GMP Testing Service Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The GMP testing service market was valued at USD 1,161.23 million in 2021. It is expected to register a CAGR of 6.97% during the forecast period due to the growing pharmaceutical industry and the increasing need for developing novel devices and drugs.

After the COVID-19 outbreak, lockdowns were imposed to control the spread of the virus. These lockdowns have shown both demand-side and supply-side impacts on the manufacturing sector. However, people are learning to live with the virus, and all industries have opened with new guidelines and new restrictions. In 2021, the market saw better growth than in 2019. According to European Commission, Eurostat 2021, industrial production in Europe increased by 1.4% in July 2021, and the total production level was 1% above the level of February 2020. According to Eurostat 2021, pharmaceutical products and goods production increased by more than 30% between July 2020 and July 2021.

According to the European Federation of Pharmaceutical Industries and Associations, global pharmaceutical market sales were estimated to be USD 1,077,856 million in 2020. According to the International Journal of Environmental Research and Public Health's published study, in the United States and South Korea, around 40 medications are recalled per year. This enhances the need for testing the products and the manufacturing process. The outsourcing of these services enables companies to reduce capital investments as well.

While the above factors are expected to play a significant role in the GMP testing services market growth, the regulatory framework's precise requirement concerning GMP outsourced activities may hinder the market growth in the studied forecast period.

Key Market Trends

Pharmaceutical and Biopharmaceutical Companies Segment Expected to Hold Major Market Share in the GMP Testing Service Market

The pharmaceutical and biopharmaceutical companies segment is expected to grow during the forecast period.

The novel drug development in the pharmaceutical and biopharmaceutical industry is expected to drive market growth in this segment. According to an article entitled "Current perspectives on biosimilars" published in the Journal of Industrial Microbiology & Biotechnology in July 2019, almost 300 biopharmaceuticals have been patented in the last three decades. According to the International Federation of Pharmaceutical Manufacturers and Associations, "Facts & Figures Report 2021", as of February 2021, approximately 382 vaccine candidates were in development, among which 24 were in Phase I, 34 were in Phase II, and 23 were in Phase III trial. According to the same report, as of March 2021, the United States Food and Drug Administration (FDA) had authorized PfizerBioNTech, Janssen, and Moderna COVID-19 vaccines, among which European Medicines Agency (EMA) granted a conditional marketing authorization Pfizer-BioNTech, Janssen, Moderna, and AstraZeneca's COVID-19 vaccines.

The biopharmaceutical industry is undertaking rapid and exceptional measures to bring vaccines to patients. The biopharmaceutical sector has opened new approaches and collaborations in the industry to respond to the urgent needs of the pandemic. However, this demands more quality and safe management of products, which is expected to contribute to an increase in GMP testing services. Therefore, the pharmaceutical and biopharmaceutical companies segment is propelling the market's growth and is expected to positively impact the GMP testing services market growth during the forecast period.

North America Expected to Hold Significant Share in the Forecast Period

North America is expected to be a dominant region in the GMP testing services market due to the emerging need for developing new drugs and devices.

According to the Center for Disease Control and Prevention data reviewed on 10 January 2022, more than 868,000 Americans die of heart diseases, almost 600,000 die from cancer every year, and more than 34.2 million have diabetes. Due to these incidences of deaths and the increasing number of chronic diseases, the number of increasing drug manufacturing plants is growing. The above factors are expected to drive the GMP testing services market.

According to the United States Food & Drug Administration (FDA), in 2019, the United States had approximately 4,676 manufacturing sites for drugs, and many others were on standby. The demand for developing new drugs and pharmaceuticals is increasing, contributing to the demand for GMP testing services market growth in the forecast period.

Competitive Landscape

The GMP testing service market consists of several major players. A few major players are currently dominating the market in terms of market share. The companies are taking initiatives to meet the higher demand for medicines and devices. Some of the companies currently dominating the market include Eurofins Scientific, PPD Inc., Microchem Laboratory, Sartorius AG, North American Science Associates Inc., Covance Inc., Nelson Laboratories LLC, Almac Group, Pace Analytical, Wuxi AppTec., Intertek Group PLC, and Charles River Laboratories.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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