Global Drug Screening Laboratory Services Market to Grow at a CAGR of 9.17% During 2023–2031

Introduction

Drug screening is a quick and painless technical analysis that checks biological samples like blood, hair, and urine for the presence of illegal, prescribed drugs or their metabolites. Drug screening tools have improved as a result of the creation of new technologies that offer users precise and accurate results. To maintain a drug-free, healthy, and sober workforce that supports high productivity and a suitable work environment, employers use drug testing. Increases in workplace drug use, excessive prescription drug use, and alcohol consumption among young people and the elderly are the main factors driving the market growth for drug screening laboratory services.

Market Dynamics

Increasing Awareness about Drug Abuse Drives the Market

Today, drug testing is a common practice in the military, the workplace, schools, retail, and public places. By granting regulation authority and a drug-free, healthy environment, drug abuse detection technology has benefited individuals and society as a whole. Many workplaces and schools now mandate drug testing because it is widely known that using drugs and alcohol has negative effects. Universities, schools, and social service agencies conduct training seminars and awareness campaigns on the negative effects of drugs. Businesses and workplaces provide employee assistance programs (EAPs) to help workers resolve personal and professional issues that might hinder their performance at work. The market is growing as a result of various government initiatives, including those to combat illegal drug trafficking and develop drug testing device research and development.

Development of New Drug Screenings gives an Opportunity for Exponential Growth

One of the modern technologies that have entered the market for drug testing and can provide accurate results is fuel cell technology. Due to its success in figuring out alcohol concentration, which promotes market growth, it has become more and more well-liked among businesses and regulatory bodies. Additionally, the market has expanded due to technological advancements in drug testing products and an increase in employer awareness of the importance of employee drug testing. These tests have the benefit of being easy to use and delivering fast, precise results. A small urine sample can be analyzed by rapid testing tools, which can simultaneously detect the presence of multiple drugs. Such technologies can grow the drug screening market if made accessible at a reasonable price.

Regional Analysis

North America region is the highest contributor to the market and is expected to grow at a CAGR of 11.1% during the forecast period. This is explained by the region's sharp increase in drug abuse. Additionally, the market for drug testing services in North America is well-established. Due to a rise in drug abuse across the nation, the federal government of the United States has increased funding for drug testing. The market for North American drug screening laboratory services is constantly growing as a result of rising employee drug and alcohol use, which forces businesses to administer regular drug tests and is a significant market growth driver. Marijuana, prescription stimulants, and methamphetamines were the most commonly abused drugs in 2021, according to the National Center for Drug Abuse Statistics (NCDAS), with nearly 32 million people (11.7% of the population) abusing drugs. In countries like the U.S. and Canada, some businesses hold drug abuse information sessions to further increase employee awareness of drug side effects. To increase public awareness, governments have started a number of initiatives.

Europe is expected to witness dynamic growth in the drug screening laboratory services market, with a CAGR of 10.8% during the forecast period. The European Monitoring Centre for Drugs and Drug Addiction predicts that in 2021, roughly 30 million Europeans aged 15 to 64 will report using the drug (EMCDDA). Germany has joined the anti-drug initiative started by the U.K. due to its size and economic clout. Other European countries have also raised money and passed strict legislation to make drug use illegal there. The Spanish National Drug Strategy serves as the foundation for the prevention of painkiller abuse, which aims to lessen the consequences of drug abuse. The program is managed by the National Drug Plan, a branch of the Public Health Ministry.

Asia-Pacific is expected to witness a significant CAGR of 10.15% in the drug screening laboratory services market during the forecast period. The market expansion in this region can be attributed to both the rising use of alcohol and other illegal drugs in the region as well as the increased demand for drug testing services. Asia-Pacific is one of the most densely populated regions and has experienced rapid urbanization and economic change over the years. As a result, alcohol and illegal drugs are being used more frequently in many Asia-Pacific countries, including China and India. The Asia-Pacific region has long been threatened by the use of illegal drugs. It presents lucrative opportunities for market participants involved in drug abuse testing because of its sizable population, rising use of illicit drugs, growing awareness of drug abuse testing, and growing awareness of drug abuse testing. To combat the rising trend of drug abuse, governments in several Asian countries, including India, China, and Japan, have put in place strict regulations.

The LAMEA region is expected to witness a moderate CAGR of 6.9% in the global drug screening laboratory services market during the forecast period. In this region, the economies of the various nations range from developed to developing to underdeveloped. This presents an untapped market for drug abuse testing companies because some of the most modern technologies are not accessible in these countries. LAMEA is a developing market that is expected to provide lucrative growth opportunities for key players due to the growth of the target population, the surge in demand for products used for drug screening, and the advancement of the healthcare system. Unquestionably, the political and economic environments in Latin American countries have improved in recent years. The affected countries' economies have changed as a result, but generally speaking, the social and human development of those same countries has not been as significantly affected.

Key Highlights

• The global drug screening laboratory services market was valued at USD 4.39 billion in 2022. It is projected to reach USD 9.68 billion by 2031, growing at a CAGR of 9.17% during the forecast period (2023-2031).
• Based on service type, the global drug screening laboratory services market is bifurcated into workplace drug testing and clinical toxicology testing. The workplace drug testing segment is the highest contributor to the market and is expected to grow at a CAGR of 11.23% during the forecast period.
• Based on the sample type, the global drug screening laboratory services market is bifurcated into the urine, oral fluid, hair, and others. The urine segment is the highest contributor to the market and is expected to grow at a CAGR of 10.45% during the forecast period.
• Based on end users, the global drug screening laboratory services market is bifurcated into oil & gas, transportation, staffing, government, hospital laboratories, clinical laboratories, and retail. The retail segment is the highest contributor to the market and is expected to grow at a CAGR of 13.07% during the forecast period.
• North America region is the highest contributor to the market and is expected to grow at a CAGR of 11.1% during the forecast period.

Competitive Players

Competitive Analysis:

The global drug screening laboratory services market's major key players are Abbott Laboratories (Alere Inc.), Quest Diagnostics Incorporated., Sterling Healthcare Opco, Llc/Cordant Health Solutions, Clinical Reference Laboratory, Inc, Laboratory Corporation of America Holdings, Millennium Health, Mayo Foundation For Medical Education and Research, Acm Global Laboratories, Inc, Omega Laboratories, Psychemedics, and Precision Diagnostics.

Recent Developments

Market News:

• In January 2022, Abbott Laboratories launched a new Biowearables category to track glucose, ketones, and alcohol in the body for a better understanding of health and wellness.
• In October 2022, Omega Laboratories acquired Acumium, which is a leading technology and software development organization. This partnership will form Omega Technology Solutions

Segmentation

Global Drug Screening Laboratory Services Market: Segmentation

By Service Type

• Workplace Drug Testing
• Clinical Toxicology Testing

By Sample Type

• Urine
• Oral Fluid
• Hair

By End User

• Oil & Gas
• Transportation
• Staffing
• Government
• Hospital Laboratories
•  Clinical Laboratories
• Retail

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA