Published Date : 21 Nov 2022
The global biotechnology and pharmaceutical services outsourcing market size was exhibited at USD 68.37 billion in 2022 and is projected to surpass around USD 108.49 billion by 2030, growing at a CAGR of 5.9% during the forecast period from 2022 to 2030.
The biotechnology & pharmaceutical services outsourcing market is likely to be driven by rising price competition, a lack of internal capabilities, low-cost service offers Contract Manufacturing Organizations (CMOs) and Contract Research Organizations (CROs), and access to industry experts. Furthermore, increased drug development costs and increasing regulatory frameworks all have a significant impact on the growth of the biotechnology & pharmaceutical services outsourcing market. In addition, well established Contract Research Organizations (CROs), management consulting firms, regulatory outsourcing organizations, and contract manufacturers serve the biotechnology & pharmaceutical industry’s complicated requirements.
The contract research and manufacturing businesses are investing in technology, people resources, and infrastructure in order to gain a major market share of the biotechnology & pharmaceutical services outsourcing market. The growing number of end-to-end service providers, in order to meet the growing need for low-cost medicine discovery as well as manufacturing, is predicted to fuel the growth of the biotechnology & pharmaceutical services outsourcing market.
Biotechnology and Pharmaceutical Services Outsourcing Market Report Scope
|Market Size In 2022
|USD 68.37 Billion
|Market Size By 2030
|USD 108.49 Billion
|Growth Rate from 2022 to 2030
CAGR of 5.9%
|2022 to 2030
|By Services Outsourcing
North America is the largest segment of the biotechnology & pharmaceutical services outsourcing market in terms of region. This is attributed to the presence of numerous well-known Contract Manufacturing Organizations (CMOs) and Contract Research Organizations (CROs). Additionally, raising funds for research and development activities by biotechnology & pharmaceutical companies in the North America region.
Asia-Pacific region is the fastest-growing region in the biotechnology & pharmaceutical services outsourcing market. The Asia-Pacific region’s low drug research and manufacturing costs, as well as the availability of a qualified workforce, are likely to encourage contract development and manufacturing. Furthermore, economic policy reforms in nations like India and China are expected to result in significant opportunities for the growth of the market.
Drivers: Cost benefits associated with drug discovery
Due to significant cost savings and other advantages over in-house manufacturing, biotechnology & pharmaceutical companies have repeatedly demonstrated a high level of interest in drug discovery outsourcing. Due to a low number of market players and less organizational obstacles in decision-making, the number of small and medium-sized firms operating in the drug discovery outsourcing market is likely to stay higher than that of bigger entities in the market. In addition, due to a variety of circumstances, including low production capacity and technical skills, small and medium-sized businesses are increasingly relying on drug discovery outsourcing for product manufacturing and development. These factors, combined with rising research and development expenses, are propelling the growth of the global biotechnology & pharmaceutical services outsourcing market.
Restraints: Strict government regulations
The growth of the biotechnology and pharmaceutical services outsourcing market is hampered by government rules and regulations. This regulatory framework, which oversees the licensing and commercialization of medical devices, also claims jurisdiction over laboratory-developed tests, despite the fact that no enforcement action has been taken by law enforcement to compel laboratories to follow these specific rules. As a result, during the forecast period, stringent regulatory frameworks will impede the growth of the biotechnology & pharmaceutical services outsourcing market.
Opportunities: Technological advancements
In the previous decade, technological developments have played a crucial role in driving innovation, and this trend is anticipated to continue in the following decade. The competition in the drug discovery and development industries has risen rapidly as a result of rapid technological advancements. Due to the fierce rivalry in the biotechnology & pharmaceutical services outsourcing business, multiple corporations are increasingly collaborating with third-party companies to produce a variety of cost-effective pharmaceuticals. Thus, technological advancements are creating lucrative opportunities for the growth of the biotechnology & pharmaceutical services outsourcing market during the forecast period.
Challenges: Challenges in the pharmaceutical sector
The pharmaceutical industry faces a number of obstacles that necessitate significant adjustments during drug discovery and drug development processes. Drug development and drug discovery are increasingly being outsourced as a result of rising problems in drug development. During the projected period, pricing pressure is expected to be the primary driver of a structural change in drug discovery outsourcing. Pharmaceutical companies’ high-profit margins have drawn the attention of healthcare providers, putting pressure on costs and reimbursement. As a result, as profit margins continue to drop, numerous corporations are considering outsourcing drug discovery to third-party groups with the necessary capabilities.
Key Players in the Report
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