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LI23068710 |
Pages: 321 |
Jun 2023 |
Biotechnology and pharmaceutical services outsourcing refer to the practice of contracting or delegating certain activities or services related to biotechnology and pharmaceutical R&D, manufacturing, and commercialization to external third-party companies or service providers. Biotechnology encompasses the use of living organisms or their products to develop or modify processes, products, or technologies for various applications, including healthcare, agriculture, and environmental sustainability. Pharmaceutical services, on the contrary, refer to the activities involved in the R&D, manufacturing, quality control, regulatory compliance, and marketing of pharmaceutical products.
The global biotechnology & pharmaceutical services outsourcing market size was $67.52 billion in 2022 and is predicted to grow with a CAGR of 5.2%, by generating a revenue of $113.9 billion by 2032.
The competition to develop vaccines for COVID-19 has led to increase in R&D outsourcing. Contract research organizations (CROs) and other benefit suppliers played a critical part in accelerating vaccine development, clinical trials, and manufacturing forms. The need for extensive testing for COVID-19 led to an increase in demand for diagnostic services. Numerous laboratories and diagnostic companies outsourced testing services to handle the expanded volume of raw materials. This has created opportunities to outsource suppliers specializing in laboratory services and testing activities.
Global biotech and pharmaceutical outsourcing markets faced disturbance due to shutdowns, travel restrictions, and reduced workforces. Supply chains for crude materials, dynamic pharmaceutical fixings and finished products have been severely affected, causing delays in delivery and distribution. Numerous clinical trials in different therapeutic areas have been suspended due to safety concerns and overburdened healthcare infrastructures. This has influenced outsourcing companies that give clinical trial administrations such as quiet enlistment, follow-up, and information management.
Biotechnology and pharmaceutical businesses appeared to have a high level of interest in outsourcing drug discovery due to the huge savings and other advantages over in-house manufacturing. The number of small and medium-sized businesses working within the drug discovery outsourcing market is anticipated to remain higher than that of large companies within the industry due to a low number of market competitors and fewer organizational barriers in decision-making. In addition, small and medium-sized businesses are increasingly depending on drug discovery outsourcing for product manufacturing and research due to a number of factors, including poor production capacity and technical skills. These components, along with rising research and advancement costs are affecting the world biotechnology and pharmaceutical services outsourcing market development. Rapid advancements in technologies such as genomics, proteomics, bioinformatics, and artificial intelligence have expanded the complexity of R&D processes. Outsourcing enables companies to use these advanced technologies by collaborating with specialized service providers.
Government laws and regulations are a barrier to the expansion of the outsourcing sector for biotechnology and pharmaceutical services. Despite the fact that law enforcement has not taken any enforcement action to compel laboratories to comply with these precise requirements, this regulatory framework, which controls the licensing and commercialization of medical devices, claims authority over laboratory-developed tests as well. Therefore, the growth of the market for outsourcing biotechnology and pharmaceutical services would be constrained by strict regulatory frameworks during the forecast period.
Technology advancements were a major factor in fostering innovation in the past ten years, and it is predicted that this trend will continue in the upcoming years. Rapid technical progress has resulted in an increase in competitiveness in the drug discovery and development industry. Many drug discovery organizations are working together to develop a range of affordable drugs due to the intense competition in the biotechnology and pharmaceutical services outsourcing industry. The development of the biotechnology and pharmaceutical services outsourcing market would therefore benefit greatly from technological improvements during the anticipated timeframe. The demand for biotech and pharmaceutical services is growing quickly in emerging markets, driven by components such as population growth, rising healthcare expenditure, and improving regulatory environments. Outsourcing suppliers that have a solid presence and understanding of these markets can capitalize on the openings displayed by extending pharmaceutical markets in nations such as China, India, Brazil, and South Korea.
The consultancy services sub-segment accounted for the highest market size in 2022. Consulting services offer important expertise and guidance to biotech and pharmaceutical companies in strategic decision-making processes. Experts help companies to identify advertising openings, create growth strategies, survey competitive landscapes, and make educated commerce choices. Consulting services play a vital part in providing market research and analysis. This incorporates assessing market patterns, assessing customer needs, dissecting competitive scenes, and distinguishing market openings. The biotech and pharmaceutical industry witnesses’ frequent mergers, acquisitions, and partnerships as companies seek to extend their capabilities, get to new markets, or upgrade their product portfolios. Consulting services support companies in evaluating potential partnerships, conducting due diligence, assessing financial viability, and encouraging smooth integration processes.
The pharma sub-segment accounted for the highest market size in 2022. Target identification, lead optimization, preclinical studies, and clinical study support are among the critical phases of developing drugs that pharmaceutical companies frequently contract out. By outsourcing these tasks, businesses can benefit from outside knowledge and resources, hastening the development process and cutting expenses. In order to assess the safety and effectiveness of new medications, clinical research and trials are essential. In the pharmaceutical sector, it is a usual practice to outsource clinical trial operations, patient hiring, monitoring, and data administration services to contract research organizations (CROs). Pharmaceutical companies have a crucial duty to monitor the efficacy and safety of medicines after Food and Drug Administration (FDA) approval. Companies can efficiently manage these tasks, maintaining compliance and patient safety, by outsourcing pharmacovigilance services, adverse event reporting, and post-marketing surveillance.
The North America biotechnology & pharmaceutical services outsourcing market generated the highest revenue in 2022. The greatest market for biotechnology & pharmaceutical services outsourcing is in North America, which supplies a sizeable portion of the world's demand. North America has a well-developed and mature pharmaceutical industry, with a significant number of huge pharmaceutical companies headquartered in the region. These companies have a long history of outsourcing different capacities and administrations to outside suppliers. The presence of established pharmaceutical players creates a strong demand for outsourcing administrations, driving the market revenue growth in North America. North America has a highly talented workforce within the biotech and pharmaceutical sectors. The region has a strong talent pool of analysts, investigators, and experts with ability in different regions, counting medicate disclosure, clinical research, and data information investigation. Moreover, North America is at the forefront of technological advancements in biotechnology and pharmaceuticals. The region features a dynamic biological system for development, with critical speculations in investigation and advancement, advanced well-being, and progressed innovations such as genomics and artificial intelligence.
Parexel International Corp., a subsidiary of Pamplona Capital Management LLP, provides outsourcing solutions for the biopharmaceutical industry. It offers services for new therapeutic studies and commercialization as well as lifecycle management of biopharmaceutical medicines. The company offers clinical trial management, epidemiology, health economics/outcomes studies, pharmacovigilance, medical communications, clinical pharmacology, patient recruitment, clinical supply, and pharmaceuticals. It also offers data management, biostatistical analysis, observational studies, patient/disease registries, and clinical supply. The organization provides a wide range of services, such as logistics, post-market monitoring, product and regulatory development, marketing advice, and others.
Some of the leading biotechnology & pharmaceutical services outsourcing market players are Parexel International Corporation, The Quantic Group, IQVIA, Lachman Consultant Services, Inc., GMP Pharmaceuticals Pty Ltd., Concept Heidelberg GmbH, Covance Inc., Charles River Laboratories, PRA Health Sciences, and ICON plc.
| Aspect | Particulars |
| Historical Market Estimations | 2020-2021 |
| Base Year for Market Estimation | 2022 |
| Forecast Timeline for Market Projection | 2023-2032 |
| Geographical Scope | North America, Europe, Asia-Pacific, and LAMEA |
| Segmentation by Service |
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| Segmentation by End-use |
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| Key Companies Profiled |
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