Life Sciences BPO Market Research Report – Global Forecast till 2027

Global Life Sciences BPO Market: By Service Type (Contract Research (Drug Discovery, Pre-Clinical Trials, Clinical Trials, Medical Writing, Pharmacovigilance, Clinical Data Management, Regulatory Services, Clinical Monitoring, Protocol Development and Site Management), Contract Manufacturing, Contract Sales and Marketing), Application (Medical Devices, Pharmaceutical and Biopharmaceuticals) - Forecast to 2027

ID: MRFR/HC/8689-HCR | February 2021 | Region: Global | 138 pages

Please note that assessment period of report has been updated from 2018-2027 to 2020-2027. Cordially fill sample form for updated data.

Market Forecast


Global Life Sciences BPO Market is expected to cross USD 427.78 Billion by 2027 at a CAGR of 8.0%.  


Market Synopsis


Life sciences business process outsourcing (BPO) caters to the key factors such as growing need of pharmaceutical and biotechnology companies to speed up the time to market new treatments, reduce the cost of research and development (R&D), increase productivity and comply with regulations. In addition, increasing strategic initiatives, mergers & acquisitions, and product launches for the life sciences BPO market also aid to propel the market growth. The main objective of life sciences BPO service providers is to deliver world-class solutions through the development of successful business models and to help the clients overcome potential challenges.               


Market Influencer


The rising prevalence rate of COVID-19 is projected to influence market growth over the forecast period. As the coronavirus outbreak continues, life sciences BPO industry is challenged to continue to advance treatment pipeline and ensure adequate supply, business continuity, and rapid innovation. The pandemic has also affected the supply chain and has significantly impacted the life science BPO industry. However, the life sciences BPO industry is in a phase of rapid R&D in response to COVID-19.


Market Drivers



  • The increasing cost of drug development, clinical trials, and post-marketing surveillance by biopharma and pharmaceutical drug manufacturers boost the growth of the life sciences industry. The pharmaceutical and biotechnology companies invest a huge amount in R&D to introduce new devices, drugs and discover new treatment strategies. This introduction in the market requires a large investment. In 2016, the average cost of drug development and gaining approval was around USD 2.55 billion in the US. Several studies also point out the increasing out-of-pocket clinical costs due to large clinical trial size, high input cost. With the increasing cost of drug development and clinical trial studies, there is a need for efficient BPO services which is propelling the market growth.



  • Increasing trend of outsourcing employed by pharma and medical device companies aids in the growth of the life sciences BPO market. Pharmaceutical companies prefer to outsource their business process to maintain the cost of products and profitability of the company. Moreover, factors such as stringent regulatory environment, economic instability, and patent expiry of drugs have also forced these companies to outsource. These factors aid in the rising market growth of the life sciences BPO market.



  • Favorable government initiatives and increasing adoption of digital health platforms



  • Use of advanced technologies in the life sciences BPO industry


Market Restraints



  • Stringent regulatory approvals of drugs limit the market growth to an extent. Outsourcing clinical trials and research procedures need to abide by guidelines related to drug approval which is acting as a restraining factor for the market growth. Also, due to the ongoing COVID-19 pandemic outbreak, the slowdown in economic growth in many countries is expected to hinder the market growth to some extent.



  • Data privacy and security concerns hinder the life sciences BPO market significantly. The reliability of the service provider by the pharmaceutical companies is a limiting factor for market growth.


Segmentation


By Service Type



  • Contract Research: This segment, based on type, has been further classified into drug discovery, pre-clinical trials, clinical trials, medical writing, pharmacovigilance, clinical data management, regulatory services, clinical monitoring, protocol development, and site management. These services are expected to have a huge demand over the forecast period, owing to the increasing number of clinical trials, R&D activities, and the rising demand for new drug therapy. The increase in R&D activities includes huge costs, and thus, it prompts several companies to outsource their services to CROs, in turn aiding to the growth of the segment over the forecast period.



  • Contract Manufacturing: Strategic outsourcing has become an industry standard and offers a range of services from screening and to toxicology procedures, pre-clinical studies, clinical trials, manufacturing processes, and marketing. The CMOS operating in the life sciences industry has evolved in the past few years and expected to witness strong growth over the forecast period.



  • Contract Sales and Marketing: The recent outbreak of COVID-19 is another key driver generating value-grab opportunities for contract sales and marketing organizations. Sales organization has increased the profitability of the sales by adopting a BPO strategy which is acting as a boosting factor for the market growth.


By Application



  • Medical Device: The medical device BPO market segment is anticipated to be the fastest-growing due to the increasing number of medical device companies outsourcing the services such as product design, regulatory services, etc. are fueling the market growth.



  • Pharmaceuticals and Biopharmaceuticals: Pharmaceuticals and biopharmaceuticals held the largest segment in the application segment. The increasing number of pharmaceutical, biotechnology companies, research facilities as well as laboratories adopting BPO strategy is anticipated to propel the market growth in the near future.


By Region



  • Americas: Americas held the major share in the life sciences BPO market in 2019. The factors attributing to the market growth in this region are rising drug and medical device manufacturing costs, increasing reimbursement policies, the presence of several pharmaceutical companies such as Charles River Laboratories, Covance, Inc., and Catalent, Inc. and their growing focus on core outsourcing activities by these companies.



  • Europe: The life sciences BPO markets in Western European economies, such as Germany, UK, and Sweden, is expected to exhibit an increase in healthcare expenditure, funding’s provided by the government, an increasing number of clinical trials and R&D activities in research organizations thereby leading to the growth in life sciences BPO market in this region.



  • Asia-Pacific: Asia-Pacific is expected to be the fastest-growing market for life sciences BPO during the forecast period. Emerging countries such as India and China are the key hubs for the life sciences business process outsourcing market. India and China operate in an accountable active pharmaceutical ingredient (API) and finished product export activities globally. The favorable government initiatives such as “Make in India” after the COVID-19 pandemic situation, are amongst the key factors expected to drive the life sciences BPO market over the forecast period.



  • Middle East & Africa: The presence of several pharmaceutical companies, improving healthcare infrastructure, the surge in penetration of life sciences BPO across the paradigm of clinical trials from early-phase to late-phase studies are the factors driving the market growth in this region.


Key Players



  • Accenture plc (Ireland)

  • Boehringer Ingelheim GmbH (Germany)

  • Charles River Laboratories International, Inc. (US)

  • Covance, Inc. (US)

  • Genpact Limited (US)

  • Catalent, Inc. (US)

  • Infosys (India)

  • Health Decisions, Inc. (US)

  • Anthelio Healthcare Solutions (India)

  • Cognizant Technology Solutions (US)

  • ProMab Biotechnologies, Inc. (US)

  • Quintiles Transnational Corporation (US)

  • Paraxel International Corporation (US)

  • Lonza Group (Switzerland)



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: USD 427.78 Billion
  CAGR   8.0% (2020-2027)
  Base Year   2019
  Forecast Period   2027
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Service Type, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Accenture plc (Ireland), Boehringer Ingelheim GmbH (Germany), Charles River Laboratories International, Inc. (US), Covance, Inc. (US), Genpact Limited (US), Catalent, Inc. (US), Infosys (India), Health Decisions, Inc. (US), Anthelio Healthcare Solutions (India), Cognizant Technology Solutions (US), ProMab Biotechnologies, Inc. (US), Quintiles Transnational Corporation (US), Paraxel International Corporation (US), Lonza Group (Switzerland).
  Key Market Opportunities

  • Value-Grab opportunities for contract sales and marketing organizations.
  • The pharmaceutical and biotechnology companies invest a huge amount in R&D to introduce new devices, drugs and discover new treatment strategies
  •   Key Market Drivers

  • Increasing trend of outsourcing employed by pharma and medical device companies aids in the growth.
  • The increasing cost of drug development, clinical trials, and post-marketing surveillance by biopharma and pharmaceutical drug


  • Frequently Asked Questions (FAQ) :


    The market can expect to cross a valuation of USD 427.78 Billion in the years ahead.

    The market advancement rate outlined in the report is 8%.

    The surge in strategic initiatives, product launches and mergers & acquisitions by life sciences BPO firms has enhanced the global market size in recent years. The increasing cost of drug development, clinical trials, and post-marketing surveillance by biopharma and pharmaceutical drug manufacturers also boosts market growth.

    The medical device BPO application-dependent segment can procure the fastest growth rate in the years to come.

    The American market is in the lead on account of rising drug and medical device manufacturing costs, increasing reimbursement policies, the presence of several pharmaceutical companies such as Charles River Laboratories, Covance, Inc., and Catalent, Inc. and their growing focus on core outsourcing activities by these companies.



    This table of content is tentative and subject to change as the research progresses.

    Please Note:  Financial details of company cannot be provided if the information of the company is not available in public domain and or reliable source.