Biotechnology & Pharmaceutical Services Outsourcing Market

Biotechnology & Pharmaceutical Services Outsourcing Market Outlook

The global biotechnology and pharmaceutical services outsourcing market is anticipated to hold a market value of US$ 70 Billion in 2022 and US$ 112.31 Billion by 2032. The projected growth rate is nearly 5% during the forecast period from 2022 to 2032.

The outbreak of COVID-19 has had a significant impact on the biotechnology and pharmaceutical services outsourcing market. The situation resulted in delays, terminations, and suspensions of trials. More than 330,000 clinical trials registered on clinicaltrials.gov are at risk due to the spread of novel coronavirus.

Report Attributes	Details
Estimated Market Value in 2022	US$ 70 Billion
Estimated Market Value in 2032	US$ 112.31 Billion
Projected CAGR from 2022 to 2032	5%
Key Players Profiled	GMP Pharmaceuticals Pty Ltd The Quantic Group IQVIA Lachman Consultant Services, Inc. Parexel International Corporation Charles River Laboratories Concept Heidelberg GmbH Covance Inc. ICON plc. PRA Health Sciences Biotech

Revenue Analysis of Biotechnology and Pharmaceutical Services Outsourcing Market 2017 to 2021 vs. Future Outlook 2022 to 2032

The global biotechnology and pharmaceutical services outsourcing market garnered US$ 65 Billion in 2021, expanding at a historical CAGR of 4.2%. The outsourcing services help in overcoming trade barriers and help the organizations to enter international markets. Several firms prefer to outsource services than invest capital and hire a workforce, thereby, providing significant opportunities for expansion.

Biotechnology and pharmaceutical companies are adopting the consulting services owing to factors such as; the growing number of discrepancies in intellectual property rights and fraudulent cases. Owing to such causes, the adoption of these services is on a rise, making it a lucrative market for the players. The estimation reveals that the industry is projected to secure a market value of US$ 112.31 Billion by 2032.

What are the factors boosting the Global Biotechnology and Pharmaceutical Services Outsourcing Market?

Growing Demand for Low-Cost Drug Development to Boost Medical Outsourcing

Contract research and manufacturing allow low-cost product manufacturing and development. The growing application of machine learning-based platforms such as; automation in drug manufacturing, artificial intelligence, and innovative trial designs are anticipated to transform the CMO and CRO sphere in the forecast period.

Furthermore, such medical outsourcing allows cost-saving to their clients and could offer economic benefits in the long run. In addition, outsourcing of pharma helps in saving time utilized in the management and operations of production, thereby, benefitting the industry during the forecast period.

How does Increasing R&D help the Growth of Outsourcing in the Pharmaceutical Industry?

Growing R&D on Large Molecules to Benefit Outsourcing in Pharmaceutical Industry 

Globally, the pharmaceutical industry has the second-highest R&D expenditure against any other sector. The expenses on R&D are increasing during the forecast period, thereby benefiting the market.

As per Evaluate Pharma 2019 report, the pharmaceutical R&D expense was around US$ 179 Billion in 2018. The projected growth rate of the market is 3%. Furthermore, the increasing R&D expenditure on large molecules is predicted to offer significant opportunities for expansion in the forthcoming period.

Country-Wise Analysis

What is the Contribution of North America in Increasing Demand for Outsourcing Pharma?

Presence of Established Players to Boost the Outsourcing in Pharmaceutical Industry in the Region

As per the estimations at Fact.MR, North America is projected to account for the maximum revenue share of 53% in 2022. The development of the industry in the region can be attributed to the presence of established players in North America.

Implementation of stringent strict policies and the growing R&D investments by pharma companies are likely to augment the market in the coming time. In addition, approvals by FDA are likely to offer significant opportunities to the key players. For instance, Bora Pharmaceuticals received FDA approval in 2019, which strengthened its market influence outside Asia.

What is the Growth Outlook for Biotechnology & Pharmaceutical Services Outsourcing in the Asia Pacific?

Increasing Investments by Developed Countries to Boost Medical Outsourcing Services in APAC

APAC is expected to expand at a CAGR of 5.5% during the forecast period, says Fact.MR. The growth of the market in the region can be attributed to the increasing investment by developed nations in the region. Further, several reforms brought in by regulatory bodies to align with the standards of various other countries are likely to offer significant opportunities to the key players.

In addition, the low-cost drug development and availability of a cheaper workforce in the region are predicted to augment the market in APAC. Moreover, the high scope of cost savings, the rapid growth of the biotechnology and pharmaceutical sector, and skilled personnel are other salient causes propelling the market in the region.

Category-Wise Insights

What is the Contribution of the Pharma Segment in Boosting the Growth of the Market?

Increased R&D to Develop Novel Products to Boost the Growth of Outsourcing Pharma Industry

Fact.MR says that the pharma segment is predicted to secure the largest market share of 55%. The segment is anticipated to record a CAGR of 5% during the review period. The expansion can be attributed to the increased R&D by the key players to develop novel products and the growing investments by CROs for the development core capabilities are likely to propel the market growth in the forthcoming period.

Moreover, the manufacturing services offered by CROs and CMOs such as; clinical development, preclinical development, commercial development, high-speed automation, and precision injection moulding are other salient causes boosting the growth of the outsourcing pharma industry.

What is the Role of the Consulting Segment in Propelling the Market?

Increasing M&A activities to Boost the Services Segment and Benefit the Outsourcing Pharma Industry

As per the observations at Fact.MR, the consulting services segment is expected to secure the largest market share of 19%. The domination of the segment can be attributed to growing M&A activities.

The other services segment is anticipated to exhibit a CAGR of 6% during the forecast period. The growth of the segment can be attributed to the increasing outsourcing of generics and biosimilar manufacturing as CMOs provide services at a cheaper cost.

Startups for Biotechnology & Pharmaceutical Services Outsourcing Market

Some of the key start-ups in the market are -

• IRISYS provides contract pharmaceutical product development and manufacturing services, specializing in formulation R&D and GMP manufacturing of clinical trial materials and specialty pharmaceutical products. The company also offers strategic consulting related to drug development. Recently, IRISYS announced plans to extend GMP manufacturing of sterile drug products for clinical and commercial supply.
• Roivant Sciences develops transformative medicines by building technologies and developing talent. The company offers a diverse pipeline of investigational drugs across an array of therapeutic areas. Moreover, Roivant Sciences leverages and develops nimble and focused biopharmaceutical and health technology companies, including Immunovant, Demavant, Datavant, Aruvant, and others.

Competitive Landscape

The players of the market are focusing to increase their global influence and adopt strategies such as; acquisition, collaboration, and partnerships. Some of the recent key developments among key players are :

• In April 2021, Paraxel International Corporation announced a strategic partnership with Veeva. The partnership aims to increase clinical trials by leveraging process innovation and technology.
• In August 2020, Pfizer signed a three-year agreement with PPD. The agreement aims to offer drug development services.
• IQVIA’s Connected Intelligence Platform, which was introduced in April 2021, is an innovative approach, enabling life sciences customers to discover powerful new insights, drive smarter decision making, and get treatments to patients faster. Connected Intelligence brings together IQVIA’s unique portfolio of capabilities to create intelligent connections across its unparalleled healthcare data, advanced analytics, innovative technologies, and healthcare expertise to speed the development and commercialization of innovative medicines that improve patient lives
• In October 2020, MediPharm Labs Corp. announced that it had signed a new white-label supply agreement with Sunco Green Pharmaceutical Pty Ltd. It is MediPharm Labs’ 12th supply agreement. As per the two-year agreement, MediPharm Labs Australia will supply specially formulated CBD and THC Cannabis oil products. It will be sold under the Sunco Green Label
• The Quantic Group® is a pharmaceutical, biotechnology, vaccines and medical device specialty consultant that supports both the industry and governments; services are provided in multiple areas including: regulatory, research, development, manufacturing, and quality operations. For 30 years, The Quantic Group® has supported clients on a global basis, particularly in managing regulatory enforcement actions, which include prevention, remediation and certification of many major industry FDA consent decrees.

Key Market Segments Covered in the Global Biotechnology and Pharmaceutical Services Outsourcing Market

• By End Use :

  • Supervisory Control and Data Acquisition (SCADA)
  • Programmable Logic Controller (PLC)
  • Distributed Control System (DCS)
  • Manufacturing Execution System (MES)
  • Industrial Safety
  • Plant Asset Management (PAM)

• By Service :

  • Product Testing & Validation
  • Training & Education
  • Product Design & Development
  • Product Maintenance
  • Auditing and Assessment
  • Regulatory Affairs
    • Regulatory Writing & Publishing
    • Legal Representation
    • Clinical Trial Applications & Product Registration
    • Others
  • Consulting
    • Remediation
    • Quality Management Systems Consulting
    • Regulatory Compliance
    • Others
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle Eats & Africa