PUBLISHER: Grand View Research | PRODUCT CODE: 1493242
PUBLISHER: Grand View Research | PRODUCT CODE: 1493242
The global biotechnology and pharmaceutical services outsourcing market size is expected to reach USD 66.95 billion by 2030, registering a CAGR of 5.67% from 2024 to 2030, according to a new report by Grand View Research, Inc.
The growing R&D investment for innovative therapeutics by pharmaceutical and biotechnology companies, which are complex and require strict timeline follow-up, is driving outsourcing trend in the industry. Moreover, high costs associated with the new drug development in the biotechnology and pharmaceutical industries lead to customer's preference for cost-effective outsourcing solutions. CROs have the required expertise and infrastructure that provide the benefit of cost, time, and efficiency. Moreover, emerging economies, such as Japan, India, and China are mostly preferred countries for outsourcing activities, owing to strong availability of experts, R&D infrastructure, and affordability.
In addition, regulatory framework for drug discovery and development is complex in several countries. Thus, increasing need for expertise in different areas of drug development is driving the demand for outsourcing services. Drug companies are not only outsourcing production of medicines but also clinical trials. Moreover, the outsourcing of manufacturing activities to developing countries such as China, India, and Latin America is growing due to expanding privatization of clinical trials. Additionally, the globalization of clinical trials has increased the demand for outsourcing services, particularly in emerging markets such as Latin America and MEA owing to large patient pool and lower costs
Regulatory approval procedures are becoming more stringent & time-consuming, and business players aim to receive product approvals at the first attempt to gain a higher market share. Pharmaceutical and biotechnology companies are required to have an in-house regulatory department or outsource their regulatory affairs functions due to stringent regulatory requirements in developed countries and changing regulations in developing countries. Establishing an in-house regulatory affairs department in offshore countries is not feasible, thus companies are adopting different outsourcing models depending upon size and priority of projects, thereby contributing to the growth of global biotechnology/pharmaceutical services outsourcing market.
Pharmaceutical and biotechnology companies are now focusing on their core competencies and outsourcing non-core functions to increase their productivity & operational efficiency. These companies commonly outsource R&D functions to emerging regions, such as Asia Pacific, and have now started outsourcing product design & development to CROs to reduce cost & increase focus on core functions. Small- or mid-sized companies, which do not have in-house capabilities, have to outsource their product design and development, auditing, and regulatory affairs to enter into new markets. Small or specialty companies are hiring CRO consultants to assist in regulatory affairs and legal representation functions in international markets.