The global life sciences BPO market will reach USD 420 billion by 2024, as per a report by Grand View Research, Inc. The growth results from the increasing demand for contract manufacturing or raw materials, Finished Dosage Forms (FDFs), medical devices, drug discovery services, regulatory services, pre-clinical and clinical trial services and pharmacovigilance services.
Global Life Sciences has two broad perspectives: by Services and by Geography. Due to the increasing demand for generic drugs, increase in R&D investment by life sciences companies, the market also continues to expand throughout the years. Another factor that also affects the growth of this market is the rise in the number of blockbuster drugs going off-patent and increased adoption of novel technologies. As the market grows, the needs of the industry also grows. Because of this, the outsourcing vendors are expanding their product and service. At the same time, the vendors are also targeting niche areas for long-term growth and profitability.
Findings of the study also suggests the following (as per PR Newsire):
- In 2015, the pharmaceutical outsourcing segment accounted for the largest revenue share, mainly on account of the growing demand for API and finished dosage form manufacturing services. Moreover, the increasing demand for early stage pre-clinical studies, clinical trials, post-marketing surveillance, and regulatory services are also expected to further drive the market over the forecast period.
- The services segment including healthcare payer and provider BPO services is expected to emerge as the fastest growing services type with a CAGR of 9.3% over the forecast period
- In the medical devices contract research outsourcing segment, the product design and development category accounted for nearly 29% in 2015. By 2024, the product implementation services are expected to emerge as the fastest growing category with a CAGR of 13.1% from 2016 to 2024.
- North America was the largest regional market in 2015. The presence of several major pharmaceuticals, medical device, health insurance, contract research and contract manufacturing (CRAMS) players in this region are amongst the key factors responsible for the region’s large market share. The increasing geriatric population, the growing disease prevalence rates, the shift from ICD 9 to ICD 10 codes are significantly driving the healthcare expenditures and the need for efficient data management, as well as operational costs; therefore, these factors are expected to positively reinforce the life sciences outsourcing market over the forecast period.
- Asia Pacific is expected to grow at a CAGR of11% over the forecast period. The increase in the number of U.S. FDA manufacturing sites in this region, especially China and India, the growing healthcare burden, patent expiration of several key drugs are expected to significantly boost the life sciences outsourcing market in this region.
- Furthermore, favorable government initiatives to encourage the use of generic drugs, subsidies for the manufacturing of electronic components and devices, and several tax benefits to promote the export of life sciences services from this region are anticipated to further propel the market growth over the forecast period.
- Some key market players include Infosys Limited, Lonza Group, PAREXEL International Corporation, Covance, Inc., International Business Machines Corporation. Genpact Limited, Catalent, Inc., ICON plc, Boehringer Ingelheim GmbH, Accenture plc, Quintiles Transnational Corporation, and Anthelio Healthcare Solutions