Biotechnology/Pharmaceutical Services Outsourcing Market Is Expected To Grow At A CAGR Of 8.7% And Forecast To 2025: Grand View Research, Inc.

The global biotechnology services outsourcing market is expected to reach USD 92.9 billion by 2025, according to a new report by Grand View Research, Inc. Pharmaceutical industry has been adaptive of the function of outsourcing certain clinical and corporate functions as early as 2002. Among the services outsourced, clinical trial management and contract manufacturing were the forerunners. For instance, Johnson & Johnson was the first pharmaceutical company to outsource its applications development and maintenance (ADM).

In 2015, over USD 50.0 billion was spent on pharmaceutical R&D activities majorly on oncology, diabetes, and autoimmune therapy classes, which is expected to propel the biotechnology services outsourcing market growth over the forecast period.

Shrinking profit margins coupled with rising competition in the market space, and augmenting regulatory burden are other vital impact rendering factors. The pharmaceutical services outsourcing market is expected to register growth at a CAGR of 8.7% during the forecast period. On the other hand, pending immigration legislations in the U.S. may hinder business economics and outsourcing risks.

Pharmaceutical and biotechnology industries in Europe are significantly investing in R&D in the recent year owing to rising demand for advanced medicines. This may be attributed to increasing aging population, incidence of chronic diseases, and communicable diseases.

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Further key findings from the study suggest:

  • Consulting services are inclusive of regulatory compliance, remediation, and quality management systems consulting, which is expected to dominate the pharmaceutical services outsourcing market in 2025.
  • In 2013, the U.S. FDA revised the guidelines for registration trials of drugs used in the treatment of acute bacterial skin and skin structure infections, thereby promoting growth of regulatory affairs services.
  • Other services such as contract manufacturing, product upgrade, and IT consulting services are projected to grow swiftly. Increasing focus on generic medicine and regional expansions in developing regions are some of the key contributing factors
  • Presence of cheap labor, skilled personnel and rapid growth of the pharmaceutical industry within the Asia Pacific region presents numerous opportunities for service providers, thereby representing a lucrative growth rate over the forecast period.
  • Service based expertise may be found in players such QuintilesIMS, Parexel Corporation, Lachman Consultant Services, Inc., Concept Heidelberg GmbH, and others. These players compete on the basis of service quality, competitive pricing, and long-term relations with healthcare industry participants.

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Grand View Research has segmented the global biotechnology/pharmaceutical services outsourcing market on the basis of service, and region:

Global Biotechnology/Pharmaceutical Services Outsourcing Service Outlook (Revenue, USD Million, 2014-2025)

  • Consulting
  • Auditing & assessment
  • Regulatory affairs
  • Product maintenance
  • Product design & development
  • Product testing & validation
  • Training & education
  • Others

Biotechnology/Pharmaceutical Services Outsourcing Regional Outlook (Revenue, USD Million, 2014-2025)

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
  • Asia Pacific
    • Japan
    • China
  • Latin America
    • Brazil
    • Mexico
  • Middle East and Africa (MEA)
    • South Africa

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About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.


Sherry James

Corporate Sales Specialist, USA

Grand View Research, Inc


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