Biotechnology/Pharmaceutical Services Outsourcing Market Size, Share, Growth, and Industry Analysis by Type (Consulting, Auditing & Assessment, Regulatory Affairs, Product Maintenance Product Design & Development, Product Testing & Validation, Training & Education, Others), by Application (Regenerative Medicine, Biobanking, Drug Discovery), Regional Insights and Forecast to 2031

Updated On: 29 April 2024

BIOTECHNOLOGY/ PHARMACEUTICAL SERVICES OUTSOURCING MARKET REPORT OVERVIEW

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The global biotechnology/pharmaceutical services outsourcingmarket size was USD 11480 million in 2019 and the market is projected to touch USD 15900 million by 2026, exhibiting a CAGR of 4.7% during the forecast period.

The increasing demand due to the ongoing patent cliff of biotechnology drugs is anticipated to fuel demand. An increasing number of end-to-end service providers, to meet the rising demand for low-cost drug development and manufacturing, is further anticipated to propel the market growth. Biotechnology and pharmaceutical services outsourcing market is characterized by a high impact of regulations. The pharmaceutical and biotechnology sectors are subject to strict quality and safety standards to ensure the efficacy and safety of drugs and biologics.

Biotechnology and pharmaceutical companies prefer outsourcing partners that offer integrated solutions, covering a wide spectrum of services. The growing number of end-to-end service providers intending to meet the expanding demand for drug development and manufacturing which is of low cost is projected to propel the biotechnology and pharmaceutical services outsourcing market growth. Participants are fixing their efforts on encouraging R&D. Technological development are supporting the regional market growth. Manufacturers need to stay updated with changing market trends and develop products that meet growing consumer needs. Companies coming up with progressive technological solutions for firming their positions.

COVID-19 Impact: Pandemic Hampered The Market Due To Unexpected Disruption In The Sector

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

COVID- 19 pandemic has extremely affected the whole world. It caused many unexpected disruption and affected the industry. COVID- 19 had negative impact on the market due to economic slowdown, unpredictability in financial sector and high unstable market. The pandemic resulted in decreased demand due to a disrupted supply chain, drop in sales of products, delivery schedules. Travel bans imposed affected business collaboration and partnership. Demand had recently reduced due to travel bans and lockdown during the COVID-19 pandemic. The continuous loss in the business due to the lockdown measures is projected to directly influence the growth of the investments in the market.

LATEST TRENDS

"Use Of Innovative Products To Boost The Market Growth "

Technological improvement and development will further enhance the presentation of the product, allowing it to obtain a varied range of requests in the market. Technological advancement will improve performance and propel the market growth. Technological advancement with high demand are increasingly setting a force to increase the productivity. Some players focus on product improvement to meet consumer requirements and likings. Constant innovation in manufacturing of products is anticipated to stimulate product demand.

BIOTECHNOLOGY/ PHARMACEUTICAL SERVICES OUTSOURCING MARKET SEGMENTATION

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By Type Analysis

According to type, the market can be segmented into consulting, auditing & assessment, regulatory affairs, product maintenance product design & development, product testing & validation, training & education, others

Consulting will capture the maximum market share through forecast period.

• Consulting –It involves evaluating processes, systems, and compliance with regulatory standards to ensure quality and efficiency in operations.
• Auditing & assessment - Services include the support, maintenance, and integration services provided by vendors to ensure the efficient operation of playout solutions. This can also include training, consulting, and managed services where the service provider manages playout operations on behalf of the client.
• Regulatory affairs- Focuses on navigating the regulatory landscape, including submission of regulatory documents, compliance with global regulations, and liaising with regulatory bodies.
• Product maintenance product design & development- Includes ongoing support for marketed products, such as managing updates, changes, and compliance with post-market surveillance requirements.
• Product testing & validation- Encompasses the entire process of bringing a new drug or therapy from concept to reality, including research, formulation, and process development.
• Training & education-Providing educational programs and training for professionals in the industry on various topics. Provides specialized training and educational services to ensure that personnel are up-to-date with the latest technologies.
• Others- This include a wide range of additional services not covered in the other categories, such as logistics, marketing, or IT support specific to the industry.

By Application Analysis

According to application, the market can be segmented into regenerative medicine, biobanking, drug discovery

Biotechnology/pharmaceutical services outsourcing market players cover segment as regenerative will dominate the market share during forecast period.

• Regenerative medicine – Regenerative medicine is a rapidly evolving field focused on to restoring or establishing normal function by replacing or regenerating human cells, tissues, or organs. This field includes stem cell therapies, tissue engineering, and gene therapy.
• Biobanking - Biobanking refers to the process of collecting, storing, and managing biological samples, such as blood, tissue, DNA, and other bio-specimens. These samples are crucial for medical research, including disease research, drug discovery, and the development of personalized medicine.
• Drug discovery- Drug discovery is the process through which new candidate medications are discovered. This complex, multidisciplinary endeavor involves identifying targets that play a key role in disease processes, discovering new drugs that affect these targets, and determining the safety and efficacy of drug candidates.

DRIVING FACTORS

"Increasing R&D Activities To Boost The Market Growth"

Biotechnology and pharmaceutical businesses appeared to have a high level of interest in outsourcing drug discovery due to the huge savings and other advantages over in-house manufacturing. The number of small and medium-sized businesses working within the drug discovery outsourcing market is anticipated to remain higher than that of large companies within the industry due to a low number of market competitors and fewer organizational barriers in decision-making.

"Focus on Core Competencies and Innovation To Upsurge The Market"

Focus on core competencies and innovation activate unique revenue augmenting opportunity which will upsurge the biotechnology/pharmaceutical services outsourcingmarket growth. Growing investment in research and development activities and growing awareness about benefits are expected to deliver profitable opportunities for the market. By outsourcing non-core activities, companies can focus on their core competencies such as drug discovery and innovation, thereby enhancing productivity and efficiency.

RESTRAINING FACTOR

"Cultural and Communication Barriers To Hamper The Market Growth"

Working with outsourcing partners from different countries can lead to challenges in communication and cultural differences, potentially impacting project timelines and outcomes. Technical difficulties will reduce the industry revenue.

BIOTECHNOLOGY/ PHARMACEUTICAL SERVICES OUTSOURCING MARKET REGIONAL INSIGHTS

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"The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East and Africa."

"North America to Dominate the Market Due To Presence Of Major Pharmaceutical and Biotechnology Companies"

North America is further expected to witness growth in the biotechnology/pharmaceutical services outsourcingmarket share. The region is dominating the market due to presence of major pharmaceutical and biotechnology companies. The rising inhabitants and increasing income levels are also contributing to the development of the market. Upsurge in investments by key market players for the R&D undertakings and enlargement of their production abilities and product portfolios are projected to upsurge the growth. The expansion of regional market is being aided by technological developments.

KEY INDUSTRY PLAYERS

"Key Players Focus On Partnerships To Gain Competitive Advantage"

The key players are dynamically contributing in strategic events that are aimed at maintaining strong market position and increasing market share by merger, partnerships and others. Key players are motivated to introduce new innovative products. They are spending severely on research and development in order to arise with more new technology so that they can maintain and improve their existing market. The market changes are dynamic such as market expansion, partnership and merger. The collective efforts of these major players expressively impact the competitive landscape and future path of the market.

List Of Market Players Profiled

• Quantic Group (U.S.)

• Parexel International Corporation (U.S.)

• Lachman Associates (U.K.)

• GMP Pharmaceuticals (Australia)

• Management Forum (U.K.)

INDUSTRIAL DEVELOPMENT

April 2021: Paraxel International Corporation announced a strategic partnership with Veeva. The partnership aims to increase clinical trials by leveraging process innovation & technology.

REPORT COVERAGE

The report provides scrutiny and information according to market sectors. Business overview, financial overview, product portfolio, new project launch, recent development enquiry are the factors included in the profile. The report incorporates completely examined and appraised evidence of the noticeable players and their position in the market by methods for various descriptive tools. The report covers national and regional level market size and forecast. The report gives businesses the facility to research new prospect in many areas. The report shows to be an operational tool that players can use to gain a competitive superiority over their opponents and ensure lasting achievement in the market.