Pharmaceutical Contract Sales Outsourcing Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 9.16 Billion |
| Market Size (2029) | USD 11.98 Billion |
| CAGR (2024 - 2029) | 5.52 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Pharmaceutical Contract Sales Outsourcing Market Analysis
The Pharmaceutical Contract Sales Outsourcing Market size is estimated at USD 9.16 billion in 2024, and is expected to reach USD 11.98 billion by 2029, growing at a CAGR of 5.52% during the forecast period (2024-2029).
The factors driving market growth include increasing pressure on pharmaceutical companies to reduce the costs associated with sales, increasing research and development, a growing number of new drug launches, and rising initiatives from the key market players.
The huge research and development expenditure by the pharmaceutical and biopharmaceutical companies is anticipated to propel the market growth further. For instance, as per the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) report published in 2023, the biopharmaceutical industry R&D spent USD 196 billion in 2023. This spending is estimated to increase to USD 213 billion by 2026. Such a huge expenditure in research and development is anticipated to increase the launch of novel drugs, thereby increasing the demand for contract sales outsourcing to market the newly developed therapeutics, driving market growth.
Furthermore, the rising benefits of contract sales outsourcing in healthcare are anticipated to drive market growth. Pharmaceutical sales outsourcing has varied benefits such as cost saving, expertise and experience, scalability and flexibility, focus on core competencies, and improved performance. Therefore, owing to the benefits of sales outsourcing, such as the reduction of marketing costs, the market is anticipated to drive significantly.
Moreover, the rising initiatives from the key market players are anticipated to boost the market growth further. For instance, in January 2023, Syneos Health entered into a strategic partnership with Fosun Pharma USA Inc. Through this collaboration, Syneos Health's Syneos One team will deliver full-service commercial support for the United States launch of Serplulimab including medical affairs, market access, marketing, sales, and operations. Therefore, the partnership among key market players is anticipated to contribute the market growth due to the adoption of their services by pharmaceutical and biopharmaceutical companies.
Therefore, owing to the rising pharmaceutical and biopharmaceutical research and development expenditures, increased pressure on life science companies to reduce expenditure costs, and rising initiatives from the key market players, the market is anticipated to drive over the forecast period. However, stringent regulatory framework on marketing and selling of products is anticipated to hamper the market growth.
Pharmaceutical Contract Sales Outsourcing Market Trends
Pharmaceutical Companies is Expected to Register Significant Growth Over the Forecast Period
The pharmaceutical companies segment is expected to show significant growth in the market studied over the forecast period due to the huge research and development expenditures by the companies, the increasing initiatives from the key market players, and the rise in the need for novel therapeutics.
According to a report published by the Pharmaceutical Research and Manufacturers of America (PhRMA) in August 2024, PhRMA member companies invested USD 96.02 billion in R&D in 2023. Furthermore, according to the European Federation of Pharmaceutical Industries and Association, the estimated pharmaceutical R&D expenditure in 2022 was EUR 50.0 billion (USD 55.2 billion). Therefore, substantial investments in pharmaceutical research and development drive the creation of novel drugs. These new therapeutics require effective advertising and sales strategies. Consequently, there is an expected increase in demand for pharmaceutical contract sales outsourcing companies to market and sell these newly developed therapies.
Furthermore, the rising initiatives from the key market players are anticipated to drive segment growth. For instance, in May 2023, Yaral Pharma Inc. entered an expanding partnership with EVERSANA to support the expansion of its portfolio of pain and endocrinology products in the United States. Therefore, the partnerships among pharmaceutical companies and pharmaceutical contract sales outsourcing organizations are anticipated to contribute the segment growth.
Therefore, the rising initiatives from the key market players and the rising investments in the pharmaceutical industry, among others, are the factors anticipated to drive the segment growth.
North America is Expected to Hold a Significant Share in the Market Over the Forecast Period
The factors driving market growth in North America include the rising prevalence of chronic disease, the strong foothold of key market players, rising initiatives from the key market players to commercialize innovative therapy developed by pharmaceutical and biopharmaceutical companies, and rising funding for research and development of innovative pharmaceuticals and biopharmaceuticals.
According to the American Cancer Society 2024, 2 million new cancer cases are expected to be diagnosed in the United States in 2024. Furthermore, according to the study published in the Canadian Medical Association Journal in June 2024, an estimated 2.47 thousand people in Canada will be diagnosed with cancer in 2024. Such a huge incidence of cancers in North America is, therefore, expected to increase the development of cancer therapeutics. This will further lead to the adoption of contract sales outsourcing of cancer therapeutics for marketing and commercialization of the developed innovative drugs, thereby driving market growth.
Furthermore, the government's rising research and development expenditures on various diseases in the United States are anticipated to surge the demand for contract sales outsourcing due to the increased launch of innovative therapies in the market. For instance, according to the National Institute of Health, in May 2024, the government funded USD 3.7 billion for 324 diseases in 2023. The high funding for various diseases in the United States is anticipated to bolster the demand for the contract sales outsourcing market to increase the marketing and sales of innovative drugs developed through the research.
In addition, rising initiatives such as partnerships among key market players and pharmaceutical and biopharmaceutical companies for the commercialization of innovative drugs are further anticipated to propel market growth due to increased adoption. For instance, in May 2023, Shorla Oncology partnered with EVERSANA to commercialize the launch of the Nelarabine Injection for the treatment of T-cell Acute Lymphoblastic Leukemia (T-ALL) and T-cell Lymphoblastic Lymphoma (T-LBL) in adult and pediatric patients.
Therefore, owing to factors such as the rising incidence of chronic diseases such as cancers, rising initiatives from the key market players, and rising government funding for various diseases are the factors anticipated to escalate the demand for the market studied in North America.
Pharmaceutical Contract Sales Outsourcing Industry Overview
The market for pharmaceutical contract sales outsourcing is semi-consolidated. Factors owing to the competition include rising research and development activities, the launch of innovative therapeutics in the market, and rising partnerships among the key market players with pharmaceutical and biopharmaceutical companies. Some of the players operating in the market include EVERSANA, Granard Pharmaceutical Sales & Marketing, Veeva Systems, The Medical Affairs Company (TMAC), Vanguard Pharma Inc., and IQVIA Inc., among others.
Pharmaceutical Contract Sales Outsourcing Market Leaders
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EVERSANA
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Granard Pharmaceutical Sales & Marketing
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Veeva Systems
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The Medical Affairs Company (TMAC)
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IQVIA Inc
*Disclaimer: Major Players sorted in no particular order
Pharmaceutical Contract Sales Outsourcing Market News
- June 2024: Hugel Inc. and BENEV Company Inc. entered a strategic partnership in the United States Market, which encompasses marketing, sales, education, and research initiatives. Instead of engaging in direct sales, Hugel partnered with BENEV to enable the immediate launch and expansion of Hugel's product sales in the United States market.
- June 2023: Advanz Pharma forged a strategic alliance with Veeva to standardize its commercial operations using the Veeva Commercial Cloud, aligning with its expansion efforts in emerging markets throughout Europe. Advanz aims to implement a cohesive field strategy across the continent, enhancing engagement with healthcare professionals (HCPs) through the comprehensive suite of Veeva software and data.
Pharmaceutical Contract Sales Outsourcing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Pressure on Pharmaceutical Companies to Reduce Cost Associated with Sales
4.2.2 Increasing Research and Development and Growing Number of New Drug Launches
4.3 Market Restraints
4.3.1 Stringent Regulatory Framework on Marketing and Selling of Products
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD)
5.1 By Service
5.1.1 Personal
5.1.1.1 Promotional Sales Team
5.1.1.2 Key Account Management
5.1.1.3 Vacancy Management
5.1.2 Non-Personal
5.1.2.1 Medical Affairs Solutions
5.1.2.2 Remote Medical Science Liaisons
5.1.2.3 Nurse (clinical) Educators
5.1.2.4 Other Non-Personal Services
5.2 By End-User
5.2.1 Pharmaceutical Companies
5.2.2 Biopharmaceutical Companies
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Italy
5.3.2.5 Spain
5.3.2.6 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 South Korea
5.3.3.6 Rest of Asia-Pacific
5.3.4 Middle East and Africa
5.3.4.1 GCC
5.3.4.2 South Africa
5.3.4.3 Rest of Middle East and Africa
5.3.5 South America
5.3.5.1 Brazil
5.3.5.2 Argentina
5.3.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 IQVIA Inc.
6.1.2 Syneos Health Inc.
6.1.3 Veeva Systems (Publicis Touchpoint Solutions, Inc.)
6.1.4 ICON plc
6.1.5 The Medical Affairs Company (TMAC)
6.1.6 Ashfield Healthcare Communications Group (part of UDG Healthcare plc)
6.1.7 Granard Pharmaceutical Sales & Marketing
6.1.8 Vanguard Pharma Inc
6.1.9 EVERSANA
6.1.10 GTS Solution
6.1.11 MaBiCo
6.1.12 QFR Solutions
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Pharmaceutical Contract Sales Outsourcing Industry Segmentation
Pharmaceutical contract sales outsourcing is the process of assigning a part of the company's sales process to a third party or external agency. It is usually done by pharmaceutical and biopharmaceutical companies that lack adequate resources like manpower or time to expand their sales process or decrease their marketing expenditure.
The pharmaceutical contract sales outsourcing market is categorized by service, end-users, and geography. By service, the market is segmented into personal and non-personal services. By personal service, the market is segmented into promotional sales teams, key account management, and vacancy management. By non-personal service, the market is segmented into medical affairs solutions, remote medical science liaisons, nurse/clinical educators, and other non-personal services. By end-users, the market is segmented into pharmaceutical companies and biopharmaceutical companies. For each segment, the market size is provided in terms of value (USD).
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Pharmaceutical Contract Sales Outsourcing Market Research FAQs
How big is the Pharmaceutical Contract Sales Outsourcing Market?
The Pharmaceutical Contract Sales Outsourcing Market size is expected to reach USD 9.16 billion in 2024 and grow at a CAGR of 5.52% to reach USD 11.98 billion by 2029.
What is the current Pharmaceutical Contract Sales Outsourcing Market size?
In 2024, the Pharmaceutical Contract Sales Outsourcing Market size is expected to reach USD 9.16 billion.
Who are the key players in Pharmaceutical Contract Sales Outsourcing Market?
EVERSANA, Granard Pharmaceutical Sales & Marketing, Veeva Systems, The Medical Affairs Company (TMAC) and IQVIA Inc are the major companies operating in the Pharmaceutical Contract Sales Outsourcing Market.
Which is the fastest growing region in Pharmaceutical Contract Sales Outsourcing Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Pharmaceutical Contract Sales Outsourcing Market?
In 2024, the North America accounts for the largest market share in Pharmaceutical Contract Sales Outsourcing Market.
What years does this Pharmaceutical Contract Sales Outsourcing Market cover, and what was the market size in 2023?
In 2023, the Pharmaceutical Contract Sales Outsourcing Market size was estimated at USD 8.65 billion. The report covers the Pharmaceutical Contract Sales Outsourcing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Pharmaceutical Contract Sales Outsourcing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Pharmaceutical Contract Sales Outsourcing Industry Report
Statistics for the 2024 Pharmaceutical Contract Sales Outsourcing market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Pharmaceutical Contract Sales Outsourcing analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
