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| Functional Service Providers (FSP) Market Size |
The 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:
Functional service providers (FSPs) offer a range of services to
pharmaceutical, biotechnology and medical device companies across different
functions such as clinical research, medical affairs, regulatory affairs,
pharmacovigilance and market access. The key services provided by FSPs includes
clinical trial management, biostatistics, regulatory consulting, medical
writing, and safety evaluation. FSPs aim to reduce costs and improve efficiency
for clients by taking over specific business functions. They leverage expertise
across various therapeutic areas to provide customized solutions. Emerging
areas such as real-world evidence, healthcare economic evaluation and digital
services are also gaining traction.
Market Dynamics:
The growth of the Functional Service Providers (FSP) Market is driven by the
rising outsourcing of clinical trials and other R&D functions by
pharmaceutical and biotechnology companies. Outsourcing non-core activities
helps companies focus on drug development and launch, thereby accelerating
their process. In addition, increasing complexity of clinical trials and
stringent regulatory requirements are prompting sponsors to leverage
capabilities of specialized providers. Further, the digital transformation of
clinical trials with tools such as electronic data capture and eConsent is augmenting
the demand for FSPs having relevant technical expertise. However, higher costs
of outsourcing and data privacy & security concerns pose challenges to the
market.
Segment Analysis
The Functional Service Providers (FSP) market can be segmented into clinical
research services, consulting services and medical writing services. Clinical
research services forms the dominant segment as it contributes to more than 50%
of the total FSP market revenues. The clinical research services segment is
further divided into clinical trial management, biopharmaceutical services and
medical device and diagnostics services. Clinical trial management dominates
clinical research services segment as more pharmaceutical and biopharmaceutical
companies outsource clinical trial management to reduce costs and risks.
PEST Analysis
Political: Regulations such as GCP and regional regulations influence
outsourcing from sponsors to FSPs. Stringent regulations drive the need for
specialized third-party service providers.
Economic: Rising R&D costs in drug development compel biopharma companies
to outsource non-core functions to FSPs to reduce costs.
Social: Growing disease prevalence increases drug development activities
propelling demand for specialized outsourcing partners across clinical research
and development.
Technological: Advancements in e-clinical technologies facilitate remote and
decentralized clinical trials models enhancing outsourcing to global FSP
networks.
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 R&D costs and complexities in clinical
research. The market size for 2023 is US$
15.72 Bn.
North America dominates the global FSP market currently owing to presence of
majority global FSP companies such as QuintilesIMS, PRA Health Sciences, and
PPD in the region. However, Asia Pacific is expected to witness highest growth
during the forecast period due to low-cost operations and expanding biopharmaceutical
industries in countries like China and India stimulating FSP activities.
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. QuintilesIMS, Parexel
International, PRA Health Sciences, and Covance Inc. currently dominate the FSP
market owing to their expertise in various clinical research and development
services as well as global network across major markets.
Read More: https://www.ukwebwire.com/functional-service-providers-market-scope/