Medical affairs outsourcing market to reach $4.21Bn by 2031 — Straits Research

NEW YORK, UNITED STATES—The global medical affairs outsourcing market is on track to reach a staggering $4.21 billion by 2031, according to a recent report by Straits Research. 

This growth, marked by a Compound Annual Growth Rate (CAGR) of 11.9%, is fueled by the increasing number of clinical trials and the launch of new medications, necessitating enhanced medical affairs services among pharmaceutical and medical device companies.

Medical affairs functions are becoming increasingly critical across the pharmaceutical, biotechnology, medical device, and diagnostic sectors. This trend is driven by the growing demand from healthcare professionals for up-to-date clinical knowledge and information on the latest therapeutic advancements.

The report highlights the strategic role of Contract Research Organizations (CROs) in providing high-quality, cost-effective medical affairs services. This approach not only helps biopharmaceutical companies reduce costs but also enhances the quality of medical affairs functions, making outsourcing a “strategic competitive weapon” in the industry.

The surge in research and development spending by pharmaceutical and biopharmaceutical companies led to an increase in clinical trials globally. This uptick in research activity, particularly in oncology, has significantly boosted the demand for specialized medical affairs services.

Geographically, North America is projected to lead the medical affairs outsourcing market, growing at an 11.80% CAGR during the forecast period. The region’s dominance is attributed to a robust pipeline of biotechnology products and stringent regulatory requirements. 

Meanwhile, the Asia-Pacific market is expected to witness the highest growth rate, at a CAGR of 13.90%, driven by an improving regulatory landscape, lower costs, and a burgeoning biopharmaceutical industry.

Europe is also poised for substantial growth as companies navigate the complex regulatory environment of the European Union, often resorting to outsourcing to meet their medical affairs needs.

Prominent players in the market include ICON plc, IQVIA Holdings, Inc., The Medical Affairs Company, and Syneos Health, Inc., among others, who are set to play a crucial role in the market’s expansion.