[Research Report] The medical affairs outsourcing market size was valued at US$ 1,415.00 million in 2019 and is projected to reach US$ 3,287.12 million by 2027; it is estimated to register a CAGR of 11.2% from 2020 to 2027.
Analyst’s ViewPoint
Medical affair outsourcing is considered a strategic competitive weapon. Pharmaceutical, medical device, and other healthcare organizations are outsourcing medical affairs services to contract research organizations to reduce operational costs, minimize regulatory compliance risk, and avoid process delays. The Medical affair outsourcing market is expanding rapidly due to an increase in clinical trials as the frequency of communicable and noncommunicable diseases rises, increasing demand for medical equipment and novel pharmaceuticals as well as medical outsourcing services. Due to increasing demands on pharmaceutical businesses, the number of companies outsourcing non-manufacturing tasks to third parties has increased significantly. IT, finance, procurement, and property services have all undergone substantial changes as their activities have been started outsourcing. Furthermore, pharmaceutical and medical device companies are outsourcing medical affairs services to contract research organizations (CROs) to reduce operational costs, minimize regulatory compliance risk, and avoid process delays.
Market Overview:
Medical affairs are playing a vital role within current pharmaceutical, medical device and biotechnology companies. Moreover, these services are witnessing an expansion in both earlier (pre-production) as well as later stages (post-production) of medical products. Medical affairs outsourcing services help the original equipment manufacturing (OEM) companies with flexible and scalable solutions that help them to utilize strategic management, resource components, and, healthcare personnel resources. One of the key factors contributing to the growth of the medical affairs outsourcing market is the increasing number of clinical trials worldwide and the rise in the adoption of outsourcing activities coupled with increasing R&D expenditures. However, the increasing costs of drug development and clinical trials, hinder the growth of the medical affair outsourcing.
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Medical Affairs Outsourcing Market: Strategic Insights
Market Size Value in US$ 1,415.00 million in 2019 Market Size Value by US$ 3,287.12 million by 2027 Growth rate CAGR of 11.2% from 2020 to 2027 Forecast Period 2020-2027 Base Year 2019
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Medical Affairs Outsourcing Market: Strategic Insights
| Market Size Value in | US$ 1,415.00 million in 2019 |
| Market Size Value by | US$ 3,287.12 million by 2027 |
| Growth rate | CAGR of 11.2% from 2020 to 2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2019 |
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Market Driver
Increasing Number of Clinical Trials Worldwide to Drive the Medical Affairs Outsourcing Market Growth
A clinical trial is a crucial and significant step in the determination of safety and effectiveness of a medical strategy, treatment, or device for commercial usage. These studies also help understand and determine the best medical approaches for a particular therapeutic area. Clinical trials are conducted primarily to collect data regarding the safety and efficacy of new drug and device development. Before the approval of drug molecules or medical devices by the regulatory authorities, a series of clinical studies are conducted. The increasing prevalence of various communicable and non-communicable diseases is triggering the demand for the development of new drugs or medical devices. The abovementioned scenario is, in turn, expected to surge the demand for the medical affairs outsourcing services in the coming years. For example, according to data issued by the European Patent Office in March 2021, the United Kingdom (UK) filed 290 patent applications in the pharmaceutical business in 2020. Furthermore, according to the BCG - Medizinische Biotechnologie in Deutschland, which was revised in June 2021, in Germany in 2020, 274 biopharmaceutical pharmaceuticals were in clinical phase I, 261 in phase II, and 122 in phase III.
Hence, the increasing number of clinical trials, raising the demand for medical affair services, is a significant factor driving the growth of the medical affairs outsourcing market.
Segmental Analysis
:
Services-Based Insights
Based on services, the medical affairs outsourcing market is segmented into medical writing and publishing, medical monitoring, medical science liaisons (MSLs), medical information, and others. The medical writing and publishing segment held the largest share in 2019. However, the medical science liaisons segment is anticipated to register the highest CAGR in the medical affairs outsourcing market during the forecast period.
Medical writing is integral to the product development lifecycle. With the increasing number of diverse pharma products being launched in the market, the need for professional medical writers has increased drastically. Most of the big pharma companies are outsourcing their clinical data management to professional medical writing & publishing service providers. These services are offered from the early stages of product development to the premarket approval phase. Moreover, insurance providers demand information about drugs for determining reimbursement policies. Hence, it has become challenging for pharmaceutical companies to keep up with industry norms which in turn has boosted the market for medical writing and publishing globally.
Application -Based Insights
Based on application, the medical affairs outsourcing market is categorized into pharmaceutical, biopharmaceutical, and medical devices. The medical devices market is further segmented into therapeutic medical devices, and diagnostic medical devices. The pharmaceutical segment held the largest medical affairs outsourcing market share in 2019 and is anticipated to register the highest CAGR during the forecast period.
Medical Affairs Outsourcing Market, by Services – 2019 and 2027
Regional Analysis
North America held the largest market share for the medical affairs outsourcing market in 2019 and is expected to retain its market position during the forecast period. The factors enabling the North American market growth include the unavailability of skilled medical affairs experts within the medical device, pharmaceutical, and biotechnology companies in the region have generated a need for outsourcing these services to contract research organizations. Furthermore, the need for documentation, professional writing, and publishing of medical data is further responsible for the growth of the market in the region. In addition the presence of leading CROs such as IQVIA, Syneos Health, etc. that offer medical affairs outsourcing services are also contributing to the dominant share of the region in the market. In North America, the US records the maximum medical affairs outsourcing market share. The presence of leading players, rising consolidation among the market players and the launch of new services by the existing players drive the medical affairs outsourcing market in the country. For instance, in January 2019, IQVIA announced the launch of a comprehensive multi-tenant (SaaS) safety platform for life sciences industry. Furthermore, the increasing number of clinical trials leading to the rising trend of outsourcing the trials is also contributing to the leading position of the US in the global medical affairs outsourcing market.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Services, and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Saudi Arabia, South Africa, South Korea, Spain, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The services offered in medical source outsourcing are medical writing and publishing services, medical science liaisons service, medical monitoring and various other services.
The growth of the market is attributed to increasing number of clinical trials worldwide and rising adoption of outsourcing activities coupled with increasing R&D expenditures. However, increasing costs of drug development and clinical trials hinder the market growth.
Medical affairs are playing a vital role within current pharmaceutical, medical device and biotechnology companies. Moreover, these services are witnessing an expansion in both earlier (pre-production) as well as later stages (post-production) of medical products. Medical affairs outsourcing services helps the original equipment manufacturing (OEM) companies with flexible and scalable solutions that helps them to utilize strategic management, resource components and, healthcare personnel resources.
The List of Companies - Medical Affairs Outsourcing Market
- ICON PLC
- IQVIA Inc
- Syneos Health
- WuXi AppTec
- SGS SA
- PPD Inc
- PAREXEL INTERNATIONAL CORPORATION
- Indegene
- Excelya
- UDG Healthcare plc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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