U.S. Biotechnology And Pharmaceutical Services Outsourcing Market Size | Companies
The U.S. biotechnology and pharmaceutical services outsourcing market size was exhibited at USD 10.18 billion in 2023 and is projected to hit around USD 16.68 billion by 2033, growing at a CAGR of 5.06% during the forecast period 2024 to 2033.
| Report Coverage | Details |
| Market Size in 2024 | USD 10.70 Billion |
| Market Size by 2033 | USD 16.68 Billion |
| Growth Rate From 2024 to 2033 | CAGR of 5.06% |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Segments Covered | End-use, Service |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Regional Scope | U.S. |
| Key Companies Profiled | AbbVie Inc.; Lifecore Biomedical, Inc.; IQVIA Inc.; Parexel International (MA) Corp.; Lachman Consultant Services; Covance, Inc.; Charles River Laboratory; PRA Health Sciences; Simtra (Baxter); Alcami Corp. |
This market growth can be attributed to an increased inclination towards outsourcing certain business functions, such as research, drug development, and clinical trials among others. In addition, changing regulatory landscapes create the need for consulting for biotechnology and pharmaceutical companies. A rise in drug development costs and the availability of cost-effective services offered by outsourcing contractors from other regions are also among the key market growth drivers.
The U.S. biotechnology and pharmaceutical services outsourcing market held a share of over 22.3% of the global biotechnology and pharmaceutical services outsourcing market revenue in 2023. Several biotechnology and pharmaceutical companies in the U.S. are opting to outsource major business functions, such as design verification & validation, clinical development, product registration, and clinical trial applications. Furthermore, operational elements, such as quality management, strategy, & concept generation, product maintenance, auditing, and training, are also being outsourced to contractors.
This is mainly due to the cost-effective services offered by outsourcing contractors, which are equipped with technologies, know-how, resources, facilities, and expert professionals. The growing pressure of regulatory compliances, a rise in costs associated with drug development, and, an increase in failure rates have remarkably affected the market dynamics. Well-rooted contract research organizations (CROs), outsourcing service providers, manufacturers working on contracts, and management consulting firms are persistently taking care of the multifaceted demands of the biotechnological and pharmaceutical industry.
Based on the end-use, the pharmaceutical companies segment held the highest market share of 57.16% in 2023 mainly driven by factors, such as the changes in regulatory scenarios, developments and progress accomplished by competitors through outsourcing, improved product responses, and enhanced quality standards attained through expert assistance. Pharmaceuticals have also been outsourcing distribution to different service providers to leverage their robust networks in different regions.
A rise in expenses in areas, such as R&D, by pharmaceutical companies for the detection and development of potential exclusive products is estimated to fuel market growth in the coming years. The biotech companies segment is expected to register a CAGR of 5.4% from 2024 to 2033.
The consulting services segment dominated the market and accounted for a revenue share of 24.96% in 2023. Consulting companies offer several services to help pharmaceutical and biotechnology businesses adhere to regulatory compliances as well as accomplish better quality standards and reduce environmental footprint. For a pharmaceutical company, these companies deliver a greater level of proficiency and experience. A rise in fraudulent incidents and continuous growth in scientific innovations are two of the key challenges faced by pharmaceutical and biotechnological organizations. Therefore, such businesses prefer to outsource some of their business functions.
The product design & development segment is expected to witness a CAGR of 4.19% from 2024 to 2033 due to the dynamic nature of the industry. Companies provide services, such as formulation for analyzing & optimizing chemical & physical properties of API; formulation development studies determining the optimal dosage form, composition, & manufacturing route of pharmaceutical products; analytical solutions for complex research needs; and stability studies. It also includes pharmaceutical product development strategies, such as nonclinical studies, management of changing CMC issues, and timing & requirements for regulatory submissions to support ongoing development activities.
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. biotechnology and pharmaceutical services outsourcing market
End-use
Service
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