GMP Testing Service Market Expected to Reach $2.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “GMP Testing Service Market," The gmp testing service market size was valued at $1.3 billion in 2021, and is estimated to reach $2.5 billion by 2031, growing at a CAGR of 6.7% from 2022 to 2031.

Good manufacturing practice (GMP) is a system for ensuring that products are consistently produced and controlled according to quality standards. It is designed to minimize the risks involved in any pharmaceutical production that cannot be eliminated through testing the final product. GMP constitutes the license to operate in pharmaceutical manufacturing and is a core condition worldwide. However, rules and interpretations differ from country to country and change frequently. GMP guidelines are not prescriptive instructions on how to manufacture product. There are series of general principles that must be applied during manufacturing.

Increase in the import and sale of medicines by large number of key players that have been manufactured to internationally recognized GMP standards, propel the growth of the GMP testing service market. In addition, the biopharmaceutical sector has opened new approaches and collaborations in the industry to respond to the urgent needs of the pandemic. For instance, 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 from diabetes. Thus, there is an increase in the number of drug manufacturing plants across both developed and emerging countries owing to rise in incidences of deaths, and increase in number of chronic diseases. Hence, these factors are expected to drive the growth of the GMP testing service market.

According to the International Journal of Environmental Research and Public Health published study, in the U.S. and South Korea around 40 medications are recalled per year. This enhances the need for testing the medicines and the manufacturing process, which is further expected to drive GMP testing service market growth. In addition, according to U.S Food and Drug Administration in 2019, there were approximately 4,676 manufacturing sites for drugs and many others are in standby. These factors surge the demand for developing new drugs and pharmaceuticals which is propel the growth of the GMP testing service market. However, high cost of GMP testing service equipment and shortage of skilled professionals to operate GMP testing service instruments are some key challenges that hinder the growth of the market. On the contrary increase in number of pharmaceutical drugs and medical devices manufacturing plants surges the demand for GMP testing service and creates an opportunity for the manufacturers to tap and capitalize in the market.

Outbreak of COVID-19 has positively impacted on GMP testing service market. The 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. The market witnessed better growth in 2021 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 1.0% in February 2020. Thus, rise in production of new drugs in pharmaceutical industry propel the growth of the market.

The GMP testing industry is segmented on the basis of service type, end user, and region. By service type, the market is segmented into product validation testing, bioanalytical service, packaging and shelf life testing, and others.

By service type, the product validation testing segment dominated the global market in 2021 and is anticipated to remain dominant during the forecast period. This is attributed to, rise in demand for quality and safe management of service. In addition, the bioanalytical service segment is expected to hold higher market share during the forecast period owing to rise in focus on development of bioanalytical testing service.  .

By end user, the pharmaceutical and biopharmaceutical companies acquired the largest share in 2021, and is expected to remain dominant throughout the forecast period. This is attributed to the increase in innovation and new service development boost the market growth.  

By region, North America accounted for the largest GMP testing service market share in 2021, and is expected to remain dominant throughout the forecast period. This was attributed to the presence of giant biopharmaceutical and pharmaceutical firms in the countries such as the U.S. In addition, increase in frequency of major pharmaceutical companies and their R&D activities drive the demand for GMP testing in the region during the forecast period.

KEY FINDINGS OF THE STUDY

• This report provides a detailed quantitative analysis of the current GMP testing service market trends and forecast estimations from 2022 to 2031, which assists to identify the prevailing market opportunities.
• On the basis of service type, the product validation testing segment was the highest contributor to the market in 2021.
• On the basis of end user, the pharmaceutical and biopharmaceutical companies segment was the highest contributor to the market in 2021.
• On the basis of region, North America garnered the largest revenue share in 2021, whereas Asia-Pacific is anticipated to grow at the highest 9.0% CAGR during the forecast period.