YoY growth (%)	6.50
Regional analysis	North America, Europe, Asia, and ROW
Performing market contribution	North America at 46%
Key consumer countries	US, Switzerland, Germany, UK, and Japan
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Almac Group Ltd., Charles River Laboratories International Inc., Envigo, Eurofins Scientific SE, Laboratory Corp. of America Holdings, Merck KGaA, SGS SA, STERIS Plc, Thermo Fisher Scientific Inc., and WuXi AppTec Co. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Healthcare Analytical Testing Services Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive healthcare analytical testing services market growth during the next five years
• Precise estimation of the healthcare analytical testing services market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the healthcare analytical testing services industry across North America, Europe, Asia, and ROW
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of healthcare analytical testing services market vendors

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