A Nova One Advisor report predicts substantial growth in the U.S. biotechnology and pharmaceutical services outsourcing market, projecting a market valuation of $16.68 billion by 2033.
The report highlights significant trends that propel the market expansion of outsourcing in the biotech and pharma sectors. Outsourcing has become increasingly necessary due to complex drug development processes, strict laws, and escalating research and development (R&D) expenses.
The thriving cell banking business and emerging service sectors, such as advanced screening services, further contribute to market expansion. These allow outsourcing companies to capitalize on high-volume opportunities.
Segment leaders and growth patterns
The report highlights major players such as Simtra (Baxter), ICON Plc, Charles River Laboratories, and AbbVie Inc. These companies innovate and invest in advanced technologies to stay ahead in drug development outsourcing.
With outsourcing, businesses can concentrate on their core strengths, such as R&D, while benefiting from the expertise and cost efficiency of specialized service providers. Commonly outsourced tasks include consulting services, drug development, manufacturing, clinical trials, and product design.
Consulting services hold the largest market share at 24.96%. These involve regulatory compliance, strategic planning, and quality management systems. Meanwhile, product design and development is the fastest-growing segment at a compound annual growth rate (CAGR) of 4.19% from 2024 to 2033.
Product design services focus on optimizing drug formulations and managing development activities. These include analyzing active pharmaceutical ingredients’ physical and chemical properties, developing formulations based on manufacturing routes and dosage forms, and providing analytical solutions for stability studies.
Outsourcing companies also manage complex research, regulatory submissions, evolving chemistry, manufacturing, and controls (CMC) issues, and nonclinical studies to support ongoing development activities.
Meanwhile, pharmaceutical companies take more than half of the market at 57.16%, while the biotechnology segment has a CAGR of 5.4%.
Looking forward
With the cost of R&D for new medications ranging from $314 million to $4.46 billion, the pharma and biotech services outsourcing industry will continue to flourish, creating more opportunities and jobs beyond the U.S.
Service offerings become more specialized as the market matures, solidifying outsourcing as a strategic partner in accelerating innovation and expediting the delivery of life-saving therapies. Companies can refine their expertise to address the specific needs of the pharmaceutical and biotechnology sectors, fostering a more efficient and effective drug development ecosystem.
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BioSpace. (2024, October 4). U.S. Biotechnology and Pharmaceutical Services Outsourcing Market Size to Reach USD 16.68 Billion by 2033. Retrieved October 10, 2024, from https://www.biospace.com/press-releases/u-s-biotechnology-and-pharmaceutical-services-outsourcing-market-size-to-reach-usd-16-68-billion-by-2033
U.S. Biotechnology and Pharmaceutical Services Outsourcing Market Size, Share & Trends Analysis Report by Service (Consulting, Auditing & Assessment), by End-use, and Segment Forecasts, 2024 – 2030. (n.d.). Retrieved October 11, 2024, from https://www.grandviewresearch.com/industry-analysis/us-biotechnology-pharmaceutical-services-outsourcing-market-report
