The global pharmaceutical contract sales organizations market was valued at USD 8.6 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 8.4% from 2023 to 2030. A growing number of new drug launches, an increase in pharmaceutical R&D activities, and growing demand to reduce the cost associated with in-house sales are some of the key factors supporting the growth of the industry. During the COVID-19 pandemic, the sales activities of drugs were mostly done remotely. i.e., via phone, web conference, email, and through website engagement.
This improved the adoption of new technologies in pharmaceutical contract sales. Moreover, post-pandemic, many COVID-19 vaccines are developed owing to the changing variant of the virus. This is expected to improve the demand for contract sales organization (CSO) activities even post-pandemic. Several drugs have been launched in the last 5 years. A rise in the launch of new drugs, regulatory scrutiny, and the growing need to remain competitive support industry growth. At the same time, promotional preferences and evolving provider habits are changing the traditional model of a sales representative visiting individual doctors.
These factors are expected to improve the demand for contract sales services among pharmaceutical companies and thus promote market growth. The pharmaceutical sales organization is trying to improve its CRM capabilities to improve its sales and marketing efficiencies by adopting digital tools, such as virtual interactions, omnichannel engagement, AI-driven insights, and personalized on-demand content. Adoption of these tools by pharmaceutical contract sales organizations is expected to boost the sales and marketing of pharmaceutical companies, and thus, support market growth.
Based on services, the industry has been segmented into personal promotion and non-personal promotion. The personal promotion segment dominated the industry in 2022 and accounted for the maximum share of 44.4% of the overall revenue. Pharmaceutical companies are increasingly investing in R&D activities, and due to this reason, commercial sales and marketing are essential for the overall revenue of the pharmaceutical company. Moreover, there is a growing interest among pharmaceutical companies to increase their revenue year-on-year, due to which, these companies focus on launching new products.
All these factors support the demand for personal promotion services. The non-personal promotion segment is expected to exhibit the highest CAGR over the forecast period. Non-personal promotion includes medical affairs solutions, remote medical science liaisons, nurse (clinical) educators, and others. There is a growing need to educate healthcare professionals in the area of medical affairs and to understand the side effects of medications to improve patient care. The non-personal promotion also includes medical science liaison services, which support the pharmaceutical company by informing them of business strategy in product development and market access. The high significance of all these services is expected to support segment growth.
Based on end-uses, the industry has been segmented into pharmaceutical companies and biopharmaceutical companies. The pharmaceutical companies segment dominated the industry in 2022 and accounted for the maximum share of 59.5% of the overall revenue. An increase in the number of new small molecule drug launches worldwide and the presence of a significant number of pharmaceutical companies offering similar products are one of the key factors contributing to the demand for contract sales services among pharmaceutical companies. Moreover, recruiting and retaining efficient sales professionals for pharmaceutical companies is tough; this further supports the demand for CSO services for pharmaceutical companies.
The biopharmaceutical companies segment is expected to grow at the fastest CAGR during the forecast period. Biopharmaceutical companies are now focusing on improving their research capabilities. According to the Pharma R&D annual review, in 2022, over 45% of the total drugs in the pipeline were biopharmaceuticals. Owing to the high interest of biopharmaceutical companies in research, it is expected that these companies will outsource their sales activities to CSOs to focus on their research capabilities. This is expected to support segment growth.
On the basis of geographies, the global industry has been further categorized into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America dominated the global industry in 2022 and accounted for the maximum share of more than 34.45% of the overall revenue. The presence of a significant number of CSOs, such as EPS Corp., IQVIA, Inc., and Axxelus, in the region is one of the key reasons supporting its growth. The adoption of new technologies in the region for pharmaceutical sales and a significant number of new drug launches in the region are further supporting the demand for pharmaceutical CSOs.
On the other hand, the Asia Pacific region is expected to register the fastest growth rate during the forecast period. The region has a significant number of pharmaceutical and biopharmaceutical companies that are constantly inventing new therapeutics, which is increasing the demand for CSO activities in the region. The region provides CSO services at a low cost as compared to other developed regions; this is expected to improve the CSO activities, thereby supporting the segment market.
Industry players are undertaking various strategic initiatives, such as partnerships, collaborations, mergers and acquisitions, and geographic expansion, aiming to strengthen their service portfolio and provide a competitive advantage. For instance, in September 2022, IQVIA, Inc., partnered with pharmaceutical company Dr. Reddy's Laboratories. As per the partnership, IQVIA provided Dr. Reddy’s with its Orchestrated Customer Engagement (OCE) platform to support its CRM operations. As per the agreement, Dr. Reddy's provided IQVIA’s OCE application to entire marketing users and field forces in India to help them in obtaining more impactful and meaningful customer engagement by seamlessly linking marketing, account management, medical science liaison, sales, and other functions. Some of the prominent players in the global pharmaceutical contract sales organizations market are:
CMIC Holdings Co., Ltd.
Mednext Pharma Pvt. Ltd.
Peak Pharma Solutions Inc.
Market size value in 2023
USD 9.2 billion
Revenue forecast in 2030
USD 16.3 billion
CAGR of 8.4% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Revenue in USD million/billion and CAGR from 2023 to 2030
Revenue forecast, company share, competitive landscape, growth factors, and trends
Service, end-use, region
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; Germany; U.K.; France; Italy; Spain; Denmark; Sweden; Norway; Japan; China; India; Australia; South Korea; Thailand; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; UAE; Kuwait
Key companies profiled
CMIC Holdings Co., Ltd.; Axxelus; EPS Corp.; QFR Solutions; MaBico; Mednext Pharma Pvt. Ltd.; Peak Pharma Solutions Inc.; IQVIA, Inc.; Promoveo Health; Syneous Health
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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 pharmaceutical contract sales organizations market report based on service, end-use, and region:
Service Outlook (Revenue, USD Million, 2018 - 2030)
Promotional Sales Team
Key Account Management
Medical Affairs Solutions
Remote Medical Science Liaisons
Nurse (Clinical) Educators
End-use Outlook (Revenue, USD Million, 2018 - 2030)
Regional Outlook (Revenue, USD Million, 2018 - 2030)
Middle East & Africa
b. The global pharmaceutical contract sales organization market size was estimated at USD 8.6 billion in 2022 and is expected to reach USD 9.2 billion in 2023.
b. The global pharmaceutical contract sales organization market is expected to grow at a compound annual growth rate of 8.4% from 2023 to 2030 to reach USD 16.3 billion by 2030.
b. By services, the non-personal promotion segment held a market share of 55.6% in 2022. The increasing rate of pharmaceutical companies outsourcing their commercial services will support the segment's growth.
b. Some key players operating in the market include CMIC HOLDINGS Co., LTD., Axxelus, EPS Corporation, QFR Solutions and a few others.
b. High adoption of new technologies for contract sales by pharmaceutical contract sales organizations, an increase in the interest among end users to increase the sales of biopharmaceutical and small molecule drugs, and the surge in demand for reducing the cost associated with in-house sales are some of the key factors supporting the growth of the Pharmaceutical Contract Sales Organization market.
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