Life Sciences BPO Market

Increasing spending on healthcare to boost the market growth

Thus, the rising healthcare expenses would significantly increase offshore outsourcing and have enhanced the life sciences BPO market CAGR globally in recent years.

To remain competitive and adaptable, pharmaceutical firms are putting more and more emphasis on their R&D efforts. Evaluate Pharma estimated the expenditure on pharmaceutical R&D to be USD 182 billion in 2018 and USD 212 billion in 2021, an increase of 16.5%. The need for life sciences BPO services is anticipated to increase due to the rising R&D spending. The need for outsourcing drug research and manufacturing activities is predicted to increase, especially in rising economies like China, India, and South Korea, where outsourcing is more cost-effective than in Western economies.

Therefore, increased spending by the pharmaceutical sector for research is another factor driving the growth of the life sciences BPO market revenue.

The Global Life Sciences BPO Market Industry is poised for substantial growth, with projections indicating a market size of 247.1 USD Billion in 2024 and an impressive 936.6 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 12.88% from 2025 to 2035, reflecting the increasing reliance on BPO services among life sciences companies. The expansion is driven by various factors, including technological advancements, rising demand for cost-effective solutions, and the need for regulatory compliance. As the industry evolves, it is likely to attract significant investments and innovations, further enhancing its growth prospects.

A growing emphasis on core competencies is reshaping the Global Life Sciences BPO Market Industry. Companies are increasingly recognizing the importance of concentrating on their primary business functions, such as drug development and innovation, while outsourcing ancillary tasks. This strategic approach not only enhances productivity but also fosters innovation within organizations. As the market evolves, the trend of outsourcing non-core activities is expected to gain momentum, leading to a projected market size of 936.6 USD Billion by 2035. This shift underscores the value of BPO services in enabling life sciences companies to thrive in a competitive environment.

The globalization of life sciences operations is a key driver of the Global Life Sciences BPO Market Industry. As companies expand their reach into emerging markets, they encounter diverse regulatory environments and operational challenges. Outsourcing to BPO providers with local expertise allows organizations to navigate these complexities more efficiently. This trend is likely to accelerate market growth, as firms seek to capitalize on opportunities in global markets. The anticipated compound annual growth rate of 12.88% from 2025 to 2035 further illustrates the potential for expansion within the industry, driven by globalization and the need for localized support.

The Global Life Sciences BPO Market Industry is witnessing a surge in demand for cost-effective solutions as pharmaceutical and biotechnology companies seek to optimize their operational expenses. By outsourcing non-core functions, organizations can focus on their core competencies while reducing costs. In 2024, the market is projected to reach 247.1 USD Billion, reflecting the growing trend of companies leveraging BPO services to enhance efficiency. This shift not only allows for better resource allocation but also enables firms to remain competitive in a rapidly evolving landscape. As a result, the industry is likely to experience robust growth in the coming years.

Technological advancements are playing a pivotal role in shaping the Global Life Sciences BPO Market Industry. Innovations such as artificial intelligence, machine learning, and automation are enhancing the efficiency and accuracy of outsourced services. These technologies facilitate data management, regulatory compliance, and clinical trial management, thereby streamlining processes for life sciences companies. As organizations increasingly adopt these technologies, the market is expected to expand significantly. The integration of advanced technologies not only improves service delivery but also reduces turnaround times, positioning BPO providers as essential partners in the life sciences sector.

The Global Life Sciences BPO Market Industry is significantly influenced by the increasing regulatory compliance requirements imposed on pharmaceutical and biotechnology companies. As regulations become more stringent, organizations are compelled to ensure adherence to various standards, which can be resource-intensive. Outsourcing compliance-related functions to specialized BPO providers allows companies to navigate complex regulatory landscapes more effectively. This trend is expected to drive market growth, as firms seek to mitigate risks associated with non-compliance. Consequently, the demand for BPO services that specialize in regulatory affairs is likely to rise, contributing to the overall expansion of the industry.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Life Sciences BPO market accounted for USD 76.5 billion in 2021 and is expected to exhibit a significant CAGR of 42.9 percent growth during the study period. Factors driving the life sciences BPO market expansion in the region include the government's significant increase in healthcare spending and the growing significance of life sciences BPO in drug development.

For instance, according to information released by the Canadian government in August 2022, the government took decisive action to ensure access to essential vaccines, therapeutics, and other life-saving medications by developing a comprehensive strategy to rebuild the country's domestic biomanufacturing and life sciences BPO sector.

Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  LIFE SCIENCES BPO MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's life sciences BPO market accounts for the second-largest market share. The number of pharmaceutical firms is likely to increase year over year, as are R&D efforts and the demand for tailored medications. In 2021, Germany was the largest pharmaceutical market in Europe, with total sales exceeding 49.4 billion euros. Innovative analytics are in high demand across various applications, which is anticipated to accelerate market growth. Further, the German life sciences BPO market held the largest market share, and the UK life sciences BPO market was the fastest-growing market in the European region.

The Asia-Pacific Life Sciences BPO Market is expected to grow at the fastest CAGR from 2022 to 2030. Factors anticipated to propel the market throughout the forecast period are the existence of a strong scientific community, the largest number of U.S. FDA-permitted production sites (outside of the U.S.), and supportive government initiatives, such as "Make in India." Moreover, China's life sciences BPO market held the largest market share, and the Indian life sciences BPO market was the fastest-growing market in the Asia-Pacific region.

The market will grow due to major market players spending a lot of money on R&D to increase the variety of items they offer. Market participants are taking part in several strategic initiatives to broaden their reach internationally, in addition to significant market developments like introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the life sciences BPO industry must offer products at fair prices if they want to expand and survive in this market.

One of the primary business strategies manufacturers use in the  life sciences BPO industry to assist clients and expand the market sector is local production to reduce operational costs. The life sciences BPO industry has contributed to some of the most important medical advancements. The life sciences BPO market major player such as Infosys (India), ProMab Biotechnologies Inc. (US), Lonza Group (Switzerland), Health Decisions Inc. (US), and others are supporting R&D projects to boost market demand.

Catalent Pharma Solutions, Inc. is a company that creates and manufactures drug delivery systems. The company provides medication, biologic, and consumer health product manufacturing, packaging, storage, and inventory management services. Catalent Pharma Solutions has customers all around the world.

Every year, Catalent accelerates over 1,000 partner programs and introduces over 150 new products.  In February 2020, Catalent, Inc. and MaSTherCell , Inc., a technology-focused cell and gene therapy contract development and manufacturing organization to leading cell therapy innovators, announced that Catalent has agreed to acquire MaSTherCell  for $315 million in cash, subject to customary adjustments, from Great Point Partners, SFPI-FPIM, and Orgenesis Inc.

Also, IQVIA is a  leader in using data, technology, sophisticated analytics, and knowledge to help customers advance healthcare. We are enabling a more contemporary and effective healthcare system and developing breakthrough solutions that alter business and patient results in collaboration with the organizations we serve.  In May 2020, IQVIA introduced HCP/HCO Engagement Management, an end-to-end, orchestrated healthcare professional/organization (HCP/HCO) solution that provides worldwide HCP/HCO planning, management, contracting, and payment. HCP/O Engagement Management, built on the Salesforce platform, provides a comprehensive solution for all touchpoints.

It uses an innovative  rules engine to assist important users and business processes, optimizing engagement management and reducing risk.