The Biotechnology & Pharmaceutical Services Outsourcing Market size was USD 68.55 billion in 2022. Covid-19's the pandemic has disrupted ongoing clinical trials due to various factors such as restrictions on patient enrolment, site closures, and prioritization of healthcare resources for COVID-19. Many trials have experienced delays, suspensions, or even terminations as a result. Between 2023 and 2031, the market is projected to grow at a CAGR of 5%, from USD 72.28 billion in 2023 to USD 110.50 billion in 2031. The sudden rise in CAGR is attributed to this market growth returning to the pre-pandemic level once the pandemic is over.
Market Scope and Definition:
Biotechnology and pharmaceutical services outsourcing involve the transfer of specific business processes or tasks to third-party organizations, rather than handling them internally within the company. Outsourcing has become prevalent in the pharmaceutical industry, where companies outsource various stages of the value chain to external service providers.
The scope of the biotechnology and pharmaceutical services outsourcing market encompasses a wide range of services and activities within the biotech and pharmaceutical sectors that are outsourced to third-party service providers. This includes services related to preclinical research, clinical trials, bioanalytical testing, pharmacovigilance, and regulatory affairs. Several key players in the market are adopting strategies such as mergers, acquisition, partnerships, and collaboration for the expansion their product portfolio. For instance,
- In April 2021, Paraxel International corporation announced a strategic partnership with Veera the partnership aims to increase clinicals traials by leveraging process innovation and technology.
Increasing Outsourcing of R&D Activities Drives the Biotechnology & Pharmaceutical Services Outsourcing Market Growth
Outsourcing R&D activities allows companies to tap into specialized expertise and knowledge that may not be available in-house. Third-party service providers often have dedicated teams of scientists, researchers, and technicians with extensive experience and expertise in specific areas of biotechnology and pharmaceutical R&D.
R&D is a resource-intensive process that requires significant investments in facilities, equipment, and skilled personnel. Outsourcing R&D activities can help companies reduce costs by avoiding capital expenditures and ongoing operational expenses associated with maintaining in-house R&D capabilities.
Growing Drug Development Costs Coupled with High Clinical Development Failure Rates is One of the Key Drivers of the Biotechnology & Pharmaceutical Services Outsourcing Market
Drug development is a complex and expensive process that involves various stages, including preclinical research, clinical trials, and regulatory compliance. Outsourcing specific activities to third-party service providers can help reduce costs by leveraging their expertise, infrastructure, and economies of scale. It allows companies to allocate resources more efficiently and focus on core competencies, thereby mitigating the financial burden associated with in-house development.
The pharmaceutical industry faces high clinical development failure rates, with many drug candidates not reaching regulatory approval due to safety concerns or lack of efficacy. Outsourcing certain aspects of drug development, such as preclinical research or clinical trial management, to specialized service providers can help mitigate risks. These providers often have extensive experience, established protocols, and access to diverse patient populations.
Increasing Demand for Specialized Services is a Significant Trend in the Biotechnology & Pharmaceutical Services Outsourcing Market
The field of biotechnology is rapidly evolving, with advancements in areas such as genomics, proteomics, and personalized medicine. Biotech and pharmaceutical companies require specialized services to leverage these technologies effectively. Outsourcing providers that offer expertise in these areas can provide valuable support in genomic sequencing, biomarker identification, molecular diagnostics, and other specialized services.
The development of pharmaceutical products has become increasingly complex, requiring a range of specialized services. These services may include formulation development, drug delivery systems, pharmacokinetic studies, bioanalytical testing, and advanced analytics for data interpretation.
Market Restraining Factors:
Monitoring Issues and Lack of Standardization is a Restraining Factor in the Biotechnology & Pharmaceutical Services Outsourcing Market
Effective monitoring is essential in outsourcing relationships to ensure quality, compliance, and timely delivery of services. However, monitoring can be challenging due to factors such as geographical distance, language barriers, cultural differences, and differing regulatory requirements. Ensuring proper communication, establishing clear expectations, and implementing robust monitoring mechanisms are crucial to address these challenges and maintain transparency and accountability in outsourcing partnerships.
The biotechnology and pharmaceutical services outsourcing market encompasses a wide range of services, each with its own unique requirements and standards. The lack of standardization in processes, documentation, and quality management systems across different outsourcing providers can pose challenges in ensuring consistency and harmonization of operations. It becomes essential for companies to define clear standards, guidelines, and quality assurance measures to ensure that outsourcing partners adhere to industry best practices and regulatory requirements.
Biotechnology & Pharmaceutical Services Outsourcing Market Players Analysis:
- Parexel International Corporation
- The Quantic Group
- Lachman Consultant Services, Inc.
- GMP Pharmaceuticals Pty Ltd.
- Concept Heidelberg GmbH
- Covance Inc.
- Charles River Laboratories
- PRA Health Sciences
- ICON plc
Biotechnology & Pharmaceutical Services Outsourcing Market Players & Competitor Analysis:
The report covers the key players of the industry including Company Profile, Product Specifications, Production Capacity/Sales, Revenue, Price and Gross Margin 2023-2031 & Sales with a thorough analysis of the market’s competitive landscape and detailed information on vendors and comprehensive details of factors that will challenge the growth of major market vendors.
Biotechnology & Pharmaceutical Services Outsourcing Market Segmentation Analysis:
The market scope is segmented on the basis of by service type, by end user, and by region.
By Service Type
Based on the service type the market is segmented into Consulting, Regulatory compliance, Remediation, Quality management systems consulting, Others, Auditing and assessment, Regulatory affairs, Clinical trial applications & product registration, Regulatory writing & publishing, Legal representation, Others, Product maintenance, Product design & development, Product testing & validation, Training & education, Others.
Consulting Services: The consulting services segment dominated the market and accounted for the largest revenue share of 19.5% in 2021. The presence of consulting service providers such as Signa Medical Writing, bioSyntagma, and Fieve Clinical Research, Inc. indicates the growing demand for consulting support among new players in the industry. These consulting firms play a crucial role in assisting new entrants in meeting regulatory requirements, establishing industry best practices, and achieving compliance.
The biotech and pharmaceutical industry is characterized by frequent mergers and acquisitions (M&A) as companies seek to expand their portfolios, access new markets, and enhance their capabilities.
By End User
Based on the end user of the market is segmented into Pharmaceutical, Biotechnology, Research Organizations.
Pharmaceutical: The pharma segment dominated the market and accounted for the largest revenue share of 55.7% in 2021. The information you provided suggests that the consulting services segment in the biotechnology and pharmaceutical services outsourcing market is expected to experience a compound annual growth rate (CAGR) of 5.7% over the forecast period.
Research Organization: In the biotechnology and pharmaceutical services outsourcing market, Contract Research Organizations (CROs) play a crucial role in providing a wide range of research services to support drug discovery, development, and clinical trials. IQVIA is one of the world's largest CROs, offering a comprehensive range of services across the entire drug development process.
The report also helps in understanding Global Biotechnology & Pharmaceutical Services Outsourcing Market dynamics, structure by analyzing the market segments, and project the Global Biotechnology & Pharmaceutical Services Outsourcing Market size. Clear representation of competitive analysis of key players by type, price, financial position, product portfolio, growth strategies, and regional presence in the Global Biotechnology & Pharmaceutical Services Outsourcing Market make the report investor’s guide.
Key Industry Developments:
- In March 2023, LEO Pharma, a global leader in medical dermatology, announced the ICON plc announced a strategic partnership to enable LEO Pharma. This partnership aims to enable LEO Pharma to scale clinical trial execution in a cost-effective and patient-centric manner. By leveraging ICON's expertise and capabilities in clinical trial management, LEO Pharma aims to enhance the efficiency and effectiveness of their clinical trials.
- In April 2022, Charles River Laboratories International, Inc. acquired Explora BioLabs Holdings, Inc. This acquisition highlights the strategic growth and expansion of Charles River Laboratories in the contract vivarium research services market.
- In July 2021, –ICON plc announced the acquisition of PRA Health in order to create the world’s largest clinical research organization powered by healthcare intelligence.
The report will cover the qualitative and quantitative data on the global biotechnology & pharmaceutical services outsourcing market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.
Report Scope and Segmentations:
Estimated Forecast Year
CAGR of 5% from 2023 to 2031
By Service Type, By End User, By Region
By Service Type
- Regulatory compliance
- Quality management systems consulting
- Auditing and assessment
- Regulatory affairs
- Clinical trial applications & product registration
- Regulatory writing & publishing
- Legal representation
- Product maintenance
- Product design & development
- Product testing & validation
- Training & education
By End User
- Research Organizations
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, UK, Italy, Spain, Russia, Rest of Europe)
- Asia-Pacific (China, India, Japan, ASEAN, Rest of Asia-Pacific)
- LAMEA (Latin America, Middle East, Africa)
North America dominated the market and accounted for the largest revenue share of 54.8% in 2022.
The presence of well-established contract research organizations (CROs) and contract manufacturing organizations (CMOs) such as Covance Inc., IQVIA, Catalent, and Samsung Biologics provides a strong foundation for outsourcing services in the biotech and pharmaceutical industry. These companies have a proven track record and expertise in providing specialized services, attracting clients who seek their capabilities.
Several countries in the Asia-Pacific region have implemented supportive government policies and initiatives to promote industrial automation. These initiatives aim to boost manufacturing capabilities, increase productivity, and drive economic growth. The availability of incentives and subsidies further encourages companies to invest in AGVs.
North America has a well-established and rigorous regulatory framework for the biotech and pharmaceutical industry, including the Food and Drug Administration (FDA) in the United States and Health Canada in Canada.
North America has a well-developed and mature biotechnology and pharmaceutical industry, making it a major hub for outsourcing services. The region is home to numerous established CROs, CMOs, and other service providers with extensive experience and expertise.
Biotechnology & Pharmaceutical Services Outsourcing Market Report is also available for below Regions and Country Please Ask for that
- Rest of Europe
- South Korea
- Rest Of APAC
- Rest of South America
Middle East and Africa
- Saudi Arabia
- South Africa
- Rest Of MEA
Points Covered in the Report:
The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.
Key Reasons to Purchase:
To gain insightful analyses of the Biotechnology & Pharmaceutical Services Outsourcing market and have comprehensive understanding of the global market and its commercial landscape.
Assess the production processes, major issues, and solutions to mitigate the development risk.
To understand the most affecting driving and restraining forces in the market and its impact in the global market.
Learn about the Biotechnology & Pharmaceutical Services Outsourcing market strategies that are being adopted by leading respective organizations.
To understand the future outlook and prospects for the Biotechnology & Pharmaceutical Services Outsourcing market. Besides the standard structure reports, we also provide custom research according to specific requirements.
Research Scope of Biotechnology & Pharmaceutical Services Outsourcing Market
- Historic year: 2018- 2021
- Base year: 2022
- Forecast: 2023 to 2031
- Representation of Market revenue in USD Million
Biotechnology & Pharmaceutical Services Outsourcing Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: