by The global Life Sciences BPO Market is estimated to be valued at US$ 385.8 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The life sciences BPO market involves outsourcing non-core operational functions of pharmaceutical, biotechnology and medical device companies to specialized service providers. These outsourced functions include data management, medical writing and publishing, clinical trial management, investing and regulatory support. Outsourcing such functions helps life sciences companies to focus on their core competencies of research and development. The life sciences BPO service providers have expertise across various domains and can perform functions at lower costs with better quality, thereby helping life sciences companies reduce operational costs and improve productivity.
Market key trends:
One of the key trends in the life sciences BPO market is increasing adoption of artificial intelligence and analytics. Life sciences BPO service providers are integrating AI and advanced analytics capabilities across various functions like data management, clinical trial management and medical device testing. AI helps improve the efficiency of clinical trials by automating repetitive tasks, optimizing study design and monitoring real-time progress. It also aids in faster medical research and drug discovery. AI-based solutions are enabling faster analytics of large and complex data sets in life sciences. This is expected to significantly transform research and operations of pharmaceutical and biotech companies in the coming years.
Porter’s Analysis
Threat of new entrants: Low startup costs make the threat of new entrants moderate. However, established players have supply chain and contractual relationships that act as barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of various service providers. However, switching costs deter buyers from frequently changing providers.
Bargaining power of suppliers: Suppliers have low bargaining power due to the availability of alternative suppliers and contractual agreements.
Threat of new substitutes: Potential threat from new service delivery models like artificial intelligence. However, scale and compliance requirements favor established outsourcing models.
Competitive rivalry: High due to the presence of numerous global and regional players competing on service offerings and pricing.
Key Takeaways
The global Life Sciences BPO Market Share is expected to witness high growth, exhibiting CAGR of 14.% over the forecast period, due to increasing regulatory requirements in clinical research. North America dominates the market currently due to presence of key pharmaceutical companies and regulatory requirements.
Europe is the second largest market for life sciences BPO due to supportive regulatory guidelines and increasing R&D spending by pharma firms. Asia Pacific is expected to be the fastest growing region, driven by low-cost operations and rising drug development activities in countries like China and India.
Key players operating in the life sciences BPO Market are Accenture, Plc., Boehringer Ingelheim GmbH, Charles River Laboratories International, Inc., Cognizant Technology Solutions, Covance, Inc., DSM, Fareva, ICON, Plc, Infosys, Catalent, Inc., Genpact Limited, Health Decisions, Inc., and ProMab Biotechnologies, Inc. Players are focused on expanding their service offerings and global footprint through mergers and acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
