Biotechnology and Pharmaceutical Services Outsourcing Market Report 2025

The biotechnology and pharmaceutical services outsourcing market size has grown strongly in recent years. It will grow from $66.87 billion in 2024 to $71.87 billion in 2025 at a compound annual growth rate (CAGR) of 7.5%. The growth during the historic period can be attributed to the rising demand for therapeutic expertise and global trial design, an increasing number of orphan drug and rare disease trials, the growth of biologics and biosimilar development, greater utilization of laboratory testing and analytical services, and the expansion of virtual biotech firms.

The biotechnology and pharmaceutical services outsourcing market size is expected to see strong growth in the next few years. It will grow to $94.91 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth expected in the forecast period can be attributed to increasing pressure for faster drug approvals, the globalization of clinical research activities, a rise in the volume of clinical trials worldwide, growing outsourcing of phase I-IV trials, and a stronger focus on adaptive and decentralized trials. Key trends during this period include the adoption of cloud-based platforms for real-time collaboration, the use of AI and machine learning in drug discovery and development, advancements in bioinformatics and data analytics, the integration of automation and robotics in laboratory services, and the widespread use of electronic data capture systems.

The increasing activity in clinical research is anticipated to drive the growth of the biotechnology and pharmaceutical services outsourcing market. Clinical research involves systematic investigations using human participants to better understand health conditions and assess the safety and efficacy of medical treatments. This growth in research activity is primarily due to the rising burden of chronic diseases, which calls for the development and evaluation of new therapeutic options to improve patient care. Outsourcing biotechnology and pharmaceutical services facilitates clinical research by offering access to specialized expertise and advanced infrastructure, enabling efficient, cost-effective, and regulatory-compliant trial execution on a global scale. For example, in November 2023, the Association of the British Pharmaceutical Industry, a UK-based trade group, reported a 4.3% rise in the number of industry-led clinical trials in the UK, from 394 in 2021 to 411 in 2022. This increase highlights the expanding demand for outsourced support in clinical development.

Leading companies in the biotechnology and pharmaceutical services outsourcing market are developing advanced tools like cloud-based platforms to support remote access and real-time collaboration. These platforms are internet-based systems that provide users with remote access to computing resources such as storage, software, and processing capabilities, without depending on local infrastructure. For instance, in March 2023, Charles River Labs, a US-based non-clinical contract research organization, introduced Apollo, a cloud-based platform aimed at enhancing toxicology studies. The platform improves client experience by enabling easier access to study data for safety and toxicology assessments. It features self-service options that let users track study progress, review data, and access important documents independently. Notably, it also includes a quoting feature to assist with more accurate and efficient budget planning.

In July 2024, IntegriChain, a software company based in the United States, acquired Federal Compliance Solutions (FCS) for an undisclosed amount. This acquisition strengthens IntegriChain’s capabilities in commercialization, revenue operations, and government pricing. Federal Compliance Solutions is a US-based company specializing in outsourcing services for the biotechnology and pharmaceutical sectors.

Major players in the biotechnology and pharmaceutical services outsourcing market are Thermo Fisher Scientific Inc., Boehringer Ingelheim, LabCorp Holdings, IQVIA Inc., ICON plc., Eurofins Scientific SE, Lonza Group Ltd., Syneos Health, Catalent Inc., Charles River Laboratories, Samsung Biologics Co. Ltd., WuXi Biologics, Recipharm AB, Medpace Holdings Inc., Curia Inc., CordenPharma Corp., Parexel International Ltd., Lachman Consultants, Concept Heidelberg GmbH, The Quantic Group Ltd.

North America was the largest region in the biotechnology and pharmaceutical services outsourcing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in biotechnology and pharmaceutical services report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the biotechnology and pharmaceutical services Outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biotechnology and pharmaceutical services outsourcing market includes revenues earned by entities by pharmacovigilance, medical writing, data management, analytical testing services, and formulation development. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the healthcare sector, particularly in the supply of critical medical devices, diagnostic equipment, and pharmaceuticals. Hospitals and healthcare providers are facing higher costs for imported surgical instruments, imaging equipment, and consumables such as syringes and catheters, many of which have limited domestic alternatives. These increased costs are straining healthcare budgets, leading some providers to delay equipment upgrades or pass on expenses to patients. Additionally, tariffs on raw materials and components are disrupting the production of essential drugs and devices, causing supply chain bottlenecks. In response, the industry is diversifying sourcing strategies, boosting local manufacturing where possible, and advocating for tariff exemptions on life-saving medical products.

The biotechnology and pharmaceutical services outsourcing market research report is one of a series of new reports that provides biotechnology and pharmaceutical services outsourcing market statistics, including biotechnology and pharmaceutical services outsourcing industry global market size, regional shares, competitors with a biotechnology and pharmaceutical services outsourcing market share, detailed biotechnology and pharmaceutical services outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the biotechnology and pharmaceutical services outsourcing industry. This biotechnology and pharmaceutical services outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Biotechnology and pharmaceutical services outsourcing is the strategic practice where life sciences companies delegate specific functions or processes to third-party organizations. This approach allows companies to concentrate on their core competencies, enhance operational efficiency, and reduce costs by utilizing external expertise and infrastructure.

The primary services involved in biotechnology and pharmaceutical outsourcing include consulting, regulatory affairs, product design and development, auditing and assessment, product maintenance, training and education, and others. Consulting provides expert guidance on strategy, operations, compliance, and market entry. These services are applied across therapeutic areas such as oncology, neurology, cardiovascular, and infectious diseases and cater to end users including pharmaceutical and biotech companies.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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