Central Lab Market (By Service: Genetic Services, Biomarker Services; By End-use: Pharmaceutical Companies, Biotechnology Companies) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global central lab market was estimated to be at USD 3.31 billion in 2023, which is expected to grow with a CAGR of 6.47% and reach USD 6.2 billion by 2033. 

Key Pointers

• North America dominated the market with the largest market share of 42% in 2023.
• Asia Pacific is expected to expand at the highest CAGR of 7.76% from 2024 to 2033.
• By Services, the biomarker services registered the maximum market share of 39% in 2023.
• By Services, the genetic services segment is anticipated to grow at the noteworthy CAGR of 7.68% between 2024 to 2033.
• By End-use, the pharmaceutical companies segment had the largest market share of 46% in 2023.
• By End-use, the biotechnology companies segment is anticipated to grow at the noteworthy CAGR of 7.12% from 2024 to 2033.

Central Lab Market Overview

In the healthcare, central laboratories play a pivotal role in facilitating diagnostic testing, clinical trials, and research endeavors. As the demand for advanced healthcare solutions continues to escalate, understanding the landscape of the central lab market becomes paramount.

Central Lab Market Growth Factors

The growth of the central lab market is propelled by various factors contributing to its expansion and evolution. One significant driver is the increasing prevalence of chronic diseases worldwide, necessitating robust diagnostic capabilities to facilitate early detection and effective management. Additionally, the rising adoption of personalized medicine is fueling demand for specialized laboratory services tailored to individual patient profiles. Moreover, the expanding pharmaceutical and biotechnology sectors, coupled with a surge in clinical research activities, are driving the need for comprehensive testing solutions to support drug development and regulatory compliance. Furthermore, advancements in laboratory automation, molecular diagnostics, and data analytics are enhancing efficiency and accuracy in testing processes, thereby driving market growth.

Central Lab Market Trends:

• Increased Outsourcing: Pharmaceutical and biotech companies are increasingly outsourcing their laboratory services to central labs. This trend is driven by the need for cost-efficiency, specialized expertise, and scalability in clinical trials.
• Global Expansion: Central lab services are expanding globally, with providers establishing operations in emerging markets such as Asia-Pacific and Latin America. This expansion aims to cater to the growing demand for clinical trials in these regions and capitalize on their cost advantages.
• Focus on Precision Medicine: The rise of precision medicine initiatives is driving demand for specialized central lab services tailored to genomic and molecular testing. Central labs are investing in capabilities for biomarker analysis, companion diagnostics, and personalized treatment monitoring.
• Regulatory Compliance: Stringent regulatory requirements continue to shape the central lab market landscape. Providers are investing in quality assurance systems, staff training, and infrastructure to ensure compliance with global regulations governing clinical trials.
• Integration of Real-World Data: Central labs are increasingly incorporating real-world data (RWD) into their service offerings. Integration of RWD from sources such as electronic health records and wearables enables more comprehensive and insightful analysis in clinical trials.
• Rising Demand for Infectious Disease Testing: The COVID-19 pandemic has underscored the importance of infectious disease testing in clinical research. Central labs are experiencing increased demand for testing services related to COVID-19 and other infectious diseases, driving investment in testing capacity and capabilities.

Services Insights

In 2023, biomarker services dominated the market with a significant share of 39%. Biomarkers offer a promising avenue for clinical development programs, enabling the exploration of new diagnostic pathways and understanding disease mechanisms to enhance therapeutic development. These studies play a crucial role in early disease detection, assessing the risk of side effects associated with investigational therapies, and tracking disease progression in clinical trial participants. Market players are increasingly expanding their biomarker service offerings to consolidate their market presence.

The genetic services segment is expected to witness the highest growth rate, with a projected CAGR of 7.68% over the forecast period. This growth is fueled by the growing importance of genetic analysis in clinical research. Understanding genetic factors underlying various diseases, including cancer and hereditary conditions, is crucial for developing targeted therapies. Additionally, genetic variations affecting drug metabolism pathways can influence individual responses to treatment. The rise in research endeavors focusing on genetic testing is expected to drive the demand for central lab genetic services in the coming years. For instance, in December 2022, the Cystic Fibrosis Foundation Therapeutics Lab announced initiatives to support the development of genetic-based therapies for individuals affected by cystic fibrosis.

End-use Insights

In 2023, the pharmaceutical companies' end-use segment commanded the largest market share, accounting for 46% of the market. Pharmaceutical companies heavily rely on central laboratory service providers to assess the efficacy of their new drug products. These service providers offer a wide range of tests including biochemistry, hematology, histopathology, immunology, endocrinology, microbiology, real-time PCR, and clinical pathology for the evaluation of investigational drugs. Leading central lab service providers such as Covance, Celerion, Altasciences, NorthEast BioAnalytical Laboratories LLC, and Shanghai Medicilon offer comprehensive preclinical and clinical trial services to pharmaceutical companies to facilitate the completion of clinical trials.

The biotechnology companies segment is poised to exhibit the fastest growth rate in the market, with a projected CAGR of 7.12% over the forecast period. The market is anticipated to be driven by an increase in activities related to the development of biological therapies in the coming years. By 2025, the U.S. FDA is expected to approve 10 to 20 cell and gene therapy products annually. In response to the growing demand for these therapies, the market for cell and gene therapy-related services, encompassing contract development and manufacturing, analytical testing, and regulatory consulting, is experiencing rapid expansion. Moreover, Pace Analytical has bolstered its capabilities to support gene therapy projects by investing in advanced analytical equipment, including capillary electrophoresis, Ultrapressure Liquid Chromatography (UPLC), large-molecule time-of-flight mass spectroscopy, and microplate readers.

Regional Insights

In 2023, North America emerged as the dominant market leader, commanding a share of 42%. The region's market growth is driven by the widespread adoption of molecular testing, known for its high accuracy, sensitivity, and specificity. Additionally, the high prevalence of infections such as Sexually Transmitted Infections (STIs) and tuberculosis in North America is expected to fuel demand for clinical research aimed at developing diagnostic devices and therapeutics. For instance, according to the CDC, as of March 2022, the U.S. anticipates over 20 million new cases of STIs annually, incurring an estimated annual cost of USD 10–USD 17 billion. This prevalence is projected to further increase. Furthermore, major players in the industry are actively expanding their presence in clinical development. For example, in July 2022, LabCorp announced the establishment of a spin-off company dedicated to enhancing Contract Research Organization (CRO) capabilities, underscoring the region's growth potential.

Asia Pacific is forecasted to experience the fastest market growth, with a projected CAGR of 7.76% over the forecast period, primarily due to the rising adoption of central lab services across the region. China and India are emerging as promising business hubs for clinical testing and service providers. Moreover, factors such as urbanization, increasing disposable income, growing awareness about disease prevention, and improvements in education are expected to drive market expansion in the region. Notably, countries like Australia, China, Korea, and Taiwan already have established healthcare reimbursement systems that cover diagnostic tests. Additionally, increased government support is creating opportunities for drug development companies. For instance, in September 2019, the Ministry of Food and Drug Safety in South Korea announced a 5-year plan aimed at advancing clinical trials management by 2023, further enhancing the region's prospects for clinical research and development.

Central Lab Market Key Companies

• ACM Global Laboratories
• Labconnect
• Cerba Research
• Eurofins Scientific
• Medicover Integrated Clinical Services (MICS) (Synevo Central Labs)
• Versiti (Cenetron)
• A.P. Møller Holding A/S (Unilabs)
• Ampersand Capital Partners (Pacific Biomarkers)
• Lambda Therapeutics Research Ltd
• Cirion Biopharma Research Inc.

Central Lab Market Segmentations:

By Services

• Genetic Services
• Biomarker Services
• Microbiology Services
• Anatomic Pathology/Histology
• Specimen Management & Storage
• Special Chemistry Services
• Others

By End-use

• Pharmaceutical Companies
• Biotechnology Companies
• Academic & Research Institutes

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)