Albany, NY -- (SBWire) -- 08/22/2016 --The global drugs of abuse testing market is highly fragmented with only a few multinational companies operating in it. Some of the key players are Roche Diagnostics, Quest Diagnostics, Alere, Abbott Laboratories, and LabCorp. The intensity of competition is medium and the moderate growth rate of the market coupled with medium capital investment reduce the entry barrier for new entrants, says Transparency Market Research (TMR) in a new report.
"Since 2011, about 55% of industry developments were focused on mergers and acquisitions and nearly 41% on new product launches. These trends are likely to make the market more consolidated in the near future," states the author of the report. Large companies are acquiring other small companies in order to increase their market share across all regions.
Growing Drug Trafficking to Bolster Demand for Drugs of Abuse Testing
The growing number of illicit drug users and emergence of new psychoactive substances has disturbed the socio-economic balance at social and organizational levels. At organizational levels, negative effects of employee drug abuse include financial losses, reduced productivity, increased accidents, and absenteeism. For instance, according to the 2015 annual report of the Australian Drug Foundation, 1 in 7 Australians consumed an illicit drug in 2013. This has compelled governments of many countries to set stringent rules and regulations to curb adverse effects of drug abuse and promote the growth of testing procedures for drugs of abuse, such as in Japan, Australia, New Zealand, the U.K., and the US. As a result of the rising consumption of the illicit drugs and their harmful effects, the demand for drugs of abuse testing is anticipated to grow.
Since 2009, the production and trafficking of illicit drugs has been going up every year. The number of road accidents and fatalities resulting from drug abuse have reported an increase as well. These factors will potentially boost the uptake of abuse of drugs testing by many folds.
Sales of Drugs of Abuse Testing Kits to Decrease due to Privacy Issues
The threat to individual privacy is a primary social concern associated with illicit drugs testing. Globally, many organizations are offering greater privacy protection to individuals by not resorting to drug testing. Moreover, the overall cost of the drug of abuse testing can reach more than US$200 per person, making it a costly affair for organizations. This is likely to cut down the uptake of drug testing, thereby impeding the growth of the global drug of abuse testing market.
Many countries have legalized the use of drugs as a remedy to increasing drug abuse and will raise tax revenues generated by the sale of newly-legalized products. Such moves will run counter to the growth of the global drug of abuse testing market.
North America Leads with Substantial Margin Owing to Growing Cases of Drug Abuse
The global drug of abuse testing market was valued at US$2.99 bn in 2015 and is anticipated to reach US$3.44 bn by 2018 at a CAGR of 4.8% between 2013 and 2018. The leading as well as the fastest growing regional market by revenue in the global drug of abuse testing market was North America in 2015 and is anticipated to remain so by the end of 2018. In 2015, the valuation of the North America market is US$2.27 bn and is expected to rise to US$2.66 bn by 2018. The substantial growth of this region can be attributed to growing cases of drug abuse.
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By sample type, the global drug of abuse testing market is segmented into hair, saliva, urine, and others. Urine sample testing is the preferred choice for drugs of abuse testing due to its high reliability, low cost, and easy availability of test kits. The segment is anticipated to retain its leadership in terms of revenue by the end of 2018. Based on test location, the ability to provide quick results on the spot has made on-site drug testing the leading and the fastest growing segment in terms of revenue. The on-site drug testing segment is estimated to lead till 2018.
The information presented in this review is based on a Transparency Market Research report, titled, 'Drugs of Abuse Testing Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2018.'
The global abuse of drug testing market is segmented as follows:
Segmentation based on technology
Immunoassay
Chromatography
Segmentation based on location
On-site screening test
Laboratory drug test
Segmentation based on sample
Urine
Hair
Saliva
Others
Segmentation based on geography
Europe
North America
Asia-Pacific
Rest of the World
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Growing Disturbance in Socioeconomic Balance Owing to Increased Consumption of Drugs to Boost Demand for Drugs of Abuse Testing
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