Pharmaceutical Outsourcing Market
Number of pages: 100 | Report Format: PDF | Published date: February 24, 2023
Historical Years – 2020 | Base Year – 2021 | Forecasted Years – 2022-2030
|
Report Attribute |
Details |
|
Market Size Value in 2021 |
US$ 125.0 billion |
|
Revenue Forecast in 2030 |
US$ 227.8 billion |
|
CAGR |
6.9% |
|
Base Year for Estimation |
2021 |
|
Forecast Period |
2022-2030 |
|
Historical Year |
2020 |
|
Segments covered |
Services, End User, and Region |
|
Regional scope |
North America, Europe, Asia Pacific, and the Rest of the World (RoW) |
According to the deep-dive market assessment study by Growth Plus Reports, the global pharmaceutical outsourcing market was valued at US$ 125.0 billion in 2021 and is expected to register a revenue CAGR of 6.9% to reach US$ 227.8 billion by 2030.
Pharmaceutical Outsourcing Market Fundamentals
The pharmaceutical outsourcing market has been growing rapidly in recent years, driven by various factors, such as the increasing pressure on pharmaceutical companies to reduce costs and improve efficiency, the rising demand for novel therapeutics, and the growing complexity of drug development and manufacturing processes. These factors have led many pharmaceutical companies to seek outsourcing solutions for various stages of the drug development process, from research and development to clinical trials to manufacturing and distribution.
Despite its rapid growth, the pharmaceutical outsourcing market faces certain challenges, such as concerns about quality and regulatory compliance, potential intellectual property issues, and the need for effective communication and collaboration between outsourcing providers and their clients.
Pharmaceutical outsourcing refers to the practice of a pharmaceutical company contracting with external organizations to perform certain functions that were traditionally done in-house. This can include various stages of the drug development process, such as research and development, clinical trials, manufacturing, packaging, labeling, and distribution. Pharmaceutical outsourcing is often used by companies to reduce costs and improve efficiency. By outsourcing certain tasks, companies can focus on their core competencies and free up resources for other important areas of their business. Additionally, outsourcing can provide access to specialized expertise and resources that may not be available in-house.
[54657567]
Pharmaceutical Outsourcing Market Dynamics
The demand for outsourcing services is expected to continue growing, as pharmaceutical companies increasingly seek to reduce costs and improve efficiency, which is boosting the revenue growth of the global pharmaceutical outsourcing market. As drug development becomes more complex and specialized, pharmaceutical companies are increasingly turning to outsourcing providers that offer expertise in specific areas, such as formulation development, bioanalytical services, and clinical trial data analysis. Moreover, there is a growing demand for novel therapeutics to address unmet medical needs. Outsourcing can help companies accelerate the development and manufacturing of these new therapies, bringing them to market more quickly, which is driving the revenue growth of the pharmaceutical outsourcing market.
The pharmaceutical industry is increasingly adopting digital technologies, such as data analytics, artificial intelligence, and machine learning. This is likely to lead to a growing demand for outsourcing providers that offer digital services and expertise. Many pharmaceutical companies are now seeking long-term strategic partnerships with outsourcing providers rather than engaging in one-off transactions. This allows them to access specialized expertise and resources on an ongoing basis and to collaborate more closely with their partners to achieve their business goals, which fuel the pharmaceutical outsourcing market revenue growth.
However, the biggest risk associated with outsourcing is the quality of the services provided by the outsourcing provider, which restricts the market for pharmaceutical outsourcing. Moreover, outsourcing can create risks related to the protection of intellectual property, which may also hinder revenue growth in the pharmaceutical outsourcing market.
Pharmaceutical Outsourcing Market Ecosystem
The global pharmaceutical outsourcing market is analyzed from three perspectives: services, end user, and region.
Pharmaceutical Outsourcing Market by Services
[8765444]
Based on the services, the global pharmaceutical outsourcing market is segmented into pharmaceutical manufacturing services, drug development services, and biologics manufacturing services.
The biologics manufacturing services segment dominated the pharmaceutical outsourcing market with the largest revenue share in 2021. The biologics manufacturing services segment is further sub-segmented in biologics API manufacturing services and biologics FDF manufacturing services. Biologics are an important and growing segment of the pharmaceutical industry, with a range of applications in areas, such as oncology, autoimmune diseases, and infectious diseases. As the demand for biologics continues to increase, the need for specialized expertise and resources in biologics manufacturing is expected to rise. Biologics manufacturing is a complex process that requires specialized expertise and resources, including advanced technologies, specialized equipment, and highly skilled personnel. Outsourcing can provide access to these resources and expertise, which may not be available in-house, thus increasing the demand for outsourcing in biologics manufacturing. Additionally, outsourcing biologics manufacturing can be a cost-effective way for pharmaceutical companies to access specialized expertise and resources, reduce costs, and improve efficiency. Biologics manufacturing is highly regulated, with stringent requirements for quality control, safety, and efficacy. Outsourcing to specialized biologics manufacturing service providers can help pharmaceutical companies ensure regulatory compliance.
Pharmaceutical Outsourcing Market by End User
Based on the end user, the global pharmaceutical outsourcing market is segmented into big pharmaceutical companies, small & medium-sized pharmaceutical companies, and generic pharmaceutical companies.
The big pharmaceutical companies segment accounted for a significant revenue share of the pharmaceutical outsourcing market in 2021. Outsourcing can provide cost savings for big pharmaceutical companies, as they can avoid the high capital costs associated with building and maintaining in-house facilities and staff. Big pharmaceutical companies have significant financial resources that allow them to invest in outsourcing activities on a larger scale than smaller companies. Outsourcing allows pharmaceutical companies to focus on their core competencies, such as drug discovery and development, while delegating other activities to external partners. This can lead to improved efficiency and productivity. Thus, big pharmaceutical companies are opting for outsourcing. In addition, outsourcing can provide big pharmaceutical companies with access to new technologies and innovation, as well as help them mitigate risks associated with drug development and manufacturing.
Pharmaceutical Outsourcing Market by Region
Geographically, the global pharmaceutical outsourcing market has been segmented into North America, Europe, Asia Pacific, and the Rest of the World.
The North America region accounted for a significant market revenue share in 2021. The region has a large number of pharmaceutical companies that require outsourcing services to remain competitive in the global market. The presence of a well-established infrastructure for research and development, manufacturing, and clinical trials in North America is supporting the revenue growth of the pharmaceutical outsourcing market. North America has a highly skilled and educated workforce that is able to provide high-quality services to pharmaceutical companies. Additionally, the region has a favorable regulatory environment that promotes innovation and growth in the pharmaceutical industry.
Pharmaceutical Outsourcing Market Competitive Landscape
The prominent players operating in the global pharmaceutical outsourcing market are:
Pharmaceutical Outsourcing Market Strategic Developments
The increasing pressure on pharmaceutical companies to reduce costs and improve efficiency, the rising demand for novel therapeutics, and the growing complexity of drug development and manufacturing processes are propelling revenue growth in the global market.
The quality concerns, intellectual property issues, and regulatory compliance are a few of the restricting factors for market revenue growth.
Parexel International Corporation, The Quantic Group, IQVIA, Lachman Consultant Services, Inc., and GMP Pharmaceuticals Pty Ltd. are among the top market players.
The pharmaceutical outsourcing market is expected to reach US$ 227.8 billion by 2030.
North America accounts for the largest market share in terms of revenue. Moreover, Asia Pacific is the key region expected to show growth at the fastest revenue CAGR during the forecast period.
*Insights on financial performance are subject to the availability of information in the public domain