Biotechnology And Pharmaceutical Services Outsourcing Market To Reach $66.95 Billion By 2030

Biotechnology And Pharmaceutical Services Outsourcing Market Growth & Trends

The global biotechnology and pharmaceutical services outsourcing market size is expected to reach USD 66.95 billion by 2030, registering a CAGR of 5.67% from 2024 to 2030, according to a new report by Grand View Research, Inc.  

The growing R&D investment for innovative therapeutics by pharmaceutical and biotechnology companies, which are complex and require strict timeline follow-up, is driving outsourcing trend in the industry. Moreover, high costs associated with the new drug development in the biotechnology and pharmaceutical industries lead to customer’s preference for cost-effective outsourcing solutions. CROs have the required expertise and infrastructure that provide the benefit of cost, time, and efficiency. Moreover, emerging economies, such as Japan, India, and China are mostly preferred countries for outsourcing activities, owing to strong availability of experts, R&D infrastructure, and affordability.

In addition, regulatory framework for drug discovery and development is complex in several countries. Thus, increasing need for expertise in different areas of drug development is driving the demand for outsourcing services. Drug companies are not only outsourcing production of medicines but also clinical trials. Moreover, the outsourcing of manufacturing activities to developing countries such as China, India, and Latin America is growing due to expanding privatization of clinical trials. Additionally, the globalization of clinical trials has increased the demand for outsourcing services, particularly in emerging markets such as Latin America and MEA owing to large patient pool and lower costs

Regulatory approval procedures are becoming more stringent & time-consuming, and business players aim to receive product approvals at the first attempt to gain a higher market share. Pharmaceutical and biotechnology companies are required to have an in-house regulatory department or outsource their regulatory affairs functions due to stringent regulatory requirements in developed countries and changing regulations in developing countries. Establishing an in-house regulatory affairs department in offshore countries is not feasible, thus companies are adopting different outsourcing models depending upon size and priority of projects, thereby contributing to the growth of global biotechnology/pharmaceutical services outsourcing market.

Pharmaceutical and biotechnology companies are now focusing on their core competencies and outsourcing non-core functions to increase their productivity & operational efficiency. These companies commonly outsource R&D functions to emerging regions, such as Asia Pacific, and have now started outsourcing product design & development to CROs to reduce cost & increase focus on core functions. Small- or mid-sized companies, which do not have in-house capabilities, have to outsource their product design and development, auditing, and regulatory affairs to enter into new markets. Small or specialty companies are hiring CRO consultants to assist in regulatory affairs and legal representation functions in international markets.

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Biotechnology And Pharmaceutical Services Outsourcing Market Report Highlights

• Based on services, the consulting segment dominated the market in 2023. The high segment growth is driven by increasing changes in regulations by several regulatory authorities such as U.S. FDA and EMA creating the need for regulatory compliance for pharmaceutical & biotech companies. Pharmaceutical and biotech products may face withdrawals, recalls, repacking, or relabeling if products are not compliant with the regulatory standards, thereby preferring consulting services from third party organizations to ensure compliance with evolving regulations

• Based on end-use, the pharmaceutical companies segment held majority revenue share, accounting of over 58.44% in 2023. Growth in the segment can be attributed to factors such as increase in outsourcing of regulatory services and product design & development services by pharmaceutical companies to avoid high capital expenditure and increase profit margins

• Asia Pacific dominated the market with a share of 42.41% in 2023. The regional growth is owing to surge in R&D investments by developed countries and numerous regulatory reforms in clinical trial assessment to align with regulatory guidelines of various countries investing in the region

Biotechnology And Pharmaceutical Services Outsourcing Market Segmentation

Grand View Research has segmented the global biotechnology and pharmaceutical services outsourcing market based on service, end-use, and region:

Biotechnology And Pharmaceutical Services Outsourcing Service Outlook (Revenue, USD Million, 2018 - 2030)

• Consulting

• Regulatory Consulting

• Clinical Development Consulting

• Strategic Planning & Business Development Consulting

• Quality Management Systems consulting

• Others

• Regulatory Affairs

• Legal Representation

• Regulatory Writing & Publishing

• Product Registration & Clinical Trial Applications

• Regulatory Submissions

• Regulatory Operations

• Others

• Product Design & Development

• Research, Strategy, & Concept Generation

• Concept & Requirements Development

• Detailed Design & Process Development

• Design Verification & Validation

• Process Validation & Manufacturing Transfer

• Production & Commercial Support

• Auditing and Assessment

• Product Maintenance

• Training & Education

• Others

Biotechnology And Pharmaceutical Services Outsourcing End-use Outlook (Revenue, USD Million, 2018 - 2030)

• Pharmaceutical Companies

• Biotech Companies

Biotechnology And Pharmaceutical Services Outsourcing Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Sweden

  • Norway

• Asia Pacific

  • Japan

  • China

  • India

  • Australia

  • South Korea

  • Thailand

• Latin America

  • Brazil

  • Mexico

  • Argentina

• Middle East and Africa (MEA)

  • South Africa

  • Saudi Arabia

  • UAE

  • Kuwait

List of key players in the Biotechnology And Pharmaceutical Services Outsourcing Market

• Parexel International Corporation

• The Quantic Group

• IQVIA

• Lachman Consultant Services, Inc.

• GMP Pharmaceuticals Pty Ltd.

• Concept Heidelberg GmbH

• LabCorp

• Charles River Laboratories

• ICON plc.

• Syneos Health

• Lonza

• Catalent Inc.

• Samsung Biologics