GVR Report cover Life Sciences BPO Market Size, Share & Trends Report

Life Sciences BPO Market Size, Share & Trends Analysis Report By Service (Medical Devices Outsourcing, Pharmaceutical Outsourcing), By Region (North America, APAC), And Segment Forecasts, 2022 - 2030

  • Report ID: 978-1-68038-959-3
  • Number of Pages: 275
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2020
  • Industry: Healthcare

Report Overview

The global life sciences BPO market size was valued at USD 366.3 billion in 2021 and is anticipated to exhibit a compound annual growth rate (CAGR) of 9.2% over the forecast period. Pharmaceutical and medical device companies are now trying to focus on their core competencies; Outsourcing manufacturing, research, and marketing help them save time and money, which is one of the key factors driving the market. During the COVID-19 pandemic, pharmaceutical and medical device companies were heavily dependent on the CMOs and CROs for the development and manufacturing of test kits and vaccines.

U.S. life sciences BPO market size, by service, 2020 - 2030 (USD Million)

This significantly boosted the market to a great extent. Owing to the decline in the cases of COVID-19 due to the growing vaccination drive, the CDMOs are focusing on developing drugs for cancer and other chronic and infectious diseases due to the high disease prevalence. For instance, in January 2022, Lonza partnered with HaemaLogiX, a developer of monoclonal antibodies, to manufacture myeloma drug candidate KappaMab, a monoclonal antibody. This is expected to improve the demand for the development and manufacturing of these drugs in the coming years. In recent years, there has been a rise in mergers and acquisitions between CROs and CDMOs to strengthen their capabilities.

For instance, in December 2021, Thermo Fisher Scientific, Inc. completed the acquisition of PPD, a clinical research services provider, to expand its service portfolio to include clinical research, analytical testing, and laboratory services, among others. In February 2021, Charles River CRO acquired Cognate BioServices to strengthen its research capabilities in cell and gene therapy. Such strategies were implemented by the market players to expand their value chain in research and to provide end-to-CRO services, this has improved the customer reach of the companies and hence is expected to have a positive impact on the market growth.

Pharmaceutical organizations are increasingly focusing on their R&D activities to stay competitive & flexible. As per the estimates of Evaluate Pharma, the pharmaceutical R&D spending accounted for USD 182 billion, in 2018, whereas in 2021 it increased by 16.5% and accounted for USD 212 billion. The growing R&D spending is expected to improve the demand for life sciences BPO services. Growing demand for outsourcing drug development and manufacturing activities, particularly in emerging countries, such as China, India, and South Korea, where outsourcing is more cost-effective than in developed countries, is expected to boost the market growth in the developing economies.

Furthermore, the changing regulatory landscape for developing pharmaceutical and medical devices is creating a challenge for pharmaceutical and medical device companies. Such challenges are likely to create growth opportunities for the market. Even after the decline of COVID-19 cases, the COVID-19 vaccines have gained noteworthy importance. The fear of the emergence of new variants of COVID-19 is increasing the demand for COVID-19 vaccines. According to Clinicaltrials.gov, over 1,112 vaccines for COVID-19 were in development as of May 31st, 2022.

This is likely to improve the demand for outsourcing COVID-19 vaccine manufacturing and development services. A significant number of vaccines are being developed by small- and medium-sized pharmaceutical companies. Because the majority of these companies lack the in-house capacity for vaccine development, the demand for CDMO services for vaccine manufacturing and development has increased significantly. Furthermore, there was a high demand for vaccines as a result of governments around the world placing large orders for COVD-19 vaccines. This has increased the demand for CDMO services for the development and manufacturing of COVID-19 vaccines globally.

Service Insights

In 2021, the pharmaceutical outsourcing segment dominated the overall market and accounted for the largest revenue share of more than 54.5%. 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.

Regional Insights

Asia Pacific dominated the overall market in 2021 and accounted for more than 35.5% 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.

Global life sciences BPO market share, by region, 2021 (%)

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.

Key Companies And Market Share Insights

The outsourcing service providers globally are undergoing expansions, acquisitions, and partnerships in the market to stay competitive. For instance, in October 2021, Boehringer Ingelheim inaugurated its new biopharmaceutical production facility in Austria with an investment of approximately USD 776.49 million. Similarly, in March 2022, Lonza signed a manufacturing agreement with a pharmaceutical company Oasmia Pharmaceutical AB for manufacturing ovarian cancer drug candidate cantrixil. Some prominent players in the global life sciences BPO market include:

  • Accenture plc

  • Atos SE

  • Boehringer Ingelheim GmbH

  • Catalent, Inc.

  • Covance, Inc. (Labcorp)

  • Genpact Ltd.

  • ICON plc

  •  Infosys Ltd.

  • Lonza Group

  • PAREXEL International Corp.


  • International Business Machines Corp.

Life Sciences BPO Market Report Scope

Report Attribute


Market size value in 2022

USD 407.8 billion

Revenue forecast in 2030

USD 827.5 billion

Growth rate

CAGR 9.2% from 2022 to 2030

Base year for estimation


Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Service, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; India; Japan; China; Brazil; Mexico; South Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Key companies profiled

Accenture plc; Atos SE; Boehringer Ingelheim GmbH; Catalent, Inc.; Covance, Inc. (Labcorp); Genpact Ltd.; ICON plc; Infosys Limited; Lonza Group; PAREXEL International Corp.; Quintiles Transnational Corp.; International Business Machines Corp.

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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 2030. For this study, Grand View Research has segmented the global life sciences BPO market report based on service and region:

  • Service Outlook (Revenue, USD Million, 2018 - 2030)

    • Pharmaceutical Outsourcing

      • Contract Manufacturing Market

        • API

        • Finished Dose Form

        • Packaging

      • Contract Research Organizations

        • Drug Discovery

        • Preclinical 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 & Marketing Outsourcing

    • Others

  • Regional Outlook (Revenue, USD Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • Japan

      • China

      • India

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

      • South Africa

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