by The global Functional Service Providers (FSP) Market is estimated to be valued at US$ 15.72 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
FSP refers to outsourcing services such as clinical trial management, manufacturing lab services, data management, biostatistics and others to third party service providers. FSP helps biopharmaceutical companies reduce operational costs and access advanced expertise.
Market key trends:
The cloud-based on-demand service segment is witnessing highest growth due to its advantages such as access to advanced infrastructure, reduced costs, scalability and flexibility. Also, increasing complexities in drug development are driving the need for outsourcing non-core functional services to specialized FSPs. Further, growing biologics market and demand for personalized medicines are expected to boost clinical trial activities and drive the FSP market growth during the forecast period.
Segment Analysis
The functional service providers (FSP) market is fragmented with clinical research services and consulting services as the major segments. Clinical research services accounted for the largest market share in 2022, owing to increasing outsourcing of clinical trials by pharmaceutical and biotechnology companies. Clinical research services help sponsors in designing and executing clinical trials effectively and helps them bring new drugs to market quickly.
Key Takeaways
The Functional Service Providers (FSP) Market Size is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing outsourcing of non-core functions by pharmaceutical and biotechnology companies.
Regional analysis
North America dominated the global FSP market in 2022 and is expected to continue its dominance over the forecast period. This is attributed to presence of majority of pharmaceutical companies and contract research organizations in the US. Asia Pacific is expected to witness the fastest growth over the forecast period owing to availability of low-cost yet high quality clinical research services and presence of large patient pool in countries like China and India.
Key players
Key players operating in the FSP market are QuintilesIMS (now IQVIA), Parexel International Corporation, ICON plc, PRA Health Sciences, Covance Inc., Charles River Laboratories International Inc., Syneos Health, Pharmaceutical Product Development, LLC (PPD), Medpace Holdings, Inc., LabCorp (Laboratory Corporation of America Holdings), Wuxi AppTec, inVentiv Health (now Syneos Health), PAREXEL International (now part of PPD), Accenture, Cognizant. Major players are focusing on strengthening their service offerings and expanding their geographic presence through acquisitions and partnerships with local players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
