Biotechnology & Pharmaceutical Services Outsourcing Market: Current Analysis and Forecast (2022-2028)

Biotechnology & Pharmaceutical Services Outsourcing Market: Current Analysis and Forecast (2022-2028)

Outsourcing is the practice of employing a third party from outside a business to carry out tasks or produce commodities that were previously completed in-house by the business's own employees and personnel. Outsourcing has had a particularly significant impact on the pharmaceutical industry, where pharmaceutical and biotechnology companies outsource at almost every stage of the value chain. The right team or strategy will ensure various aspects of pharmaceutical industries including the right service providers (CROs CMOs), communications, timelines, and contracts, due diligence, supply chain, and relationships with third parties. Procurement is essential for outsourcing and sometimes outsourcing is used in procurement.

The biotechnology & pharmaceutical services outsourcing market is expected to grow at a steady rate of around 6% owing to the increasing outsourcing of R&D activities along with the increasing focus on collaborations, agreements, mergers, and acquisition. Major companies that are offering outsourcing services related to pharmaceutical and biotechnology industry are entering into partnerships and agreements for fulfilling the increasing demand of pharmaceutical outsourcing. For instance, in August 2020, Pfizer Inc. signed an agreement with PPD, Inc. to provide drug development services for a period of 3 years.

• Based on services, the market is segmented into consulting, auditing & assessment, regulatory affairs, product maintenance, product design & development, product testing & validation, training & education, and others. Consulting category to dominate the market, which is mainly due to the increasing M&A activities and constantly changing regulatory protocols.
• On the basis of end use, the market is categorized into pharma and biotech. Among these, pharma segment is dominating the market in 2020. The growth of this segment is anticipated to be driven by an increase in R&D spending by pharmaceutical firms for the development of possible novel products and by CROs for the development of core capabilities. For instance, as per the data of federal government statistics, in 2019, pharmaceutical companies spend an average of roughly 25% of their revenue on R&D.
• For a better understanding of the market adoption of biotechnology & pharmaceutical services oustsourcing, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is expected to dominate the market during the forecast period. This is mainly due to the presence of leading CROs and CDMO’s such as Covance Inc., IQVIA, Catalent, and Samsung Biologics. Furthermore, growing R&D expenditure in North America is also expected to drive the market growth in the region. Further, recent expansion of other multinational CMOs and CROs into the US is expected to propel market growth of biotechnology & pharmaceutical services oustsourcing market in North America. For instance, in September 2019, FDA granted approval to the CMO services of Bora Pharmaceuticals.
• Some of the major players operating in the market include Parexel International Corporation, IQVIA Inc; Lachman Consultant Services, Inc.; Concept Heidelberg GmbH; Labcorp Drug Development; Charles River Laboratories; ICON plc; GMP Pharmaceuticals Pty Ltd.; Quantic Group, Ltd.; and NSF.