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Biotechnology & Pharmaceutical Services Market

Biotechnology & Pharmaceutical Services Market: Service (Auditing and Assessment, Regulatory Affairs, Training & Education), End-Use (Pharma, Biotech), and Region — Forecast till 2030

Published At : 25 Jul, 2022
Updated At : 14 Sep, 2022
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Market Snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
5.45 %
Fastest Growing Market:
Asia Pacific
Largest Market:
North America

The global biotechnology & pharmaceutical services market size was valued at USD 65.20 billion in 2021 and is projected to reach USD 105.11 billion by 2030 at a CAGR of 5.45% from 2022 to 2030. Clinical trials have been delayed, suspended, and terminated as a result of the COVID-19 pandemic, which has had a severe impact on biotechnology and pharmaceutical third-party service providers. The demand for virtual trials and the use of technology and software solutions has increased due to the worldwide crisis. The recovery from the pandemic has accelerated the implementation of machine learning-based platforms, artificial intelligence, automation in the drug manufacturing process, and creative trial designs, all of which are expected to fundamentally alter the CRO and CMO landscape in the years to come.

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Market Dynamics

Drivers For The Global Biotechnology & Pharmaceutical Services Market

  • Research And Developments Drive The Market

The R&D activity, along with drug development services, is being driven by biopharmaceutical and pharmaceutical investments in cutting-edge therapies, like regenerative medicine. The development of service offerings by Contract Manufacturing Organizations (CMOs)/Contract Research Organizations (CROs) for biotechnology and pharmaceutical products is a result of the increased demand for biologics as well as small molecules.

  • Cost-Effectiveness Is Driving The Market

Pharmaceutical and biopharmaceutical companies provide cost-saving options to their customers because selecting eco-friendly vendors may result in lower prices over time. Additionally, they aid in reducing the amount of time needed for the management and operation of a facility for manufacturing and research. It is possible to develop products at low cost and manufacture them at low-cost thanks to contract research and production. Services for outsourcing also help businesses enter overseas markets more easily and get around trade barriers. Many businesses decide to outsource services due to these benefits rather than spending money on production equipment and recruiting experienced employees.

Restraints For The Global Biotechnology & Pharmaceutical Services Market

  • Pricing Pressure And Stringent Regulations Hamper The Market

Margin pressure from rising prices, complicated regulations, and patent expiration has caused the biotech and pharmaceutical industries to see a decline. Given that they assist in resolving these problems, contract services are regarded by the firms as a "strategic competitive weapon."

Opportunities For The Global Biotechnology & Pharmaceutical Services Market

  • Revolutionization of Diseases Will Bring In New Opportunities For The Market

The biologics sector has expanded significantly in recent years to incorporate novel product categories like nanobodies, rDNA, synthetic vaccines, fusion proteins, soluble receptors, immunoconjugates, and immuno-therapeutics. This industry has also given many chances to investigate hybrid structures that incorporate biologics with well-defined chemical entities because biologics have revolutionised the treatment of disease. The demand for outsourcing biologics development and manufacturing is anticipated to rise as a result of the increasing increase in biologics.

 

Segmentation For The Global Biotechnology & Pharmaceutical Services Market

This biotechnology & pharmaceutical services market can be segmented on the basis of services, end-users, geographical regions and competitors. With a percentage of revenue of 19.5% in 2021, the consulting services category led the market. Over the predicted term, the section should keep its position. The rise in M&A activity and ongoing changes to regulatory guidelines can be blamed for this. To counter this, companies like Signa Medical Writing, bioSyntagma, and Fieve Clinical Research, Inc. have been steadily entering the pharma and biotech sector. Because the newcomers lack the necessary skills, consulting is necessary for these players to be in compliance with established standards and norms.

The other services segment, which had a value of USD 10,649.1 million in 2021, is anticipated to grow at a rate of 6.4% during the projection period due to the increasing outsourcing of the production of generics and biosimilars since CMOs are providing services at a lower price. Contract manufacturing, product improvement, and IT consultancy all fall within the other division. Due to growing worries about biotechnology and pharmaceutical companies' ability to compete in the commercialisation of their products, the difficulty of conducting complex clinical trials, and the calibre of those trials, which have increased the importance of biostatistics, there is an increase in the outsourcing of biostatistics.

The market was led by the pharma sector, which in 2021 had the highest revenue share (55.7%). Over the projection period, the segment is predicted to grow at a CAGR of 5.7%. In the upcoming years, the market in the region is anticipated to be driven by rising investments made by CROs for the development of core capabilities as well as rising R&D expenditures by pharmaceutical companies for the creation of possible novel medicines. Contract service providers are acknowledged as an effective tactical choice to address the problems of drug shortage and excessive production costs while also supplying the expanding demand.

Due to a lack of resources, many pharmaceutical companies now entrust CROs and CMOs with the development of their goods and the manufacturing of their drugs. For a variety of pharmaceutical products, the CROs and CMOs provide highly sophisticated development and manufacturing services, including preclinical development, clinical development, commercial manufacturing, clinical manufacturing, precision injection moulding, high-speed automation, assembly, fill/finish, and others.

 

Regional Analysis of The Global Biotechnology & Pharmaceutical Services Market

Biotechnology Pharmaceutical Services Market Regional Analysis

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The highest revenue shares in 2021 (53.8 %) belonged to North America, which dominated the market. This development is the result of a number of well-established CROs and CMOs, including Covance Inc., IQVIA, Catalent, and Samsung Biologics, as well as rising R&D expenditures by the region's life sciences and pharmaceutical firms. One of the variables that are predicted to increase the need for outsourcing of services by pharmaceutical and biotechnology companies in the area is the existence of strict regulatory laws and growth in R&D expenditure. In addition, it is anticipated that the entry of overseas CMOs and CROs will spur market expansion. For instance, to increase its footprint outside of Asia and boost its market position, Bora Pharmaceuticals received FDA certification for its CMO services in September 2019, and in October 2019, it built a sales office in Delaware.

Due to an increase in investments from developed nations and various regulatory reforms in clinical trial evaluation to conform to the standards of various countries investing in the region, the Asia Pacific biotechnology and pharmaceutical services outsourcing market is predicted to experience a CAGR of 6.1% over the forecast period. Due to the low cost of producing drugs and the availability of trained labour, contract manufacturing and development are anticipated to flourish in this area. Additionally, it is projected that economic policy changes in nations like China would lead to the development of an open and balanced economy, which will provide market participants with several opportunities to engage in this area. With the opening of Novotech SMO Korea Co. Limited in July 2017, Novotech expanded its site management services in Korea.

 

Key Players in Global Biotechnology & Pharmaceutical Services Market

The biotechnology & pharmaceutical services market share is really cutthroat. The Quantic Group, IQVIA, Parexel International Corporation, and Charles River Laboratories are a few of the companies competing in this sector. Quick adoption of merger and acquisition, collaboration, regional development, service portfolio expansion, and competitive pricing as the primary tactics to survive in the highly competitive environment and increase market share are the main factors affecting this competitive nature. Parexel International Corporation, The Quantic Group, IQVIA, Lachman Consultant Services, Inc., GMP Pharmaceuticals Pty Ltd., Concept Heidelberg GmbH, Covance Inc., Charles River Laboratories, PRA Health Sciences, and ICON plc are a few of the well-known companies in the biotechnology and pharmaceutical services outsourcing market.

 

Recent Developments

  • The announcement of a strategic alliance with Veeva was made by Paraxel International Corporation in April 2021. Through a joint effort of process innovation and technology, clinical trials are to be increased.
  • A three-year contract between Pfizer and PPD was struck in August 2020. Drug development services are intended to be provided by the agreement.
  • A new white-label supply deal between MediPharm Labs Corp. and Sunco Green Pharmaceutical Pty Ltd. was inked and publicised in October 2020. This 12-supply contract is with MediPharm Labs. The CBD and THC cannabis oil products will be provided by MediPharm Labs Australia in accordance with the two-year contract. Sunco Green Label will be used to market it.

 

Global Biotechnology & Pharmaceutical Services Market: Segmentations

Service Outlook

  • Consulting
    • Regulatory compliance
    • Remediation
    • Quality management systems consulting
    • Others
  • Auditing and assessment
  • Regulatory affairs
    • Clinical trial applications & product registration
    • Regulatory writing & publishing
    • Legal representation
    • Others
  • Product maintenance
  • Product design & development
  • Product testing & validation
  • Training & education
  • Others

End-Use Outlook

  • Pharma
  • Biotech

Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa
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