The global Biotechnology & Pharmaceutical Services Outsourcing market size is expected to be worth around US$ 109.4 billion by 2030, according to a new report by Vision Research Reports.
The global Biotechnology & Pharmaceutical Services Outsourcing market size was valued at US$ 71.2 billion in 2020 and is anticipated to grow at a CAGR of 15.2% during forecast period 2021 to 2030.
The high demand for biologics along with small molecules has led to the expansion of service portfolios of Contract Manufacturing Organizations (CMOs)/Contract Research Organizations (CROs) for biotechnology and pharmaceutical production. Small pharma/biotech companies are facing challenges while performing in-house development, product maintenance, product design & development, product testing & validation, and training & education, such as lack of substantial expertise and expensive capability. This, in turn, has created lucrative opportunities for the growth of CMOs & CROs. Contract services are growing and becoming strategic, targeted, and planned. These factors are expected to play a pivotal role in enhancing the share of CMOs/CROs in the overall market.
Growing pricing pressure, regulatory challenges, and patent expiration have led to shrinking margins in the biotech and pharmaceutical industry. Contract services offer cost saving to their clients and also help save time utilized in operations and management of a production & research facility. Furthermore, outsourcing services assist in overcoming trade barriers and facilitate the entry of firms into foreign markets. Owing to these advantages, several firms choose to outsource services rather than investing capital in production equipment and hiring skilled labor.
The consulting services segment accounted for the largest revenue share of over 19% in 2020 and will retain its leading position throughout the forecast period. This growth can be attributed to the increasing M&A activities and constantly changing regulatory protocols. For instance, the government of China issued a notification to upgrade the quality of generic drugs, remove the backlog of drug applications, improve the quality and transparency of the review and approval process, and encourage new drug R&D in line with global development. Moreover, pharma and biotech markets have witnessed the continuous entry of new players, such as Signa Medical Writing, bioSyntagma, and Fieve Clinical Research, Inc.
These companies need to be compliant with set standards and norms, for which consulting is essential as new entrants lack such capabilities. Consulting services comprise regulatory compliance, remediation, quality management systems consulting, and other services. However, the other services segment is expected to register the fastest CAGR over the forecast period owing to the rising outsourcing of generics and biosimilar manufacturing as CMOs are offering services at lower costs. The other services segment is inclusive of contract manufacturing, product upgrade, and IT consulting.
The pharma end-use segment led the global biotech and pharma services outsourcing market in 2020 and accounted for a revenue share of over 55%. The segment will grow further at the fastest CAGR over the forecast period. Contract service providers are recognized as an effective strategic decision to curb the issues of drug shortfall and high production costs, as well as meet the growing demand.
Lack of resources has prompted many pharmaceutical companies to outsource drug development and manufacturing to CROs and CMOs. The CROs and CMOs offer highly sophisticated development and manufacturing services, such as preclinical development, clinical development, commercial manufacturing, clinical manufacturing, precision injection molding, high-speed automation, assembly, fill/finish, and others for a range of pharma products.
North America accounted for the highest market share of over 54% in 2020 owing to the presence of several established CROs and CMOs, such as Covance Inc., and growing R&D investments by life sciences and pharmaceutical companies in the region. In addition, the expansion of foreign CMOs and CROs into the region is expected to propel market growth. For instance, in September 2019, Bora Pharmaceuticals received FDA approval for its CMO services, and in October 2019, it opened a sales office in Delaware to expand its business outside Asia.
Asia Pacific is anticipated to be the fastest-growing regional market over the forecast period. The low cost of drug development and manufacturing and availability of a skilled workforce are the key factors driving the market in this region. Moreover, economic policy reforms in countries, such as China, are anticipated to create a balanced economy, which presents ample opportunity for market players to invest in this region. In July 2017, Novotech expanded its site management services in Korea with the launch of Novotech SMO Korea Co. Ltd.
The Quantic Group
Parexel International Corporation
Lachman Consultant Services, Inc.
GMP Pharmaceuticals Pty Ltd.
Concept Heidelberg GmbH
Charles River Laboratories
PRA Health Sciences
Quality Management Systems Consulting
Auditing & Assessment
Clinical Trial Applications & Product Registration
Regulatory Writing & Publishing
Product Design & Development
Product Testing & Validation
Training & Education
Middle East & Africa
The Biotechnology & Pharmaceutical Services Outsourcing market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Biotechnology & Pharmaceutical Services Outsourcing market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Biotechnology & Pharmaceutical Services Outsourcing market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Biotechnology & Pharmaceutical Services Outsourcing market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Biotechnology & Pharmaceutical Services Outsourcing market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Biotechnology & Pharmaceutical Services Outsourcing capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Biotechnology & Pharmaceutical Services Outsourcing by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Biotechnology & Pharmaceutical Services Outsourcing market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Biotechnology & Pharmaceutical Services Outsourcing market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Biotechnology & Pharmaceutical Services Outsourcing market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Biotechnology & Pharmaceutical Services Outsourcing industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
The Biotechnology & Pharmaceutical Services Outsourcing market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Biotechnology & Pharmaceutical Services Outsourcing market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Biotechnology & Pharmaceutical Services Outsourcing market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Biotechnology & Pharmaceutical Services Outsourcing market. These factors have benefited the growth of the global market for Biotechnology & Pharmaceutical Services Outsourcing. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Biotechnology & Pharmaceutical Services Outsourcing. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Biotechnology & Pharmaceutical Services Outsourcing are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
To strategically profile the key players and comprehensively analyze their growth strategies.
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