Laboratory Products and Outsourcing Services Market Report 2025

The laboratory products and outsourcing services market size has grown rapidly in recent years. It will grow from $41.13 billion in 2024 to $45.81 billion in 2025 at a compound annual growth rate (CAGR) of 11.4%. The growth in the historic period can be attributed to increasing regulatory support for laboratory testing and validation, a growing focus on quality control and compliance, rising adoption of molecular diagnostics and immunoassays, higher demand for rapid stability testing and method validation, and the expanding presence of contract research organizations (CROs) in emerging regions.

The laboratory products and outsourcing services market size is expected to see rapid growth in the next few years. It will grow to $69.62 billion in 2029 at a compound annual growth rate (CAGR) of 11%. The growth in the forecast period can be attributed to the increasing adoption of outsourcing services by pharmaceutical companies, a growing focus on personalized medicine development, rising investments in biopharmaceutical research and development, higher prevalence of chronic and infectious diseases, and expanded use of automation and robotics in laboratories. Major trends in the forecast period include advancements in molecular diagnostics technologies, integration of automation and robotics into laboratory workflows, technological improvements in immunoassays for greater accuracy, progress in chromatography and mass spectrometry techniques, and the incorporation of artificial intelligence for enhanced data analysis.

The increasing adoption of personalized medicine is expected to drive the growth of the laboratory products and outsourcing services market in the coming years. Personalized medicine is a healthcare approach that tailors medical decisions and treatments to an individual’s genetic profile, lifestyle, and environment. Its rise is fueled by growing demand for more effective, targeted therapies that reduce side effects and enhance patient outcomes. Laboratory products and outsourcing services support personalized medicine by enabling high-throughput genetic testing, biomarker analysis, and specialized diagnostic services necessary for customizing treatments for each patient. For example, according to the Personalized Medicine Coalition (PMC), a US-based nonprofit, the FDA approved 16 new personalized treatments in 2023, up from six in 2022. Personalized medicines have represented over one-third of all new drug approvals by the FDA for four consecutive years. As a result, the increasing adoption of personalized medicine is fueling growth in the laboratory products and outsourcing services market.

Key players in the laboratory products and outsourcing services market are focusing on developing innovative solutions, such as integrated development and manufacturing platforms, to provide end-to-end services, reduce operational complexity, and improve scalability for clients. An integrated development and manufacturing platform is a unified system that combines research, development, analytical testing, and manufacturing processes within a single streamlined framework to enhance coordination, shorten timelines, and improve overall efficiency in biopharmaceutical production. For instance, in March 2025, Shilpa Medicare Ltd., an India-based pharmaceutical company, launched a full-service hybrid contract development and manufacturing organization (CDMO) to offer integrated solutions from early development to commercial manufacturing. The platform provides both flexible outsourcing (traditional CDMO services) and ready-to-license novel formulations, enabling faster and lower-risk market entry for pharma companies. It offers multiple commercialization pathways, supporting development projects or rapid B2B licensing, particularly in oncology and complex therapeutics.

In August 2024, Biopharma Technology LLC, a US-based provider of versatile CDMO services, partnered with Arete Biosciences LLC to establish a dedicated research and development laboratory. The partnership aims to launch small-batch manufacturing capabilities in the USA to provide comprehensive CDMO services and improve access for American biopharmaceutical and diagnostics companies. Arete Biosciences LLC is a US-based provider of laboratory outsourcing services through integrated CDMO solutions.

Major players in the laboratory products and outsourcing services market are Thermo Fisher Scientific Inc., Abbott Laboratories, Siemens Healthineers AG, IQVIA Holdings Inc., Labcorp Holdings Inc., Quest Diagnostics, SGS SA, Eurofins Scientific Inc., Agilent Technologies Inc., WuXi AppTec Co. Ltd., Charles River Laboratories International Inc., Intertek Group plc., Waters Corporation, Bio-Rad Laboratories Inc., ALS Limited, PerkinElmer Inc., Medpace Holdings Inc., Tecan Group AG, Greiner Bio-One International GmbH, Randox Laboratories Ltd., and Tulip Diagnostics Private Limited.

North America was the largest region in the laboratory products and outsourcing services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in laboratory products and outsourcing services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the laboratory products and outsourcing services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the healthcare sector, particularly in the supply of critical medical devices, diagnostic equipment, and pharmaceuticals. Hospitals and healthcare providers are facing higher costs for imported surgical instruments, imaging equipment, and consumables such as syringes and catheters, many of which have limited domestic alternatives. These increased costs are straining healthcare budgets, leading some providers to delay equipment upgrades or pass on expenses to patients. Additionally, tariffs on raw materials and components are disrupting the production of essential drugs and devices, causing supply chain bottlenecks. In response, the industry is diversifying sourcing strategies, boosting local manufacturing where possible, and advocating for tariff exemptions on life-saving medical products.

Laboratory products and outsourcing services encompass both the tools, instruments, and consumables used in scientific and diagnostic laboratories, as well as external services that support laboratory operations. This includes a broad range of offerings, from analytical instruments and reagents to outsourced research, testing, and diagnostic services.

The primary types of laboratory products and outsourcing services include products, services, method development and validation, stability testing, and others. Products cover tangible items such as instruments, reagents, consumables, and analytical tools employed in scientific and industrial research. Key technologies involved include immunoassays, molecular diagnostics, microbiology, clinical chemistry, flow cytometry, mass spectrometry, chromatography, and more. These solutions are utilized by end users such as pharmaceutical and biotechnology companies, medical device manufacturers, contract research organizations (CROs), contract development and manufacturing organizations (CDMOs), and others.

The laboratory products and outsourcing services market research report is one of a series of new reports that provides laboratory products and outsourcing services market statistics, including the laboratory products and outsourcing services industry's global market size, regional shares, competitors with the laboratory products and outsourcing services market share, detailed laboratory products and outsourcing services market segments, market trends and opportunities, and any further data you may need to thrive in the laboratory products and outsourcing services market. This laboratory products and outsourcing services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The laboratory products and outsourcing services market consists of revenues earned by entities by providing services such as analytical testing services, bioanalytical services, and sample management services. The market value includes the value of related goods sold by the service provider or included within the service offering. The laboratory products and outsourcing services market also includes sales of analytical instruments, life sciences equipment, and general lab equipment. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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