PUBLISHER: Grand View Research | PRODUCT CODE: 1571732
PUBLISHER: Grand View Research | PRODUCT CODE: 1571732
The global employer and workplace drug testing market size is anticipated to reach USD 7.96 billion by 2030 and is projected to grow at a CAGR of 4.5% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market is driven by the increasing focus on maintaining a drug-free workplace to enhance productivity and reduce workplace accidents further propels demand for drug testing services.
The rising prevalence of substance abuse and its associated risks, including impaired performance and increased absenteeism, drives employers to implement comprehensive drug testing programs. Technological advancements in testing methods, such as rapid and accurate detection technologies, contribute to market growth by improving the efficiency and reliability of drug testing processes. Rising government initiative and funding programs is further driving market growth. For instance, in December 2022, the U.S. government enacted the Consolidated Appropriations Act 2023 (Public Law 117-328) (CAA 23). This legislation allocated funds to the Substance Abuse and Mental Health Services Administration (SAMHSA) for the fiscal year 2023 and included various provisions that reinforced, reauthorized, and expanded SAMHSA's programs for substance use disorders and mental health.
Many governments around the world are launching campaigns, providing funding, and establishing programs to promote awareness and prevention of substance abuse in the workplace. These initiatives often include guidelines and frameworks that encourage or mandate drug testing among employees, particularly in industries deemed high-risk. As a result, employers are increasingly adopting drug testing practices to align with government policies and benefit from incentives or funding provided for compliance with these programs.
The demand for employer and workplace drug testing products is further anticipated to increase due to the rigorous enforcement of regulations by various government agencies that mandate drug and alcohol testing for safety purposes. According to the Federal Drug-Free Workplace Program's guidelines, the SAMHSA Center for Substance Abuse Prevention oversees HHS-certified laboratories. These drug-testing programs are required for employees in sensitive roles, such as those in national security, law enforcement, and public health and safety. Both government and non-governmental organizations are implementing strategic initiatives, including new product launches, partnerships, and mergers and acquisitions, to address drug use, which contributes to the growth of the market.
Some of the key players in the market are. First Advantage; Laboratory Corporation of America Holdings (Labcorp); Dragerwerk AG & Co. KGaA; Bio-Rad Laboratories, Inc.; Abbott; Clinical Reference Laboratory Inc.; Quest Diagnostics; Cordant Health Solutions; DISA Global Solutions; HireRight, LLC; OraSure Technologies, Inc.; Omega Laboratories; Psychemedics Corporation and other are adopting key strategic initiatives such as product launches acquisition and launching patent focused resources to cater patients globally. For instance, in May 2024, eMed collaborated with i3screen to introduce a new virtual drug screening program for employers. This innovative service allows companies to conduct drug tests remotely, making the process more convenient and efficient. With this partnership, employers can now offer virtual drug screenings that are easy to administer and provide quick results, helping to streamline their hiring and compliance procedures.