USD 63.21 billion
Global Biotechnology & Pharmaceutical Services Outsourcing Market Size, Share, Growth Analysis, By Services(Consulting, Auditing and Assessment), By End user(Pharma, and Biotech) - Industry Forecast 2024-2031
Report ID:
SQMIG35I2204 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|
Tables:
66 |
Figures:
65
Global Biotechnology & Pharmaceutical Services Outsourcing Market Insights
Biotechnology & Pharmaceutical Services Outsourcing Market size was valued at USD 63.21 billion in 2021 and is poised to grow from USD 68.72 billion in 2022 to USD 108.54 billion by 2030, growing at a CAGR of 5.88% in the forecast period (2023-2030).
The biotechnology and pharmaceutical services outsourcing market has emerged as a pivotal component of the global healthcare landscape, facilitating accelerated drug development and enhanced research capabilities. This dynamic sector involves the delegation of various aspects of drug discovery, development, and manufacturing to specialized third-party providers, allowing pharmaceutical and biotech companies to focus on core competencies and streamline operations. Driven by factors such as increasing R&D costs, the need for specialized expertise, and the quest for operational efficiency, the outsourcing market has witnessed remarkable growth.
Research and development, clinical trials, regulatory compliance, and manufacturing processes are among the key segments outsourced. Contract research organizations (CROs) handle pre-clinical and clinical research, while contract manufacturing organizations (CMOs) are responsible for producing drugs and therapies on a large scale. Pharmaceutical companies, both large and small, benefit from reduced financial risks, accelerated timelines, and access to a diverse pool of scientific knowledge. Additionally, outsourcing allows flexibility in adapting to market demands and regulatory changes. The COVID-19 pandemic further underscored the significance of outsourcing in rapidly developing vaccines and treatments. As the industry continues to evolve, advanced technologies like artificial intelligence, bioprocessing innovations, and personalized medicine are shaping the outsourcing landscape.
US Biotechnology & Pharmaceutical Services Outsourcing Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Pharma
Fastest Growth
Pharma
Growth Rate
5.88% CAGR
Global Biotechnology & Pharmaceutical Services Outsourcing Market ($ Bn)
Country Share for North America Region (%)
Global Biotechnology & Pharmaceutical Services Outsourcing Market By End user ($ Bn)
Global Biotechnology & Pharmaceutical Services Outsourcing Market By End user (%)
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Global Biotechnology & Pharmaceutical Services Outsourcing Market Segmental Analysis
The global biotechnology & pharmaceutical services outsourcing market is segmented on the basis of services, end user, and region. By Services, the market is segmented into consulting, auditing and assessment, regulatory affairs, product design & development, product testing & validation, training & education, and others. By end user, the market is segmented into pharma, biotech. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Biotechnology & Pharmaceutical Services Outsourcing Market Analysis By Services
In the Biotechnology & Pharmaceutical Services Outsourcing market, the dominant segment is Consulting services which play a crucial role in the biotechnology and pharmaceutical industry by providing expert guidance, strategic planning, regulatory compliance, and market analysis. Companies often seek consulting services to make informed decisions, optimize their operations, navigate complex regulations, and ensure their products meet safety and quality standards. Consulting services can cover a wide range of areas, including regulatory affairs, clinical trials, market access, pharmacovigilance, and more. The dominance of the consulting segment reflects the industry's continuous need for specialized knowledge and guidance to succeed in a highly regulated and competitive landscape.
On the other hand, the fastest growing segment is Product design and development services. The market is experiencing rapid growth due to the increasing demand for innovative therapies, drugs, and medical technologies. This segment involves the research, design, and development of new pharmaceutical products, biologics, medical devices, and diagnostic tools. As advancements in science and technology continue to shape the industry, companies are investing heavily in developing novel solutions to address unmet medical needs. The growing emphasis on personalized medicine, targeted therapies, and precision diagnostics has contributed to the expansion of this segment.
Biotechnology & Pharmaceutical Services Outsourcing Market Analysis By End user
In the biotechnology & pharmaceutical services outsourcing market, the dominant segment based on the end user category is the pharma industry. Large pharmaceutical companies often outsource various aspects of their drug discovery, development, and manufacturing processes to contract research organizations (CROs) and contract manufacturing organizations (CMOs). This outsourcing allows pharmaceutical companies to focus on their core competencies while leveraging the expertise and resources of specialized service providers.
On the other hand, the fastest-growing segment is the biotech sector. Biotech companies, especially smaller startups and emerging firms, frequently outsource various functions to CROs and other service providers. These functions may include preclinical and clinical research, regulatory support, manufacturing, and more. The flexibility and cost-effectiveness of outsourcing have been particularly attractive to biotech companies aiming to bring innovative therapies to market without having to invest heavily in building their own infrastructure.
Global Biotechnology & Pharmaceutical Services Outsourcing Market By End user, 2023 (%)
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Global Biotechnology & Pharmaceutical Services Outsourcing Market Regional Insights
The global biotechnology & pharmaceutical services outsourcing market is analyzed based on its regional presence, which includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. In the biotechnology & pharmaceutical services outsourcing market, North America, particularly the United States, is the most dominant region in the biotechnology and pharmaceutical services outsourcing market. The U.S. has a strong presence of both biotechnology and pharmaceutical companies, along with a well-developed ecosystem of contract research organizations (CROs), contract manufacturing organizations (CMOs), and other service providers that support the industry. The presence of robust infrastructure, research institutions, and a favorable regulatory environment has contributed to the dominance of North America in this market.
In terms of the fastest growing segment, Asia-Pacific is witnessing remarkable growth. Countries like China and India have been emerging as significant players in this industry. They offer competitive advantages such as lower costs, a large and skilled workforce, and an increasingly supportive regulatory environment. In recent years, several pharmaceutical and biotechnology companies have been outsourcing a variety of services, including drug discovery, clinical trials, contract manufacturing, and more, to organizations in Asia-Pacific. The growth of clinical research and development activities in these regions, coupled with their expanding capabilities and expertise, has contributed to their rapid growth in the biotechnology and pharmaceutical outsourcing market.
Global Biotechnology & Pharmaceutical Services Outsourcing Market By Geography, 2024-2031
- Largest
- Fastest
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Global Biotechnology & Pharmaceutical Services Outsourcing Market Dynamics
Biotechnology & Pharmaceutical Services Outsourcing Market Drivers
Cost Efficiency and Flexibility:
- Many pharmaceutical and biotechnology companies outsource various stages of drug development and manufacturing to contract research organizations (CROs) and contract manufacturing organizations (CMOs) due to the potential cost savings. Outsourcing allows these companies to access specialized expertise and infrastructure without having to invest in establishing their own facilities. It also provides them with the flexibility to scale operations up or down based on project needs.
Focus on Core Competencies:
- Outsourcing non-core activities such as clinical trials, regulatory affairs, and certain manufacturing processes allows pharmaceutical and biotechnology companies to concentrate their resources and efforts on core research and development activities. This strategic focus can lead to quicker drug development and market entry.
Biotechnology & Pharmaceutical Services Outsourcing Market Restraints
Quality Control and Intellectual Property Concerns:
- Outsourcing critical aspects of drug development and manufacturing may raise concerns about maintaining quality control standards and protecting intellectual property. Companies need to carefully manage these aspects to ensure that the outsourced services meet regulatory requirements and that proprietary information is safeguarded.
Regulatory and Compliance Challenges:
- The biotechnology and pharmaceutical industries are heavily regulated, with strict requirements for safety, efficacy, and quality. Outsourcing may introduce complexities in terms of ensuring compliance with various regulations and standards across different regions. Navigating these regulatory challenges can be a restraint for outsourcing efforts.
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Global Biotechnology & Pharmaceutical Services Outsourcing Market Competitive Landscape
The global biotechnology & pharmaceutical services outsourcing market features a dynamic competitive landscape characterized by established industry giants and innovative niche players. Leading global contract research organizations (CROs) such as QuintilesIMS, LabCorp, and Parexel, along with major contract manufacturing organizations (CMOs), dominate the market with comprehensive service portfolios, extensive expertise, and expansive global networks. These industry leaders compete alongside emerging specialized providers offering targeted solutions in areas like genomics, clinical trials, and drug development. The market's competitive edge lies in providing cost-effective, efficient, and quality-driven solutions to pharmaceutical and biotechnology companies aiming to enhance drug discovery, development, and commercialization processes while navigating regulatory complexities.
Biotechnology & Pharmaceutical Services Outsourcing Market Top Player’s Company Profile
- Parexel International Corporation - United States
- The Quantic Group - United States
- IQVIA - United States
- Lachman Consultant Services, Inc. - United States
- GMP Pharmaceuticals Pty Ltd. - Australia
- Concept Heidelberg GmbH - Germany
- Covance Inc. - United States
- Charles River Laboratories - United States
- PRA Health Sciences - United States
- ICON plc – Ireland
Biotechnology & Pharmaceutical Services Outsourcing Market Recent Developments
- In January 2023, HaemaLogiX, a developer of monoclonal antibodies, entered into a partnership with Lonza to manufacture its myeloma drug candidate, KappaMab monoclonal antibody. This partnership is an example of how pharmaceutical companies are outsourcing non-core functions to CROs and CMOs in order to focus on their core competencies, such as the development and discovery of new medicines.
- In February 2023, IQVIA, a global CRO, acquired ICON plc, another leading CRO. This acquisition is expected to create a more comprehensive CRO with a wider range of services and capabilities. It is also expected to lead to increased competition in the CRO market, which could benefit clients by driving down prices.
- In March 2023, Catalent, a leading CMO, announced plans to invest $1 billion in a new biologics manufacturing facility in the United States. This investment is an example of how CMOs are expanding their capacity to meet the growing demand for biologics. Biologics are complex drugs that are difficult and expensive to manufacture, which makes them a good target for outsourcing.
- In April 2023, the FDA approved the first drug developed using artificial intelligence (AI). This approval is a significant development that is expected to accelerate the adoption of AI in the pharmaceutical industry. AI can be used to improve drug discovery, clinical trial design, and manufacturing.
- In May 2023, the World Health Organization (WHO) launched a new initiative to promote the use of telemedicine in developing countries. Telemedicine can be used to provide healthcare services to people in remote areas who would otherwise not have access to them. This initiative is expected to increase the demand for outsourcing of clinical trials and medical writing services.
Global Biotechnology & Pharmaceutical Services Outsourcing Key Market Trends
Increasing Demand for Specialized Services:
- Biotechnology and pharmaceutical companies were increasingly outsourcing specialized services to contract research organizations (CROs) and contract manufacturing organizations (CMOs). These companies were seeking partners with expertise in specific areas such as clinical trials, drug development, regulatory affairs, and manufacturing. This trend was driven by the need to access specialized knowledge and capabilities without the burden of maintaining in-house resources for every aspect of drug discovery, development, and commercialization.
Globalization and Strategic Partnerships:
- The outsourcing market was experiencing a shift towards globalization and the formation of strategic partnerships. Biotech and pharma companies were looking beyond traditional outsourcing destinations and exploring opportunities in emerging markets such as Asia-Pacific and Latin America. Strategic partnerships between pharmaceutical companies and CROs/CMOs were becoming more collaborative and integrated, with an emphasis on long-term relationships that enable efficient and seamless collaboration throughout the drug development lifecycle.
Global Biotechnology & Pharmaceutical Services Outsourcing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global biotechnology & pharmaceutical services outsourcing market analysis, the market has witnessed substantial growth due to its potential to streamline research, development, and manufacturing processes. This trend is driven by the industry's need for cost-effective solutions, specialized expertise, and increased flexibility. Outsourcing enables companies to focus on core competencies while accessing a global talent pool and advanced technologies. It encompasses services such as clinical trials, drug discovery, regulatory compliance, manufacturing, and supply chain management. The market's expansion is further fueled by the rising complexity of drug development, stringent regulations, and the demand for innovative therapies. As the biotech and pharmaceutical sectors continue to evolve, outsourcing is expected to play a pivotal role in accelerating time-to-market, reducing operational costs, and fostering collaborations between industry players and contract service providers.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 63.21 billion |
| Market size value in 2031 | USD 108.54 billion |
| Growth Rate | 5.88% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Biotechnology & Pharmaceutical Services Outsourcing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Biotechnology & Pharmaceutical Services Outsourcing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Biotechnology & Pharmaceutical Services Outsourcing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Biotechnology & Pharmaceutical Services Outsourcing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Biotechnology & Pharmaceutical Services Outsourcing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Biotechnology & Pharmaceutical Services Outsourcing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Biotechnology & Pharmaceutical Services Outsourcing Market Report Snapshots
- Global Biotechnology & Pharmaceutical Services Outsourcing Companies
- Global Biotechnology & Pharmaceutical Services Outsourcing Market Size
- Global Biotechnology & Pharmaceutical Services Outsourcing Market Analysis
- Global Biotechnology & Pharmaceutical Services Outsourcing Geographic Analysis
- Global Biotechnology & Pharmaceutical Services Outsourcing Market News
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