Biotechnology & Pharmaceutical Services Outsourcing Market Share and Growth Prospect till 2030

Posted on 2022-06-29 by researchinsights in Biotech // 0 Comments

San Francisco, California , USA, June 29, 2022 — /EPR Network/ —

Biotechnology & Pharmaceutical Services Outsourcing Industry Overview

The global biotechnology and pharmaceutical services outsourcing market size is expected to reach USD 108.0 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 5.5% from 2022 to 2030. The COVID-19 pandemic has significantly impacted Biotechnology and Pharmaceutical third-party service providers as well as clinical trials, resulting in trial delay, suspensions, and terminations. The global crisis has stressed the need for virtual trials and leveraging technology and software solutions. The recovery from the pandemic has led to increasing adoption of machine learning-based platforms, artificial intelligence, automation in drug manufacturing, and innovative trial designs are projected to transform the CRO and CMO landscape in the coming years.

Biopharmaceutical and pharmaceutical investments in novel and innovative therapies, for instance, regenerative medicine, are driving the R&D activity together with drug development services. The high demand for biologics along with small molecules has led to the expansion of service portfolios of Contract Manufacturing Organizations (CMOs)/Contract Research Organizations (CROs) for biotechnology and pharmaceutical production. Small pharma/ biotech companies are facing challenges while performing in-house development, manufacturing, regulatory affairs, product maintenance, product design and development, product testing and validation, and training and education such as lack of substantial expertise and expensive capability. This in turn has created lucrative opportunities for the growth of CMOs and CROs. Contract services are growing and becoming strategic, targeted, and planned. These factors are expected to play a pivotal role in enhancing the share of CMOs/CROs in the overall market.

Growing pricing pressure, regulatory challenges, and patent expiration have led to shrinking margins in the biotech and pharmaceutical industry. Contract services are considered a “strategic competitive weapon” among the companies, as these services help overcome these issues. These services offer cost saving to their clients as choosing sustainable suppliers could lead to reduced costs in the long run. They also help save time utilized in the operations and management of a production and research facility. Contract research and manufacturing allows low-cost product development and manufacturing cost of a product. Furthermore, outsourcing services assist in overcoming trade barriers and facilitate the entry of firms into the foreign market. Owing to these advantages, several firms choose to outsource services rather than investing capital in production equipment and hiring skilled labor.

Biotechnology & 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:

Based on the Service Insights, the market is segmented into Consulting, Auditing and assessment, Regulatory affairs, Product maintenance, Product design & development, Product testing & validation, Training & education and Others.

The consulting services segment dominated the market and accounted for the largest revenue share of 19.5% in 2021. The segment is expected to maintain its position over the forecast period.
The other services segment was valued at USD 10,649.1 million in 2021 and is expected to witness a higher CAGR of 6.4% over the forecast period owing to rising outsourcing of generics and biosimilar manufacturing as CMOs are offering services at lower cost. Other segment is inclusive of contract manufacturing, product upgrade and IT consulting.

Based on the End-use Insights, the market is segmented into Pharma and Biotech.

The pharma segment dominated the market and accounted for the largest revenue share of 55.7% in 2021. The segment is expected to register a CAGR of 5.7% over the forecast period.

Biotechnology & Pharmaceutical Services Outsourcing Regional Outlook

North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)

Key Companies Profile

The main factor affecting this competitive nature are quick adoption of merger and acquisition, collaboration, regional expansion, service portfolio expansion, and competitive pricing as the key strategies to sustain in the highly competitive environment and acquire a higher market share.

Some prominent players in the global Biotechnology & Pharmaceutical Services Outsourcing market include

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
ICON plc

Order a free sample PDF of the Biotechnology & Pharmaceutical Services Outsourcing Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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