Biotechnology & Pharmaceutical Services Outsourcing Market Size Worth $91.4 Billion By 2028: Grand View Research, Inc.

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Feb 10, 2021, 04:35 ET

SAN FRANCISCO, Feb. 10, 2021 /PRNewswire/ -- The global biotechnology and pharmaceutical services outsourcing market size is expected to reach USD 91.4 billion by 2028 registering a CAGR of 5.2%, according to a new report by Grand View Research, Inc. 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, regulatory affairs, product maintenance, product design & development, product testing & validation, and training & education, such as lack of substantial expertise and expensive capability. This, in turn, has created lucrative opportunities for the growth of CMOs & 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.

Key suggestions from the report:

The consulting service segment led the market in 2020 and will retain its dominant position throughout the forecast period
Biotechnology and pharmaceutical companies are increasingly opting for consulting services due to factors, such as the increasing number of fraudulent cases and discrepancies in intellectual property rights
The pharma end-use segment is expected to lead the market in terms of revenue share as well as CAGR over the forecast period as the pharma companies outsource internal activities at a larger scale due to rising pricing pressure and increasing competition
North America was the dominant regional market in 2020 due to the presence of biotechnology and pharmaceutical companies and the high quality of services offered by the CROs and CMOs in the region
However, Asia Pacific is anticipated to register the fastest CAGR over the forecast period owing to improved regulatory frameworks, the high scope for cost savings, availability of cheap labor & skilled personnel, and rapid growth of the biotechnology and pharmaceutical industry in the region

Read 110 page research report with ToC on "Biotechnology & Pharmaceutical Services Outsourcing Market Size, Share & Trends Analysis Report By Service (Consulting, Regulatory Affairs), By End-use (Pharma, Biotech), And Segment Forecasts, 2021 - 2028" at: https://www.grandviewresearch.com/industry-analysis/biotechnology-pharmaceutical-services-outsourcing-market

Growing pricing pressure, regulatory challenges, and patent expiration have led to shrinking margins in the biotech and pharmaceutical industry. Contract services offer cost saving to their clients and also help save time utilized in operations and management of a production & research facility. Furthermore, outsourcing services assist in overcoming trade barriers and facilitate the entry of firms into foreign markets. Owing to these advantages, several firms choose to outsource services rather than investing capital in production equipment and hiring skilled labor.

The coronavirus outbreak is having a considerable impact on biotech and pharma third-party service providers as well as clinical trials, resulting in trial delays, suspensions, and terminations. The global crisis has emphasized the need for virtual trials and leveraging on technology & software solutions. Increasing adoption of machine learning-based platforms & Artificial Intelligence (AI), innovative trial designs, and automation in drug manufacturing are projected to transform the CRO and CMO landscape in the coming years. Biopharmaceutical & pharmaceutical investments in novel and innovative therapies, for instance, regenerative medicine, are driving the R&D activity together with drug development services.

The biologics industry has grown substantially in recent years to include novel product types including nanobodies, rDNA, synthetic vaccines, fusion proteins, soluble receptors, immunoconjugates, and immunotherapeutics. Owing to the revolutionization of disease therapy through biologics, this sector has also provided many opportunities to explore hybrid structures that combine biologics with well-defined chemical entities. The significant growth of biologics is expected to drive the demand for outsourcing of biologics development and manufacturing.

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

Biotech & Pharma Services Outsourcing Service Outlook (Revenue, USD Million, 2016 - 2028)

Consulting

Regulatory Compliance
Remediation
Quality Management Systems Consulting
Others

Auditing & Assessment
Regulatory Affairs

Clinical Trial Applications & Product Registration
Regulatory Writing & Publishing
Legal Representation
Others

Product Maintenance
Product Design & Development
Product Testing & Validation
Training & Education
Others

Biotech & Pharma Services Outsourcing End-use Outlook (Revenue, USD Million, 2016 - 2028)

Pharma Companies
Biotech Companies

Biotech & Pharma Services Outsourcing Regional Outlook (Revenue, USD Million, 2016 - 2028)

North America

U.S.
Canada

Europe

U.K.
Germany
France
Italy
Spain

Asia Pacific

Japan
China
India
Australia
South Korea

Latin America

Brazil
Mexico
Argentina

Middle East & Africa

South Africa
Saudi Arabia
UAE

List of Key Players of Biotechnology & Pharmaceutical Services Outsourcing Market

The Quantic Group
IQVIA
Parexel International Corp.
Lachman Consultant Services, Inc.
GMP Pharmaceuticals Pty Ltd.
Concept Heidelberg GmbH
Covance, Inc.
Charles River Laboratories
PRA Health Sciences
ICON plc

Find more research reports on Pharmaceuticals Industry, by Grand View Research:

Product Design And Development Services Market – The global product design and development services market size is expected to reach USD 18.6 billion by 2028. The market is expected to expand at a CAGR of 11.6% from 2021 to 2028.
Regulatory Affairs Outsourcing Market – The global regulatory affairs outsourcing market size is expected to reach USD 14.9 billion by 2028. It is expected to expand at a CAGR of 11.9% from 2021 to 2028.
Medical Writing Market – The global medical writing market size is expected to reach USD 7.7 billion by 2027. It is expected to expand at a CAGR of 10.9% from 2020 to 2027.

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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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