Biotechnology Pharmaceutical Services Outsources Market Analysis

Global Biotechnology and Pharmaceutical Services Outsources Market Overview

Biotechnology and Pharmaceutical Services Outsources Market Size was valued at USD Billion in 2022. The Biotechnology and Pharmaceutical Services Outsources market industry is 70.3 projected to grow from USD 73.4 Billion in 2023 to USD 104.4 Billion by 2032, exhibiting a compound yearly growth rate (CAGR) of 4.50% during the forecast years (2023 - 2032). Growth in the R&D activities, cost efficiency of outsourcing, globalization and market expansion of biotechnology and pharmaceutical companies are the key market drivers improving the market growth.

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Biotechnology and Pharmaceutical Services Outsources Market Trends

• Cost efficiency of outsourcing is driving the market growth

Market CAGR for biotechnology and pharmaceutical services outsources is being driven by the cost efficiency of outsourcing. Pharmaceutical and the biotechnology companies face increasing pressure to reduce costs while maintaining high-quality research, development, and manufacturing processes. Outsourcing various aspects of their operations allows these companies to tap into cost-effective resources and expertise without the overhead costs associated with in-house teams and facilities. Outsourcing enables companies to access a global talent pool. They can hire skilled professionals in regions with lower labor costs, helping them save on salaries, benefits, and training expenses.

Building and maintaining state-of-the-art laboratories, manufacturing facilities, and IT infrastructure can be prohibitively expensive. Outsourcing partners often have these resources in place, allowing pharmaceutical and biotech companies to avoid large capital expenditures. Outsourcing gives the flexibility to scale up or down based on project needs. Companies can adapt quickly to changes in demand without the burden of maintaining a permanent workforce. Outsourcing companies often specialize in specific areas, such as clinical trials, drug discovery, or manufacturing. This specialization means that they have extensive experience and expertise in their field, potentially leading to more efficient and successful outcomes. Outsourcing can help distribute risks associated with drug development and manufacturing. Companies can share the responsibility with outsourcing partners, reducing their exposure to failures and setbacks.

Outsourcing can accelerate the drug development timeline. Specialized outsourcing partners can efficiently conduct various stages of research, development, and manufacturing, helping bring drugs to market more quickly. Outsourcing allows pharmaceutical and biotech companies to expand their global presence without the need to establish physical locations in multiple regions. This can lead to broader market reach and opportunities. Many outsourcing partners are well-versed in regulatory compliance, which is crucial in the pharmaceutical and biotechnology sectors. They can help ensure that all operations adhere to stringent regulatory standards, saving companies from potential legal and financial issues. By outsourcing non-core functions, pharmaceutical and biotech companies can concentrate their resources and efforts on their core competencies, such as drug discovery and innovation. Thus, driving the Biotechnology and Pharmaceutical Services Outsources market revenue.

Biotechnology and Pharmaceutical Services Outsources Market Segment Insights

Biotechnology and Pharmaceutical Services Outsources Service Insights

The Biotechnology and Pharmaceutical Services Outsources Market segmentation is based on services that include Consulting, Auditing and assessment, Regulatory Affairs, Product Maintenance, Product Design and development, Product Testing and validation, Training and education and Others. The consulting segment dominated the market, accounting for the largest market revenue by offering a holistic approach to helping pharmaceutical and biotech companies navigate the complexities of their industry. Their expertise in strategy, operations, compliance, and risk management makes them invaluable partners for organizations seeking to optimize their outsourcing efforts and achieve success in a highly competitive market. Further, the product design & development category is experiencing the highest growth in the global pharmaceutical and biotechnology services outsourcing market.

Biotechnology and Pharmaceutical Services Outsources End-Use Insights

The Biotechnology and Pharmaceutical Services Outsources Market segmentation based on end use, including Pharmaceutical and Biotechnology. The pharmaceutical category dominates the market due to its size, complexity, financial capacity, and need for specialized services. Pharmaceutical companies rely on outsourcing to streamline their operations, access expertise, and remain competitive in a rapidly evolving industry. Outsourcing helps pharmaceutical companies to access special expertise that may not be available in-house.

Figure 1: Biotechnology and Pharmaceutical Services Outsources Market, by End Use, 2022 & 2032 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Biotechnology and Pharmaceutical Services Outsources Regional Insights

By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Biotechnology and Pharmaceutical Services Outsources market area dominates the market due to the presence of an established biotech and pharma hub, robust research ecosystem, deep understanding of the regulatory requirements and compliance standards in the pharma and biotechnology industries, easy access to capital markets and venture funding. Further, the region is often at the forefront of adopting cutting-edge technologies and innovations in biotechnology and pharmaceuticals.

Further, the main countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, Japan, India,China,  Australia, South Korea, and Brazil.

Figure 2: BIOTECHNOLOGY AND PHARMACEUTICAL SERVICES OUTSOURCES MARKET SHARE BY REGION 2022 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Biotechnology and Pharmaceutical Services outsourcing market accounts for the second-largest market revenue due to the increasing complexity of drug development, coupled with a focus on cost containment and regulatory compliance. Further, the German Biotechnology and Pharmaceutical Services Outsources market held the largest market revenue, and the UK Biotechnology and Pharmaceutical Services Outsources market was the rapid growing market in the European region.

The Asia-Pacific Biotechnology and Pharmaceutical Services outsourcing market is expected to grow at the rapid CAGR from 2023 to 2032. This is due to the region's lower labor costs and growing pool of skilled scientific talent, making it an attractive destination for cost-effective research and development services and the increasing demand for healthcare services and drug development in the region. Moreover, China’s Biotechnology and Pharmaceutical Services Outsources market posed the largest market share, and the Indian Biotechnology and Pharmaceutical Services Outsources market was the fastest-growing market in the Asia-Pacific region.

Biotechnology and Pharmaceutical Services Outsources Key Market Players & Competitive Insights

Leading market players are investing hugely in research and development in order to expand their product lines, which will help the Biotechnology and Pharmaceutical Services Outsources market grow even more. Market players are also undertaking a variety of strategic activities to spread their global footprint, with important market developments including contractual agreements, new product launches,  higher investments, mergers and acquisitions, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Biotechnology and Pharmaceutical Services Outsources industry must offer cost-effective items.

Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the global Biotechnology and Pharmaceutical Services Outsources industry to benefit clients and increase the market sector. In recent years, the Biotechnology and Pharmaceutical Services Outsources industry has offered some of the most significant advantages to medicine. Major participants in the Biotechnology and Pharmaceutical Services Outsources market, including The Quantic Group; IQVIA; Parexel International Corporation; Lachman Consultant Services, Inc.; GMP Pharmaceuticals Pty Ltd.; Concept Heidelberg GmbH; Covance, Inc.; Charles River Laboratories; PRA Health Sciences; ICON plc, and others, are trying to increase market demand by investing in research and development operations.

Laboratory Corporation of America Holdings, commonly known as LabCorp, is a prominent American healthcare diagnostics company that provides a broad range of laboratory testing and diagnostic services. LabCorp offers a comprehensive suite of diagnostic services, including clinical laboratory testing, genetic testing, drug development support, and contract research services. They provide a wide range of medical tests, from routine blood work to advanced genetic and molecular diagnostics. In April 2022, LabCorp, the parent company of Covance, collaborated with a developer of cell and gene therapy technologies, Xcell Biosciences, to expand its research capabilities in cell and gene therapies. This collaboration will focus on projects aimed at improving the efficacy & safety of cell and gene therapies.

Charles River Laboratories International, Inc. is a prominent global company that offers  essential products and services to help biotechnology, pharmaceutical, and the medical device companies bring their products from early development to market. The company offers a broad range of services, including preclinical and safety assessment, drug discovery, comparative medicine, regulatory and compliance support, and various laboratory testing and analysis services. Charles River Laboratories is involved in research and development efforts aimed at advancing drug discovery and development processes. In April 2023, Charles River Laboratories International acquired Explora BioLabs Holdings, Inc. Explora BioLabs is a premier provider of contract vivarium research services. This acquisition expands Charles River's vivarium capabilities and positions the company to meet the surging demand for vivarium services in the biotechnology and pharmaceutical industries.

Key Companies in the Biotechnology and Pharmaceutical Services Outsources market include

• The Quantic Group


• IQVIA


• Parexel International Corporation


• Lachman Consultant Services, Inc.


• GMP Pharmaceuticals Pty Ltd.


• Concept Heidelberg GmbH


• Covance, Inc.


• Charles River Laboratories


• PRA Health Sciences


• ICON plc

Biotechnology and Pharmaceutical Services Outsources Industry Development

March 2023:LEO Pharma, a global leader in medical dermatology, announced a strategic partnership with ICON plc. This partnership will enable LEO Pharma to scale clinical trial execution that is cost-effective and patient-centric.

February 2023:Lonza completed the expansion of its conjugation facility in Visp, Switzerland, to increase the development and manufacturing capacity for bioconjugates and antibody-drug conjugates.

July 2021:ICON plc acquired PRA Health Sciences. PRA Health Sciences is a leading clinical research organization. This acquisition created the world's largest clinical research organization powered by healthcare intelligence.

Biotechnology and Pharmaceutical Services Outsources Market Segmentation

Biotechnology and Pharmaceutical Services Outsources Service Outlook (USD Billion, 2018-2032)

• Consulting


• Auditing & Assessment


• Regulatory Affairs


• Product Maintenance


• Product Design & Development


• Product Testing & Validation


• Training & Education


• Others

Biotechnology and Pharmaceutical Services Outsources End Use Outlook (USD Billion, 2018-2032)

• Pharmaceutical


• Biotechnology

Biotechnology and Pharmaceutical Services Outsources Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America