Medical Affairs Outsourcing Market Size (2024 - 2029)

The medical affairs outsourcing market is projected to experience significant growth over the forecast period, driven by factors such as increased demand for cost-efficient and high-quality services offered by contract research organizations, and a rise in clinical trials and R&D expenditures. The COVID-19 pandemic has positively influenced the market by altering stakeholder engagement methods, which has led to a greater reliance on outsourcing. Additionally, strategic actions by key market players, including product launches and mergers and acquisitions, are expected to further propel market expansion. Despite these growth drivers, a shortage of skilled professionals may pose a challenge to the market's development.

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Market Size of Medical Affairs Outsourcing Industry

Medical Affairs Outsourcing Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 2.26 Billion
Market Size (2029) USD 4.01 Billion
CAGR (2024 - 2029) 12.20 %
Fastest Growing Market Asia-Pacific
Largest Market North America

Major Players

Medical Affairs Outsourcing Market Major Players

*Disclaimer: Major Players sorted in no particular order

Medical Affairs Outsourcing Market Analysis

The Medical Affairs Outsourcing Market size is estimated at USD 2.26 billion in 2024, and is expected to reach USD 4.01 billion by 2029, growing at a CAGR of 12.20% during the forecast period (2024-2029).

The COVID-19 pandemic has caused enormous damage to the medical affairs outsourcing market. Medical affairs professionals in the pharmaceutical industry had to modify their work schedules due to the emergence of the coronavirus epidemic. For instance, according to an article published by Pharmaceutical Medicine in July 2021, the COVID-19 pandemic has given rise to unforeseen circumstances resulting in a dramatic change in external stakeholder engagements, catapulting the medical affairs function into leading the way on scientific engagements and patient-centric endeavors. Healthcare professionals have mostly adopted this new method of communication, finding it helpful and appropriate. As per the same article, the changes in stakeholder interactions and behavior due to the pandemic are likely to persist in the foreseeable future for which medical affairs professionals need to enhance existing skill sets and acquire expertise in newer domains. Hence, the COVID-19 pandemic positively impacted the medical affair industry, which is expected to increase the demand for its outsourcing, thereby driving the growth of the medical affair outsourcing market over the forecast period.

Key factors contributing to the global market growth are the cost efficiency and high level of quality offered by the CROs and the increasing number of clinical trials coupled with increasing R&D expenditures. For instance, according to the Pharmaceutical Industry and Global Health Facts and Figures 2021 report, the annual research and development spending of the biopharmaceutical industry has been 7.3 times greater than that of the aerospace and defense industries, 6.5 times more than that of the chemicals industry, and 1.5 times more than that of the software and computer services industry. Hence, with strong investments in R&D activities and a pipeline of therapeutics under development, medical affairs outsourcing services are expected to grow significantly.

Additionally, various strategies adopted by the key market players such as product launches and mergers and acquisitions are anticipated to drive the market growth over the forecast period. For instance, in October 2021, Propharma Group acquired Pharmica Consulting which allows ProPharma Group to provide even more client support across the lifecycle. It also enables Pharmica Consulting to expand its solutions abroad, thus enhancing the company's overall growth.

Hence, due to the abovementioned factors, the medical affairs outsourcing market is anticipated to grow over the forecast period. However, lack of skilled professionals is likely to restrain the market growth over the forecast period.

Medical Affairs Outsourcing Industry Segmentation

As per the scope of the report, medical affairs outsourcing refers to a process that enables patients, healthcare professionals, and government bodies to gain deep insights into healthcare policies, operations, and patient data. The Medical Affairs Outsourcing Market is Segmented By Services (Medical Monitoring, Medical Writing & Publishing, Medical Information, Medical Science Liaisons, and Others), Industry (Medical Devices and Pharma and biopharmaceuticals), and Geography (North America, Europe, Asia-Pacific, Middle East & Africa, and South America). The report offers the market size and forecasts in value (USD million) for the above segments. The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the market size and forecasts in value (USD million) for the above segments.

By Service
Medical Monitoring
Medical Writing & Publishing
Medical Information
Medical Science Liaisons
Other Services
By Industry
Medical Device
Pharma and Biopharmaceutical
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle East and Africa
GCC
South Africa
Rest of Middle East and Africa
South America
Brazil
Argentina
Rest of South America
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Medical Affairs Outsourcing Market Size Summary

The medical affairs outsourcing market is poised for substantial growth over the forecast period, driven by the increasing demand for cost-efficient and high-quality services offered by contract research organizations (CROs). The market's expansion is further supported by the rising number of clinical trials and heightened research and development expenditures within the biopharmaceutical sector. The COVID-19 pandemic has inadvertently accelerated this growth by necessitating changes in stakeholder engagement, prompting medical affairs professionals to adopt new communication methods that are likely to persist. This shift has underscored the importance of outsourcing as companies seek to enhance their capabilities in scientific and patient-centric engagements. Additionally, strategic initiatives such as mergers and acquisitions, along with product launches by key market players, are expected to bolster market dynamics, despite challenges posed by a shortage of skilled professionals.

Regionally, North America is anticipated to experience significant growth in the medical affairs outsourcing market, fueled by substantial investments in pharmaceutical research and development. The region's robust funding for clinical research, coupled with technological advancements, is creating a conducive environment for market expansion. The presence of major companies in the region further consolidates its market position. Globally, the competitive landscape is characterized by a few dominant players, with companies like ICON plc and IQVIA Holdings Inc. leading the charge. Strategic acquisitions, such as ICON's acquisition of PRA Health Sciences, have strengthened the service offerings of these companies, enhancing their market share. Overall, the medical affairs outsourcing market is expected to grow significantly, driven by these multifaceted factors.

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Medical Affairs Outsourcing Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Cost Efficiency and High Level of Quality Offered By the CROs

      2. 1.2.2 Increasing Number of Clinical Trials Coupled with Increasing R&D Expenditures

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of Skilled Professionals

    4. 1.4 Porter's Five Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size by Value - USD million)

    1. 2.1 By Service

      1. 2.1.1 Medical Monitoring

      2. 2.1.2 Medical Writing & Publishing

      3. 2.1.3 Medical Information

      4. 2.1.4 Medical Science Liaisons

      5. 2.1.5 Other Services

    2. 2.2 By Industry

      1. 2.2.1 Medical Device

      2. 2.2.2 Pharma and Biopharmaceutical

    3. 2.3 Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Mexico

      2. 2.3.2 Europe

        1. 2.3.2.1 Germany

        2. 2.3.2.2 United Kingdom

        3. 2.3.2.3 France

        4. 2.3.2.4 Italy

        5. 2.3.2.5 Spain

        6. 2.3.2.6 Rest of Europe

      3. 2.3.3 Asia-Pacific

        1. 2.3.3.1 China

        2. 2.3.3.2 Japan

        3. 2.3.3.3 India

        4. 2.3.3.4 Australia

        5. 2.3.3.5 South Korea

        6. 2.3.3.6 Rest of Asia-Pacific

      4. 2.3.4 Middle East and Africa

        1. 2.3.4.1 GCC

        2. 2.3.4.2 South Africa

        3. 2.3.4.3 Rest of Middle East and Africa

      5. 2.3.5 South America

        1. 2.3.5.1 Brazil

        2. 2.3.5.2 Argentina

        3. 2.3.5.3 Rest of South America

Medical Affairs Outsourcing Market Size FAQs

The Global Medical Affairs Outsourcing Market size is expected to reach USD 2.26 billion in 2024 and grow at a CAGR of 12.20% to reach USD 4.01 billion by 2029.

In 2024, the Global Medical Affairs Outsourcing Market size is expected to reach USD 2.26 billion.

Medical Affairs Outsourcing Market Report Snapshots

Medical Affairs Outsourcing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)