Regulatory Affairs Outsourcing Market

Regulatory Affairs Outsourcing Market Size (2023 to 2028)

As per our analysis report, the global regulatory affairs outsourcing market is forecasted to be worth USD 17.82 billion by 2028 from USD 9.12 billion in 2023, registering a CAGR of 14.33 % from 2023 to 2028.

Regulatory Affairs Outsourcing Market Share Insights:

• Based on services, the regulatory consulting segment dominated the market in 2022.
• Based on the company size, the medium-sized companies segment held the largest share of the market in 2022.
• Based on end-user, the pharmaceutical companies segment accounted for the leading share of the global market in 2022.
• Based on region, North America led the market in 2022.

Impact of COVID-19 on the global regulatory affairs outsourcing market:

COVID-19 had a huge impact on the global regulatory affairs outsourcing market due to the decreased number of clinical trials, which are a major driver of the market growth. A large number of clinical trials were either cancelled or postponed due to the imposed restrictions during the COVID-19 pandemic. This led to an overall decline in the demand for the regulatory affairs outsourcing services and affected the market growth negatively. However, there was a surge in the demand for regulatory affairs outsourcing firms to provide support in obtaining regulatory approval for companies manufacturing covid-related products including vaccines, testing kits, and other equipment. There were delays in regulatory approvals of other medical products in between increased scrutiny of anti-covid drugs. Apart from the above challenges, the COVID-19 pandemic has highlighted the need for supply chain transparency to provide information on the quality of raw materials used and finished goods. Regulatory affairs outsourcing firms are also helping companies manage the increasing number of adverse event reports and compliance with evolving regulatory requirements.

MARKET DRIVERS:

The growing investments to conduct R&D activities in the healthcare sector globally primarily drive the regulatory affairs outsourcing market growth.

As per a 2020 report by Pharmaceutical Research and Manufacturers of America (PhRMA), more than 260 vaccines are under development for various disorders, including COVID-19. An increasing number of clinical trial studies is anticipated to boost the market growth. The regulatory environment of the healthcare industry is highly complex and constantly changing. Therefore, healthcare companies must carefully evaluate potential outsourcing partners based on their expertise, qualifications, experience, and services in order to ensure strict adherence to ethical and global regulatory standards imposed by regulatory bodies like FDA (US Food and Drug Administration) and the EMA (European Medicines Agency). Leading to a high demand for the market.

Since, outsourcing the regulatory services allows companies to focus on their core competencies and save costs, more and more companies are hiring experienced third-party firms who can effectively handle their regulatory requirements. Therefore, the factors of cost-effectiveness and operational efficiency stimulate the demand for the market. The internal employees of the company lack the know-how connected with regulatory expertise, which leads to an increased number of errors and slow product approvals. This is another factor that motivates companies to outsource regulatory support.

Technological advancements and increasing efforts from the key market participants further propel the regulatory affairs outsourcing market.

The key market players also play a major role in the market expansion as they launch new products and indulge in mergers and acquisitions. Technological advancements in regulatory affairs, such as the increasing use of cloud-based document management, and electronic submission systems have brought more efficiency and cost-savings in the regulation activities.

MARKET RESTRAINTS:

Issues associated with data security is one of the major restraints to the regulatory affairs outsourcing market. As many outsourcing companies have access to sensitive data of pharmaceutical and other companies, it poses a threat to the company’s security. With the increasing globalization of the healthcare industry, there’s a need to comply with regulations in different nations. However, it poses a major challenge of lack of standardization in regulatory requirements across different countries. It creates difficulties for outsourcing partners in navigating through different regulatory systems leading to high costs. Therefore, a lack of standardisation can act as another major market restraint.

REPORT COVERAGE:

This research report on the global regulatory affairs outsourcing market has been segmented and sub-segmented into the following categories: services, company size, end-user, & region.

Regulatory Affairs Outsourcing Market – By Services:

• Regulatory Consulting
• Legal Representation
• Regulatory Writing & Publishing
• Product Registration & Clinical Trial Applications
• Other Services

Based on services, the regulatory consulting segment is estimated to hold the leading share of the global market during the forecast period. Complex regulatory landscape that demands specialized guidance for compliance and strategic approvals, which is one of the major factors propelling the growth of the regulatory consulting segment. Global expansion of companies that require expert advice for compliance in different regions and increasing demand for cost-effective solutions through outsourcing regulatory expertise further fuel the growth rate of the regulatory consulting segment.

The regulatory writing and publishing segment is anticipated to witness a healthy CAGR in the coming years. Factors such as stringent regulatory guidelines for documentation accuracy and completeness, rising emphasis on transparent and well-structured regulatory submissions and growing focus on efficient communication with regulatory authorities for quicker approvals drive the growth of the regulatory writing and publishing segment.

Regulatory Affairs Outsourcing Market – By Company Size:

• Small
• Medium
• Large

Based on the company size, the medium-sized companies segment led the market in 2022 and is expected to retain its leading position in the global market over the forecast period. As medium-sized pharmaceutical and medical device companies do not have enough capital to develop an in-house regulatory affairs team, they mostly outsource, driving the demand for regulatory affairs outsourcing in the market.

However, the large company segment is expected to show a promising CAGR over the forecast period because of the presence of long-term relations with the service providers that can meet their regulatory needs effectively.

Regulatory Affairs Outsourcing Market – By End-User:

• Medical Device Companies
• Pharmaceutical Companies
• Biotechnology Companies

Based on end-user, the pharmaceutical companies segment is predicted to account for the major share of the worldwide market during the forecast period and this segment is also expected to register the fastest CAGR among all the segments. This is due to the development in the drug categories and an increasing number of new drugs entering the market which creates demand for regulatory services.

Other segments such as medical device companies and biotechnology companies held substantial market share in 2022 and are expected to grow at a healthy CAGR during the forecast period. This can be attributed to increased demand for advanced medical devices, biopharmaceuticals, vaccines, and wearable devices.

Regulatory Affairs Outsourcing Market – By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

North America held the major share of the global market in 2022 and the domination of the North American region is anticipated to continue throughout the forecast period. The complex regulatory landscape that demands specialized expertise for compliance, high concentration of pharmaceutical and biotech companies outsourcing regulatory tasks to focus on core activities and growing demand for cost-effective solutions and streamlined approval processes majorly drive the growth of the regulatory affairs outsourcing market. The U.S. is expected to hold the major share of the North American market during the forecast period owing to the stringent regulatory requirements, a mature healthcare industry, and a large number of pharmaceutical and medical device companies.

Europe accounted for a substantial share of the worldwide market in 2022 and is expected to grow at a prominent CAGR in the coming years. Factors such as varied regulatory requirements across EU member states that necessitate expert guidance, increase in the cross-border clinical trials that require harmonized regulatory strategies and rising demand for specialized regulatory consultancy services in areas like biologics and medical devices primarily propel the growth of the European market. The UK, Germany and France are expected to capture the leading share of the European market in the coming years.

The Asia-Pacific regional market is anticipated to be the most lucrative regional market worldwide and is expected to register the fastest CAGR during the forecast period. Emerging markets such as India and China attracting clinical trials and research that necessitate regulatory expertise is one of the key factors propelling the APAC market growth. The growing harmonization efforts across the region's regulatory agencies and increasing from the pharmaceutical companies for the cost-effective options and local regulatory insights for market entry further boost the growth rate of the APAC market.

Key Market Participants:

WuXi AppTec Inc., Medpace, Pharmaceutical Product Development LLC (PPD), Charles River Laboratories International, Inc., ICON plc, Covance, Parexel International Corporation Inc., Freyr, Accell Clinical Research LLC, Genpact Ltd., Criterium, Inc., PRA Health Sciences, Promedica International are some of the major companies operating in the global regulatory affairs outsourcing market profiled in this report.

Recent Market Developments:

• In April 2023, the UK government has updated guidance on the future of medical device regulation in Great Britain, which aims to support the ongoing safe supply of medical devices to Great Britain and ease the transition to the future regulatory framework.
• In October 2021, Paraxel and Kyoto University Hospital launched a strategic partnership targeting expanding clinical research opportunities and improving clinical study support.
• In August 2021, ProPharma Group acquired India-based iSafety Systems to strengthen ProPharma Group’s position as the prime global provider of regulatory and compliance consulting, pharmacovigilance, clinical research services, and medical information.
• In February 2021, ICON plc acquired PRA Health Sciences, Inc. in a cash and stock transaction valued at approximately USD 12 billion. This acquisition has strengthened the medical affairs service offering of the company.
• IQVIA stated in April 2021 that it had purchased a minority investment in Q2 Solutions, a central laboratory services joint venture, with Quest Diagnostics.
• In November 2019, Accell partnered with Syntax, another CRO service provider.