Medical affairs outsourcing refers to delegating medical-related functions like medical information, medical education, medical communications, medical monitoring and regulatory affairs to specialist third-party vendors. These services help develop disease awareness and support healthcare professionals. The medical affairs outsourcing market offers customized solutions to pharmaceutical, biotechnology and medical device companies at reduced costs.
The Global Medical Affairs Outsourcing Market is estimated to be valued at US$ 5.21 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Medical Affairs Outsourcing are IQVIA Holdings Inc., Ashfield (part of UDG Healthcare plc), Syneos Health, Parexel International Corporation, ICON plc, PRA Health Sciences, Pharmaceutical Product Development (PPD), WuXi AppTec, SGS SA, Covance Inc. (part of LabCorp), Indegene, The Medical Affairs Company (TMAC), Synergy Pharmaceuticals, Charles River Laboratories, KOLgroups, ZS Associates, McKinsey & Company (Healthcare Practice), Accenture.
Growing Medical Affairs Outsourcing Market Demand in the pharmaceutical industry is driving increased spend on medical affairs outsourcing. with stringent regulations, pharmaceutical companies prefer outsourcing medical services for Staying compliant.
Globally, the medical affairs outsourcing market is witnessing strong growth in developed regions like North America and Europe owing to increasing drug development and commercialization activities. However, Asia Pacific region is expected to exhibit highest growth over the forecast period owing to increasing low-cost opportunities and growing geriatric population.
Market key trends
One of the major trends in the medical affairs outsourcing market is the shift towards value-based healthcare models. Pharmaceutical and biotech firms are increasingly outsourcing medical services to gain real-world evidence and demonstrate efficacy of their drugs. This helps optimize treatment outcomes and lower healthcare expenses. Additionally, growing emphasis on data-driven decision making is prompting outsourcing of services like analytics and market access to specialist vendors.
Porter’s Analysis
Threat of new entrants: High barriers due to data ownership, regulatory compliance and established client relationships.
Bargaining power of buyers: Increase due to the large number of MAO providers available to choose from.
Bargaining power of suppliers: Service providers have moderate bargaining power due to established expertise and networks.
Threat of new substitutes: Low threat as MAO services require specialized expertise and long-term client relationships are important.
Competitive rivalry: Intense competition between large and mid-sized MAO players to gain new clients and expand service offerings.
Geographical Regions
North America accounts for the largest share of the medical affairs outsourcing market regional analysis in terms of value. Factors such as presence of majority of leading pharmaceutical companies, high R&D spending on drug development, and increasing application of analytics in life science research drive the market in the region.
Asia Pacific region is poised to grow at the highest CAGR during the forecast period. This is attributed to growing pharmaceutical industry, low operational costs, and availability of skilled labor in countries such as India, China and South Korea. Establishing of research hubs by leading pharmaceutical companies in the region further supports market growth.