Life Sciences BPO Market (By Services: Pharmaceutical Outsourcing, Medical devices outsourcing, Contract sales and marketing outsourcing, Others; By Application: Pharmaceuticals, Medical Device applications, Biopharmaceuticals, Research and development, others; By Protocol: Development, Site Management) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global Life Sciences BPO market size was exhibited at USD 402.11 billion in 2022 and is projected to hit around USD 978.48 billion by 2032, growing at a CAGR of 9.3% during the forecast period 2023 to 2032.

Key Pointers:

• In 2022, the pharmaceutical outsourcing segment dominated the overall market and accounted for the largest revenue share of more than 55.9%. 
• Asia Pacific dominated the overall market in 2022 and accounted for more than 36.19% of the overall revenue share.
• The increasing number of M&A transactions has broadened the global reach and improved the capabilities of CROs and CDMOs to provide end-to-end services; a continuation of this trend is expected to benefit the market significantly
• COVID-19 incidence has decreased significantly as a result of a growing global vaccination campaign
• Owing to this, the CRO and CDMO are now refocusing on developing drugs for oncology and other diseases owing to their high burden
• For instance, in April 2022, Labcorp collaborated with Xcell Biosciences to support the company in developing cell and gene therapies for treating cancer, Parkinson’s, and other rare diseases
• Such initiatives by the CDMOs are likely to profit the market owing to the high effectiveness of gene therapy in treating cancer and other rare diseases
• The medical device segment is expected to register the fastest CAGR from 2023 to 2032 due to the complexities associated with medical device designing
• The strict regulatory framework for medical device approval globally has further contributed to the demand for medical device outsourcing services

Life Sciences BPO Market Report Scope

The rising costs of drug development; pre-clinical and clinical trials; and post-marketing surveillance; a rise in the patent cliff; a growing product pipeline; and regulatory constraints are some of the major factors driving the market. The pharmaceutical and biotech industries invest heavily in the R&D sector to continuously introduce new molecules, devices, and treatments. The different stages of drug development, such as drug discovery, pre-clinical studies, and clinical trials, require huge financial, technological, and human resources.

To cater to the growing needs of the industry, the outsourcing vendors are expanding their product and service offerings and they are targeting niche areas for long-term growth and profitability. Altogether, these trends are expected to boost the life sciences outsourcing market over the forecast period. During the COVID-19 pandemic, a significant number of outsourcing providers expanded their existing manufacturing and research facilities to meet the growing demand for COVID-19 vaccines and diagnostics. Even post-pandemic, CDMOs are practicing similar strategies to support the future demand for pharmaceuticals. For instance, in April 2022, Aenova Group developed a new facility for manufacturing highly potent drugs with an investment of EUR 10 million.

The adoption of such strategies by the market players is expected to be profitable for the market. There has been a rising demand to reduce the cost of manufacturing and development of drugs and medical devices. Outsourcing manufacturing, research, and marketing services provide pharmaceutical and medical device companies with cost- and time-saving benefits. This is expected to have a positive impact on the market. Over the years, mergers and acquisition deals between CROs and CDMOs have increased. The rising demand for clinical services and the growing need for specialized service providers to improve the focus on their core competencies are some of the factors that are expected to drive the incidence of M&A deals.

Service Insights

In 2022, the pharmaceutical outsourcing segment dominated the overall market and accounted for the largest revenue share of more than 55.9%. Growing demand for low-cost drugs, increasing numbers of patent expirations, and rising awareness among the huge pharma companies to manage the overall company’s supply chain to maximize their profits are some of the factors that are responsible for the majority of market share. Moreover, increasing demand for reducing fixed costs among pharmaceutical companies, increasing pressure from regulatory bodies, and growing complexity in clinical trials are among a few factors that are expected to drive the segment’s growth during the forecast period. The pharmaceutical contract research segment has held a significant share in the market.

This is because there is a growing interest by various public companies to focus on their core competencies rather than research. Apart from this, the surge in the geriatric population and the growing prevalence of various diseases, such as diabetes, cancer, and genetic disorders, are among a few factors that are expected to boost the demand for drugs over the forecast period, thus contributing to the demand for research. The medical device outsourcing segment is expected to grow at the fastest CAGR over the forecast. The complexities associated with medical device manufacturing and the strict regulatory landscape for medical device approval globally are the key factors responsible for the segment’s growth. Moreover, the increasing demand for medical devices combined with the rising price competition and the requirement to reduce costs is expected to drive the market during the forecast period.

Application Insights

Segmentation of life sciences BPO on the basis of application wide utilization of life sciences in various sectors in pharmaceutical development of various drugs which is the most widely adapted in the current world due to increasing chronic disorders and utilization of medical devices in health care center and utilization in biopharmaceuticals. Hospitals and clinics are the major role players for development of the life science market with increased research and developments have enhanced the market of life sciences to a greater extent. 

Regional Insights

Asia Pacific dominated the overall market in 2022 and accounted for more than 36.19% of the overall revenue share. The region is also anticipated to register the fastest growth rate over the forecast period. The presence of untapped opportunities, constantly improving healthcare infrastructure, economic development, and an increasing number of skilled professionals are some of the factors driving the market growth. In addition, the presence of a significant number of CDMOs providing cost-effective research and manufacturing services is also contributing to Asia Pacific market growth. India and China are the key hubs for the life sciences outsourcing market. India and China account for the majority of the Active Pharmaceutical Ingredients (APIs) and finished product exports across the globe.

The presence of a strong scientific community, the maximum number of U.S. FDA authorized manufacturing sites (outside the U.S.), and favorable government initiatives, such as “Make in India” are among the key factors expected to drive the market over the forecast period. North America also held a significant share of more than in 2021. An increasing geriatric population, growing demand for technologically advanced drugs, and a rising need for improved streamlining of the overall supply chain model of the pharmaceutical and medical device industry to reduce costs are among a few factors that are expected to drive the segment growth during the forecast period. Moreover, growing R&D cycle time and the rising need for speed-to-market drugs, clinical trials, and other services are some of the factors that are expected to boost the adaptation rate of BPO services in North America.

Recent developments

• In the year 2017 September, Laboratory Corporation of America acquired children which is the part of company’s CDD segment. This acquisition strengthens its hold in the CRO services market.
• In the year 2018 June, Laboratory corporation of North America acquired Sciformix Corporation an outsourcing company engaged with offering pharmacovigilance and regulatory solutions in biopharmaceutical and medical device companies. This adapted acquisition holds the company’s position high in development of drug and devices and marketing of pharmacovigilance and market access solutions.
• In the year 2019 November, Syneos Health, Inc collaborated with Aicure and AI to gain the position in the market with developments like advance data analytics company for success trials.

Some of the prominent players in the Life Sciences BPO Market include:

• International Business Machines Corp
• IOVIA
• PAREXEL International Corp
• Lonza Group
• Infosys.Ltd
• ICON plc
• Genpact LTD
• Covance, Inc. (Labcorp)
• Catalent, Inc
• Boehringer Ingelheim Gmbh
• Atos SE
• Accenture plc
• Syneos Health, Inc
• Charkes River Laboratories International, Inc
• Wuxi AppTec Co, Ltd
• Medpace Holdings, Inc
• PRA Health Sciences, Inc
• Cognizant Technology Solutions
• Quintiles Transactional Corporation
• ProMab Biotechnologies, Inc
• Boehringer Ingelheim Gmbh 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Life Sciences BPO market.

By Services 

• Pharmaceutical Outsourcing
  • Contract Manufacturing Market
    • API
    • Finished Dose Form
    • Packaging
  • Contract Research Organizations
    • Drug Discovery
    • Pre-clinical Studies
    • Clinical Trial Studies
    • Regulatory Services
    • Pharmacovigilance
• Medical devices outsourcing
  • Contract Manufacturing Market
    • Electronic Manufacturing Services
    • Finished Goods
    • Raw Materials/ Components
  • Contract Research Organizations
    • Regulatory Consulting Services
    • Product Design and Development Services
    • Product Testing Services
    • Product Implementation Services
    • Product Upgrade Services
    • Product Maintenance Services
• Contract sales and marketing outsourcing
• Others

By Application

• Pharmaceuticals
• Medical Device applications
• Biopharmaceuticals
• Research and development
• others

By Protocol

• Development
• Site Management

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)