Access TOC
Get a SampleFebruary 2024
The global biotechnology and pharmaceutical services outsourcing market size is calculated at USD 51.53 billion in 2025 and is forecasted to reach around USD 85.74 billion by 2034, accelerating at a CAGR of 5.82% from 2025 to 2034. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global biotechnology and pharmaceutical services outsourcing market size was estimated at USD 48.70 billion in 2024 and is anticipated to reach around USD 85.74 billion by 2034, expanding at a CAGR of 5.82% from 2025 to 2034.
The U.S. biotechnology and pharmaceutical services outsourcing market size was estimated at USD 20.94 billion in 2024 and is anticipated to be surpass around USD 37.30 billion by 2034, rising at a CAGR of 5.94% from 2025 to 2034.
Asia Pacific dominated the global biotechnology and pharmaceutical services outsourcing market with the largest market share of 43% in 2024. The Asia-Pacific biotechnology & pharmaceutical services outsourcing market is fueled by the availability of an experienced labor force, as well as the low cost of drug development and production.
The North America is estimated to be the most opportunistic segment during the forecast period. The expansion of the biotechnology & pharmaceutical services outsourcing market in North America region is expected to be aided by the growth of international Contract Manufacturing Organizations (CMOs) and Contract Research Organizations (CROs).
The biotechnology & pharmaceutical services outsourcing, primarily for Contract Manufacturing Organizations (CMOs) and Contract Research Organizations (CROs), has grown in popularity since last decade, and it is expected to grow in the near future. The new outsourcing industry sectors, such as rising screening services, have grown to be prosperous businesses, and many operations that were once considered essential, such as in-house spontaneous animal toxicology testing, are now rare within biotechnology & pharmaceutical services outsourcing market players.
Over the last few years, the growing cell banking business has enabled biotechnology & pharmaceutical services outsourcing companies to generate profit on a large scale. The advanced infrastructure facilities are also expected to be used in clinical research across a variety of applications, including diabetes and cancer treatment and cardiovascular disorders management, due to technological developments. As a result, lots of new service outsourcing firms has grown up in a variety of industries.
However, the constraints such as scarcity of competent product developers and contract research organizations (CROs) restricted regional reach may limit the biotechnology & pharmaceutical services outsourcing market’s growth during the forecast period.
Outsourcing biotechnology & pharmaceutical services has proven to be beneficial in reducing infrastructural and operational costs. However, due to decreasing research and development activities, the biotechnology & pharmaceutical industry has seen a major decline in its new product portfolio. As a result, many companies have implemented additional internal downsizing and increased outsourcing as a means of lowering capital and payroll costs.
Outsourcing has evolved into an industry trend that now encompasses the entire scope of corporate activities, from screening and lead identification to toxicology and a variety of other procedures such as clinical trials and preclinical investigations.
The biotechnology & pharmaceutical services outsourcing is applicable in auditing & evaluation, consulting, product maintenance, regulatory affairs, and testing & validation in the drug discovery sector. The pharmaceutical firms, in particular, rely on these services to stay competitive.
The regenerative medicine, which had a significant impact of overall health, is one of the most recognized and promising application areas for biotechnology & pharmaceutical services outsourcing. The regenerative medicines are experimental treatments that aim to replace or regenerate organs, cells, or tissues, in order to restore function following injury or disease.
In some aspects, this economic-driven expansion in biotechnology &pharmaceutical outsourcing has contributed to a reduction in long-term industry efficiency. Despite the fact that biotechnology & pharmaceutical outsourcing will eventually be shown to be ineffective in terms of promoting new product research and development and innovation, outsourcing will continue to increase.
It is the only option available to biotechnology & pharmaceutical companies that must adjust to lower profitability due to clogged research and development products and drugs that have gone off-patent. During the projection period, the global biotechnology & pharmaceutical services outsourcing market will continue to grow, although at a faster pace than in the past.
The non-core support operations such as human resource, finance, and information technology were the first to be outsourced in the biotechnology &pharmaceutical industry. Outsourced contract research and contract manufacturing have become the norm in the biotechnology &pharmaceutical industry for various key market players.
Furthermore, low- and middle-income regions not only provide reduced costs, but they also have their own rapidly growing biotechnology & pharmaceutical industry. In these low- and middle-income regions, several of the world’s largest biotechnology & pharmaceutical market players invest lots of money in establishing their own research and development centers and outsourcing to contract manufacturing organizations (CMOs) and contract research organizations (CROs).
| Report Coverage | Details |
| Market Size in 2025 | USD 51.53 Billion |
| Market Size by 2034 | USD 85.74 Billion |
| Growth Rate From 2025 to 2034 | 5.70% |
| Largest Market | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Services, Services Outsourcing, Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
The consulting segment accounted for the highest market share in 2024. This is due to an increase in mergers and acquisitions activities as well as constantly changing regulatory guidelines. The key market players are adhering to established standards and conventions, which necessitates consulting because these they lack such expertise.
The other services segment is expected to grow at rapid pace during the forecast period. As Contract Manufacturing Organizations (CMOs) are offering services at a less cost, more generics and biopharmaceuticals are being outsourced. The contract manufacturing, IT consulting, and product upgrades are all included in this category.
The the pharma segment contributed the highest market share of 77% in 2024. The contract service providers are often regarded as a sound strategic solution for addressing drug shortages and high production costs while also meeting rising demand in the market. Due to lack of resources, many pharmaceutical companies have turned to Contract Manufacturing Organizations (CMOs) and Contract Research Organizations (CROs) to develop and manufacture medicines.
The biotech segment is projected to grow at a solid during the forecast period. As a result of escalating pricing and increased competition, biotechnology companies are outsourcing internal activities on a large scale.
To gain a larger share of the biotechnology & pharmaceutical services outsourcing market and remain profitable in an extremely competitive environment, manufacturing companies are pursuing policies such as reasonable pricing, mergers and acquisitions, business expansion, joint venture, and partnership.
By Services
By Services Outsourcing
By Geography
For questions or customization requests, please reach out to us at sales@precedenceresearch.com
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client
February 2024
January 2025
August 2024
August 2024