Global Efficacy Testing Market to Reach $796.7 Million by 2026
Efficacy test evaluates the effectiveness of the product through a series of tests, including safety test, toxicology test, and stability test, in order to get better quantitative values in addition to proof of efficacy and safety, after which the product becomes suitable for commercialization. Growth in the global market is being driven by regulations for the safety and efficacy of pharmaceutical products. Increasing support from governments across the world for pharmaceutical and biotechnology industries, coupled with increasing investments for research and development activities in these sectors contributes to market growth. Moreover, the growing application of antimicrobial efficacy testing for different types of medical devices, in cosmetic and pharmaceutical industries, and R&D investments in the life sciences space are anticipated to boost the market.
Amid the COVID-19 crisis, the global market for Efficacy Testing estimated at US$425.4 Million in the year 2020, is projected to reach a revised size of US$796.7 Million by 2026, growing at a CAGR of 10.7% over the analysis period. Consumables, one of the segments analyzed in the report, is projected to record a 11.4% CAGR and reach US$503.4 Million by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Instruments segment is readjusted to a revised 9.6% CAGR for the next 7-year period. Market growth is dominated by the consumables segment, which is attributed to continual demand for bulk procurement and regular purchases of consumables.
The U.S. Market is Estimated at $149.1 Million in 2021, While China is Forecast to Reach $107.7 Million by 2026
The Efficacy Testing market in the U.S. is estimated at US$149.1 Million in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of US$107.7 Million by the year 2026 trailing a CAGR of 12.3% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 8% and 9.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 10.4% CAGR. The US dominates market growth due to heavy investments into research and development by several pharmaceutical vendors. Demand for efficacy testing in the US is further driven by stringent regulations for drug development, and increasing government funding for research activities in the area of life sciences. Growth in the Asia-Pacific region is attributed to the rising demand for pharmaceuticals in the region. Factors such as the rising geriatric population, growing incidence of chronic diseases, increasing consumer health awareness, and increased government expenditure on the region`s healthcare infrastructure as well as quality control safety testing outsourcing in the Asian countries.
Services Segment to Reach $112 Million by 2026
In the global Services segment, USA, Canada, Japan, China and Europe will drive the 9.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$50.9 Million in the year 2020 will reach a projected size of US$98.1 Million by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$9.5 Million by the year 2026, while Latin America will expand at a 11.2% CAGR through the analysis period.
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