Pharmaceutical Analytical Testing Market Report 2025

The pharmaceutical analytical testing market size has grown strongly in recent years. It will grow from $7.52 billion in 2024 to $8.21 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth during the historic period can be attributed to the increase in generic drug approvals, rising investments by pharmaceutical companies, expansion of biologics and biosimilars, the growth of personalized medicine, and the rising demand for advanced analytical testing.

The pharmaceutical analytical testing market size is expected to see strong growth in the next few years. It will grow to $11.48 billion in 2029 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to the increasing demand for biologics as well as cell and gene therapies, the expansion of pharmaceutical manufacturing in emerging markets, the rising complexity of new drug molecules, the surge in outsourcing analytical services to CROs, and the growing pipeline of orphan and rare disease drugs. Key trends in the forecast period include the adoption of artificial intelligence in data analysis, implementation of real-time release testing (RTRT), integration of automation and robotics in QC laboratories, deployment of cloud-based laboratory information management systems, increased digitalization and automation, and the adoption of real-time analytics.

The rising number of drug approvals and clinical trials is expected to drive the growth of the pharmaceutical analytical testing market. Drug approvals and trials involve systematically testing new medications for safety and efficacy through regulated clinical studies, followed by authorization from health authorities for public use. The increase in approvals and trials is largely fueled by advancements in precision medicine, which enables the development of highly targeted therapies tailored to individual genetic profiles, enhancing both therapeutic efficacy and regulatory success. Pharmaceutical analytical testing supports this process by ensuring the safety, quality, and effectiveness of drug products through validated assessments of stability, impurities, bioavailability, and pharmacokinetics, thereby supporting regulatory compliance and informed decision-making. For example, according to the Association of the British Pharmaceutical Industry (ABPI), a UK-based non-profit, the number of clinical trials initiated in the UK increased from 394 in 2021 to 411 in 2022, a 4.3% rise. Therefore, the surge in drug approvals and trials is driving demand for advanced analytical testing solutions.

Companies in the pharmaceutical analytical testing market are developing innovative solutions such as digital reference materials platforms to improve accuracy, traceability, and efficiency in laboratory testing, while ensuring regulatory compliance and data integrity. A digital reference materials platform provides authenticated, standardized digital datasets or models to calibrate, validate, and verify analytical testing processes in pharmaceutical laboratories. For instance, in November 2023, Merck Group, a Germany-based pharmaceutical company, launched ChemisTwin, the first-ever digital reference materials platform for analytical testing. ChemisTwin automates analysis of sample purity, compound identification, and degradation using algorithm-based digital references with digital signatures for over 1,500 reference materials. This platform streamlines workflows in quality control, assurance, and research, reduces manual tasks, enhances sampling rates, and improves detection of inconsistencies, ensuring safer and more reliable drug products.

In April 2025, Eureka Analytical Services Pvt Ltd., an India-based testing, inspection, and auditing company, acquired Teena Biolabs Pvt Ltd., a contract testing laboratory specializing in pharmaceutical and biotech analytical services. The acquisition expands Eureka’s capabilities in pharmaceutical analysis across India, strengthens regulatory compliance offerings, and positions both companies as leading providers of laboratory testing solutions in the region.

Major players in the pharmaceutical analytical testing market are Thermo Fisher Scientific Inc., Merck KGaA, IQVIA Holdings Inc., Laboratory Corporation of America Holdings, Ajinomoto Co. Inc., ICON Public Limited Company, Eurofins Scientific SE, Pharmaceutical Product Development LLC, WuXi AppTec Co. Ltd., Syneos Health Inc., Steris plc, Catalent Inc., Charles River Laboratories International Inc., Intertek Group plc, AptarGroup Inc., West Pharmaceutical Services Inc., SGS Société Générale de Surveillance SA, Almac Group Limited, Pace Analytical Services LLC, Neotron S.p.A., Toxikon Corporation, Element Materials Technology Group Limited, and Boston Analytical Inc.

North America was the largest region in the pharmaceutical analytical testing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in pharmaceutical analytical testing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the pharmaceutical analytical testing 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.

Pharmaceutical analytical testing involves the detailed evaluation of pharmaceutical products using a range of scientific methods to assess their physical, chemical, biological, and microbiological properties, ensuring compliance with quality, safety, and efficacy standards. This testing is an essential part of the drug development and manufacturing process, confirming the identity, purity, potency, and stability of pharmaceutical products in line with regulatory requirements.

The primary types of services in pharmaceutical analytical testing include bioanalytical testing, method development and validation, stability testing, drug substance testing, microbial testing, physical characterization, and others. Bioanalytical testing measures drugs, metabolites, and biomarkers in biological samples such as blood or urine. It employs techniques including chromatography, spectroscopy, mass spectrometry, electrophoresis, and microscopy for applications such as quality control, research and development, regulatory compliance, drug approval and registration, and post-marketing surveillance. Key end users include pharmaceutical companies, contract research organizations (CROs), academic institutions, regulatory authorities, and testing laboratories.

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

The pharmaceutical analytical testing market includes revenues earned by entities by providing services, such as method development and validation, stability testing, quality control testing, raw material testing, impurity profiling, and elemental analysis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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