Passing grade: Revenue will grow as increasing regulatory standards cause companies to seek testing

The Laboratory Testing Services industry comprises companies that help businesses and manufacturers perform tests on items ranging from consumer and food products to industrial materials. In an increasingly regulated society, pressure on operators to ensure the safety and quality of their products is higher than ever. A greater number of government safety regulations and consumer lawsuits have led to rigorous testing of manufacturers' goods prior to sale. The industry has grown over the past five years, driven by renewed consumer spending and corporate investment in the development of new products. As companies accommodate stricter environmental regulations and invest in new products over the next five years, demand for laboratory testing services is expected to grow. A...read more.

Industry Statistics & Market Size
Revenue
$19bn
Annual Growth 12-17
2.2%
Forecast Growth 17-22
Profit
Employment
145,639
Businesses
10,900
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • As more consumer products are produced, demand for industry services has grown
  • Increased regulation for manufacturers generated demand for the industry
  • Rapid wage growth indicates that demand for skilled workers will intensify
  • Industry Report - Industry Key Buyers Chapter

    The Laboratory Testing Services industry exhibits a low level of market share concentration, with the top five players accounting for 20.5% of industry revenue in 2017. Even though there are some large laboratories that dominate the industry, smaller operators that specialize in a specific industry or particular service represent the vast majority of testing laboratories in the United States. IBISWorld estimates that 34.1% of all establishments in 2017 employ less than five people and 53.6% employ less than 10.Over the past five years, the industry has experienced an increase in market share concentration due to consolidation trends among industry operators. As ...purchase to read more.

    Additional Insights for the Laboratory Testing Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Laboratory Testing Services Industry are

  • Access to highly skilled workforce
  • Proximity to key markets
  • Recommendation/accreditation from authoritative source
  • IBISWorld analysts also discuss how external factors such as Research and development expenditure and Consumer spending in the Laboratory Testing Services industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What is the Laboratory Testing Services Industry?

    Companies in this industry perform physical, chemical and other analytical testing for commercial purposes. Such testing may occur in a laboratory or an on-site facility (i.e. where the product is manufactured or developed). Most results from industry-led tests are checked against government regulations and environmental, industrial and product standards. This industry excludes medical and veterinary testing labs.

    Industry Products
  • Agriculture and food testing
  • Environmental testing
  • Product performance and safety testing
  • Product certification
  • Biological and chemical testing
  • Other testing
  • Industry Activities
  • Acoustics and vibration testing
  • Biological testing
  • Electrical testing
  • Environmental testing
  • Providing forensic services
  • Geotechnical testing
  • Industrial testing
  • Mechanical testing
  • Product testing
  • Radiation testing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Research and development expenditure
  • Consumer spending
  • Corporate profit
  • Total trade value
  • Government consumption and investment
  • Total health expenditure

  • Current Performance
  • Regulatory overhaul generates demand
  • Shrinking profit margins
  • Industry landscape expands
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory overhaul generates demand
  • Environmental legislation
  • Industry landscape expands
  • Table: Laboratory Testing Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Laboratory Testing Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Water Supply & Irrigation Systems
  • Construction
  • Manufacturing
  • Baking Mix & Prepared Food Production
  • Generic Pharmaceutical Manufacturing
  • Engineering Services
  • Environmental Consulting

  • Key Selling Industries
  • Chemical Wholesaling
  • Glass Product Manufacturing
  • Inorganic Chemical Manufacturing
  • Laboratory Supply Wholesaling
  • Organic Chemical Manufacturing

  • Products & Services
  • Product performance and safety testing
  • Environmental testing
  • Product certification
  • Biological and chemical testing
  • Agriculture and food testing
  • Other testing
  • Chart: Laboratory Testing Services Industry Products and Services Segmentation

  • Demand Determinants
  • Government regulations
  • New technologies

  • Major Markets
  • Construction and Restoration Companies
  • Consumer and industrial product manufacturers
  • Other
  • Government
  • Household consumers
  • Chart: Major Market Segmentation for the Laboratory Testing Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and depreciationRent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Laboratory Testing Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Laboratory Testing Services Industry

  • Industry Globalization
    SGS SA Bureau Veritas Group
  • Table: SGS SA - financial performance
  • Table: Bureau Veritas Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Laboratory Testing Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Laboratory Testing Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Research and Development Expense (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Calibration
  • A test that establishes the relationship between the values of quantities indicated by a measuring instrument and the corresponding values realized.
  • Certification
  • Confirmation that a product has passed a certain test.
  • Geotechnical Engineering
  • A category of engineering that uses the principles of soil and rock mechanics to evaluate subsurface conditions for the safety and risks of earthwork or foundation construction.
  • Outsource
  • To procure goods or services under contract with an outside supplier.
  • Research And Development (R&D)
  • Creative work undertaken by a company in order to increase knowledge, which can then be applied to developing a new product or improving an existing one.
  • Why buy this report?

    IBISWorld’s industry research report on Laboratory Testing Services provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Laboratory Testing Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Laboratory Testing Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Laboratory Testing Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear