The medical affairs outsourcing market was estimated to be US$ 1.24 billion in 2021 and US$ xx billion in 2023 and is expected to reach US$ 5.81 billion by 2031; it is estimated to record a CAGR of 12.5% till 2031. Globalization of clinical trials, digital transformation, strategic partnerships and alliances between pharmaceutical companies and outsourcing providers and increasing demand for specialized services will likely remain key medical affairs outsourcing market trends.
An increasing number of clinical trials worldwide and the rise in the adoption of outsourcing activities coupled with increasing R&D expenditures are key factors driving the medical affairs outsourcing market. As per the data from the US National Library of Medicine, as of April 2024, there were 491,086 clinical studies ongoing in 50 states and 223 countries. The following figure shows the rise in the number of studies registered in the past couple of years till 2024.
Year First Posted
Studies at Start of Year
Studies During Year
Studies at End of Year
2021
325,747
36,722
362,469
2022
362,469
37,014
399,483
2023
399,483
38,028
437,511
Source: Clinical Trials.gov and the Insight Partners Analysis
Hence, the increasing number of clinical trials increases the demand for medical affairs services and is a significant factor driving the growth of the medical affairs outsourcing market.
The global medical affairs outsourcing market is segmented by region into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. The North American region holds the largest market share, whereas the Asia Pacific region is expected to grow fastest. The medical affairs outsourcing market is estimated to have the largest share in the United States in the North American region. The medical affairs outsourcing market in the United States is expected to grow due to the rising number of clinical trials, the presence of leading market players, and elevating need for medical writing and publishing
Research and development (R&D) is essential and crucial to the company’s business. Pharmaceutical, medical device, and biotechnology companies focus on research and development (R&D) to develop new molecules for various therapeutic applications with the greatest medical and commercial potential. The companies invest majorly in R&D to deliver high-quality and innovative products to the market. Research and development expenditures relate to discovering, testing, and developing new products, upfront payments and milestones, improving existing products, and demonstrating product efficacy and regulatory compliance before launch. According to the Organisation for Economic Cooperation and Development (OECD), in 2021, the pharmaceutical industry spent US$ 129 billion on research and development activities. Business-based pharmaceutical research and development expenditure (BERD) increased by 39% in since 2010.
Growing healthcare sector in developing countries of Asia-Pacific creates better opportunities for the medical affairs outsourcing management market players to expand their business. The huge patient population in these countries is generating demand for more clinical trials. The number of clinical trials conducted in Asia Pacific is higher than in the US or Europe. This shift is ascribed to low operational costs, large patient recruitment potential, contract research organizations growth, favorable regulatory environment, and better clinical trials capacity and quality.
Key segments that contributed to the medical affairs outsourcing market analysis derivation are services and application.
The geographic scope of the medical affairs outsourcing market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
The North America medical affairs outsourcing market is segmented into the US, Canada, and Mexico. The US held the largest share of the North American medical affairs outsourcing market in 2023. Increasing demand for clinical trials, growing pharmaceutical and medical device industries, increasing healthcare expenditure, high R&D spending, and the presence of well-known market players are some of the prominent factors propelling the market growth.
In Canada, the market is expected to grow in a faster pace, owing to the development of the healthcare systems, high quality medical services, and presence of expert research clinicians. Moreover, Mexico is likely to experience growth opportunities in the medical affairs outsourcing market due to growing pharmaceutical and medical device industries and a diverse demographic profile for clinical trials in the region.
The regional trends and factors influencing the Medical Affairs Outsourcing Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Medical Affairs Outsourcing Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 1.24 billion |
| Market Size by 2031 | US$ 5.81 billion |
| Global CAGR (2023 - 2031) | 12.5% |
| Historical Data | 2021-2022 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Services
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Medical Affairs Outsourcing Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Medical Affairs Outsourcing Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The medical affairs outsourcing market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for Medical Affairs Outsourcing and strategies:
The “Medical Affairs Outsourcing Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas: