by Functional Service Providers (FSPs) provide healthcare organizations with outsourced non-clinical services so they can focus on patient care. Services generally include finance and accounting, information technology, operations management, clinical engineering, and facility maintenance services among others. FSPs enable hospitals and other healthcare facilities to reduce costs and remain compliant with complex regulations.
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 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growth in remote healthcare and telemedicine is a major trend fueling the expansion of the Functional Service Providers (FSP) Market. The Covid-19 pandemic accelerated the adoption of telehealth and remote patient monitoring as it allowed for the continuation of non-emergency care while maintaining social distancing. This reduced the burden on hospitals and clinics. FSPs help healthcare organizations scale their remote care offerings through support services like virtual care platforms, IT infrastructure for connecting patients and providers remotely, and back-office functions. As remote healthcare is expected to remain popular even after the pandemic owing to benefits like improved access and lower costs, the need for specialized services from FSPs will continue rising over the forecast period.
SWOT Analysis
Strength: FSPs have strong expertise in outsourcing non-core functions like IT, HR, finance etc. This allows companies to focus on their core competencies.
Weakness: Dependency on third-party service providers can pose risks related to quality control and data security.
Opportunity: Growing digital transformation and remote working trends are increasing the demand for outsourcing of various business functions. This provides an opportunity for FSPs to expand their service offerings.
Threats: Intense competition among FSPs can lead to pricing pressures. Economic downturns may force companies to insource some outsourced functions, impacting revenue of FSPs.
Key Takeaways
The Global Functional Service Providers (FSP) Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 15.72 Bn in 2024, growing at a CAGR of 6.6% during the forecast period.
Regional analysis: North America currently dominates the FSP market owing to robust outsourcing activities by companies in the region. The US and Canada contribute significantly to the market growth. Asia Pacific is expected to witness the fastest growth owing to scalable outsourcing opportunities in major economies like China and India.
Key players: Key players operating in the Functional Service Providers (FSP) market are Abbott Medical Optics, Inc., Alcon Laboratories, Inc., Bausch & Lomb, Inc. (Valeant Pharmaceuticals), Carl Zeiss Meditec AG, CooperVision, Essilor International, Hoya Corporation, and Johnson & Johnson. These players are focusing on strategic partnerships and acquisitions to expand their service portfolios and geographical presence.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
