The Drug Screening Laboratory Services Market Anticipated to Generate a Revenue of $10,951.4 Million, Growing at a CAGR of 12.8% from 2021 to 2028Download Sample Reports Overview
The drug screening laboratory services market is estimated to be valued at $10,951.4 million by 2028, surging from $4,586.4 million in 2020 at a noteworthy CAGR of 12.8%.
Impact Analysis of COVID-19 on the Drug Screening Laboratory Services Market
The COVID-19 pandemic had a negative impact on the drug screening laboratory services market owing to the decreased demand for drug screening tests among the employers for their employees due to work-from home condition. Further, many drug testing laboratories have been converted into COVID-19 centers due to which the market growth is hampered. Apart from this, travel and transportation restrictions have been imposed across the world because of which the supply of analyzers, reagents and other drug testing equipments is at a shortage. This factor has lowered the market revenue. Moreover, due to high unemployment rate during the pandemic, drug testing laboratory technicians are unavailable due to which the market growth is adversely impacted.
However, during the COVID- 19 pandemic condition, an increase in the depression and anxiety rates will surge the drug screening laboratory services market as more people are expected to start consuming alcohol and drugs to calm themselves and soon they may become addicted. Because of this condition, the demand for the tests will surely increase. And also, as the lockdown will be removed, the supply of drugs will again gain momentum which will also accelerate the market growth.
Drug Screening Laboratory Services Market Analysis
Increased consumption of drugs among the people owing to various conditions such as prevalence of anxiety, depression and inferiority complex is expected to drive the market of drugs screening laboratory services in the predicted timeframe. Many people consume drugs and alcohol under the influence of their outer environment and friend circle and soon they become addicted. Therefore, the drug screening laboratory services plays a crucial role in conducting tests to measure the amount of drugs and alcohol in the person’s body. The employers of big organizations regularly conducts drug screening tests for their employees to monitor their health status in order to maintain a positive and productive working environment. This factor is likely to surge the growth of the market in the forecast time frame.
However, inclination of people towards a healthy lifestyle and increased awareness about the adverse effects of drugs and alcohol consumption is predicted to restrain the market growth of drug screening laboratory services in the forecast timeframe. Many people have stopped consuming alcohol and drugs in order to maintain their health.
Innovation and advancements in the testing methods used for drug testing and screening is expected to provide a boost to the growth of the market in the near future. Currently, urine, blood and hair sample is collected to test if the person has consumed drugs or is a drug addict. This method is very tiresome and the results take time to come. Therefore, new technique is developed by the companies to make the drug testing process simpler. For instance, according to an article published in ‘American Addiction Centers’ in February 2021, a new technology ‘paper spray mass spectrometry’ is developed which analyzes the molecules present in a fingerprint. As the person’s body metabolizes drugs, it excretes molecules which can easily be detected in the fingerprints by using paper spray mass spectrometry. This innovation is anticipated to impede the market growth in the coming years.
Drug Screening Laboratory Services Market, Segmentation
The drug screening laboratory services market is segmented based on type, sample type, end user, and region.
The type segment is further classified into workplace drug testing and clinical toxicology testing. Among these, the workplace drug testing sub-segment is anticipated to have thefastest growth and surpass $8,635.50 million by 2028, with an increase from $3,571.00 million in 2020. This growth is due to the high consumption of drugs by the employees.
The sample type segment is further divided into urine, oral fluid, hair and others. The urine sub-segment is anticipated to have a dominating market share in the global market and register a revenue of $8,937.40 million during the analysis timeframe.
The end-user segment is further categorized into retail, oil & gas, transportation, staffing, government and other workplace. The government sub-segment is predicted to have rapid growth and generate a revenue of $2,807.50 million by 2028.
The drug screening laboratory Servicesmarketfor the North American region is projected to witness rapid growth. This market generated a revenue of $1,839.10 million in 2020 and is further projected to reach up to $4,599.60 million by 2028.
Key Players in the Drug Screening Laboratory Services Market
The companies involved in the drug screening laboratory services market are,
- Abbott Laboratories
- Quest Diagnostics
- Clinical Reference Laboratory, Inc
- Laboratory Corporation of America Holdings
- Cordant Health Solutions
- Acm Global Laboratories
- Omega Laboratories, Inc.
- Millennium Health
- Precision Diagnostics
Porter’s Five Forces Analysis for the Drug Screening Laboratory Services Market
- Bargaining Power of Suppliers: The suppliers demand high value for their products.
Hence, the bargaining power of suppliers is high.
- Bargaining Power of Buyers: Buyers in the market have to compromise on the cost of the products as the suppliers will demand high cost for a good product.
Hence, the bargaining power of buyers is low.
- Threat of New Entrants: It is difficult for the startup companies to compete with the well established companies in the market as these companies has strong contacts and brand loyal customers.
As a result, the threat of the new entrants is moderate.
- Threat of Substitutes: Brand loyalty among consumers does not allow them to switch to different brand easily.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: The manufacturing companies are launching their products with latest and advanced technology, thus lengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.