The global Life Sciences BPO Market size is expected to reach USD 827.5 billion by 2030, registering a CAGR of 9.2% over the forecast years, according to a new report by Grand View Research, Inc. 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.

Related Press Release@ Life Sciences BPO Market Report

Life Sciences BPOMarket Report Highlights

• 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 2022 to 2030 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
• AsiaPacific held the largest revenue share in 2021 due to the presence of a significant number of CROs providing cost-effective BPO services