Analysis of Biotechnology & Pharmaceutical Services Outsourcing Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
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.
Estimated Market Value in 2022
US$ 70 Billion
Estimated Market Value in 2032
US$ 112.31 Billion
Projected CAGR from 2022 to 2032
Key Players Profiled
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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.
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.
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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.
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.
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.
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.
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.
Some of the key start-ups in the market are -
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 :
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North America will account for 53% of global biotechnology & pharmaceutical services demand.
From 2022 to 2032, the market is projected to expand at a 5% value CAGR, as per Fact.MR.
By 2032, biotechnology & pharmaceutical services outsourcing market demand is expected to reach US$ 112.31 Billion.
By 2022, demand for biotechnology & pharmaceutical services outsourcing is forecast to be valued at US$ 70 Billion.
As of 2021, the market for biotechnology & pharmaceutical services outsourcing was valued at US$ 65 Billion.
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